PNB Q1 Results: Profit Halves On One-Time Deferred Tax

Deferment in tax assets and muted profitability weighed on Punjab National Bank's net profit for the quarter ended June at Rs 1,675 crore, down 48% on year.

During the quarter under review, the bank saw a one-time hit of Rs 3,324 crore due to remeasured deferred tax assets.

The net interest income rose 1% on year to Rs 10,578 crore. Global net interest margin was at 2.70% as of June end as compared with 2.81% a quarter ago.

However, the bank's asset quality improved, with the gross non-performing assets ratio falling to 3.78% from 3.95% a quarter ago. Net NPA also declined to 0.38% from 0.40% in the prior quarter.

The bank's slippage ratio declined to 0.71% as of June end from 1.14% a quarter ago. This has come as fresh NPA additions fell to Rs 1,886 crore in the June quarter from Rs 3,001 crore in the prior quarter.

Overall, the bank's global advances grew nearly 10% on year to Rs 11.29 lakh crore. Of this, retail advances grew 11.8% on year to Rs 2.62 lakh crore, MSME loans at 18.6% on year to Rs 1.69 lakh crore and agriculture at 6.2% on year to Rs 1.78 lakh crore.

The bank's corporate loan book grew 6.9% on year to Rs 4.68 lakh crore. Global deposits grew nearly 13% on year to Rs 15.89 lakh crore. Current account and savings account deposit share fell to 36.99% at the end of June from 37.95% a quarter ago.