PNB posts biggest bank loss of Rs 13000 cr in Q4

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Mumbai/Bengaluru: Punjab National Bank (PNB) reported a Rs 13416.91 crore ($1.98 billion) fourth-quarter net loss on Tuesday, the biggest-ever by an Indian lender as the state-run bank booked provisions to cover a massive fraud.

The Delhi-based lender's earnings will be under pressure as it will have to make provisions for the scam-related payouts to other banks.

In addition, three companies of Choksi - Gitanjali Gems Ltd, Gili India Ltd and Nakshatra Brands Ltd - have also been made accused in the charge sheet filed before a special CBI court in Mumbai, officials said.

Mumbai (Maharashtra) [India], May 16: The Central Bureau of Investigation (CBI) on Wednesday filed the second chargesheet in connection with the Punjab National Bank (PNB) fraud case and named main accused Nirav Modi's uncle Mehul Choksi as "wanted".

Of this, the bank made payments of Rs6,500 crore to seven banks honouring these LoUs in the March quarter, that is expected to reflect in the quarterly results.

Punjab National Bank reports huge loss of Rs. 13417 crore in Q4

Earlier this month, PNB said it was targeting growth of over 10 percent in loans and deposits in 2018/19 and that it had strengthened the process of credit underwriting and upgraded its systems to prevent further frauds.

PNB shares may take support around Rs 69 per share in the near term, said Deepak Jasani, Head of Retail Research, HDFC Securities. PNB's CASA (current account savings account) deposits increased to Rs 2,63,247 crore and its share in overall deposits was 43.85 per cent in March 2018, it said.

Tighter RBI rules announced in February, which did away with half a dozen loan restructuring schemes, have led to banks reporting a surge in bad loans in the March quarter, and several of them reporting losses. According to the reports, PNB detected the multi-crore scam.

The bank also saw its gross non performing asset level deteriorating to Rs 86,620.05 crore from Rs 55,370.45 crore, rising, as a percentage of assets to 18.38% at March end from 12.53% year ago while Net NPAs soared to 11.24% against 7.81%. "Mr. Shetty obtained quotes by Debajyoti Dutta, proprietor of Rishika Financials for Mr. Choksi's companies for the issuance of LoU by PNB out of which Mr. Shetty compelled Mr. Dutta to part with an aggregate sum of ₹1,02,53,664 as illegal gratification by way of cheques for himself and his family by threatening Mr. Dutta of stopping his business".

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