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PNB Q2 loss zooms to Rs 4, 532 cr on higher provisioning for NPAs

PNB Q2 loss zooms to Rs 4, 532 cr on higher provisioning for NPAs

New Delhi: State-run Punjab National Bank (PNB) on Friday reported a loss of Rs 4,532.35 crore for the second quarter ending September caused by major increase in provisioning for bad debts and higher slippages.

In a stock exchange filing, PNB said it had incurred a loss of Rs 940 crore in the previous quarter, and a profit of Rs 560 crore in the same quarter a year ago.

Provisioning and contingencies for the quarter in consideration rose sharply to Rs 9,758 crore from Rs 5,758 crore in the previous quarter and Rs 2,440 crore in the corresponding period last year.

"The financial results of the bank have been arrived at after considering provisions for non-performing assets, standard assets, restructured advances, standard derivative exposures and investment depreciation on the basis of extant guidelines issued by RBI," the filing said.

Provisioning on account of non-performing assets (NPAs) or bad loans, in the second quarter increased to Rs 7,733 crore, from Rs 4,982 crore in the previous quarter and from Rs 2,964 crore in the same period a year ago.

Gross NPAs during July-September rose to 17.16 per cent, as against 13.31 per cent in the same quarter of the last fiscal.

This ratio improved, however, as compared to the gross NPAs of 18.26 per cent in the previous quarter.

The percentage of net NPAs in the quarter in question at 8.9 per cent also improved as against 10.58 per cent in the previous quarter. Net NPAs in the second quarter last year were at 8.44 per cent.

Referring to the Rs 14,357-crore scam committed on PNB in February by absconding diamantaires Nirav Modi and his uncle Mehul Choksi, the bank said the RBI had allowed PNB to make provisions against the fraud at 25 per cent without debiting "other reserves" in the January-March quarter.

"The bank had made provisions amounting to Rs 9,041.88 crore up to June 30. Further, the bank has made provision of Rs 3,295.12 crore during the September quarter. The remaining provision will be made during the next quarter of the current financial year as per terms of RBI's dispensation," the statement said.

With results being declared during market hours, the PNB stock closed on Friday at Rs 69.05 a share, down Rs 5.20, or by 7 per cent, on its previous close on the BSE.

IANS

IANS

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