PNB swings to profit in Q1 on lower provisions, shares rise
1 min read . Updated: 26 Jul 2019, 03:22 PM IST- PNB shares were up 3% in late trade
- Provisions and contingencies fell sharply in the June quarter to ₹2,023 crore
NEW DELHI: State-owned Punjab National Bank (PNB) on Friday swung to profit in the June quarter. The state-owned lender posted a standalone net profit of ₹1,018.63 crore in first quarter of this fiscal, aided by lower provisions. PNB had posted a net loss of ₹940 crore during the corresponding April-June period of 2018-19. In the last quarter of fiscal ended March 2019, PNB had registered a net loss of ₹4,749.64 crore.
Provisions and contingencies fell sharply in the June quarter to ₹2,023 crore, as compared to ₹5,758 crore in the year-ago period.
However, asset quality deteriorated on a sequential basis. PNB’s gross non-performing assets rose to 16.49% of gross advances at end of June 2019, as against 15.5% of gross advances at end of March 2019. Net NPAs or bad loans were at 7.17% as against 6.56% in the March quarter.
PNB shares were up 3% ₹68 over its previous close on BSE in late trade.
PNB reported one loan account in the Power and Steel sector under Borrowal Fraud category to RBI during Quarter II of current FY involving an amount of ₹3760.62 crore outstanding as on 30.06.2019. "The account was already under NPA category since FY 2016 and provision amounting to ₹1880.44 crore was held in the account as at 30.06.2019. This is a consortium advance of 33 lenders which is near resolution stage under NCLT. The remaining provision in the fraud account will be done by the Bank in terms of extant RBI guidelines," PNB said.
