NEW DELHI: Punjab National Bank’s net profit during the June quarter nearly halved to Rs721 crore due to higher bad loan provisioning. The bank’s first quarter net profit of current fiscal showed a 48.68 per cent decline from Rs1,405 crore reported the same quarter of 2014-15 fiscal.
Its gross NPAs increased to Rs25,397 crore in the June quarter of current fiscal as against Rs19,603 crore in the same quarter of last fiscal.
The fresh restructuring done during the first quarter is just Rs676 crore in 22 accounts. The sectors in which restructuring has taken place include power and steel.
Interest income of the bank rose to Rs12,035 crore during the first quarter, up nearly 4 per cent from Rs11,589 crore in the three month of 2014-15.
While announcing the quarterly results on Tuesday, Gauri Shankar, additional charge of Managing Director and Chief Executive Officer of PNB said with rising bad loans, the bank has published the list of 400 wilful defaulters to the RBI. It also plans to sell its bad assets worth Rs3,000 crore to Asset Reconstruction Companies (ARC) during the current financial year.