PNB Net Falls 29% on Higher Pro­vi­sion­ing

The Economic Times - - Markets & Finance - OUR BUREAU

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.

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