13 K CR Loss PNB hits 52-week low on dismal Q4 performance; net worth falls below NPAs

13 K CR Loss PNB hits 52-week low on dismal Q4 performance; net worth falls below NPAs

PNB

13 K CR Loss PNB hits 52-week low on dismal Q4 performance; net worth falls below NPAs

PNB has reported a net loss of Rs 13,416.91 crore for the fourth quarter ending March 2018.The profit was dragged by a three-fold surge in provisions towards bad loans, which was taken upfront during the quarter. In the same quarter a year ago, the bank had turned around due to write-back in pension provisions to report a profit of Rs 261.9 crore as against a massive loss of Rs 5,367.1 crore in March-end quarter 2016. Total hit to PNB on account of the Nirav Modi-scam is Rs 14,356.84 crore. This includes unauthorized letters of undertaking and domestic loan. Due to high provisions, the capital adequacy ratio (CAR) dipped to 9.2 percent, below the minimum of 11.5 percent laid down by Basel-III norms. The banks total net worth fell below the amount of non-performing loans. As on March 31, the bank had net non-performing loans totaling over Rs 48,000 crore on its books, against a net worth of around Rs 41,000 crore. The bank’s asset quality has worsened quite a bit over the past couple of years, forcing it to provide more and more for bad and doubtful loans.

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