You are here: Home » Companies » Results
Business Standard

PNB Q4 results: Standalone net profit declines 66% to Rs 201 crore

Lender sets aside Rs 325 crore to provide for fraud

Topics
Punjab National Bank | PNB

Nikunj Ohri  |  New Delhi 

PNB, Punjab national bank

Punjab National Bank’s (PNB) standalone net profit dropped 66 per cent year on year to Rs 201 crore in January-March as the lender sets aside Rs 325 crore on account of fraud.

The state-owned lender’s profit in the same quarter last year was Rs 586 crore. PNB, on Wednesday, reported a net profit of Rs 3,457 crore for FY22 as against a profit of Rs 2,022 crore posted a year ago.

has availed dispensation from the Reserve Bank of India (RBI) for deferment of provision of Rs 1,302.41 crore in respect of frauds declared during the quarter. “Out of this an amount of Rs 325.61 crore has been charged to Profit & Loss Account during the quarter,” the lender said in an exchange filing.

In March, the lender had reported borrowal fraud of Rs 2,060.14 crore in NPA account of IL&FS Tamil Nadu Power.

PNB’s total income during January-March 2022 was Rs 21,095 crore as against Rs 21,386 crore a year ago, said in an exchange filing. The lender’s interest income during the quarter was marginally lower at Rs 18,645 crore as against Rs 18,808 crore reported last year. However, its net interest income rose to Rs 7,305 crore from Rs 6,957 crore in the same quarter last year.

The bank’s asset quality showed an improvement with gross non-performing assets as a percentage of gross advances dropping to 11.78 per cent from 14.12 per cent a year ago. Gross NPAs in October-December 2021 were 12.88 per cent. Net NPAs stood at 4.80 per cent from 5.73 per cent a year ago and 4.90 per cent a quarter ago.

On a consolidated basis, the bank recorded a profit of Rs 245 crore in January-March as as against a profit of Rs 546 crore reported in the same quarter a year ago.

The consolidated financial of the group include financial of five subsidiaries and 15 associates, it said.

The lender said impact of Covid-19 pandemic remains uncertain due to new variants and the major challenge for the bank would arise from eroding cash-flows and extended working capital cycles. However, the bank said it is gearing itself on all the fronts to meet these challenges.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, May 11 2022. 20:31 IST
RECOMMENDED FOR YOU
.