PNB posts 7.12 pc YoY profit at Rs. 247 crore in Q 3
New Delhi, Feb 5 (IBNS) : The state-run Punjab National Bank (PNB), plagued by a whopping 2 billion dollar fraud, posted a surprise profit in October-December quarter, aided by lower provisioning for bad loans.
Punjab National Bank's net profit rose 7.12 per cent annually to Rs. 246.51 crore, according to a regulatory filing by the lender.
Analysts had on an average estimated the bank's loss at Rs. 1,063 crore, news agency Reuters reported citing Refinitiv Eikon data.
The profit came on account of a sharp drop in provisions for bad loans. The provisions declined 67 per cent to Rs. 2,565.77 crore versus Rs. 7,733.27 crore in the previous quarter.
"We are back in (the) black, after 100 per cent provisions for all our commitments," PNB chief executive Sunil Mehta said in an earnings briefing. He also said the recovery of about Rs. 16,000 crore in the quarter helped the bank improve its performance.
The results come nearly a year after PNB disclosed that two jewellery groups had defrauded it in India’s biggest banking scam, raising credit overseas with fake guarantees issued by rogue bank staff.
During the quarter, the bank's asset quality improved as its percentage of gross non-performing assets declined to 16.33 per cent from 17.16 per cent sequentially and the percentage of net non-performing assets declined to 8.22 per cent from 8.90 per cent in the September quarter.
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