Mumbai: Punjab National Bank (PNB), India’s fifth-biggest lender by assets, reported on Tuesday a surge in third-quarter profit on lower provisions for bad loans, but the profit fell short of analysts’ expectations.
Net profit rose to Rs207 crore for the three months to 31 December from Rs51 crore a year ago, the state-run lender said in a stock exchange filing.
Analysts on average had expected a net profit of Rs6.29 billion, according to data compiled by Thomson Reuters. Gross bad loans as a percentage of total loans were 13.7% in the December quarter, little changed from 13.63% in September, but far higher than 8.47% a year earlier.
Banks such as PNB have seen a surge in their bad loans in the past one year after an asset-quality review ordered by the regulator in a bid to clean up the sector.
Provisions for bad loans were Rs3,363 crore in the December quarter, lower than Rs3,767 crore a year earlier, but higher than Rs2,218 crore reported in the September quarter.