Punjab National Bank has reported a net loss of Rs 13,416.91 crore for the fourth quarter ending March 2018.
The profit was dragged by spike in provisions by three times towards bad loans, which was taken upfront during the quarter.
In the same quarter a year ago, the bank had turned around due to write-back in pension provisions to report a profit of Rs 261.9 crore as against a massive loss of Rs 5,367.1 crore in March-end quarter 2016.
Provisions for bad loans stood at Rs 16,200 crore in the March ended quarter.
PNB’s asset quality worsened, with gross bad loan ratio rising to 18.38 percent from 12.21 percent sequentially. Net NPAs jumped to 11.24 percent from 7.55 percent.
Shares of the fraud-hit lender fell as much as 5.8 percent to Rs 84 after the results announcement. The share price has fallen 47.6 percent so far this year compared to a 5.2 percent rise in the benchmark S&P BSE Sensex Index. The NSE Nifty Bank Index rose 4.6 percent in the same period.
Net interest income and Other income
NII or Net interest income (the difference between interest earned and expended) was down by 16.8 percent to 3,063.3 crore, as against Rs 3,683.5 crore in the same quarter a year ago.
The NII was projected to rise seven percent at Rs 3,939.7 crore, as per Reuters poll.
Non-interest income or other income halved to Rs 1,561 crore versus Rs 3,102.80 crore in March quarter ending 2017. The poll estimated the other income to decline by 23.7 percent to Rs 2,367.3 crore from Rs 3,102.80 crore.
Full year financial results
For the full year ending March 2018, PNB’s net loss stood at Rs 12,130 crore as against a net profit of Rs 1187 crore in FY17.
The results were announced just before market closing. It has touched a 52-week low of Rs 83.80 apiece after the results announcement.
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