PNBs Q4 income gallops by 147 to Rs 14725 crore

first_imgNew Delhi: State-owned Punjab National Bank (PNB) Tuesday reported narrowing of its loss by nearly 65 per cent to Rs 4,750 crore during the fourth quarter of fiscal ended March 2019 even after making adequate provisions towards the Nirav Modi fraud and non-performing assets (NPAs). The scam-hit lender had posted highest ever loss of Rs 13,417 crore in the corresponding January-March period of 2017-18, due to fraud committed by jeweller duo Mehul Choksi and Nirav Modi. Also Read – SC declines Oil Min request to stay sharing of documentsThe bank’s total income during the March quarter of 2018-19 rose to Rs 14,725.13 crore from Rs 12,945.68 crore in the year-ago period. It has earned a healthy operating profit of Rs 2,861 crore during the quarter and Rs 12,995 crore for the year as a whole indicating strong fundamentals, PNB Managing Director Sunil Mehta said while announcing financials here. “We suffered a setback (Nirav Modi fraud) last year of which, 50 per cent provisioning was done last year and 50 per cent have been made this year. We have taken a conscious step to clean up the book and take provision coverage ratio to a reasonably high level which gives high degree of safety to our stakeholders. Also Read – World suffering ‘synchronized slowdown’, says new IMF chief”So, almost all my net NPAs (non-performing assets), 75 per cent provision has already been made against that. Few assumptions which we thought will happen during this quarter that didn’t materialise. In 2-3 major accounts which have already been resolved by the NCLT, they were on the table, but that money could not be unlocked as against that we had to make 100 per cent provisioning because of the aging,” he said. On the assets front, PNB witnessed improvement as the gross non-performing assets (NPAs) which were brought down to 15.50 per cent of gross advances at the end of March 2019, as against 18.38 per cent at the end of March 2018. Net NPAs or bad loans also came down to 6.56 per cent as against 11.24 per cent in the year-ago period. In absolute value, gross NPAs stood at Rs 78,472.70 crore at the end of the financial year 2018-19, lower than Rs 86,620.05 crore reported in 2017-18. Net NPAs were valued at Rs 30,037.66 crore as against Rs 48,684.29 crore. Improvement in asset quality allowed the lender to park lesser amount towards provisioning for bad loans during the March quarter of 2018-19, which stood at Rs 9,153.55 crore. While in the year-ago period, it stood at Rs 16,202.82 crore. “We have factored in the entire IL&FS slippages, we have made provisions for Jet Airways although the account is standard (as on March 2019),” he said without elaborating on exposure of the bank on individual account. At the same time, fresh slippages came down significantly to Rs 5,130 crore during the quarter, compared with Rs 30,377 crore in the corresponding period a year ago. With respect to accounts covered under the provisions of the Insolvency and Bankruptcy Code (IBC), the bank is holding total provision of Rs 11,940.15 crore as on March 31, 2019, (84.63 per cent of total outstanding) including additional provision of Rs 433.93 crore in said accounts made during the year ended March 31, 2019, it said. PNB also said it received capital infusion of Rs 5,908 crore from the government during March quarter of 2018-19 in lieu of over 80 crore equity shares on a preferential basis. On divergence in asset classification and provisioning for NPAs, in compliance with the Reserve Bank of India’s (RBI) risk assessment report for 2017-18, PNB has reported a gap of Rs 895.70 crore in respect of divergence in gross NPAs. The divergence in net NPAs stood at (-) Rs 2,871.10 crore. The provisioning coverage ratio (PCR) as on March 31, 2019, works out to 74.50 per cent from 58 per cent at the end of 2017-18. Despite increase in PCR, the net interest margin of the bank improved to 2.59 per cent from 2.42 per cent at the end of previous fiscal. Talking about the way forward, Mehta said the focus area would be recovery of NPAs, conservation of capital, rationalising operation and sale of non-core assets, among others. The bank still has a handful of non-core assets and things are in process even if PNB Housing Finance does not go again. “We expect roughly Rs 1,000 crore from non-core asset sale,” he said. The stake sale in PNB Housing Finance could not take place because of some regulatory permission, he said, adding that, so, expected inflows from that could not come to the balance sheet. “We are yet to take a call on PNB Housing Finance stake sale it will all depend on market conditions,” he added. With regard to recovery, he said, “If all these NCLT cases which are on the table materialise then definitely this year, recovery will be much more than 2018-19. Recovery more than doubled to Rs 20,000 crore in 2018-19 as against Rs 9,666 crore in the previous fiscal. There are two major cases which are already on the table, he said adding that NPA recovery would be to the tune of Rs 5,000-6,000 crore, and there would be write-back of roughly Rs 4,000 crore. On proposed merger talks, Mehta said, “Right now, we have not thought of it, neither any proposal has come to us. As the situation comes, we will take a call.” For the full fiscal 2018-19, the bank’s net loss was at Rs 9,975 crore, as against a loss of Rs 12,283 crore during 2017-18. Income during the fiscal rose to Rs 59,514.53 crore as against Rs 57,608.19 crore in the previous financial year. Shares of the bank closed at Rs 86.20, down by 3.47 per cent on the BSE.last_img read more

UN tribunal quashes most convictions of former Bosnian Croat general

Tihomir Blaskic, who had been convicted in March 2000 by the International Criminal Tribunal for the former Yugoslavia (ICTY), will leave jail on Monday after the ICTY’s Appeals Chamber upheld his application for early release.Earlier, the judges had reduced his sentence from 45 years to nine years after overturning all but three of his 19 convictions for war crimes and crimes against humanity. Mr. Blaskic has been in the ICTY’s custody since 1996 and was eligible to apply for early release.The judges said “an enormous amount of additional evidence” had emerged during Mr. Blaskic’s appeal because Croatia had not cooperated previously and had not opened its archives until after the death of former President Franjo Tudjman in December 1999.Mr. Blaskic, who served as an army commander in central Bosnia during the early 1990s, was convicted of war crimes for ordering the massacre of about 100 Muslims in the Bosnian village of Ahmici in April 1993. The villagers, who had been hiding in the cellars of several houses, were discovered and shot dead. The houses were then set on fire.But the ICTY ruled that, once the additional evidence was taken into account, it was not reasonable to find that Mr. Blaskic had control of some of the forces that participated in the massacre, or that his order to attack Ahmici was issued “with the clear intention that the massacre would be committed.”The judges also said the extra evidence showed there was a Muslim military presence in Ahmici and that it was reasonable for Mr. Blaskic to believe they could launch an attack.The ICTY also overturned several convictions relating to the bombing of a truck and attacks on several Bosnian towns between April and September 1993.But the judges upheld the trial court’s finding that Mr. Blaskic was guilty of illegal detainment and the inhumane treatment of prisoners. He forced Muslim prisoners to dig trenches and build fortifications to use in operations by Bosnian Croats against Bosnian Muslims. The former general also used prisoners as human shields to protect his temporary military headquarters during fighting at Vitez in April 1993. read more