Public sector lender Punjab National Bank on Wednesday reported a 66 per cent decline in its standalone net profit at Rs 202 crore for the quarter ended March 2022 due to higher amount parked towards provisioning, even as bad loans declined.
The bank had posted a net profit of Rs 586 crore in the same quarter a year ago.
Total standalone income during the January-March quarter of 2021-22 stood at Rs 21,095 crore, down from Rs 21,386 crore in the same period of 2021-21, PNB said in a regulatory filing.
For the entire FY22, standalone net profit jumped by 71 per cent to Rs 3,456.96 crore as against Rs 2,021.62 crore in FY21, the bank said.
The asset quality of the New Delhi-based lender showed improvement, with the Gross Non-Performing Assets (GNPAs) falling to 11.78 per cent of the gross advances as of March 2022, from 14.12 per cent a year ago.
Net NPAs or bad loans too declined to 4.8 per cent from 5.73 per cent. However, the lender kept a higher provision for bad loans and contingencies for Q4 FY22 at Rs 4,851.47 crore, as against Rs 3,540.32 crore earlier.
On a consolidated basis, bank's net profit in Q4 FY22 was down by 55 per cent to Rs 245 crore as against Rs 547 crore in same period a year ago. Total income during the quarter also fell to Rs 21,350.59 crore from Rs 21,633.84 crore.
The full year consolidated net profit of the bank stood at Rs 3,675.96 crore, up by 71 per cent from Rs 2,152.43 crore. Total income during 2021-22, however, fell to Rs 88,339.49 crore as against Rs 94,169.95 crore in 2020-21.
PNB said it is holding total provision of Rs 8,384.09 crore (aggregate provision of RBI list 1 and list 2 accounts) as on March 31, 2022 (99.78 per cent of gross NPA advances). In FY21, it was Rs 8,374.53 crore.
On prudential framework for resolution of stressed assets, the bank is holding an additional provision of Rs 2,007.22 crore at end of March 2022 in 20 accounts. The consolidated results of the group comprise financial reports of five subsidiaries and 15 associates.
The board of directors has recommended dividend of Re 0.64 per equity share (i.e. 32 per cent) of face value of Rs 2 each for 2021-22, subject to shareholders' approval at the ensuing annual general meeting.
The bank raised Basel III compliant AT1 bonds and tier ll bonds of Rs 3,971 crore and Rs 1,919 crore, respectively, in FY22.
Provisioning coverage ratio as on March 31, 2022 works out to 81.60 per cent against 80.14 per cent as on March 31, 2021, it said.
Stock of PNB closed at Rs 33.10 apiece on BSE, down 0.60 per cent from previous close.