Punjab National Bank Q3 Net Profits Plunge To Rs 51 Crores; Shares Dive

Business

oi-Sunil

By Sunil Fernandes

Published: Tuesday, February 9, 2016, 13:28 [IST]

Punjab National Bank, India's fourth largest government owned bank today reported a sharp drop in net profits to Rs 51 crores.

Net profits fell as much as 93 per cent, as the company made higher provisions. Gross non performing assets surged to 8.47 per cent as at the end of Dec 31, 2015, compared with 6.36 per cent in the previous quarter.

The rise in provisions was largely on instructions given by the Reserve Bank of India to make additional provisions for bad assets. This is likely to hit the next quarter of banks as well.

Shares in Punjab National Bank (PNB) fell as much as 6 per cent, following the results. Several banks have been badly hit this quarter, due to additional provisioning. ICICI Bank, Axis Bank from the private space and PNB from the PSU banking space have been hit.

Analysts would now await the results of some of the other government owned banks like Bank of Baroda and Canara Bank to see how bad the situation is likely to get.

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