Punjab National Bank (PNB), one of the leading public sector lender, today reported a fall of 93.41% in net profit on year-on-year basis to Rs 510.1 million for the quarter ended December 31, 2015, compared with Rs 7745.6 million, a year ago on the back of higher provisions for contingencies.
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Public sector Allahabad Bank reported a loss of Rs 486.14 crore for the third quarter ended December 31, due to higher provisioning against bad loans.
Government-owned Allahabad Bank on Tuesday said it closed the third quarter of the current fiscal with a net loss.
The bank’s total income has decreased from Rs.5,386.79 crore for the quarter ended December 31, 2014 to Rs.5,030.19 crore for the quarter ended December 31, 2015.
The total income is Rs.13,891.20 crore for the quarter ended on December 31, 2015 whereas the same was Rs.12,904.85 crore for the quarter ended on December 31, 2014. PNB said it expected bad loans to rise further in the current quarter as a central bank-directed clean-up exercise continues.
Gross non-performing assets (NPAs) of the state-run bank rose to Rs 17,564 crore, which is 8.95 per cent of loans, up from Rs 11,796 crore (6.2 per cent) reported at the end of December 2014.
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. The remaining amount will be provided in the January-March quarter.
Provisions at Dena Bank, too, jumped to Rs 966.97 crore (Rs 241.33 crore) even as gross NPAs surged to Rs 7,916.47 crore (Rs 4,229.92 crore).
The bank has a strategy in place to increase the portfolio under small ticket loans, Ananthasubramanian said. As on September 2015, the gross NPAs of PSBs have increased to Rs 3,00,743 crore as against Rs 2.67 lakh crore in March 2015. Likewise, net NPAs rose to 5.9 per cent of the net advances as of December quarter of 2015-16, up from 3.8 per cent in the previous year’s third quarter. Provisions, including for bad loans, more than doubled from a year earlier to Rs 3,776 crore.
Reacting to the earnings, share price of Punjab National Bank tanked almost 7 per cent to Rs 87.85 on Tuesday.
Under the Pradhan Mantri Jan Dhan Yojana, the bank opened 123 lakh accounts and issued 99.6 lakh RuPay cards as on December 2015 and Rs 1,324 crore have been mobilised in these accounts.
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Dena Bank dipped 5% to Rs 29.40, after falling 12% yesterday on the BSE.
