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This article is more than 2 month old.

PNB shares plunge 10% after Q2 numbers fall below expectations

Mini

Shares of state-owned Punjab National Bank (PNB) fell as much as 10 percent in opening trade on Thursday after the country's second-largest lender reported a net profit of Rs 1,105.2 crore for Q2,  sharply below expectations while net interest income was also below expectations at Rs 6,352.8 crore.

PNB shares plunge 10% after Q2 numbers fall below expectations
Shares of state-owned Punjab National Bank (PNB) fell as much as 10 percent in opening trade on Thursday after the country's second-largest lender reported a net profit of Rs 1,105.2 crore for Q2,  sharply below expectations while net interest income was also below expectations at Rs 6,352.8 crore.
At 10:15 am, PNB shares were trading 8.10 percent down, or 3.75 points lower, at Rs 42.55 on the BSE.
PNB shares on Tuesday had hit a fresh 52-week high, regaining Rs 50,000 market capitalisation (m-cap) on the back of a stable outlook.
The bank's total income during the July-September quarter declined to Rs 21,262.32 crore as against Rs 23,279.79 crore in the corresponding period last year, PNB said in a regulatory filing.
PNB's operational profit fell to Rs 4,021.12 crore from Rs 5,674.91 crore in the same quarter in the previous financial year. In terms of asset quality, the lender's gross non-performing assets (NPAs) climbed slightly to 13.63 percent of gross advances at the end of September 2021, up from 13.43 percent the previous year.
Net NPAs also rose to 5.49 percent as against 4.75 percent a year ago.
However, provisions for bad loans declined to Rs 2,692.74 crore in the quarter, against Rs 3,811.17 crore in July-September 2020. Provisions (other than tax) and contingencies declined to Rs 3,261.37 crore as against Rs 4,696.15 crore at the end of the second quarter of the previous fiscal.
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