PNB looses 5367 crore- Highest Loss in Banking History
Punjab National Bank(PNB) is going through the highest loss in banking history. In fourth quarter of financial year 2016, bank lost 5367 crore rupees. Last year in the same quarter PNB profited 306 crore rupees. The reason behind this big loss is being increase of provision. Provision is the amount of money that is kept aside to pay for loses that are anticipated to occur in the future. This year provisioning of PNB got increased by three times than the last year. Last year it was 3834 and this year it was 10,485. The Net interest income of the bank decreased 27 percent to 2768 crore rupees. Decrease in asset quality of bank is also seen. During this period, Non Performing Assets (NPA) increased. From last year the gross NPA increased from 6.55% to 12.9%. The overall loss for the year 2015–2016 is 4000 Rupees. However bank told that the even with a high NPA growth of bank is well and good. Current price of PNB stocks is 74.65.
Originally published at tipsstockcommodity.blogspot.in.