Punjab National Bank (PNB), the country’s third-largest public-sector lender, on Tuesday posted a surprise net loss of Rs 492.28 crore for the December quarter, as provisions for bad assets rose 73.3 per cent year-on-year.
The bank had reported a net profit of Rs 246.51 crore in the comparable quarter last year. The provisions on account of non-performing assets (NPA) for the December quarter stood at Rs 4,445.36 crore, compared with Rs 2,565.77 crore a year ago.
Provisions were high on account of divergence in asset classification and harmonisation among banks. “The reason for provision of Rs 4,445 crore is the divergence declared by RBI of Rs 2,200 crore, (for which) we have done the provision. Related to the harmonisation of provisioning among three banks, we have done the provision of around Rs 1,500 crore,” MD & CEO CH SS Mallikarjuna Rao told a channel.
FE had in December reported that the central bank was looking to harmonise provisioning done by banks.
Net interest income of the bank rose marginally by 1.5 per cent y-o-y to Rs 4,355.05 crore in the December quarter. Domestic net interest margin fell by 28 basis points (bps) sequentially to 2.36 per cent. Non-interest income increased 32.2 per cent y-o-y at Rs 2,404.8 crore. The bank recovered Rs 1,194 crore in written-off accounts during the quarter.
Total deposits for the December quarter grew 8.9 per cent y-o-y to Rs 7.08 lakh crore, of which domestic deposits stood at Rs 6.89 lakh crore. Current-account-savings-account deposits, which accounts for 43.74 per cent of domestic deposits, grew 10.2 per cent y-o-y to Rs 3.01 lakh crore. —FE
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