PNB sees NIM recovering from Sept qtr

PUNJAB NATIONAL BANK (PNB) expects to sustain quarterly net profit of above ₹5,000 crore despite near-term pressure on margins and higher credit costs, Executive Director Bibhu Prasad Mahapatra told FE in an interview.

- KSHIPRA PETKAR

The state-owned lender expects the operating profit to remain above ₹7,000 crore.

Despite reporting a net profit of ₹5,100 crore for the December quarter, the stock fell 5.14% in the previous two sessions. Mahapatra attributed the decline to compression in net interest margins (NIMs) and higher credit costs due to additional provisions.

“Once the market understands these internal factors and the rationale behind our provisioning and margin movement, the performance should improve,” he said.