PNB Navigates Profit Decline with Strategic Tax Move
Punjab National Bank (PNB) anticipates maintaining its prior year's profit levels despite a 48% decline in Q1 net profit due to increased tax expenses. The bank's transition to a new tax regime is expected to save Rs 700 crore quarterly. PNB aims for Rs 30 lakh crore in business by fiscal year-end.
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Punjab National Bank (PNB) remains optimistic about achieving last fiscal year's profit levels despite reporting a 48% drop in net profit for the first quarter. The decline was attributed to increased tax expenses as the bank transitioned to a new tax regime.
PNB Managing Director and CEO Ashok Chandra noted that the switch to a lower tax rate of 25.16% from the previous 34.94% is expected to save the bank Rs 700 crore per quarter, contributing to a 16 basis points improvement in return on assets.
The bank also reported robust growth with total business rising 11.6% to Rs 27.19 lakh crore by the end of Q1. PNB aims to surpass its target of Rs 29.56 lakh crore and achieve Rs 30 lakh crore by the end of the current financial year, focusing on strategies to ensure growth contributes to profitability.
(With inputs from agencies.)
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