India’s second-largest state-owned Punjab National Bank (PNB) reported its standalone net loss narrowed of Rs. 697.20 crore for the fourth quarter that ended on March 31 2020 due to a substantial decrease in provisioning.
The bank had reported a total loss of Rs 4,749.64 crore for the same period last year. During the December quarter, PNB the bank faced a loss of Rs 492.28 crore. However, the loss was lower than Rs 1,872.7 crore as estimated by a Bloomberg poll of nine analysts.
However, for the entire financial year 2019-20, it reported a total profit of Rs 14,739 crores, down with 37.3 per cent on the year.
The bank made provisioning of Rs 4,901.31 crores for the unsuccessful loans during the quarter. This was down by 51.33 per cent from Rs 10,071.11 crores.
Total income during the quarter under review stood at Rs 16,388 crores. However, in the year-ago same period, the net income was at Rs 14,725.13 crore, PNB told in a regulatory filing.
Its capital adequacy ratio under Basel III norms was reported at 14.14 percent against 9.73 per cent a year ago.
The total interest income stood at Rs 4,678 crores, that rose up by 11.4 per cent against Rs 4,200.29 crore earlier. Other income increased by 33.87 per cent to Rs 2,529.34 crore for the quarter ended 31 March 2020 as compared to Rs 1,889.41 crore for the same quarter in 2019.
Gross non-performing assets (NPAs) of PNB were at 14.21 per cent of gross advances as of March-end 2020, decreased from 15.5 per cent by the year-ago same period.
Bank’s provisioning coverage ratio (PCR)—the amount set aside to cover NPAs— rose up by 77.79 per cent as of March-end, against 74.5 per cent last year. Total bad loans stood at 5.78 per cent, low from 6.56 per cent by the same quarter in 2019.