Mumbai: India’s second largest public sector lender Punjab National Bank (PNB) on Friday reported its standalone net loss narrowed to ₹697.20 crore for March quarter 2019-20 due to substantial decrease in provisioning.
The bank had posted a net loss of ₹4,749.64 crore for the same period a year ago. In the December quarter, the bank had a loss of ₹492.28 crore. Loss was lower than ₹1,872.7 crore estimated by a Bloomberg poll of nine analysts.
However, for the entire financial year 2019-20, it posted a net profit of ₹14,739 crore, down 37.3 % on year.
The bank made a provisioning of ₹4,901.31 crore for bad loans during the quarter under review. This was down 51.33% from ₹10,071.11 crore parked aside for the year-ago period.
Total income during the quarter under review was at ₹16,388 crore as against ₹14,725.13 crore in the year-ago same period, PNB said in a regulatory filing.
Its capital adequacy ratio under Basel III norms stood at 14.14% as compared to 9.73% a year-ago.
Net interest income was at ₹4,678 crore, up 11.4% from ₹4,200.29 crore earlier. Other income gained 33.87% to ₹2,529.34 crore for the quarter ended 31 March, 2020 against ₹1,889.41 crore for the same quarter last year.
Gross non-performing assets (NPAs) of the bank stood at 14.21% of gross advances as at March-end 2020, down from 15.5% by the year-ago same pe
PNB’s provisioning coverage ratio (PCR)—the amount set aside to cover NPAs—increased to 77.79% as of March-end, from 74.5% a year-ago.riod. Net NPAs or bad loans were at 5.78%, down from 6.56% by March 2019.
Deposits were up 4.14% to ₹7.04 trillion for financial year ending 31 March as against ₹6.76 trillion last year. Advances grew 3.06% to 4.72 trillion as on 31 March 2020 over ₹4.58 trillion for the same period last year.
In a filing to the exchanges, the bank said it is evaluating the situation surrounding the Covid-19 crisis, which continues to be uncertain. “The bank is evaluating the situation on ongoing basis."
It also said the major challenge for the bank will arise from eroding cash flow and extending working capital cycles.
“The management believes that no adjustments are required in the financial results as it (pandemic) does not significantly impact the current financial year. Despite these events and conditions, there would not be any significant impact on bank’s result in future and going concerns, assumptions as at presently made," it said.
Shares of PNB closed at ₹34.45 on the BSE, up 1.62% while the benchmark index, Sensex gained 1.53% to close at 34731.73 points.