Punjab National Bank’s net profit took a hit by falling 93.4 per cent to Rs 51 crore in the October-December quarter on account of higher provisioning for non-performing assets (NPAs). The bank’s net profit had stood at Rs 621.03 crore in July-September and Rs 774.56 crore in the year-ago period.
Net NPAs constituted 5.86 per cent of the net advances in the October-December quarter, up from 3.82 per cent in the same period a year ago. In absolute terms, the gross NPAs increased to Rs 34,338 crore as of December 2015, from Rs 22,211 crore last year. Net NPAs stood at Rs 22,983 crore during the quarter, up from Rs 13,788 crore last year.
“I (would) like to mention that the industry is going through very tough times and PNB has been one of the major lenders and obviously the impact is felt on the bank which is very much visible on its books,” chief executive Usha Ananthasubramanian told reporters at a press conference here.
During the third quarter of the current fiscal, the provisions towards NPAs by PNB increased to Rs 3,775 crore, sharply up from Rs 1,467 crore in the same quarter a year ago.
“The increase in NPAs is on account of bank’s exercises as part of RBI’s Asset Quality Review over the last two quarters of the current financial year. The bank is undertaking the same over the time-frame stipulated by the RBI,” PNB said in a statement.
The income of the bank, however, rose by 7.6 per cent to Rs 13,891 crore during the third quarter of this financial year as against Rs 12,905 crore a year ago. The net interest income (NII) during October-December stood at Rs 4,120 crore, while the non-interest income stood at Rs 1,671 crore.
The bank has a strategy in place to increase the portfolio under small ticket loans, Ananthasubramanian said. “In line with bank’s objective to achieve profitable growth from the grassroots, share of small ticket advances to non-food credit increased to 60.3 per cent in December 2015 from 57 per cent in December 2014,” she added.
Shares of PNB on Tuesday fell by 6.89 per cent to end at Rs 87.85 per share on the BSE.
Total deposits of the bank grew by 13.3 per cent to Rs 5.49 lakh crore as on December 2015. Current account and savings account (CASA) deposits increased to Rs 1.98 lakh crore as of December 2015, up 14.3 per cent from last year, while savings deposits increased by 12.5 per cent on the year to Rs 1.62 lakh crore.
“We expect some capital infusion from the government. We may not look worse in terms of capital but as a big player, someone has to participate as a big player when the economy starts moving, we are an active player on the lending side of the banking. I am hopeful capital infusion will certainly happen considering the DNA of the bank,” Ananthasubramanian said. with PTI
Dena, Allahabad Bank post big losses
Mumbai: Two public sector banks — Dena Bank and Allahabad Bank — on Tuesday reported a combined loss of over Rs 1,100 crore for the third quarter ended December 2015 due to fresh loan slippages and higher provisioning as per the RBI directive.
Dena Bank has posted has incurred a net loss of Rs 662.85 crore in the December quarter as against a net profit of Rs 76.56 crore in the same period of last year and Rs 38.76 crore profit in the September quarter. “It is due to increase in provision for NPAs by Rs 807 crore as compared to corresponding quarter of previous year, due to fresh slippages during the period under review,” said Dena Bank CMD Ashwani Kumar.
Allahabad Bank reported a loss of Rs 486.14 crore for the third quarter ended December due to higher provisioning against bad loans as against a net profit of Rs 164.11 crore in the same quarter last year.
The bank’s shares declined by 3.23 per cent to Rs 51 on the BSE. ENS