Punjab National Bank shares tumble nearly 10% after Q2 earnings

The state-owned bank reported a 78% rise in net profit to Rs 1,105 crore for the second quarter ended on September 30 despite a fall in income

Shares of Punjab National Bank (PNB) on Thursday declined nearly 10 per cent after the company reported a fall in income for the second quarter ended on September 30.

The stock tanked 9.93 per cent to Rs 41.70 on both BSE and NSE.

The earnings were announced post market hours on Wednesday.

The state-owned bank reported a 78 per cent rise in net profit to Rs 1,105 crore for the second quarter ended on September 30 despite a fall in income.

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It had posted a net profit of Rs 620.81 crore during the corresponding quarter a year ago.

However, the bank's total income during the July-September quarter declined to Rs 21,262.32 crore as against Rs 23,279.79 crore in the corresponding period last year, PNB said in a regulatory filing.

The bank's operating profit too declined to Rs 4,021.12 crore from Rs 5,674.91 crore in the same quarter in the previous financial year.

On the asset quality front, the lender's gross non-performing assets (NPAs) increased marginally to 13.63 per cent of the gross advances at the end of September 2021, from 13.43 per cent a year-ago period. Net NPAs also increased to 5.49 per cent as against 4.75 per cent a year ago.

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