State-owned Punjab National Bank (PNB) on Wednesday posted a four-fold surge in standalone net profit at Rs 1,255 crore in the April-June quarter, mainly due to decline in bad loans and improvement in interest income.
The bank had posted a net profit of Rs 308 crore in the year-ago period.
Total income in the first quarter of the current fiscal rose to Rs 28,579 crore as against Rs 21,294 crore, PNB said in a regulatory filing.
The lender's interest income also increased to Rs 25,145 crore from Rs 18,757 crore in the same quarter a year ago.
The gross Non Performing Assets (NPAs) declined to 7.73 per cent of the gross advances by June 2023 from 11.2 per cent a year ago.
The net NPA too declined to 1.98 per cent as against 4.26 per cent in the same period of the previous year.
As a result, provisions for bad loans came down to Rs 4,374 crore in April-June FY24 as against Rs 4,814 crore in the year-ago period.
On a consolidated basis, the bank reported a net profit of Rs 1,342 crore in the quarter ended in June as against Rs 282 crore a year ago.
The consolidated financial result of the bank comprises five subsidiaries and 15 associates.
The capital adequacy ratio of the bank improved to 15.54 per cent at the end of June compared to 14.62 per cent in the year-ago period.