Major public sector banks of the country Punjab National Bank (PNB) has released the financial results of the second quarter (Q2 Results) of the current financial year. The performance of the bank has been much stronger and better than expected. Giving great news to its investors and customers, PNB has registered a huge jump in profits. Along with this, there has been a lot of improvement in the asset quality of the bank, due to which there is an atmosphere of enthusiasm in the banking sector. Let us know every special thing related to these results of Punjab National Bank.
PNB's net profit increased to Rs 5,532 crore
According to the data released by Punjab National Bank, the net profit of the bank in the second quarter of the current financial year on an annual basis. Increase from Rs 4,904 crore to Rs 5,532 crore Has reached. There has been a significant increase of about Rs 628 crore in the bank's profit as compared to the same quarter last year. This strong growth is proof that the core business of the bank is progressing very well and the financial position of the bank is continuously getting stronger.
Great jump in Net Interest Income (NII) also
Net interest income, considered the main source of income of the bank, i.e. NII (Net Interest Income) Tremendous growth has also been seen. In the same quarter of the last financial year, the NII of the bank was Rs 10,469 crore, which has increased this time. Rs 11,601 crore Has occurred. Net interest income means the difference between the interest earned by the bank on loans and the interest paid to customers on deposits. This increase reflects the bank's strong loan growth and better interest management.
Big decline in gross NPA and net NPA
To assess the health of any bank, the data of its Non-Performing Assets (NPA) i.e. bad loans is considered most important. PNB has given a lot of relief to investors on this front:
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Gross NPA: The bank's gross NPA improved from 2.78 percent compared to the previous quarter. 2.55 percent But it has arrived.
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Net NPA: Net NPA of the bank also reduced from 0.28 percent. 0.25 percent But it has arrived.
This continuous decline in NPA clearly shows that the recovery process of the bank is very strong and new loans are coming back on time. However, along with this, a slight increase has been recorded in the fresh slippage of the bank, which has increased from Rs 2,080 crore to Rs 2,395 crore on a quarterly basis. This means that during this period some new loans have come in the category of NPA, on which the bank is keeping a close watch.
Drastic reduction in provisioning and improvement in NIM
There has also been a huge decline in the provisioning of the bank as compared to the previous quarter. This has reduced drastically from Rs 541 crore to only Rs. Rs 97.3 crore But she has arrived. Provisioning is the amount that the bank sets aside to meet potential bad loans or risks. Decrease in provisioning simply means that the bank has to set aside less money for future risks, which has a positive impact on profits.
Apart from this, PNB's domestic Net Interest Margin (NIM) Increase from 2.72 percent on annual basis 2.74 percent It is done. Overall, these quarterly results of Punjab National Bank paint an excellent picture of its strong hold in the banking sector and financial soundness.