PNB Q1 Results: Lower taxes aid profitability; Provisions rise sequentially

Punjab National Bank Ltd., the state-run lender, reported its results for the June quarter on Saturday, July 18, that appear subdued on a year-on-year basis, on the core parameters.

The lender's Net Interest Income grew only 2.1% from the same quarter last year to ₹10,798 crore.

Net profit for the period stood at ₹5,253 crore from ₹1,675 crore last year. The profitability was aided by a sharp fall in tax expenses for the lender.

PNB's tax expenses at the end of the June quarter stood at ₹1,725 crore from ₹5,083 crore during the same quarter last year.

Asset quality for the PSU Bank was largely stable with Gross NPA at 2.78% from 2.95% in the previous quarter, while Net NPA stood at 0.28% from 0.29% in the previous quarter. In absolute terms, PNB's Gross NPA stood at ₹35,380 crore from ₹37,124 crore in March, while Net NPA stood at ₹3,433 crore from ₹3,609 crore in the previous quarter.

Provisions for the quarter increased marginally on a sequential basis to ₹541 crore from ₹424 crore in March.

Shares of Punjab National Bank ended 0.75% higher on Friday at ₹106.01. The stock is down 15% so far on a year-to-date basis.

This story will be updated with more details.