PNB suffers Q1 loss at Rs 940 cr on rise in provisioning
PNB Q1 loss at Rs 940 cr on rise in provisioning
He, however, expressed hope of getting into the black during the ongoing financial year.
The resolution of two accounts-- Bhushan Steel and Electrosteel -- under Insolvency and Bankruptcy Code has contributed about Rs 3,200 crore while remaining has come from resolution done by the bank during the quarter.
Going forward, the lender expects the recovery momentum to continue both at NCLT level and at the bank's level.
PNB also reported deterioration in its bad assets, with gross non-performing assets (NPAs) rising to 18.26 percent of advances as on June 30, 2018, as against 13.66 percent in the same quarter a year ago.
Net NPAs rose to 10.58 percent against 8.67 percent in the year-ago period.
However, the operating profit of the bank improved to Rs 4,195 crore as compared to Rs 3,217 crore in the same quarter a year ago. Net interest income also rose to Rs 4,692 crore as against Rs 3,855 crore.
The bank has appointed merchant banker for selling its stake in PNB Housing Finance, he said, adding, it will be done at the opportune time.
The bank also intends to dilute minority 4 percent stake in PNB Metlife Insurance as part of price discovery mechanism.
Besides, he said, the bank has got a capital infusion of Rs 2,816 crore last month. Moreover, there would be internal accruals during the year so there is hardly any requirement of capital support but "more government support is always welcome", he said.
He also said on the back of improvement in recovery, business growth will become profitable during the course of the year.
The bank has taken steps to minimize the risk for credit, to segregate the processing and monitoring and recovery, he said, adding, all loans above Rs 50 crore have been parked in systematically important branches for effective monitoring and control.
"We have created our internal plans to augment the capital from internal resources as well as risk recoveries...we are basically banking upon internal accruals, the sale of non-core assets, we have a plan of selling roughly Rs 8,600 crore of non-core assets in 2018-19," he added.
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