PNB Q3 net plummets 93% to Rs51 crore

Punjab National Bank (PNB), the country's fourth-largest state-run lender by assets, today reported a 93.41 per cent decline in fiscal third quarter net profit at Rs51.01 crore, on the back of higher provisioning for bad loans.

PNB had reported a net profit of Rs774.58 crore for the October-December quarter of the previous fiscal.

The banks total income increased to Rs13,891.2 crore for the quarter ended December, up 7.64 per cent from Rs12,904.85 crore in the same quarter last financial year.

Gross NPAs as a percentage to total advances rose to 8.47 per cent from 5.97 per cent in the same quarter a year ago. PNB said it expected bad loans to rise further in the current quarter as a central bank-directed clean-up exercise continues.

PNB's net non-performing assets went up to 5.86 per cent from 3.82 per cent at the end of December 2014, the bank said.

Reserve Bank of India (RBI) has asked banks, burdened with the highest-ever non-performing assets in 13 years, to treat some of their troubled accounts as non-performing even if actual default has not yet happened and make sufficient provisioning.

PNB said total provisions, excluding for income tax, made during the third quarter of 2015-15 grew by over two-and-a-half fold to Rs3,775.53 crore as against Rs1,467.77 crore in the year-ago period.

PNB shares fell as much as 6.5 per cent to Rs88.20 in Mumbai today.