Punjab National Bank To Recover Rs 6,000 Crore In Fourth Quarter, Says Executive Director
Punjab National Bank expects to recover nearly Rs 6,000 crore from written-off accounts by March, according to Executive Director Rajesh Kumar Yaduvanshi.
This includes over Rs 2,000 crore from the Bhushan Power and Steel account, he said in an interview to BloombergQuint. The bank has already recovered Rs 10,000 crore so far.
The stressed state-run lender’s asset quality improved in the quarter ended December with gross non-performing loan ratio contracting by nearly 40 basis sequentially to 16.3 percent. Provisions however, rose by more than a third over the previous year to Rs 4,146 crore. The figure stood at Rs 2,929 crore in the quarter ended September.
On the next few quarters, Yaduvanshi said that “as far as the watchlist is concerned, we don’t see any bigger accounts”. “The only challenge remains is whatever NPAs we have already had in the bigger accounts in the last few quarters, the ageing provisions is definitely a challenge that we have to meet in the coming quarters.”
Key Earnings Highlights (Q3, YoY)
- Net interest income up 2 percent to Rs 4,355.1 crore.
- Net loss at Rs 492.28 crore versus profit of Rs 246.51 crore.
- Provisions up 41.6 percent to Rs 4,146.04 crore. (QoQ)
- Gross NPAs at 16.3 percent versus 16.76 percent. (QoQ)
- Net NPAs at 7.18 percent versus 7.65 percent. (QoQ)
Shares of the state-run lender fell 1.8 percent compared with a 2.3 percent gain in the Nifty Index.
Watch | PNB’s Rajesh Kumar Yaduvanshi On The Lender’s Q3 Performance And Q4 Outlook