MUMBAI: The Punjab National Bank (PNB), on Monday, announced a 44% decline in its net profit to Rs 629 crore in the third quarter ending December, weighed down by the increase in provision for bad loans. The public sector lender’s total exposure to Adani Group companies is nearly Rs 7,000 crore and the bank is closely watching the developments surrounding the conglomerate.
“Out of Rs 7,000 crore, nearly Rs 2,500 crore is related to Adani’s airport business. Whatever the exposure we are having is backed by cash flow,” said Atul Kumar Goel, MD and CEO of PNB, addressing a virtual press conference.
The lender’s net profit stood at Rs 1,127 in the same quarter previous year.
The bank’s net interest income, difference between income earned and interest paid, grew 17.6% year-on-year to Rs 9,179 crore while the non-interest income grew by 23.6 % to Rs 3,338 crore.
Its provisions rose 40 % to Rs 4,713 crore in the reported quarter from Rs 3,353 crore in the year-ago period.