PNB takes Rs 150-cr MTM hit on bond portfolio

Punjab National Bank has taken a hit of nearly Rs 150 crore on account of marked-to-market (MTM) losses on its bond portfolio for the quarter ended June as yields shot up due to rising inflation and crude oil prices, a bank official said today.

“We have to provide Rs 150 crore for depreciation on our bond portfolio for the last (April-June) quarter,” the official said. He said the bank’s trading profit is also sharply down to Rs 10 crore in the quarter ended June from Rs 105 crore in the same period last year.

Of the bank’s government security portfolio, only 10 per cent is MTM while the remaining 90 per cent is held to maturity. However, the bank’s portfolio under the non-statutory liquidity ratio category is fully MTM, the official said.

Bonds held under ‘available for sale’ and ‘held for trade’ are MTM, while those under held to maturity are not required to be MTM.

PNB shares closed at Rs 488.90 on NSE, down 1.42 per cent from the previous close.