Punjab National Bank to report Q4 losses amounting to Rs.27 billion

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With banks like Bank of Maharashtra, Allahabad Bank, Oriental Bank, Dena Bank and UCO Bank been put under prompt corrective action (PCA) by the Reserve Bank of India for reporting losses for consecutive quarters, and for failure to rectify the growth of their non-performing assets (bad loans), it looks like Punjab National Bank is next in line with their latest announcement. With most banks having reported their profit/loss of Q4 (January to March) over the last few days, apparently, Punjab National Bank is going to report its losses for Q4 amounting to a staggering Rs.27 billion – possibly the highest.

Punjab National Bank-Q4 losses
Punjab National Bank to report Q4 losses amounting to Rs.27 billion

Not only the recent loan fraud scandal amounting to Rs.135 billion involving the bank has been the driving force of their Q4 losses, it’s gross non-performing assets have risen to 14-14.5% in March (Q4) from 12.3% in Q3 (December 2017). Though the Reserve Bank of India has allowed the provisioning for the loan fraud to be spread across all four quarters and not just have it impact one quarter, the magnitude of the fraud has set the bank back big time, and surely despite their rising gross non-performing assets, the fraud to seems the primary factor resulting in the bank reporting a Q4 loss around Rs.27 billion – almost double or more than the aforementioned banks that have been put under prompt corrective action (PCA) by the Reserve Bank of India.

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