Punjab National Bank posts a negative bottom line

Punjab National Bank (PNB) has declared its Q4FY16 results on Wednesday. The bank’s total interest earned has decreased by 11.42 per cent to Rs 10824 crore in Q4FY16 as compared to previous quarter. Its operating profit before provisions and contingencies has dropped by 60.8 per cent to Rs 776 crore in Q4FY16 on a quarterly basis. PNB has posted a net loss of Rs 5367 crore in Q4FY16 against net profit of Rs 51 crore in Q3FY16.

PNB’s top line has increased by 4.3 per cent to Rs 50804 crore in FY16 as compared to previous financial year. The bank’s operating profit before provisions and contingencies has declined by 6.63 per cent to Rs 6123 crore in FY16 on a yearly basis. Its provisions and contingencies expense has risen by more than twice to Rs 18367 crore in FY16 as compared to previous fiscal year. PNB has posted net loss of Rs 3690 crore in FY16 against net profit of Rs 3400 crore in FY15.

On asset quality front, PNB’s bad loans have increased in Q4FY16. The bank’s gross non-performing assets stand at 12.9 per cent amounting to Rs 55818 crore as of Q4FY16, against 8.47 per cent, i.e. Rs 34338 crore as of Q3FY16. Its net non-performing assets stand at 8.61 per cent amounting to Rs 35423 crore as of Q4FY16; while at 5.86 per cent, i.e  Rs 22983 crore as of Q3FY16.

On segmental revenue front company has earned 26.22 per cent from Treasury operations segment; 45.1 per cent from Corporate/ Wholesale banking; 27.12 per cent from Retail banking; and remaining 1.56 per cent from other banking operations segment during FY16.

The share price of PNB has reduced by 2.3 per cent on bourses in early trades; and is trading at Rs 75.05 on an intraday basis.

PNB provides various banking services, such as digital banking; personal banking; social banking, Micro, Small and Medium Enterprises (MSME) banking; agricultural banking; corporate banking; international banking or Non-Resident Indian (NRI) banking; and financial services.