At Rs 9.4 bn, PNB posts straight quarterly loss on fraud-related provisions

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.

News Source : BS

PNB Housing rises 6% as PNB, Carlyle Group plan to offload 51% stake

The stock was up by 6% at Rs 1,269 on Wednesday in intra-day trade, extending its 2% gain in the previous day on the BSE.

 

Shares of PNB Housing Finance were up by 6% at Rs 1,269 per share on Wednesday in intra-day trade, extending their 2% rise in the previous day on the BSE, after the company said that Punjab National Bank (PNB) and the Carlyle Group proposed to sell their stake to the potential acquirers.

“We hereby inform you regarding joint communication received today from Punjab National Bank (PNB) and Quality Investment Holdings (The Carlyle Group) regarding sale of minimum 51 % stake in PNB Housing Finance Limited to the potential acquirers,” PNB Housing Finance said on Tuesday after market hours.(CLICK HERE : PNB SHARE PRICE)

As on date, PNB owns 32.79% and Quality Investment Holdings owns 32.36% of the paid up equity share capital of the Company. The Board of Directors of the Company has been apprised about the same, it added.

Earlier, on May 8, Quality Investment Holdings, an arm of the global private equity giant Carlyle, had sold 8 million shares of PNB Housing Finance, translating into about 4.8% of its equity, for around Rs 10.24 billion through block deals. The Carlyle Group sold shares at an average price of Rs 1,280 per share, data shows.

News source : BS

Yogi Adityanath's farm loan waiver: SBI, PNB, Allahabad Bank top exposure

The state government has formed an eight-member committee to implement the decision

 

#LATEST| State Bank of India, Punjab National Bank and Allahabad Bank lead the pack of commercial banks with exposure to the agriculture sector in Uttar Pradesh, where the state government has decided to pay all crop loans owed by small and marginal farmers. 

As of December 2016, nine banks (also including Union Bank of India, Bank of India and Bank of Baroda) had extended loans worth Rs 70,046 crore to the agriculture sector in the state. Of this, crop loans were Rs 49,811 crore.

 The state government has formed an eight-member committee under Chief Secretary Rahul Bhatnagar to implement the decision. Sources said the committee would formalise the loan waiver with the banks by April 21. It will also try to find ways for making payment to the banks by May 15, so that farmers will be in a position to avail of crop loans this year. There are 700,000 farmers in the state whose combined Rs 5,630-crore debt has been declared non-performing by the banks; they cannot get new loans.(READ MORE)