Punjab National Bank swings to fiscal Q3 net profit YOY

Punjab National Bank reported a fiscal third-quarter consolidated net profit after minority interest of 7.47 billion Indian rupees from a net loss after minority interest of 3.85 billion rupees in the prior-year period, as provisions for nonperforming assets fell and total income rose.

According to the bank's Feb. 5 earnings release, its EPS came in at 78 paisa per share in the period, compared to a loss per share of 65 paisa.

Interest earned for the quarter rose year over year to 205.99 billion rupees from 138.35 billion rupees.

Total income climbed to 236.39 billion rupees from 162.11 billion rupees, while operating profit rose to 65.57 billion rupees from 38.02 billion rupees.

Provisions and contingencies amounted to 54.80 billion rupees, up from 41.86 billion rupees in the prior-year quarter. Provisions for nonperforming assets fell year over year to 31.05 billion rupees from 44.71 billion rupees.

The bank's stand-alone gross NPA ratio came to 12.99% as of Dec. 31, 2020, compared to 13.43% at Sept. 30, 2020, and 16.30% at Dec. 31, 2019. Its net NPA ratio for the period clocked in at 4.03%, compared to 4.75% at Sept. 30, 2020, and 7.18% at Dec. 31, 2019.

As of the end of 2020, the lender's consolidated capital adequacy ratio under Basel III stood at 14.17%, compared to 13.17% at Sept. 30, 2020, and 14.39% at Dec. 31, 2019. Its common equity Tier 1 ratio for the period clocked in at 10.38%, compared to 9.82% at Sept. 30, 2020, and 10.92% at Dec. 31, 2019. The lender's additional Tier 1 ratio for the period came to 0.81%, compared to 0.82% at Sept. 30, 2020, and 1.25% at Dec. 31, 2019.

As of Feb. 5, US$1 was equivalent to 72.83 Indian rupees.