PNB slips into the red
Punjab National Bank’s standalone net loss rose to Rs 492.28 crore for the December quarter of 2019 as provisioning for bad loans rose substantially.
The state-owned lender had posted a net profit of Rs 246.51 crore for the same period a year ago. In the September quarter of 2019-20, the bank logged a profit of Rs 507.05 crore.
Total income in the December quarter was Rs 15,967.49 crore against Rs 14,854.24 crore a year ago, PNB said in a regulatory filing. The bank raised the provisioning for bad loans to Rs 4,445.36 crore for the quarter under review against Rs 2,565.77 crore parked aside in the year-ago period.
The PNB stock closed at Rs 56.75 on the BSE, down 1.05 per cent. The lender had been suffering a staggering loss because of the fraud committed by jeweller duo Mehul Choksi and Nirav Modi.
On a consolidated basis, the lender reported a net loss of Rs 501.93 crore for the quarter under review. However, there was a net profit of Rs 249.75 crore in the same period of 2018-19, the bank said. Income was at Rs 16,211.24 crore, up from Rs 15,104.94 crore earlier.
Provisioning for bad loans was up at Rs 4,471 crore.