Punjab National Bank posts loss for third straight quarter in July-September
The fraud-hit lender reported a loss of Rs 4,532 crore in July-September.
Punjab National Bank posted a loss for the third straight quarter on Friday as it set aside a higher amount as provisions for bad loans. The Rs 4,532-crore loss in July-September is higher than the loss of Rs 940 crore in the April-June quarter. In the same quarter a year ago, the lender had reported a profit of Rs 560 crore.
The bank’s total income during the July-September quarter declined to Rs 14,035.88 crore as against Rs 14,205.31 crore in the same quarter last year, an exchange filing by PNB showed.
Gross non-performing assets accounted for 17.16% of the gross advances at the end of September, higher than 13.31% a year ago. Provisions for bad loans increased three times to Rs 7,733.27 crore in the quarter, against Rs 2,693.78 crore in July-September 2017.
The loss in the quarter was several times higher than market projections. Bloomberg had predicted a loss of Rs 1,349.2 crore, based on estimates of 13 brokers.
Earlier this year, the bank was at the centre of a fraud amounting to over Rs 13,000 crore. Businessmen Nirav Modi and Mehul Choksi, who are the main accused, have fled the country.