PNB Q3 net plummets 93% to Rs51 crore

Chennai: Indian Overseas Bank saw its losse widens to Rs 1,425 crore for the third-quarter as it set aside more money to cover bad loans. The bank’s total income has decreased by 1.72% to Rs 6911.62 crore for the quarter under review from Rs 7032.70 crore for the corresponding quarter of the previous year.

Central Bank of India, the eighth-biggest state-run lender, smaller lenders Allahabad Bank and Dena Bank all reported net losses in the December quarter.

PNB’s non-performing assets (NPAs) stood at Rs 22,983 crore at 5.86 per cent as against Rs 13,778 crore in the December quarter of FY 15 at 3.82 per cent.

Gross NPAs, as a percentage of total advances, rose to 12.64 per cent from 8.12 per cent in the same quarter a year ago.

Also, there were write-off to the tune of Rs 225.38 crore during the quarter ended December as the bank re-computed the provision of restructured advances in accordance with the RBI’s guidelines on asset quality review in July 2015.

The bank has been put under prompt corrective action by the Reserve Bank of India since October 2015 with the view to improving internal processes to deal with mounting non-performing assets.

The market value of half a dozen PSU banks that have declared results so far have fallen to less than half of their bad loans – an indication that their worth is way below their obligations.

Allahabad Bank’s bottomline suffered on account of lower interest earning and higher provisioning for bad loans. Total business of the bank stood at Rs 4.10 lakh crore at the end of third quarter of the current fiscal.

Central Bank of India reported a net loss of Rs 837 crore as provisions more than doubled from a year earlier.

IOB shares were trading 6.20 per cent down at Rs 23.45 apiece during the pre-close session on the BSE.

Provisions at Dena Bank, too, jumped to Rs 966.97 crore (Rs 241.33 crore) even as gross NPAs surged to Rs 7,916.47 crore (Rs 4,229.92 crore). Before the tax benefit, it posted a loss of Rs 858 crore. Shares of Dena Bank cracked by over 12 per cent to Rs 31.25.