Punjab National Bank declared their first quarter result of the current fiscal year on Tuesday which reported a Rs.940.01 crore loss which a 173% decline in profit levels as compared to the Rs.343.40 crore profit of the last year’s June-end quarter.
The bank improved its loss margin, as it sustained a Rs.13,416.91 crore loss during the last march end quarter of 2018.Punjab National Bank was able to minimize the loss by recovering non-performing assets (NPA), cost cutting measures like branch rationalization within and outside the country, improving loan (Interest) margins.
The scam hit PNB is still in recovery after the jewellers Nirav Modi And Mehul Choksi scammed the bank by borrowing large sum of money through fraudulently obtained letter of undertaking from one of the PNB’s Mumbai branches.
PNB’s gross NPA improved a bit to 18.26% from 18.38% of the Q4 FY18 but worse as compared to 13.66 % of last year’s same quarter. Net NPA also recovered from 11.24% of previous March end quarter to 10.58% in the June end quarter. Provision and Contingencies fell 72.3% to Rs.5758.16 crore against previous fiscal year’s last quarter.