PNB posts net loss of Rs 4750 cr in Q4 on higher provisioning for bad loans

The bank's gross non-performing assets (NPA) declined to 15.50% by March 2019, compared to 18.38% by end of December 2018

Punjab National Bank (PNB) on Tuesday posted a net loss of Rs 4,750 crore in the fourth quarter of 2018-19, signalling that the bank hasn’t scripted a turnaround after it was hit by a Rs 14,356-crore loan fraud last year.

The loss was on account of higher provisioning for bad loans during the January-March period. This includes provisioning towards grounded Jet Airways, which hasn’t been classified as a non-performing asset (NPA) yet, crisis-hit Infrastructure Leasing & Financial Services (IL&FS), and around an ageing provision towards two big accounts — Essar Steel and Bhushan Power and Steel — in the bankruptcy court.