PNB Q1 Update: Advances, Deposits See Global, Domestic Growth

Punjab National Bank's global advances jumped 9.9% on a yearly basis to Rs 11.3 lakh crore in the April-June quarter, according to the provisional quarterly business update filed with the exchanges on Wednesday.

The lender's domestic advances also saw a similar advance to Rs 10.8 lakh crore, as per the filing.

The bank reported a 13% growth in global deposits at Rs 15.9 lakh crore in the first quarter, with domestic deposits also rose 12% to Rs 15.4 lakh crore.

The public sector bank's global credit-deposit ratio was flat at 71.2%, as compared to the previous quarter. The credit-deposit ratio refers to the proportion of a bank's total deposits that have been lent out as loans. 

PNB has retained its loan and deposit growth outlook, but expects net interest margins to remain under pressure due to repo rate cuts by the Reserve Bank of India in the current financial year, Executive Director Kalyan Kumar told NDTV Profit.

On profitability, Kumar said that 44% of its loan book is linked to repo rate loans and that the bank took a hit of Rs 250 crore on its income during the March quarter because of the rate cut.

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