PNB posts massive Rs 13417 crore loss in Q4FY18

PNB posts massive Rs 13417 crore loss in Q4FY18

New Delhi, May 15: Punjab National Bank has reported a net loss of Rs 13,416.91 crore for the fourth quarter ending March 2018.
The profit was dragged by spike in provisions by three times towards bad loans, which was taken upfront during the quarter.
In the same quarter a year ago, the bank had turned around due to write-back in pension provisions to report a profit of Rs 261.9 crore as against a massive loss of Rs 5,367.1 crore in March-end quarter 2016.
Since February 14, the Delhi-based bank has been at the centre of a near Rs 13,000 crore fraud involving diamond merchants Nirav Modi and Mehul Choksi.
In the fourth quarter, PNB’s provisions close to trebled to Rs 16,202 crore, from Rs 5,753.3 crore in March quarter 2017, due to the fraud, and a Reserve Bank of India circular.
A Reuters poll had estimated the fraud-affected lender to report a loss of Rs 3,908.6 crore during the January to March period. Provisions were expected to double to Rs 10,080.9 crore.
Gross non-performing assets (NPAs) worsened substantially to 18.38 percent of total loans as on March-end 2018 as compared to 12.11 percent of total loans in December 2017 and 12.5 percent as on March-end 2017.
Net NPA ratio also deteriorated to 11.24 percent from 7.55 percent in the previous quarter and 7.81 percent in the year-ago period.
In absolute terms, gross NPAs jumped significantly to Rs 86,620 crore, up from Rs 57,519 crore in the December quarter.
Net NPAs were at Rs 48,684 crore as on March end 2018, up from Rs 34,075 crore in December.
Net interest income and Other income
NII or Net interest income (the difference between interest earned and expended) was down by 16.8 percent to 3,063.3 crore, as against Rs 3,683.5 crore in the same quarter a year ago.
The NII was projected to rise seven percent at Rs 3,939.7 crore, as per Reuters poll.