New Delhi: PNB, which was involved in a Rs 14,356-crore scam by Nirav Modi, had reported net profit of Rs 230.11 crore for the corresponding quarter a year ago.
Commenting on the recovery of profit, after the top commercial bank was involved in the scam, Sunil Mehta CEO, PNB stated, “Our recovery for the first three quarters is Rs.16000 crore, which is almost three times the recovery last year. This in turn has helped us in reducing our Gross NPA percentages from 18.32 per cent to 16.33 per ent right now”.
The bank's total income, fell by 2.64 per cent to Rs 14,854.24 crore for the quarter under review from Rs 15,257.5 crore in the year-ago quarter. Describing the slip in total income, Mr Mehta said, “Slippage in 1st quarter was Rs 5250 cr, in 2nd quarter it was Rs 4470 cr, in 3rd quarter it was Rs 3200 cr. So, slippages in every quarter have reduced which reduces requirement of provisioning. It helped us in absorbing the loss that bank suffered in past.”
"We have honoured all our commitments. Our bank, as on date, has provided all for that incident (Nirav Modi fraud). We suffered because of the one-off incident which has now been absorbed by the bank," Mehta said.
On being asked about provisioning the matter, Mr Sunil added, “We have done 100 per cent provisioning of the matter. It was completed till third quarter.”
While, on recovery of Mallya’s assets, the PNB CEO stated, “Recovery of his assets will be done as per legal procedures. Judicial process is still underway.”
On PNB's asset quality, the bank said, its gross non-performing assets (NPAs) as a percentage to total advances rose to 16.33 per cent from 12.11 per cent in the year-ago period.
Its net NPAs, however, came down to 8.22 per cent from 8.90 per cent at the end of December 2017, PNB said in a BSE filing.
Total provisions, excluding for income tax, made during the third quarter of the current financial year were Rs 2,753.84 crore as against Rs 4,466.68 crore in the year-ago period.