Punjab National Bank on Tuesday posted a net loss of Rs 13,416.91 crore for the January-March quarter, the biggest ever by any domestic lender. Provisions for the bad loans tripled and the bank recorded an across the board deterioration in its performance. The state-owned bank reported a standalone profit of Rs 261.90 crore in the fourth quarter of the preceding fiscal, 2016-17.
The total income for Q4 also declined to Rs 12,945.68 crore from Rs 14,989.33 crore in the year-ago period, while its non-performing assets (NPAs) rose sharply. Gross NPAs ratio jumped to 18.38 per cent of gross advances at the end of March 2018, up from 12.53 per cent a year ago. Net NPAs also soared to 11.24 per cent. PNB stock closed down 6.10 per cent at Rs 83.85 at the NSE on Tuesday.
PNB’s total provisions more than tripled to Rs 20,353 crore from Rs 5,753.51 crore in the fiscal-ago quarter. With regards to the provision made for the loss incurred on account of Letter of Undertaking fraud perpetrated by diamantaire Nirav Modi in connivance with certain bank officials, the bank said it provided for Rs 7,178 crore in the fourth quarter. This provision is 50 per cent of the total amount of Rs 14,356 crore and the remaining amount will be covered in the three quarters of the current fiscal year.
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