PNB surprises with Q3 net profit; stock up 6%

Punjab National bank surprised the market with its Q3 net profit, rose by 13.56% at Rs 1,306 crore for the quarter ended December 31, 2012 on account of lower provisioning.

The company's net interest income was up by 5.55% to Rs 3,733.5 crore against Rs 3,537 crore during the same period. Total income rose 10.4% to Rs 11,519 crore from Rs 10,435 crore, while provisioning declined by 15.2% to Rs 802 crore over the same quarter of previous year

Gross non-performing asset (NPA) dropped 5 basis points quarter on quarter to 4.61% and net NPA fell by 3 basis points to 2.5% percent in this quarter.

PNBs capital adequacy ratio stood at 11.66% as against 11.73% QoQ.

Punjab National Bank also decided to decrease the Base Rate by 25 bps from 10.50% to 10.25%which will be effective from February 09, 2013.

Shares of the company surged more than 6% after the company reported better than expected results. The bank shares were seen trading at Rs 891, higher by 6.80% on BSE at 12.40 pm IST.

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