Punjab National Bank reports a net loss of Rs 5,367 crore in Q4, biggest in Indian history

Punjab National Bank (PNB) on Wednesday reported a net loss of Rs 5,367.14 crore for the fourth quarter that ended on 31 March, on account of higher provisioning for bad loans.

This is the biggest quarterly loss in the Indian banking history.

PNB, a public sector lender, had posted a net profit of Rs 306.56 crore in the corresponding period of the previous fiscal year.

Total income during the quarter decreased 1.33 per cent to Rs 13,276.19 crore from Rs 13,455.65 crore a year ago.

According to The Times of India, provisioning for NPAs grew almost threefold to Rs 10,485.23 crore in the fourth quarter compared with Rs 3,834.19 crore in the previous fiscal.

Gross NPAs rose to 12.9% in the quarter from 6.55% a year ago, and 8.47% in the previous quarter. Net NPAs doubled to 8.61% in the quarter from 4.06% a year ago. Net NPAs were at 5.86% in the December quarter.

For the full fiscal, the lender reported a net loss of Rs 3,974.39 crore compared to a net profit of Rs 3,061.58 crore in corresponding last fiscal.

Total income during the year rose to Rs 54,301.37 crore as against Rs 52,206.09 crore in the previous fiscal.

Indian banks have seen a surge in bad loans after a cleanup ordered by the Reserve Bank of India. The RBI wanted banks to classify some troubled accounts as non-performing and make adequate provisions for those over the December and March quarters.

PNB's shares were trading 0.34 per cent higher at Rs 74.05 on BSE, it was reported.