Shares of Punjab National Bank (PNB) slipped 6 percent today after the lender reported a 63 per cent decline in standalone net profit for the September quarter on account of higher provisioning for bad loans.Net profit fell to Rs 411 crore in the September quarter against a net profit of Rs 1,105 crore in the year-ago period.
PNB shares fell 5.86 percent to Rs 40.10 against the previous close of Rs 42.60 on BSE. Earlier, the stock rose 2.35 per cent to Rs 43.6 before the earnings were announced. PNB shares are trading higher than the 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.
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The stock has lost 4.63% in one year and risen 7.64% since the beginning of this year. Market cap of the lender fell to Rs 44,209 crore on BSE. Total 76.76 lakh shares changed hands amounting to turnover of Rs 32.14 crore on BSE.
The share hit a 52 week high of Rs 44.80 on October 28, 2022 and 52-week low of Rs 28.05 on June 20, 2022.
Provisions for bad loans climbed to Rs 3,555.98 crore in the July-September quarter of FY23 as against Rs 2,692.74 crore in the year-ago period.
However, total income in the September quarter rose to Rs 23,001.26 crore against Rs 21,262.32 in the July-September period a year ago. The lender’s interest income also rose to Rs 20,154 crore from Rs 17,980 crore in the same quarter a year ago.
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Gross non-performing assets (NPAs) fell to 10.48 per cent of the gross advances from 13.36 per cent earlier. In absolute terms, the gross NPAs or bad loans stood at Rs 87,034.79 crore at the end of the second quarter of FY23, compared to Rs 1,00,290.85 crore a year earlier. Net NPAs too declined to 3.80 per cent as against 5.49 per cent.
