PNB Net Falls 29% on Higher Provisioning
Punjab National Bank (PNB) on Tuesday reported a sharp decline in net profit for the quarter ended March 31, mainly on account of higher provisioning for bad loans. The bank’s share closed at .` 800, down 4.16%, on the BSE, on a day when the Sensex gained 1.36% and closed at an all-time high of 23,871.23. The New Delhi-based bank, the third-largest among public sector banks, reported a net profit of .` 806.4 crore for the quarter ended March 31, down 29% from .` 1,130.80 crore in the January-March quarter of 2012-13.
The bank’s chairman, KR Kamath, acknowledged that the asset quality has deteriorated, but expressed hope that “when the state of the economy improves, the pressure on asset quality will ease”.
Provisioning for bad loans rose 45% to .` 2,139 crore during the quarter, against .` 1,478 crore in the same period a year ago.
The bank restructured assets worth .` 3,100 crore this quarter, of which .` 2,199 crore was under corporate debt restructuring (CDR).
Fresh slippages in the quarter were .` 4,189 crore.