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The increase in provisions for bad debt and the reduction in cash increased the net loss of 45.32 billion rupees in the United Kingdom during the second quarter of the current fiscal year, by report to a fraud.
This PNB had a net loss for the third consecutive quarter. The bank recorded a net loss of 134.17 billion rupees in the fourth quarter of 2017-18. It was the first quarter after the fraud of 148 billion rupees Nirav Modi-Mehul Choksi who had hit the bank. Since then, net banking income has been net. PNB shares fell 5.20% to close at Rs 69.05 on Friday.
Bank chief executive Sunil Mehta told reporters that 86 percent of fraud-related losses had been funded. until there. The bank must still make a provision of more than 20 billion rupees for fraud losses in the next quarter. The "turbulent conditions" in the treasure market have affected the profitability of the bank, said the bank based in Delhi.
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The bank earned 4 billion in the first half of the fiscal year ongoing against Rs 15 billion for the corresponding period of the previous year.
"If you remove the fluctuating interest rate and cash flow market, the earnings from the core business (branches) are transferred. up more than 32 percent. The fundamental strength of the bank is good, "said Mehta.
The bank's gross non-performing badets accounted for 17.16% of the total gross advances as of September 30, 2018., less than 18.26% (Rs 828 billion) as of June 30 of this year. The gross APN stood at 13.31 percent (Rs. 576.30 billion) in the second quarter of last year.
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provision for MPAs in the second quarter against 49.81 billion rupees in previous, net NPAs fell to 8.9% (382.78 billion rupees), against 10.58% (438.72 billion rupees) during this period. Net NPAs stood at 8.44% (340.7 billion rupees) a year ago. The bank recovered 122 billion rupees of bad loans in the first half of this year, compared to about 56 billion rupees in the 2017-18 financial year. It plans to recover bad debts amounting to 170 billion rupees during this financial year.
Mehta stated that the bank expected the major insolvency files to be recovered in the second quarter, which would have repercussions on the bank's finances.
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The bank has forecast a provision of 72% for its exposure to the accounts, currently in insolvency proceedings during the second quarter of Fy & # 39; 19. The regulatory obligation is to build a 50% provision. "This (a bigger supply) will give a lot of comfort to the market because our potential losses are adequately covered," Mehta said.
The total exposure was 293.81 billion rupees until September 30th. The GNP had an exposure of 81.02 rupees. billion in the first list mentioned by the Reserve Bank of India and 46.78 billion rupees in the second list.
The Bank could opt for consolidation
The PNB told the government that it was more interested in consolidation than in the merger of other banks. Sunil Mehta, general manager and CEO, said at this point.
There was speculation that he might be the next candidate with which weaker banks could be merged after the announcement of the merger of Dena Bank and Vijaya Bank with Bank of Baroda. 19659016] Mehta said the problem of non-bank finance companies (NBFCs) is credibility and not liquidity. Even if a few companies fail, this does not mean that there is a systemic liquidity crisis, he added.
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