Fraud-hit Punjab National Bank (PNB) today reported a loss of Rs 940 crore for the June quarter of 2018-19.
Fraud-hit Punjab National Bank (PNB) today reported a loss of Rs 940 crore for the June quarter of 2018-19. The public sector bank had posted a net profit of Rs 343.40 crore in the April-June quarter of 2017-18. The Total income of the bank rose to Rs 15,072 crore from Rs 14,468.14 crore in the year-ago period.
PNB also reported a decline in its bad assets metrics, with gross non-performing assets (NPAs) rising to 18.26 per cent of gross advances as on June 30, 2018.
PNB, the fourth-biggest bank by assets among all of India’s lenders, in February was defrauded by two jewellery groups which raised more than $2 billion in credit overseas using fake guarantees provided by the bank’s staff in Mumbai.
Net loss was 9.40 billion rupees ($136.72 million) for the three months to June 30, compared with a profit of 3.43 billion rupees a year earlier. On average, 15 analysts had estimated a loss of 24.18 billion rupees, according to Thomson Reuters I/B/E/S.
PNB’s total provisions in the June quarter were 57.58 billion rupees, including 18.63 billion rupees on account of the fraud, the bank said in a statement.
The figure is smaller than a 134.17 billion rupee loss reported in the previous quarter, in what was the steepest-ever loss for an Indian bank.
In March quarter, PNB, the second largest state-owned bank came up with a loss figure of Rs 13,416.91 crore, biggest quantum of loss suffered by any banking entity for a quarter in the country. The loss, which contrasted with a profit of Rs 261.90 crore in the year-ago period, came close to the size of Nirav-Choksi scam whose size has been again pushed up to Rs 14,356.84 crore as disclosed by the bank in the notes to the accounts for the March quarter.
(With inputs from agencies)
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