India's second largest state-owned lender (in terms of total
book size) Punjab National Bank 's (PNB)
second quarter (July-September) net profit fell nearly 12% year-on-year to Rs
1,066 crore in 2012-13. On the back of rising bad loans, the lender made loan
provisions of Rs 1,074 crore as against Rs 710 crore in the corresponding
quarter of the previous year. This dented the bank's profit margin.
Net interest income or the difference between interest
earned and paid out, rose just 6% to Rs 3,650 crore from Rs 3,453 crore during
the three-month period.
The quarterly numbers were below the market expectation.
Analysts on an average had estimated net profit at Rs 1,218 crore and net
interest income of Rs 3,784 crore. Both were flattish y-o-y bias but no fall.
The bank's loans expanded more than 18% to Rs 2.95 lakh
crore surpassing the projected industry credit growth of 16%. However, the
incremental credit growth has been muted at around half a percent so far in
FY13 (between April - September).
PNB shares tanked nearly 7% to close the day's trading at Rs
749 on Friday. Investors pressed the panic button after the bank had revealed a
sharp erosion of credit quality. Its gross non-performing asset (NPA) ratio
worsened by 132 basis points to 4.66% quarter-on-quarter. Net NPA ratio too
increased 101 bps to 2.69% sequentially. This suggests higher slippages in loan
accounts.
The public sector lender has figured in many debt
restructuring cases with medium to large credit exposures. For example, PNB
loaned around Rs 373 crore to NITCO, already referred to the CDR cell.
Moreover, its exposure to the beleaguered Kingfisher airlines was around Rs 600
crore, already shown as NPA in their books.
Deposits grew about 6% y-o-y to Rs 4.01 lakh crore. This was
way below the projected deposit growth of 14% in 2012-13. Capital adequacy
ratio declined to 11.73% versus 12.57% QoQ.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
No comments:
Post a Comment