Public lender Punjab Nation Bank reported a 29 per cent dip in its net profit to Rs. 806 crore for the quarter ending March 2014 on high provisioning for bad loans.
Its net interest income (NII) however grew 6 per cent to Rs. 4,001.8 crore during the quarter.
The bank also reported a drop in its profitability as its net interest margin came at 3.2 per cent compared to 3.6 per cent in the previous quarter.
The public lender’s asset quality slipped in the March quarter as its gross non-performing asset (NPA) came at 5.25 per cent compared to 4.96 per cent in the December quarter. Its net NPA slipped to 2.85 per cent compared to 2.8 per cent in the previous quarter.
The bank has made a provision of Rs. 2,138.7 crore for bad loans compared to Rs. 1,590 crore in the December quarter.
