MUMBAI: The third largest public sector lender Punjab National Bank (PNB) has reported a net profit of Rs 1,675 crore for the three months to June, a steep 49% dip from the year ago period, weighed down by increased tax outgoes which jumped to Rs 5,083 crore.
An improvement in asset quality and a healthy 15.7% jump in income to Rs 37,231 crore and a 1% growth in the key net interest income at Rs 31,964 crore could not cushion the massive tax outgo of Rs 5,083 crore, leading to a massive drop in net income to the tune of close to 49% for the reporting quarter.
In the June 2024 quarter the bank had netted Rs 3,251 crore in net income while the same stood at a high Rs 4,567 crore in the March 2025 quarter, the New Delhi-based lender said in a statement Wednesday.The management attributed the deep cut in the bottom line to the sharp rise in tax expenses, which more than doubled to Rs 5,083 crore from Rs 2,017 crore a year earlier.
But the bank did not offer explanation for such a spike in tax outgo.The key net interest income inched up 1% to Rs 10,578 crore and the net interest margin stands at a low 2.84%.On the asset quality front, the bank showed significant improvement with gross dropping to 3.78 from 4.98 a year ago or at Rs 42,673 crore.
Similarly the net non-performing assets ratio also declined to 0.38 from 0.60 a year ago or Rs 4,132 crore. Bad loan provisions came down to a low Rs 396 crore from Rs 1,312 crore in the corresponding quarter last year and from Rs 792 crore reported in the March quarter.
The provision coverage ratio improved by 98 bps to 96.88 from 95.9.Total business grew 11.6% to Rs 27.2 trillion from Rs 24.37 trillion of which deposits were Rs 15.89 trillion which grew 12.9% while advances were Rs 11.32 trillion.
Of the total deposits savings deposits rose to Rs 4,97,981 crore registering, a growth of 2.8% and current deposits at Rs 70,656 crore a growth of 9.2% and the low cost Casa deposits increased to Rs 5,68,638 crore recording a growth of 3.6% and the Casa share at 36.99%.
Of the total advances, retail credit increased 11.8% to Rs 2,62,219 crore and the core retail advances grew 17.7% of which housing loans grew 16.6% to Rs 1,18,708 crore, vehicle loans jumped 25.3% to reach Rs 27,229 crore, agriculture advances grew 6.2% to Rs 1,78,885 crore and MSME book increased 18.6% to Rs 1,69,426 crore.