PNB’s Rs 5,370 crore net loss is the biggest ever in Indian banking history

The Indian multinational banking and financial services company Punjab National Bank (PNB) has reported a net loss of Rs 5,370 crore in the March quarter, the biggest ever quarterly loss in India's bank history. In the corresponding quarter last year, it had reported a net profit of Rs 307 crore.

As per the bank, its gross non-performing assets (NPAs) surged to 12.9% in the fourth quarter, as against 8.47% in the December quarter. Talking in figures, the gross NPAs for the quarter stood at Rs 55,818 crore, as against Rs 34,338 crore in the December quarter.

"PNB has come out with numbers much lower than our and street's expectations. Asset quality deteriorated substantially during the quarter with a 62.6 per cent rise QoQ rise. In absolute term GNPAs went up by Rs 21,480 cr QoQ. This is by far the highest ever increasing in NPA by any bank which has reported numbers so far. The point of worry is that the bank believes the cleaning up exercise of balance sheet is not over. We believe pain to continue in FY17 also, with regards to asset quality. We have a neutral rating on the stock," said Angel Broking in a note.

The bad assets provisions stood at Rs 10,490 crore in the fourth quarter, as compared to Rs 3,448 crore in last year’s corresponding quarter.

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