PNB profit slumps 48% on higher tax expenses

PUNJAB NATIONAL BANK'S net profit declined 48.5% year-on-year to ₹1,675 crore for the quarter ended June on the back of higher tax expenses and muted net interest income growth.

- KSHIPRA PETKAR

The state-owned bank had posted a net profit of ₹3,252 crore in the year-ago period.

Tax expenses surged over 150% y-o-y to ₹5,083 crore in April-June. The bank said it has evaluated the option of lower tax regime and has decided to exercise the said option with effect from FY25-26. "The resultant impact is a one-time charge of ₹3,324.24 crore in the profit and loss account for the quarter ended June 30," PNB said.