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Punjab National Bank tanks 10%, hits 52-week low on weak Q4 results

In Q4FY22, the bank's standalone net profit dropped 66 per cent YoY to Rs 201 crore as the bank set aside Rs Rs 325 crore on account of a fraud.

Buzzing stocks | Punjab National Bank | Market trends

SI Reporter  |  Mumbai 

Punjab National bank

Shares of (PNB) hit a 52-week low of Rs 29.90, frozen at the 10 per cent lower circuit on the BSE on Thursday at 09:32 am as the state-owned lender’s standalone net profit dropped 66 per cent year on year (YoY) to Rs 201 crore in January-March quarter (Q4FY22) after the bank set aside Rs 325 crore on account of a fraud. The bank had posted a profit of Rs 586 crore in the same quarter last year (Q4FY21).

The stock traded at its lowest level since November 2020. At 09:32 am; a combined 43.57 million shares changed hands and there were pending sell orders for 1.4 million shares on the NSE and BSE.

PNB had 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.

The bank’s net interest income grew 5 per cent to Rs 7,304 crore, against Rs 6,957 crore n Q3FY21. 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.

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First Published: Thu, May 12 2022. 09:56 IST