Stressed Asset Dilemma: PNB's Q1FY17 net profit declines by 57%

State-owned Punjab National Bank reported net profit of Rs 306.36 crore for the June quarter ended, registering decline of 57.49% yoy (year-on-year). However, this net profit was better than net loss of Rs 5367.14 crore reported in the preceding quarter.

The net interest income (NII) was around Rs 3699 crore, recorded drop of 9.83% yoy but rose 33.64% qoq (quarter-on-quarter). While total income for the bank stood at Rs 13,930 crore, increasing by 3.70% yoy and 4.92% qoq.

Provisions and contingencies were a mixed bag during this quarter. The provisions stood at Rs 2736.38 crore, up by 51.06% yoy but down by 73.90% qoq.

The gross NPA (non-performing asset)  stood at  13.75% in June quarter, expanding by 728 bps (basis points) yoy and 85 bps qoq.

On segment wise revenue break-up, where wholesale banking recorded robust growth, it was retail banking that slumped this quarter.  

Wholesale banking clocked nearly one folds jump to Rs 6535.18 crore compared to Rs 3271.74 crore in June 2015. While retail banking declined by 47.03% to Rs 3463.44 crore in Q1FY17 versus Rs 6539.29 crore in Q1FY16.

Total advances also rose by 2.80% to Rs 3915.74 crore from Rs 3808.80 crore in the corresponding period of the previous year.

The bank’s earnings per share stood at Rs. 1.56 per share. 

The share price of Punjab National Bank slumped by 1.85% to Rs. 130.30.