PNB Q1 profit falls 57% to Rs306 crore
- Paytm says transactions crossed Rs10,000 crore during Diwali season
- Canara Bank to hire investment bankers for sale of non-core assets
- RAW Pressery gets $6 million funding from Sequoia, Saama Capital, DSG
- Amazon eyeing offline tie-ups to take on Flipkart in online fashion retail
- Yash Gupta resigns from Hines, to set up own real estate venture
New Delhi: Punjab National Bank’s net profit fell 57% to Rs.306 crore in the first quarter of 2016-17 from Rs.720 crore in the year-ago period as bad debts zoomed.
Gross non-performing assets (NPAs) of the bank as a percentage of advances more than doubled to 13.75% from 6.47% in the year-ago period. Net NPAs also touched 9.16% from 4.05% in the year-ago quarter.
The NPA ratios have increased even when compared to the preceding quarter when the bank had reported a record loss of Rs.5,367 crore, hit by the sharp increase in bad debts and need for greater provisioning. Gross NPAs were at 12.9% and net NPAs at 8.61% in the quarter ended March.
In the April-June quarter, provisions other than for tax increased to Rs.2,738 from Rs.1,811 in the year-ago period.
All banks were forced to clean up their books—make higher provisioning and classify more loans as bad debts—after the Reserve Bank of India mandated it following an asset quality review. As a result, most of the state-run banks reported losses in the March quarter.
In the quarter, PNB’s net interest income contracted to Rs.3,699 crore from Rs.4,102 crore in the year-ago period. Other income also fell to Rs.2,355 crore from Rs.1,397 crore.