Punjab National Bank (PNB) fell 1.22% to Rs 28.20 after the bank reported a borrowal fraud of Rs 1203.26 crore in non-performing assets (NPA) account of Sintex Industries (SIL) at Large Corporate Branch at Ahmedabad.
PNB on Wednesday said it reported a fraud of Rs 1203.26 crore to the Reserve Bank of India (RBI) in the accounts of Sintex Industries (SIL). PNB said it has already made provisions amounting to Rs 215.21 crore, as per prescribed prudential norms.
The public sector bank's standalone net profit tanked 69.7% to Rs 308.45 crore on a 60.2% surge in total income to Rs 24,292.80 crore in Q1 June 2020 over Q1 June 2019.
The bank's provisions and contingencies dropped soared 131.6% to Rs 4,685.89 crore in Q1 June 2020 over Q1 June 2019. The bank held a total provision of Rs 1027.16 crore related COVID-19 in Q1 June 2020. The Provisioning Coverage Ratio stood at 30 June 2020 works out to 80.75%.
The bank's capital adequacy ratio stood at 12.63% in Q1 June 2020 as compared to 14.14% in Q4 March 2020 and 9.77% in Q1 June 2019.
The Government of India held 85.59% stake in PNB as on 30 June 2020. Shares of PNB have risen 7.22% from the 52-week low of Rs 26.30 hit on 20 May 2020.
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