Image Credit: Bloomberg Quint
The Punjab National Bank(PNB) on Friday reported a profit of Rs 586 crore for the quarter ending in March 2021, a massive turnaround from the same quarter in the previous fiscal when the company had to face a loss of Rs 697.20 crore. A jump in non-interest revenue is being credited by analysts for the positive results. Non-interest revenue for PNB rose by 47.95% to Rs 3742.20 crore for the March 2021 quarter.
Net interest income for the public sector bank was Rs ₹6,937.55 crore, an increase of 48.32% as compared to the year-ago quarter when it was Rs ₹4,677.54. Net interest income is the revenue generated due to the difference between interest charged(from the borrower) and interest given(to the depositor) by the bank.
Among more positive news for Punjab National Bank and its shareholders, the bank’s gross NPA(Non-Performing Assets) as a percentage of total loans fell to 14.12 % in January-March 2021 quarter as compared to 14.21% in the same quarter the previous fiscal. However, this is an increase from the September-December 2020 quarter when it was 12.99%.
The net NPA of PNB also witnessed a decline, falling from 5.78% in March 2020 quarter to 5.73% in the March 2021 quarter. For the third quarter of fiscal 2020-21, NPA was reported at 4.03%.
The Capital Adequacy Ratio was found to be 14.32% as of March 31 this year. Meanwhile, deposits in the bank stood at Rs 11.06 trillion for the March 2021 quarter, an increase of 57.10% on a year-over-year(YOY) basis.
The bank, in its exchange filing, said that it is currently evaluating the impact of the second wave of Covid-19 on its business. “The extent to which the covid-19 pandemic will impact the Bank’s results will depend on future developments, which are highly uncertain including among other things, the success of vaccination drive,” the lender said.