Scam hit Punjab National Bank has said that its total liability works out to Rs 14,356.84 crore on account of the fraud allegedly carried out by jewellery designer Nirav Modi and associates.
Scam hit Punjab National Bank has said that its total liability works out to Rs 14,356.84 crore on account of the fraud allegedly carried out by jewellery designer Nirav Modi and associates, even as the bank reported a loss of Rs 13,417 crore for the fourth quarter ending March 2018. Earlier, a Reuters poll had estimated the state-run lender to report a net loss of Rs 3,908.6 crore. This figure compares with a profit of Rs 261.9 crore in the previous fiscal mainly buoyed by to write-backs in pension provisions. The results assume significance as this is the first financial results by PNB after it was hit by a major Rs 13,000 crore fraud in February-18, allegedly perpetrated by Nirav Modi and his uncle Mehul Choksi. We take a closer look at the Q4 results, and bring to you 5 key figures in a nutshell.
1) PNB reported a net loss of Rs 13,417 crore in Q$ as compared to a net profit of Rs 261.9 crore in the same period previous fiscal.
2) Commenting on the fraud witnessed in the quarter, PNB said, “After including outstanding amounts under other credit facilities to the above entities, the amount involved now works out to Rs 14,356.84 crore.”
3) The bank noted that it has made higher than required provisions @ 50% amounting to Rs 7,178.42 crore and remaining provision of Rs 7,178.42 crores will be made during the first three quarters of the ensuing financial year in terms of RBI’s dispensation.
4) The second biggest lender has reported gross NPA divergence at Rs 2,207 crore, and net NPA divergence came in at Rs 1,414.9 crore.
5) PNB reported the Provisioning Coverage Ratio as at 31st March 2018 at 58.42%.