PNB net profit falls 21%

PNB net profit falls 21%One of India's leading state-owned bank, Punjab National Bank (PNB) has recorded a fall of 20.6 per cent in tis net profit during the quarter from January to March, 2013.

The bank's net profit fell to 11.3 billion rupees in the quarter compared to 14.2 billion rupees recorded in the same quarter of the previous year. It is believed that the fall in net profit is mainly due to higher provisions for bad loans. The bank's net interest income increased 14.2 per cent during the first quarter while the total non-performing loans increased to the level of to 4.27 per cent from 2.93 per cent recorded in the same quarter of the previous year.

PNB is among the state run banks are facing increasing pressure on earnings due to their increasing exposure to state electricity boards, troubled power and infrastructure projects and many other debt burdened firms in the country in various sectors.

Most banks recorded a fall in earnings in the quarter. Canara Bank said that its net profit fell 12.6 per cent while Allahabad Bank and UCO Bank said that their net profit fell about 68 and 80 per cent, respectively in the quarter from January to March, 2013.