Two government owned banks - the Allahabad Bank and Dena Bank - on Tuesday declared net loss while a third - the Punjab National Bank (PNB)- announced a steep Rs.723.55 crore fall in its net profit for the third quarter of the current fiscal.
The common thread in the results of these three banks and also true of other government owned banks that declared their results was the high provisions and ballooning of their non-performing assets (NPA).
PNB said it posted a net profit of Rs.51.01 crore for the quarter ended December 31, 2015, against Rs.774.56 crore for the quarter ended December 31, 2014.
The total income is Rs.13,891.20 crore for the quarter ended on December 31, 2015 whereas the same was Rs.12,904.85 crore for the quarter ended on December 31, 2014.
The provisions went up to Rs.3,775.53 crore during the third quarter this fiscal up from Rs.1,467.77 crore provided during the quarter ended December 31, 2014.
The PNB's non-performing assets (NPAs) stood at Rs.22,983.40 crore as on December 31, 2015 up from Rs.13,787.76 crore as on December 31, 2014.
According to PNB, it has recognised deferred tax assets amounting to Rs.1,132.04 crore which was hitherto recognised as at the year-end, in accordance with the applicable Accounting Standards.
Accordingly, figures of previous corresponding reporting periods are not comparable.
The bank's scrip closed at Rs.87.85 down from the previous day's closing price of Rs.94.35.
On its part the Allahabad Bank closed its third quarter with a net loss of Rs.486.14 crore as compared to net profit of Rs.164.11 crore for the quarter ended December 31, 2014.
The bank's total income has decreased from Rs.5,386.79 crore for the quarter ended December 31, 2014 to Rs.5,030.19 crore for the quarter ended December 31, 2015.
Its net non-performing assets (NPA) increased to Rs.6,307.54 crore as on December 31, 2015 from Rs.5,577.78 crore as on 31.12.2014.
Meanwhile the bank's board has approved raising of capital through private placement of Basel III compliant tier-2 bonds in the nature of debentures aggregating up to Rs.500 crore in one or more tranches during 2015-16.
It also approved raising of equity capital totalling up to Rs.1,000 crore including premium through preferential issue to the central government, Life Insurance Corporation of India and or other Indian financial institutions subject to necessary approvals.
On the BSE, the price of bank's share closed at Rs.51 down from Rs.52.70, the closing price of Monday.
Joining the band was the Dena Bank declaring a net loss of Rs.662.85 crore for the quarter ended December 31, 2015 as compared to net profit of Rs. 76.56 crore for the quarter ended December 31, 2014.
The bank's total income went down from Rs. 2867.32 crore for the quarter ended December 31, 2014 to Rs. 2722.23 crore for the quarter ended December 31, 2015.
Dena Bank's provisions went up to Rs.966 crore up from Rs.241.33 crore.
The bank's net non-performing assets (NPA) stood at Rs.5,176.27 crore as on 31.12.2015 as against a net NPA of Rs.2,928.54 crore as on 31.12.2014.
On the bourse, the bank scrip closed at Rs.31.25 down from the Monday's closing price of Rs.35.55.
