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PNB tumbles after provisions jump 44% QoQ

Capital Market 

Punjab National Bank (PNB) fell 5.06% at 65.90 after provisions and contingencies jumped 44.76% to Rs 2,928.90 crore in Q2 September 2019 over Q1 June 2019.

Punjab National Bank (PNB) reported a net profit of Rs 507.05 crore in Q2 September 2019 compared with a net loss of Rs 4,532.35 crore in Q2 September 2018.

Total income rose 10.83% to Rs 15,556.61 crore while net interest income rose 7.29% to Rs 4,263.84 crore in Q2 September 2019 over Q2 September 2018.

Gross non-performing assets (NPAs) stood at Rs 79,458.09 crore as on 30 September 2019 as against Rs 77,267.29 crore as on 30 June 2019 and Rs 81,250.83 crore as on 30 September 2018.

The ratio of gross NPAs to gross advances stood at 16.76% as on 30 September 2019 as against 16.49% as on 30 June 2019 and 17.16% as on 30 September 2018.

The ratio of net NPAs to net advances stood at 7.65% as on 30 September 2019 as against 7.17% as on 30 June 2019 and 8.90% as on 30 September 2018.

The bank's provisions and contingencies fell 69.98% to Rs 2,928.90 crore in Q2 September 2019 over Q2 September 2018. It, however, jumped 44.76% compared with Rs 2023.31 in Q1 June 2019.

Provision coverage ratio of the bank stood at 73.58% as on 30 September 2019.

During the quarter bank has availed dispensation for deferment of provision in respect of frauds amounting to Rs 2580.72 crore. Accordingly, an amount of Rs 645.19 crores has been charged to profit and loss account during the quarter and Rs 1,935.53 crores has been deferred to subsequent quarter, the bank said.

Further, out of unamortised amount of Rs 718.38 crore up to June quarter, an amount of Rs 369.59 crore has been charged to P&L account and remaining amount of Rs 348.79 crore has been carried forward to subsequent quarters. Total amount of remaining provision to be carried over to the subsequent quarters is Rs 2,284.32 crore, the bank said.

On the BSE, 43.87 lakh shares were traded in the counter so far compared with average daily volumes of 19.38 lakh shares in the past two weeks. The stock hit a high of Rs 69.55 and a low of Rs 65.15 so far during the day.

Punjab National Bank is a public sector bank. Government of India held 75.41% stake in the bank as on 30 September 2019.

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

First Published: Tue, November 05 2019. 14:36 IST
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