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PNB Q4 net loss narrows to Rs 697 cr

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Capital Market
Last Updated : Jun 20 2020 | 12:50 PM IST

Punjab National Bank (PNB) reported a net loss of Rs 697.20 crore in Q4 March 2020, lower than net loss of Rs 4749.64 crore in Q4 March 2019.

Total income rose 11.3% year-on-year (YoY) to Rs 16,388.32 crore in Q4 FY20. Pre-tax loss in Q4 FY20 stood at Rs 969.03 crore, lower than pre-tax loss of Rs 7209.93 crore in Q4 FY19. The result was announced after trading hours on Friday (19 June 2020).

Provisions and contingencies fell 51.3% to Rs 4,901.31 crore in Q4 March 2020 from Rs 10,071.11 crore in Q4 March 2019. The bank has made a total provision of Rs 383.19 crore in 9 accounts during the quarter. The provision coverage ratio stood at 77.79% as on 31 March 2020.

Gross non-performing assets (NPAs) stood at Rs 73,478.76 crore as on 31 March 2020 as against Rs 76,809.20 crore as on 31 December 2019 and Rs 78,472.70 crore as on 31 March 2019.

The ratio of gross NPAs to gross advances stood at 14.21% as on 31 March 2020 as against 16.30% as on 31 December 2019 and 15.50% as on 31 March 2019. The ratio of net NPAs to net advances stood at 5.78% as on 31 March 2020 as against 7.18% as on 31 December 2019 and 6.56% as on 31 March 2019.

The bank reported net profit of Rs 336.20 crore the year ended March 2020 (FY20) compared with net loss of Rs 9,975.49 crore the year ended March 2019 (FY19). Total income rose 7.5% to Rs 63,074.14 crore in FY20 over FY19.

Deposits increased by 4.1% to Rs 7,03,846.32 crore in FY20 from Rs 6,76,030.13 crore in FY19. Advances grew by 3% to Rs 4,71,827.72 crore as on 31 March 2020 from Rs 4,58,249.20 crore as on 31 March 2019.

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With respect to the impact of COVID-19 on its business operations, the bank said that the situation continues to be uncertain and it is evaluating the situation on ongoing basis. It added that the major identified challenges for the bank would arise from eroding cash flows and extended working capital cycles.

"The management believes that no adjustments are required in the financial results as it (pandemic) does not significantly impact the current financial year. Despite these events and conditions, there would not be any significant impact on bank's result in future and going concerns, assumptions as at presently made," PNB said.

Punjab National Bank is a public sector bank. Government of India held 83.19% stake in the bank as on 31 March 2020.

Shares of the government-owned bank rose 1.77% to end at Rs 34.50 on Friday. It had traded in the range of Rs 33.90 and Rs 34.65 during the day.

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First Published: Jun 20 2020 | 11:46 AM IST

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