PNB Q3FY22 net profit jumps 123 pc, NII down by 6.1 pc YoY

The state-owned bank had earned a net profit of Rs 506.03 crore in the year-ago period.

Its Net Interest Income (NII) increased by 22.8 percent to Rs 7803 crore in Q3 FY22 compared to Rs 6353 crore in Q2 FY22.

However, there was a decline of 6.1 percent to Rs 8,313.2 crore as compared to the same period last year.

Operating Profit increased by 26.24 percent sequentially to Rs 5076 crore in Q3 FY22 from Rs 4021 crore.

Global Net Interest Margin (NIM) improved by 54 bps to 2.93 percent in Q3 FY22 from 2.39 percent in Q2 FY22.

The public sector bank's Cost to Income Ratio improved by 660 bps to 51.67 percent in Q3 FY22 from 58.27 percent in Q2 FY22.

Gross Non Performing Assets (GNPA) stood at Rs 97,259 crore as in Q3FY22 December against Rs 1,00,291 crore in the previous quarter.

Its Net Non-Performing Assets (NNPA) stood at Rs 33,879 crore as in Q3FY21 as against Rs 36,934 crore in September quarter

During the quarter, Gross Non Performing Assets (GNPA) ratio improved by 75 bps to 12.88 percent from 13.63 percent in September 2021 while its Net Non Performing Asset (NNPA) ratio improved by 59 bps to 4.90 percent from 5.49 percent in the previous quarter.

The bank said its Provision Coverage Ratio (PCR) excluding TWO improved by 200 bps to 65.17 percent in December quarter against 63.17 percent in quarter ending September.

Provision Coverage Ratio (PCR) including TWO stood at 81.85 percent in the period under review.

A Provisioning Coverage Ratio or PCR is the percentage of funds that a bank sets aside for losses due to bad debts.

Fee Based Income increased by 10.2 percent on QoQ basis to Rs 1420 crore in Q3 FY22 from Rs 1288 crore in Q2 FY22, while Return on Equity (RoE) improved by 7 bps on QoQ basis to 7.34 percent in Q3 FY22 from 7.27 percent in Q2 FY22.

Capital-to-risk weighted assets ratio (CRAR) improved to 14.91 percent in December 2021 from 13.88 percent against the same period last year. Tier-I capital , which can absorb losses without a bank being required to cease trading, was 12.22 percent (CET-1 was at 10.99 percent, AT1 was at 1.23 percent) and Tier-II CRAR ( which can absorb losses in the event of a winding-up and so provides a lesser degree of protection to depositors) was 2.69 percent as at December 2021.

PNB said its Retail Credit increased by 7.7 percent on YoY basis to Rs 1,24,201 crore as at the end of December 2021.

Agriculture advances grew by 6.2 percent on YoY basis to Rs 1,02,412 crore while MSME advances grew by 4.1 percent on YoY basis to Rs 1,23,225 crore.

Domestic CASA (Current Account Savings Account) share grew by 99 bps on Y-o-Y basis to 45.65 percent in December 2021 period.

Savings Deposit grew by 8.76 percent on Y-o-Y basis to Rs 4,34,394 crore, while CASA Deposits grew by 7.59 percent on Y-o-Y basis to Rs 5,05,958 crore as on December’21.

The bank also recorded a 70 percent growth in digital transactions in December 2021 quarter from 66 percent in September 2021 period.

PNB's total income increased by 3.6 percent on QoQ basis to Rs 22,026 crore in Q3 FY22 against Rs 21262 crore in Q2 FY22. However, Total Income declined compared to Rs 23,298.53 crore in the year-ago period.

Operating Income registered a growth of 9.0 percent on QoQ basis to Rs 10504 crore in Q3 FY22 from Rs 9635 crore in Q2 FY’2.

Total Interest Income improved by 7.4 percent on QoQ basis to Rs 19325 crore in Q3 FY22 from Rs 17980 crore in Q2 FY22.

The bank said its Total Expenditure stood at Rs 16950 crore during Q3 FY22, while its Operating Expenses declined by 3.3 percent on QoQ basis to Rs 5428 crore in Q3 FY22 from Rs 5614 crore in Q2 FY22.

Total interest Paid registered decline of 4.1 percent on QoQ basis to Rs 11522 crore in Q3 FY22 from Rs 11628 crore in Q2 FY22.