PNB

The second largest PSU bank of India, PNB, recouped after its Q2FY17 performance. Though the profit declined, the market was reassured that its rampage fall in asset quality has now halted.

The Bank posted a 11% (YoY) drop in net profit at Rs.549 crore on a 10% decline in NII at Rs.3880 crore. But the most gratifying aspect about the numbers were the asset quality – Gross NPA was at 13.63% v/s 13.75% (QoQ0 while Net NPA also steadied at 9.10% v/s 9.16%.

In terms of provisioning – that too has come down a bit at Rs.2534 crore, down 7.5% sequentially. Provisioning coverage ratio as on September 2016 worked out to 53.32 percent against 52.5 percent in June 2016. Slippages were down 32% (QoQ) at Rs.5089 crore and most certainly a huge improvement from gargantuan slippages of Rs.23,545 crore in Q2FY16. Recoveries were at Rs.4800 crore, down from Rs.6000 crore in Q1 and cash recovery was at Rs.2883 crore, down from Rs.4800 crore in Q1.

On other parameters, advances during the quarter rose 3% at Rs.3.93 lakh crore while deposits rose 6.5% at Rs.5.74 lakh crore. CAR improved from 11.58% to 11.65% (QoQ). Hope the Bank is able to sustain and improve its performance in the coming quarters too.