State-run lender Punjab National Bank (PNB) reported a ₹492 crore loss for the quarter ended December 31 on higher provisioning for bad loans.
The bank had reported a ₹247 crore profit in the same period of the previous financial year.
Provisions for bad loans increased 73.25% year-on-year to ₹4,445.36 crore in the third quarter from the ₹2,565.77 crore reported in the year-earlier period.
“Provisioning requirement of ₹2,091 crore indicated in the RBI RAR report has been fully provided for,” the bank said, indicating divergence of NPA classification that the Reserve Bank of India’s annual inspection report highlighted.
The operating profit grew 21.4% year-on-year to ₹ 3,763 crore while non-interest income grew 32.2% to ₹2,405 crore.
Domestic net interest margin stood at 2.36% for the third quarter.
Gross non-performing assets (GNPA) stood at 16.30% on gross advances as at end December 2019 against 16.33% in the year-ago period. Net non-performing assets reduced to 7.18 % in December 2019, down from the 7.65 % as on September 2019 and 8.22% in December 2018.
Provision coverage ratio (PCR) improved by 642 basis points (bps) year-on-year from 68.85 % in December 2018 to 75.27% as on December 2019.
Deposits grow 9.4%
Domestic deposits growth stood at 9.4% while the growth in current and savings account (CASA) deposits was 10.2% year-on-year. Domestic share of CASA in total deposits improved by 39 bps year-on year to 43.74%.
Retail credit grew 13.6% year-on-year to ₹97,400 crore while housing loan portfolio grew 20.4% to ₹58,201 crore.