PNB, BoI see quarterly profits plummet as non-performing assets swell

State-run lenders Punjab National Bank and Bank of India today reported lower quarterly profits pulled down by higher bad loan provisioning.

While PNB reported a near-50 per cent fall in quarterly net profit at Rs721 crore, Bank of India's Q1 net plummeted 84 per cent to Rs129.72 crore

PNB, the country's second-largest public sector lender, saw its net profit nearly halve to Rs721 crore during the April-June quarter of the current fiscal (2015-16) while Bank of India reported an 84 per cent decline in net profit at Rs129.72 crore in the April-June quarter.

Punjab National Bank (PNB)'s first quarter net profit for current fiscal showed a 48.68 per cent decline from Rs1,405 crore reported the same quarter of 2014-15 fiscal.

Gross non-performing assets (NPAs) of the bank increased from Rs25,397 crore in the April-June quarter of current fiscal from Rs19,603 crore in the same quarter of the previous fiscal as per data available with the NSE.

Gross NPAs of the bank as a percentage of total advances rose to 6.47 per cent in the April-June 2015-16 quarter from 5.48 per cent in the year-0ago quarter.

Provisioning during the quarter rose to Rs1,811 crore, from Rs928 crore in the June quarter of the previous fiscal.

Interest income of the bank rose to Rs12,035 crore during the first quarter, up nearly 4 per cent from Rs11,589 crore in the first three months of 2014-15.

Standalone total income of the bank rose to Rs13,432 crore in April-June 2015-16 quarter from Rs12,825 crore in the similar quarter of the previous fiscal.

Bank of India (BoI) today reported an 84-per cent decline in net profit at Rs129.72 crore in the April-June quarter of the current fiscal. The bank had reported a net profit of Rs805.69 crore in the first quarter of 2014-15 fiscal.

Provisioning during the first quarter of 2015-16 rose to Rs1,515 crore, from Rs893 crore in the same period last fiscal, BoI said in a NSE filing.

The bank's gross non-performing assets (NPAs) as a percentage of total loans rose to 6.80 per cent during the April-June 2015-16 quarter from 3.28 per cent in the year-ago quarter.

The value of gross NPAs during the April-June 2015-16 quarter stood at Rs26,889 crore against Rs12,532 crore in the similar quarter in the previous fiscal.

Total income of the bank rose to Rs11,659 crore during April-June 2015-16 quarter from Rs11,328 crore in the similar quarter of 2014-15 fiscal.