PNB tops list of worst losses in Indian banking history

Public sector lender Punjab National Bank has reported the largest net loss of rs. 5,367.14 crore for 4th quarter ended 31st of March against the backdrop of a surge in bad loans. This is the biggest quarterly loss in Indian bank history. Provisioning for NPAs grew almost threefold to Rs 10,485.23 crore in the fourth quarter compared with Rs 3,834.19 crore in the previous fiscal.

The lender has reported gross bad loans of Rs55,818 crore compared to Rs34,338 crore in the previous quarter. As a percentage of its loan book, PNB’s bad loans are now at 12.9%Net NPAs too jumped to 8.61 per cent as against 4.06 per centTotal income during the 4th quarter decreased 1.33 % to Rs 13,276.19 crore from Rs 13,455.65 crore a year ago.

Indian banks have seen a surge in bad loans after a clean up ordered of their books under an asset quality review (AQR) by the Reserve Bank of India. The RBI wanted banks to classify some troubled accounts as non-performing and make adequate provisions for those over the December and March quarters. So in the continuation Bank of Baroda has been reported the 2nd and 3rs largest losses in December 2015 and March 2016 quarters and IDBI bank has reported a loss of Rs2,183 crore. This is the fourth highest loss reported by any bank. Syndicate has reported the 5th highest loss (2,158 crore).

So let’s discuss some questions related to this post :
1. Name the bank which has topped the list of worst losses in Indian Banking History ?
2. What is PNB net loss for 4th quarter ?

Courtesy : Economic Times


Download success!

Thanks for downloading the guide. For similar guides, free study material, quizzes, videos and job alerts you can download the Adda247 app from play store.


Leave a comment

Your email address will not be published. Required fields are marked *