PNB Reports 93% Fall In Net Profits

PNB, the country’s second-largest public sector bank by assets posted a 93 percent fall in quarterly profit and said it expected bad loans to rise further in the current quarter as a central bank-directed clean-up exercise continues. PNB shares fell as much as 6.5 percent to 88.20 rupees in Mumbai on Tuesday.

The total income increased to Rs 13,891.2 crore for the quarter ended December, up 7.64 percent, from Rs 12,904.85 crore in the same quarter last financial year. Gross NPAs as a percentage to total advances rose to 8.47 percent from 5.97 per cent in the same quarter an year ago.

Gross bad loans as a percentage of total loans were 8.47 percent at end-December, compared with 6.36 percent in the previous quarter. Provisions, including for bad loans, more than doubled from a year earlier to 37.76 billion rupees. Net non-performing assets (NPAs) went up to 5.86 percent from 3.82 percent at the end of December 2014, the bank said. Reacting to the bank’s quarterly numbers, PNB’s shares declined by 4.56 percent to Rs 90.05 on BSE.

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