PNB shares down over 4% on disappointing Q2 nos
Mumbai: Shares of Punjab National Bank (PNB) on Friday dropped by over 4 percent, after the public sector lender reported a 52.56 percent decline in net profit for the three months ended September, 2013.
Following the weak set of numbers, shares of PNB ended the day at Rs 522.05, down 4.21 percent from its previous close on the BSE. During the day, the stock slipped 5.4 percent to Rs 515.55.
At the NSE, the scrip settled at Rs 521, down 4.5 percent.
"PNB witnessed continued asset quality pain, while operating performance was expectedly subdued. We remain cautious on the asset quality performance of the state owned banks, given the prevailing macro environment," said Vaibhav Agrawal, VP Research Banking, Angel Broking.
PNB today reported a 52.56 percent drop in net profit to Rs 505.49 crore for the three months ended September, 2013 due to higher provisioning.
The country's second largest public sector bank by assets had reported a net profit of Rs 1,065.58 crore in the July- September quarter of 2012-13.
As far as asset quality of the bank is concerned, the gross NPAs as a percentage to total advances rose to 5.14 percent from 4.66 percent in the same quarter an year ago.
Its net NPAs went up to 3.07 percent from 2.69 percent at the end of September 2012.
Total income has increased to Rs 11,632.84 crore for the quarter ended September 30, 2013 from Rs 11,335.17 crore in the same quarter last fiscal.