PNB clocks Rs 506 cr profit in Q3

Total income in the quarter under review rose to Rs 23,298.53 crore as against Rs 15,967.49 crore, PNB said in a regulatory filing. 

On a consolidated basis, there was a profit of Rs 585.77 crore during the latest quarter. The lender had posted a net loss of Rs 501.93 crore in same period of 2019-20. 

Consolidated income increased to Rs 23,639.41 crore from Rs 16,211.24 crore. 

PNB said the current results are not comparable with the year-ago period because December quarter 2019-20 figures are of pre-amalgamated period. 

With effect from April 1, 2020, PNB merged United Bank of India and Oriental Bank of Commerce with itself following government''s merger plan. 

On the asset front, the bank witnessed substantial improvement by cutting its gross non-performing assets (NPAs) as a percentage of gross advances by December-end 2020, to 12.99 per cent from 16.30 per cent by the same period a year ago. 

In absolute value, gross NPAs stood at Rs 94,479.33 crore by the end of December 2020 as against Rs 76,809.20 crore by the year- ago same period. 

The net NPAs ratio also softened to 4.03 per cent (Rs 26,598.13 crore) from 7.18 per cent (Rs 30,518.92 crore). 

After March 31, 2020, the bank changed its accounting policy for appropriation of recovery in NPA accounts from earlier policy, which has resulted in increase in profit before tax by Rs 178.48 crore in third quarter and by Rs 449.94 crore in April-December period, PNB said. 

PNB stock closed 0.9 per cent down at Rs 40.10 on BSE.