PNB Q3 Results: Punjab National Bank — India's third largest PSU lender by market value — on Monday reported a net profit of Rs 628.9 crore for the quarter ended December 2022, missing analysts' estimates by a wide margin. The net profit fell 44.2 per cent compared with the corresponding period a year ago.

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The bank's net interest income — or the difference between interest earned and interest paid — increased 17.6 per cent on a year-on-year basis to Rs 9,179.4 crore, according to a regulatory filing.

According to Zee Business research, PNB's quarterly net profit was estimated at Rs 1,410 crore and NII at Rs 8,750 crore.

However, the lender reported improvement in its asset quality. Its gross non-performing assets (NPAs) as a percentage of total loans came in at 9.76 per cent for the quarter ended December 2022, as against 10.48 per cent for the previous three months and 12.88 per cent for the quarter ended December 2021.

Its net non-performing assets — or bad loans — contracted by 50 basis points sequentially to 3.3 per cent. The lender's net NPAs had stood at 4.9 per cent for the quarter ended December 2021.

Slippages — or new bad loans — stood at around Rs 4,000 crore, out of which, retail slippages were at nearly Rs 1,000 crore, the lender's management said in a press conference. 

PNB's deposits increased 7.4 per cent on a year-on-year basis to Rs 12.1 lakh crore.

“Salary account and government deposits will be on the focus under CASA (current account savings account). Deposit growth will be around 8-9 per cent,” said Atul Kumar Goel, MD and CEO, PNB.  

PNB shares ended 0.2 per cent lower at Rs 50.7 apiece on BSE after the earnings announcement.

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