PNB Chairman and Managing Director Sunil Mehta
PNB Chairman and Managing Director Sunil Mehta

PNB reports net loss of Rs 4,750 crore in Q4 due to higher provisioning for bad loans

ANI | Updated: May 28, 2019 17:50 IST

New Delhi [India], May 28 (ANI): Government-owned Punjab National Bank (PNB) on Tuesday reported a net loss of Rs 4,750 crore in the fourth quarter of 2018-19, largely due to higher provisioning for bad loans.
The net loss in same period of last financial year was Rs 13,417 crore because of fraudulent loans worth over Rs 14,000 crore to the group of companies belonging to Nirav Modi and Mehul Choksi, who have fled the country.
"We have tried to cleaning up the balance sheet, and made proper provisioning in all the stressed assets going forward," said Chairman and Managing Director Sunil Mehta.
"Our provisioning coverage ratio has gone up from 58 to 75 per cent. In cases being adjudicated by the National Company Law Tribunal (NCLT), it has even gone up to even 85 per cent. This will assure investors and depositors and instill confidence in them," he said while speaking to ANI.
In three months ending December 2018, however, the bank had reported a net profit of Rs 246 crore as compared to Rs 230 crore in the same period of the previous year.
PNB's operating profit for Q4 FY 19 stood at Rs 2,861 crore compared to an operational loss of Rs 447 crore in Q4 of 2017-18. Gross non-performing assets (NPAs) declined to 15.5 per cent by March 2019 compared to 18.38 per cent in Q4 of previous fiscal.
Interest earned was higher at Rs 12,836 crore compared to Rs 11,385 crore in Q4 FY18 while total expenditure declined from Rs 13,393 crore to Rs 11,864 crore.
In the full fiscal year 2018-19, interest earned was Rs 51,310 crore versus Rs 47,996 crore while total expenditure was Rs 45,692 crore versus Rs 46,582 crore. However, the net loss was Rs 9,975 crore in FY 19 compared to net loss of Rs 12,283 crore in FY 18.
Gross NPAs stood at Rs 30,038 crore compared to Rs 48,684 crore in the previous year, according to a statement.
(ANI)

iocl