InvestorQ : How did you find the results of PNB and Bank of India for the Q4 of FY21?
Debbie Mascarenhas made post

How did you find the results of PNB and Bank of India for the Q4 of FY21?

Arti Chavan answered.
2 years ago

PNB posted standalone net profit of Rs.568 crore in the Mar-21 quarter. This contrasts with a net loss reported worth Rs.697 crore in the Mar-20 quarter. There was a sharp yoy growth in the top line numbers with growth across treasury, retail banking and wholesale banking. This was largely on the back of the 3-way amalgamation wherein United Bank of India and Oriental Bank of Commerce got absorbed into PNB.

The net interest income or NII was up 48% at Rs.6,937 crore although the concern was on the front of the gross NPAs at an elevated level of 14.12%. Net NPAs at 5.73% indicate substantially provisions, but the loan loss levels are still too high for comfort of investors. PNB had a provisioning coverage ratio of 80.14%. Capital adequacy ratio at 14.32% is still quite precarious and hints at limited leeway to expand the asset book.

Bank of India also turned around but to a much lower net profit of Rs.72 crore. The turnaround in net profit of Bank of India was largely on account of a sharp fall in loan loss provisions which fell sharply from Rs.8,500 crore in Mar-20 quarter to just about Rs.1700 crore in the Mar-21 quarter. Like in the case of PNB, gross NPAs of OI at above 12% continues to remain at an unsustainable level.