Punjab National Bank (PNB) on Wednesday May 18,2016 posted a record loss of Rs. 5,367 crore for the March 2016 quarter, notching up the dubious distinction of reporting the biggest-ever quarterly loss by a domestic lender.
Punjab National Bank's huge loss was on account of Rs. 10,485 crore provision that the lender made for bad loans. The higher provisioning was necessitated because PNB's total non-performing or bad loans jumped to Rs. 55,818 crore in the March quarter from Rs. 34,338 crore in the December quarter.
In the previous quarter, Punjab National Bank had set aside Rs. 3,776 crore to provide for bad loans, which led to a Q3 loss of Rs. 510 crore.
PNB however said its balance sheet clean-up is not complete yet, which means that the lender may continue to struggle with high bad loans for a few more quarters.
No comments:
Post a Comment