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PNB reports profit of Rs 336 crore in FY20 as bad loans ease

In Q4, net loss narrowed to Rs 697.20 crore due to lower provisioning against bad loans

twitter-logoBusinessToday.In | June 20, 2020 | Updated 21:04 IST
PNB reports profit of Rs 336 crore in FY20 as bad loans ease
Punjab National Bank

Punjab National Bank (PNB) on Saturday reported a standalone net profit of Rs 336 crore in FY20 as against a net loss of Rs 9,975 crore in the previous fiscal. Total income for FY20 grew 7.5 per cent at Rs 63,074 crore, PNB said in an exchange filing. A 37 per cent fall in provisions to  Rs 14,402 crore boosted the profit. Operating profit rose at 13.4 per cent to Rs 14,739 crore in FY20.

In Q4, standalone net loss narrowed to Rs 697.20 crore due to lower provisioning against bad loans. The second largest public sector lender had posted a loss of Rs 4,750 crore in the corresponding period of 2018-19. The total income during the March quarter rose to Rs 16,388.32 crore from Rs 14,725.13 crore in the year-ago period in the quarter under review. The gross non-performing assets (NPAs) reduced to 14.21 per cent in Q4, compared to 16.3 per cent in the previous quarter.

"The major identified challenge for the bank would arise from eroding cash flows and extended working capital cycles. The bank is gearing itself on the fronts to meet these challenges. The management believes that no adjustments are required in the financial results as it does not significantly impact the current financial year," PNB said in a regulatory filing on Friday. The provision coverage ratio of the bank stood at 77.79 per cent as of March 31.

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