State-run Punjab National Bank on Tuesday reported 2.5 per cent increase in net profit to Rs774.56 crore for its third quarter ended December as compared to Rs755.41 crore during the corresponding period last fiscal. Operating profit of PNB remained flat at Rs2,751 crore as against Rs2,702 crore in the year-ago period.
Though most of the banks have posted poor results due to rising non-performing assets, PNB's profit came on account of lowering the provision coverage ratio. As far as PNB's asset quality is concerned, gross NPAs as a percentage to total advances rose to 5.97 per cent from 4.96 per cent in the same quarter a year ago.
Net interest income remained almost flat at Rs4,233 crore during October-December quarter compared to Rs4,221 crore in same quarter last year. Net interest income is the difference between interest earned and interest expended. The total income increased to Rs 12,904.85 crore for the quarter ended December 31, 2014 from Rs11,922.30 crore in the same quarter last fiscal.
The capital adequacy ratio (as per Basel III norms) dropped to 11.54 per cent in the quarter ended December 2014 from 11.79 per cent in previous quarter but improved compared to 11.02 percent in the year-ago quarter. However, total provisions, excluding for income tax, made during the third quarter of 2014-15 were Rs1,467.77 crore as against Rs1,590.04 crore in the year-ago period. During the first three quarters of 2014-15, PNB has registered just 8.6 per cent growth in net profit to Rs2,755 crore, compared to Rs2,536 crore in the year-ago period.The bank's total income for the nine month period in the current fiscal is Rs38,750 crore, compared to Rs35,302 crore in the same period of the previous financial year.