Punjab National Bank bounces back with INR 247 crore profit in Q3 ’18-‘19

Punjab National Bank bounces back with INR 247 crore profit in Q3 ’18-‘19

Key highlights:
• PNB returns to profitability after 3 quarters
• Over INR 16,000 crore cumulative recovery in 9 months: 3 times of annual recovery last year
• Reduction in Gross NPA ratio to 16.33% in December ’18 from 18.38% in March ’18
• NNPA ratio declined to 8.22% in December ’18 from 11.24% in March ‘18
• Domestic NIM increased to 2.64% in 9 MFY’ 19 from 2.59% in 9MFY ‘18

NEW DELHI, February 5, 2019: Punjab National Bank (PNB), India’s largest nationalized bank, today announced its financial results for the Quarter ended 31st December, 2018. The bank recorded a net profit of INR 247 crore and an operating profit of INR 10,134 crore for 9 months of financial year ’18-’19. During the quarter, the bank saw its domestic advances rise by 6.7% to INR 4,58,641 crore as on December ‘18 while its retail advances grew by 15% Y-O-Y to INR 85,766 crore.
The bank had started ‘Mission Parivartan’ at the beginning of this financial year to strengthen its processes, increase checks and balances and improve operational efficiency. These measures helped the bank in reducing its NPAs substantially. The gross NPA ratio declined to 16.33% in December ’18 from 18.38% in March ’18 and net NPAs fell to 8.22% in December ’18 from 11.24% in March ’18.
Announcing the results, Mr. Sunil Mehta, Managing Director & Chief Operating Officer, Punjab National Bank, said, “We had made a promise to bounce bank in 6 months and we have fulfilled it. We are happy to announce that the efforts of the extended PNB family, especially its employees, has borne fruit and we are back in black. The accelerated recovery program launched by the bank and streamlining of processes has played a crucial role in improving the bank’s finances. We are also happy that this return to profitability is after 100 per cent provisions for all our commitments.”
PNB, which has already recovered INR 16,000 crore of NPAs, expects to meet its guidance on recovery for the full year and has improved its asset quality significantly. Customers also continue to repose their faith in the bank and domestic deposits have risen to INR 6,30,646 crore by end of December ’18.
Further, PNB continues to launch many new digital initiatives to continue its position as India’s Preferred National Bank and provide a seamless customer experience:
• PNB One launched with interactive interface, features available; Scan and Pay through QR Code, Simplified dashboard to manage key banking activities, Pay Bills/Recharge, available in English and Hindi, Manage Debit and Credit Card and Bio-metric authentication for greater security, Value Added Services with Complaint Service Management

• Bank was identified as a Digital Partner in KumbhPrayagraj 2019 wherein Bank is providing PNB eRupaya, Made in India solution for digital payments and also providing facility of Mobile ATMs, Cash Deposit Machines to the pilgrims

• Online Loan Application customized for Housing, Car and Personal Loan modules