Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Technology
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Visual Stories
  • Reviews
  • Phone Reviews
  • Fitness Bands Reviews
  • Speakers Reviews
  • Find Cricket Statistics
Hindi
More
In the news
Zomato
WhatsApp
SpiceJet
Reserve Bank Of India (RBI)
Bitcoin
Stock Market
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Technology
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Visual Stories
Reviews
Phone Reviews
Fitness Bands Reviews
Speakers Reviews
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / Business News / PNB posts biggest loss in India's banking history
Business

PNB posts biggest loss in India's banking history

PNB posts biggest loss in India's banking history
Written by Megha
May 18, 2016, 06:03 pm 3 min read
PNB posts biggest loss in India's banking history

Public sector lender Punjab National Bank on Wednesday reported a net loss of Rs.5,367.14 crore for the fourth quarter ending March 31st, on account of higher provisioning for bad loans. This is the biggest quarterly loss in Indian bank history. PNB had posted a net profit of Rs.306.56 crore in the corresponding period of the previous fiscal.

Definition
About Punjab National Bank

Punjab National Bank is an Indian multinational banking and financial services company. It is a state-owned corporation based in New Delhi, India. Founded in 1894, the bank has over 6,300 branches and over 7,900 ATMs across 764 cities.

17 Feb 2016
RBI's clean-up policy

The recent spurt in the number of bad loans being reported is a result of an asset quality review undertaken by the Reserve Bank of India (RBI). This threw up several weak accounts, mostly with exposure to the infrastructure sector, the RBI governor said at a conference. After the infrastructure sector, a majority of bad loans have exposure to the steel and power sectors.

Reasons
RBI chief blames 'overall economic downturn' for mounting NPAs

Asked to explain the "real causes" of ballooning bad loans in PSBs, RBI Governor Raghuram Rajan put the blame on "overall economic downturn" before the Parliamentary Panel (PAC) examining the NPAs. Others were delays in statutory approvals and aggressive lending practices during upturn. Some other reasons were lax credit risk appraisals, loan monitoring, lack of appraising skills for projects, wilful defaults and frauds.

Definition
What is NPA?

A non-performing asset (NPA) is a classification used by financial institutions that refer to loans that are in jeopardy of default. Once the borrower has failed to make interest or principal payments for 90 days, the loan is considered to be a non-performing asset.

Why?
Loss due to higher provisioning for bad loans (NPAs)

The higher losses are on account of the Banks's provisioning for NPAs, which 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 Non-Performing Assets (NPAs) rose to 12.90 per at the end of March, from 6.55 percent a year ago. Net NPAs too jumped to 8.61 per cent as against 4.06 per cent.

Past
PNB's last year's fiscal performance

PNB had posted a net profit of Rs.306.56 crore in the corresponding period last year. For the full fiscal, the lender reported a net loss of Rs.3,974.39 crore compared with 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.

Personal
PNB shares rise despite heavy Q4 losses

PNB shares were trading at Rs.74.25 on the BSE, up 0.61%, while the benchmark Sensex index was down 0.54% and Bankex was down 0.32%.

Others
PNB mirrors the trend of other PSBs

PNB is among other public sector banks (PSBs) to have reported huge losses. Syndicate Bank reported a net loss of Rs.2,158.17 crore for the quarter ending March 2016 due to more than three-fold rise in provisions for bad loans and contingencies. Bank of Baroda, UCO Bank, Central Bank of India, Allahabad Bank and Dena Bank had earlier reported losses due to bad loans.

Share this timeline
Facebook
Whatsapp
Twitter
Linkedin
Megha
Megha
Mail
Latest
Latest
5 healthy alternatives to wheat chapatis for weight loss
5 healthy alternatives to wheat chapatis for weight loss Lifestyle
Eye on 2024: Kejriwal launches 'Make India No. 1' mission
Eye on 2024: Kejriwal launches 'Make India No. 1' mission India
ZIM vs IND, 1st ODI: Match preview, stats, and more
ZIM vs IND, 1st ODI: Match preview, stats, and more Sports
5 health benefits of lemongrass you must know
5 health benefits of lemongrass you must know Lifestyle
Birthday girl Disha Vakani's movie appearances, where to watch them
Birthday girl Disha Vakani's movie appearances, where to watch them Entertainment
Next News Article
Next News Article

Love Business news?

Subscribe to stay updated.

Business Thumbnail
India News Business News World News Politics News Sports News Technology News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Mukesh Ambani Indian Premier League (IPL) Karnataka Samsung Xiaomi West Bengal
Bihar Virat Kohli Rohit Sharma Haryana Narendra Modi Arvind Kejriwal Tamil Nadu Gujarat Yogi Adityanath YouTube
Instagram Hollywood News Uttar Pradesh Kerala Netflix Bollywood News Mamata Banerjee Maruti Suzuki Rahul Gandhi Elon Musk
Shah Rukh Khan Chelsea FC OPPO Akhilesh Yadav Indian Cricket Team Apple Manchester United Salman Khan Cryptocurrency OnePlus
Amitabh Bachchan ICC Women's World Cup Vivo India vs Sri Lanka
About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive IPL 2022 Schedule IPL 2022 Points Table Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2022