1. Punjab National Bank posts worst loss in Indian banking history, posts Q4 net loss of Rs 5,367 cr

Punjab National Bank posts worst loss in Indian banking history, posts Q4 net loss of Rs 5,367 cr

Punjab National Bank reported a net loss of Rs 5,367.14 crore for the fourth quarter ended March 2016 against net profit of Rs 306 crore in the same quarter a year ago.

By: | Updated: May 18, 2016 3:24 PM
Punjab National Bank Q4 Punjab National Bank Q4 results: The asset quality of Punjab National Bank deteriorated as gross non-performing assets rose to 12.90 per cent of gross advances during the quarter, from 6.55 per cent in the year-ago period. (Photo: Reuters)

Punjab National Bank (PNB) reported a net loss of Rs 5,367.14 crore for the fourth quarter ended March 2016 against net profit of Rs 306 crore in the same quarter a year ago.

Provisions of the bank jumped nearly 3 times, 173 per cent, to 10,485.23 crore for the quarter under review from Rs 3834.19 crore in the same quarter last year.

The asset quality of Punjab National Bank deteriorated as gross non-performing assets rose to 12.90 per cent of gross advances during the quarter, from 6.55 per cent in the year-ago period.

In absolute terms, gross NPAs were Rs 55,818.33 crore in the quarter against Rs 25,694.86 crore last year.

Likewise, net NPAs or bad loans as a percentage of net advances stood at 8.61 per cent during the last quarter of 2015-16, from 4.06 per cent year ago. Net NPA of the company was at 5.86 per cent in the sequential quarter ended December 2015.

Net interest margins of Punjab National Bank slid 27 per cent to Rs 2767.71 crore in Jan-Mar 2016 period against Rs 3791.58 crore in the same period last year.

According to KRChoksey Institutional Research, Punjab National Bank Q4 results were a miss on all parameters and stood worst in the industry.

For the full fiscal, the lender reported a net loss of Rs 3,974.39 crore compared with a net profit of Rs 3,061.58 crore in corresponding last fiscal.

Siddharth Purohit, senior equity research analyst, banking, Angel Broking, said, “PNB has come out with numbers much lower than our and street’s expectations. This is by far the highest ever increase in NPA by any bank so far. The point of worry is that the bank believes cleaning up exercise of balance sheet is not over. We believe pain to continue in 2016-17 also, with regards to asset quality.”

At 12.47 am, shares of public sector bank erased their initial gains and were trading 0.07 per cent at Rs 73.85.

With this huge loss, Punjab National Bank is now among the several public sector banks that have reported losses due to bad loans. On Tuesday, Syndicate Bank reported a net loss of Rs 2,158.17 for the quarter ending March 2016 due to more than three-fold rise in provisions for bad loans and contingencies. Bank of Baroda, UCO Bank, Central Bank of India, Allahabad Bank and Dena Bank have earlier reported losses due to bad loans.

  1. A
    Ahsan Shah
    Feb 11, 2017 at 1:55 pm
    246732
    Reply
    1. A
      Ahsan Shah
      Feb 11, 2017 at 1:58 pm
      Swalpor bitrah
      Reply
      1. P
        P.K.Chaudhuri
        May 18, 2016 at 3:30 pm
        People of India wants to know what is the difference in the economy that suddenly PSU banks are performing so poorly. Who are the people who are not returning the loan taken from PSBs. Please confirm that the loan defaulting companies are spared of tough actions because they are paying part of the loan as political donations. It is the responsibility of finance ministry to ensure prudent and efficient use of available capital. Government must remember that vast potion in India lives in poverty and farmers are committing suicide regularly.P.K.Chaudhuri.Noida.
        Reply

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