PNB Q1 results: Net profit at Rs 1,255 crore, in line with analysts' estimates

State-run Punjab National Bank (PNB) — India's third largest PSU lender by market capitalisation (mcap) — on Wednesday reported a standalone net profit of Rs 1,255.4 crore for the April-June period, marking a jump of more than four times compared with the corresponding period a year ago and in line with analysts' estimates. The lender's earnings were driven by improvement in interest income as well as asset quality. The bank had reported a standalone net profit of Rs 308.4 crore for the quarter ended June 2022. 

The lender's net interest income (NII) — or the difference between interest earned and interest paid — came in at Rs 9,504.3 crore for the first quarter of the current financial year, as against Rs 7,542.8 crore for the corresponding period a year ago, according to a regulatory filing.

According to Zee Business research, PNB's quarterly net profit was estimated at Rs 1,250 crore and NII at Rs 9,300 crore.

PNB's asset quality improves 

Punjab National Bank's asset quality improved. Its gross non-performing assets (NPAs) — or bad loans —  as a percentage of total loans came down to 7.73 per cent for the June quarter as against 8.74 per cent for the previous three months. 

The lender's net NPAs came in at 2.72 per cent, a decline of 74 basis points on a sequential basis.

PNB shares held on to their intraday gains after the earnings announcement. The stock rose by as much as Rs 2.1 or 3.4 per cent to Rs 62.8 apiece on BSE, coming within Rs 2.5 of a 52-week high touched last week.  

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