PNB Q4 net falls 66% to Rs 202 crore

NEW DELHI: The Punjab National Bank, a public sector lender, on Wednesday reported a 66 percent fall in its standalone net income to Rs.202 billion for the quarter ended March 2022 due to a higher amount parked for the provision, although non-performing loans declined.
The bank had posted a net profit of Rs 586 crore for the same quarter a year ago.
Total stand-alone income in the January-March quarter of 2021-22 was Rs.21,095 crore, against Rs.21,386 crore in the same period of 2021-21, PNB said in a regulatory filing.
For full FY22, standalone net profit rose 71 percent to Rs.3,456.96 crore from Rs.2,021.62 crore in FY21, the bank said.
The New Delhi-based lender’s asset quality showed improvement, with gross non-performing assets (GNPAs) falling to 11.78 percent of gross advances in March 2022 from 14.12 percent a year earlier.
Net NPAs, or non-performing loans, also fell to 4.8 percent from 5.73 percent. However, the lender maintained a higher provision for bad loans and contingencies for the fourth quarter of FY22 at Rs 4,851.47 crore versus Rs 3,540.32 crore previously.
On a consolidated basis, the bank’s net profit fell by 55 per cent to Rs.245 crore in the fourth quarter of FY22 compared to Rs.547 crore in the same period last year. Total revenue during the quarter also fell to Rs.21,350.59 crore from Rs.21,633.84 crore.
The bank’s consolidated net profit for the full year was Rs 3,675.96 crore, up 71 per cent from Rs 2,152.43 crore. However, the total revenue in 2021-22 fell to Rs.88,339.49 crore from Rs.94,169.95 crore in 2020-21.
PNB said it holds a total reserve of Rs 8,384.09 crore (total reserve of Schedule 1 and 2 RBI accounts) as at 31 March 2022 (99.78 per cent of gross NPA advances). In FY21 it was Rs 8,374.53 crore.
Regarding the regulatory framework for the resolution of stressed assets, the bank holds an additional provision of Rs. 2,007.22 crore in 20 accounts at the end of March 2022. The Group’s consolidated results include financial reports from five subsidiaries and 15 associated companies.
The Board has recommended a dividend of Rs 0.64 per share (ie 32 per cent) of par value of Rs 2 each for 2021-22, subject to shareholder approval at the subsequent AGM.
The Bank raised 22 Basel III compliant AT1 bonds and Tier II bonds during the financial year at Rs 3,971 crore and Rs 1,919 crore respectively.
The coverage ratio of the provision as of March 31, 2022 is 81.60 percent compared to 80.14 percent as of March 31, 2021, it said.
PNB shares closed BSE at Rs 33.10 apiece, down 0.60 per cent from the previous close.

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