PNB, the fourth-biggest bank by assets among all of India’s lenders, in February said it had been defrauded by two jewellery groups
Scam-hit Punjab National Bank incurred a net loss for the second consecutive quarter. It reported a loss of Rs 9.4 billion for the first quarter of the current financial year, compared to Rs 134 billion in the fourth quarter of the previous financial year. It had earned a net profit of Rs 3.4 billion in the year-ago period.
However, the bank earned an operating profit of Rs 41 billion in Q1 against the operating loss of Rs 4.5 billion in the previous quarter. It had earned an operating profit of Rs 32 billion in Q1 of FY18.
One reason why losses came down was the decrease in provisioning made by the bank in Q1 of FY19 compared to Q4 of FY18. PNB made a provisioning of only 12 per cent, at Rs 18.4 billion, in the last quarter. It had provided for half the amount of losses in Q4. So, total provisioning stood at 12 per cent till June 2018. It is yet to make a provisioning of Rs 53.4 billion.
The bank recovered Rs 84 billion of its bad loans in the first quarter of FY19 against Rs 56 billion recovered in all of FY2018.
“We are looking at a recovery of Rs 200 billion in the first half of this financial year,” PNB MD and CEO Sunil Mehta said.
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