Punjab National Bank registered a loss of Rs 4,532.4 crore for the July-September quarter of FY 19 as provisions expanded four-fold compared to the preceding quarter of FY18 and NII growth was mediocre, though asset quality improved sequentially.
This is the third consecutive quarter where the bank as reported a loss, taking the total loss to Rs 18,889.3 crores due to the weaker top line growth coupled with higher slippages and provisions. The bank had earlier reported a net profit of Rs 560.6 crore in Q2FY18.
Net interest income, or the core income earned by the bank through the difference between interest earned and interest expended, declined 1 per cent year-on-year to Rs 3,974 crores in Q2 with marginal loan growth of 5 per cent YoY.
According to the bank’s statement, Provisions and contingencies for the September-end quarter rose sharply by 69.5 per cent to Rs 9,758 crore and grew subsequently by 300 per cent year-on-year.
As per the bank’s statement, provisions of Rs 5,315 crore is supposed to be made for Nirav Modi case. Out of which, PNB has made provisions of Rs 3,295 crores in Q2 and the balance Rs 2,020 crores is expected to be provided in the coming quarter.