PNB stock plunges 10% on Q4 flop: Weighs bank Nifty PSU down, index tanks 4%

By Malvika Gurung

Investing.com — Public Sector Lender Stocks National Bank of Punjab (NS:) fell 10% to Rs 29.8 at the time of writing and hit a fresh 52-week low at Rs 29.5 each in early trading on Thursday.

The fall in PNB shares dragged the indexes lower, falling 3.7% and 2.17% respectively. PSU Bank is the sector’s worst performer in the Nifty basket.

The stock plunged following a flop March earnings report was released after-market on Wednesday, with standalone net profit down 65.5% year on year to Rs 201.6 crore, missing by far Street’s estimate of Rs 1388.1 crore in the quarter.

Earnings declined due to a higher amount set aside for provisioning, although lender NPA levels in the quarter declined.

The lender’s total income edged down 1.36% YoY to Rs 21,095 crore, while NII climbed 5% YoY to Rs 7,305 crore in the March quarter.

In terms of asset quality, the nation’s second-largest bank reported improvement in the fourth quarter of FY22, as its gross NPA fell to 11.78% from 14.12% in the fourth quarter of FY21. , and net NPA or bad debts declined to 4.8% from 5.73% earlier.

At the same time, however, PNB parked a higher provision of more than 37% year-on-year for bad debts and contingencies for the March quarter at Rs 4,851.47 crore during the quarter.

The bank’s board has recommended a dividend of Re 0.64/share for FY22.

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