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PNB Q4 net slumps 62 percent as bad loans hurt

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Reuters MUMBAI
Last Updated : May 08 2015 | 12:57 PM IST

MUMBAI (Reuters) - Punjab National Bank, India's fifth-biggest lender by assets, said quarterly net profit fell 62 percent as provisions for bad loans were sharply higher.

The New Delhi-based bank said standalone net profit plunged to 3.07 billion rupees ($48 million) for its fiscal fourth quarter to end-March, from 8.06 billion rupees a year earlier.

Analysts on average had expected a net profit of 8.36 billion rupees, according to data compiled by Thomson Reuters.

Gross bad loans as a percentage of total loans rose to 6.55 percent from 5.97 percent in the previous quarter and 5.25 percent a year earlier. Provisions, including for bad loans, surged 79 percent to 38.34 billion rupees from a year earlier.

Shares in Punjab National Bank fell more than 6 percent after the results.

($1 = 63.9900 rupees)

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(Reporting by Devidutta Tripathy; Editing by Gopakumar Warrier)

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First Published: May 08 2015 | 12:44 PM IST

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