At a time when Dena Bank and Oriental Bank literally shocked one with the numbers and Yes Bank with its lack of integrity, Punjab National Bank (PNB), the second largest PSU bank of India pleasantly surprised everyone.

It had not only turned around in Q4Fy17 but it also showed an improvement in asset quality.

The Bank posted a net profit of Rs.262 crore v/s loss of Rs.5367 crore in previous Q4 on the back of improved NII and non-interest income. NII was up 33% (YoY) at Rs.3683 crore and other income rose 68% at Rs.3102 crore. It was also helped by a whopping 138% jump in operating profit at Rs.6232 crore.

In terms of asset quality, Gross NPA has come down from 13.7% to 12.53% (QoQ) and Net NPA was also came down from 9.09% to 7.81%. Provisions for the quarter rose by a sharp 125% (QoQ) at Rs.5753 crore but YoY, it was down 42%. Slippages were up 28% at Rs.6896 crore while recoveries were at Rs.2084 crore. Provision coverage ratio was better at 58.57% from 55.96% (QoQ).