PNB posts Q1 net profit of Rs 308 cr

State-owned Punjab National Bank (PNB) on Friday reported a standalone net profit of Rs 308 crore for the quarter ended June even as provisions for bad loans doubled. The country's second largest lender had posted a net profit of Rs 1,018.63 crore during the corresponding April-June period of 2019-20.

While the figures show a drop of 70 per cent, the bank in a regulatory filing said the results are not comparable as it merged Oriental Bank of Commerce and United Bank of India with itself effective April 1, 2020.

"Operating profit of the bank grew by 2.5 per cent on a YOY basis to Rs 5,280 crore in the first quarter of FY'21," the bank said in a separate statement.

Total income rose to Rs 24,292.80 crore during the June quarter of 2020-21, as against Rs 15,161.74 crore in the same period of the previous fiscal.

On the assets front, the lender's gross non-performing assets (NPAs) fell to 14.11 per cent of gross advances at the end of June 2020, as against 16.49 per cent at the end of June 2019.

Net NPAs declined to 5.39 per cent as against 7.17 per cent earlier.

However, provisions for bad loans more than doubled to Rs 4,836.40 crore from Rs 2,147.13 crore.

Provision Coverage Ratio (PCR) improved to 80.75 per cent from 70.37 per cent.

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During the quarter, the bank availed dispensation for deferment of provision in respect of frauds amounting to Rs 1,693.68 crore as per RBI guidelines, it added.