Notably, PNB had posted a profit of Rs 306 crore in the same quarter past year.
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Total income of the bank during the quarter decreased 1.33 per cent to Rs13,276.19 crore from Rs13,455.65 crore a year ago.
The bank had reported a net profit of Rs 416.92 crore during the same quarter of 2014-15.
Punjab National Bank, the worst-performing stock in India’s S&P BSE Bankex index this year, reported a quarterly loss after its stressed-asset ratio surged to the highest in at least five years.
Amit Bannerjee, an independent merchant banker, said, “Despite the loss, PNB has managed to post an 8 per cent year-on-year increase in loan advances, which means the bank has taken things in its stride and is trying to turn the corner and we should see far better results after a period of one-and-a-half year of pain”.
The foreign brokerage Nomura securities in its report said the loan in Special Mention Account (SMA2) category – those with interests or principal remaining due for 61-90- days – was Rs 11,000 crore. “We believe pain to continue in FY17 also, with regards to asset quality”, he said.
Total income during the year rose to Rs 54,301.37 crore as against Rs 52,206.09 crore in the previous fiscal. Syndicate Bank’s provisions and contingencies related expense has increased nearly two fold to Rs 4348 crore in FY16 as compared to the previous financial year. 56 crore in the corresponding period of the previous fiscal.
As part of fight against Non Performing Assets, Ananthasubraman said, the bank sold Rs 1,832 crore bad loans to asset reconstruction companies (ARCs).
Seven Indian state-owned lenders have reported a combined losses of 136 billion rupees ($2 billion) in the three months ended March 31.
PNB had an exposure of Rs 800 crore to the Mallya promoted Kingfisher Airlines, which had to close shop under huge debt burden and payment defaults.
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On capital raising, she said, the bank would be seeking funds from the government this year as well.
