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Punjab National Bank posts near $2 billion quarterly loss

Reuters 

(Reuters) - reported on Tuesday a $1.98 billion fourth-quarter net loss, the worst ever by an Indian lender, after being hit by a massive

The loss for the three months to March 31 came in at 134.17 billion rupees compared with a net profit of 2.62 billion rupees a year ago, the fourth-biggest Indian lender by assets said in a statement.

Shares in fell 6 percent after the results.

For the March quarter, the saw its total provisions more than triple from a year earlier to 203.53 billion rupees. Of that 71.78 billion rupees were due to the fraud, the said.

In what has been dubbed as the biggest in India's history, in February disclosed two groups had defrauded it of more than $2 billion, raising credit overseas with fake guarantees issued by rogue staff.

Police on Monday charged 22 people, including a former of PNB and two of its current directors. A source familiar with the matter said more people are likely to be charged later this week.

Gross bad loans as a percentage of total loans jumped to 18.38 percent at end-March from 12.11 percent three months earlier and 12.53 percent a year ago.

As of Monday, the stock had tumbled about 44 percent since the came to light, and is the worst performer among all stocks this year.

($1 = 67.8550 Indian rupees)

(Reporting by Vishal Sridhar in Bengaluru; Editing by Murali Anantharaman and Edwina Gibbs)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, May 15 2018. 15:58 IST
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