According to Prabhudas Lilladher, net interest income (NII) is expected to grow by 4.7% YoY (3.6% QoQ) to Rs 7,569.6 crore.

Prabhudas Lilladher has released its banking sector earnings forecast for the first quarter (April to June 22). The brokerage expects Punjab National Bank to post a net profit of Rs 7,067 million, down 31% year-on-year (250.6% month-on-month).

According to Prabhudas Lilladher, net interest income (NII) is expected to grow by 4.7% YoY (3.6% QoQ) to Rs 7,569.6 crore.

Operating profit before provision (PPOP) was Rs 5,142.2 million, which may have decreased by 15.7% (-2.3%) compared to the same period last year.

Disclaimer: Opinions and investment tips expressed by investment experts on moneycontrol.com are their own and are not affiliated with the site or its management. Moneycontrol.com recommends that users consult with a qualified professional before making any investment decisions.

NBI’s 1Q net profit fell 70% to Rs 308 crore

To improve asset quality. The ratio of total non-current assets decreased to 11.2% by June 2022 from 14.33% in the previous year. 11.78% until March 2022

State-owned Punjab National Bank reported on Thursday that its standalone net income fell 70 percent to 308.4 billion rupees in the June quarter, mainly due to higher provisions for bad debts and lower interest income.

The bank posted a net profit of 102.3 billion won in the same period last year.

Total revenue for the first quarter of the fiscal fell to Rs 21,294 crore. It was Rs 22,215 billion in the same period last year.

Interest income from lenders declined to Rs 18,757 crore from Rs 18,921 crore in the same quarter last year.

Total bad assets (NPAs) as a share of total loans declined from 14.33 percent last year to 11.2 percent by June 2022. As of March 2022, this percentage is 11.78%.

In absolute terms, total bad loans or total bad loans stood at Rs 90,167.10 crore at the end of Q1 FY23 compared to Rs 1,04,075.56 crore in the same period last year.

Net NPA also decreased to 4.26 percent from 5.84 percent last year.

However, in April-June FY23, loan loss provision rose to Rs 4,814 crore compared to Rs 3,248 crore in the previous year.

The required reserve ratio for June this year was 83.04%, which was recorded at 80.26% at the end of June 2021, from 80.26% at the end of June 2021.

The COVID-19 pandemic has been affecting global economic activities, including the Indian economy, for over two years. However, the bank’s performance, operations, and asset health were largely unaffected by the pandemic.

In the quarter ending June, the bank’s operating profit fell to Rs 5,379.21 crore.

On a consolidated basis, the bank reported a net profit of Rs 28,173 crore in the quarter ended June, compared with Rs 1,168.33 crore a year ago.

The consolidated financial results of the bank include 5 subsidiaries and 15 affiliated companies.

The bank’s capital ratio decreased from 15.19% last year to 14.62% at the end of June.

COMPANY WEALTH AND RECENT PERFORMANCES

GDP results for the first quarter of the fiscal year 2018-19

• The Punjab State National Bank reported better-than-expected quarterly results, posting a net loss of Rs 9,400 crore compared to Rs 3,434 crore in the same period last year.
• The company’s net interest income for the quarter was Rs 469,186 crore compared to Rs 385,513 crore in the previous year.
• Lenders have provided Rs 320.83 crore for 27 loan accounts under the Bankruptcy and Insolvency Code and RBI guidelines. The total amount payable is 10.67 trillion won.
• The ratio of non-performing assets (NPA) to the total amount of the bank’s productive assets amounted to 18.26%, which is more than 18.38% in the previous quarter.

Annual Report of the National Bank of Asia for 2017-2018

• The bank’s net loss for the financial year ended March 2018 was Rs 1,213,000,000 compared to Rs 1,187,000,000 in the financial year 2017.
• The total assets of the bank increased by 6.32% in 2018 from Rs 7,203.31 crores as of March 31, 2017, to Rs 7,658.3 crores as of March 31, 2018. The loan portfolio of banks also increased by 3.39%, and net investments by 7.27%.
• Net interest income for the financial year ended April 3, 2018, was Rs 1,499.2 billion, and gross operating income for the year ended March 31, 2018, was Rs 1,029.4 billion.
• Despite the scam, the lender has reached new milestones in its domestic business, including a new Rs 100 crore milestone.
• In the previous financial period, the bank raised 50 billion rupees through institutional investment (QIP), which provided substantial support for its capital. In addition, in March 2018, the Government of India invested Rs 547.3 billion.

National Bank Punjab results for Q3 2017–2018

• In its third quarter 2018 financial report, PNB reported that its global operations exceeded Rs 110 crore with global deposits reaching Rs 647 crore. The annual growth rate compared to the same period last year is 10.2% and 5.2%, respectively.
• In addition, as of December 2017, the total amount of advances was Rs 474,952 crore, up 17% from the same period last year. In terms of credit, consumer loans increased by 22% and mortgage loans by 19%.
• The CASA index, the ratio of current accounts to gross GNP of deposits, reached 45.5% in the third quarter, the highest for a state-owned bank.
• In terms of the company’s earnings, the profit margin rose by 28.9% year on year to Rs 10,742 crore. However, net income fell to Rs 230 million from Rs 561 million in the second half of 2018. One of the key factors contributing to the decline in profits was the increase in sales from Rs 2,718 million in the second quarter of FY 2018 to Rs 4,016 million in the third quarter of FY 2018.
• Considering the quality of banks’ assets, gross NPA (Non-Performing Assets) and net NPA improved slightly. At the end of the third quarter, gross NPA PNB was 12.11% and net NPA was 7.55%. This is a slight improvement over the previous quarter.