GNP records the second quarter profit of Rs 507 cr as the provision decreases
New Delhi, November 5 () The state-owned National Bank of Punjab (GNP) reported a profit of Rs 507.06 rupees on Tuesday for the second quarter ending September 30, helped by a substantial reduction in the provision for bad loans.
The lender had published a loss of Rs 4,532.35 million in the corresponding quarter from July to September last year.
During the quarter, provisions for bad loans drastically decreased to Rs 3,253.32 million rupees against Rs 7,733.27 rupees in July-September 2018. Provisions during the period of the previous year included the amount of fraud of 14,000 million of rupees committed by jewelers duo Nirav Modi and Mehul Choksi
Gross non-productive assets (NPA) amounted to 16.76 percent of gross advances at the end of September, lower than 17.16 percent a year ago.
Net NPAs or bad loans were also reduced to 7.65 percent compared to 8.90 percent in the same period last year.
In the future, the focus on recovery will help reduce the net NPA to the comfort level of the Reserve Bank of India (RBI) by the end of the current fiscal and newly appointed fiscal director of the GNP, SS Mallikarjuna Rao, said later to announce the quarterly numbers. here.
If we look at the orientation, we are very confident that we can reduce the net NPA in March 2020 below 6 percent, he said.
Rao, who was appointed head of the country's second largest lender last month, set an ambitious recovery goal of Rs 24,000 crore for the entire fiscal year.
Of this, the bank has already recovered Rs 7,000 million rupees during the first half of the current tax and the remaining Rs 17,000 million rupees would be made in the remaining half through the recovery and reduction of cash, he added.
In NCLT there are 14 cases that are in the final stages. From NCLT we expect a reduction of Rs 11,000 million rupees from the NPA ... the actual amount received will be around Rs 6,500 million rupees, against which the amortization will be around Rs 3,800 million rupees, he said.
Total revenues during the July-September quarter increased to Rs 15,556.61 crore from Rs 14,035.88 crore in the same quarter last year, GNP said in a regulatory document.
The bank obtained a healthy operating profit of Rs 3,561 million rupees during the quarter compared to Rs 2,839.50 rupees in the same period a year ago.
During the quarter, the gross NPAs in absolute terms stood at 78,472.70 million rupees at the end of September, below the 86,620.05 rupees recorded in the second quarter of 2018-19. Net NPAs were valued at Rs 32,658.69 rupees against Rs 38,278.84 rupees.
Speaking of new landslides, Rao said: Our guide is that it should be around 19 billion rupees throughout the year. There are already 5,200 million rupees and 7,460 million rupees in April-June and July-September, respectively. Then another 7,000 crore. They are waiting in the second half of the year.
When we look at the new landslides of Rs.4,462 million, he said, the largest contribution comes from 10 corporate accounts.
Some of them are in the public domain such as Suzlon (Rs 600 million rupees), Jet airways (Rs 700 million rupees), which have contributed to these. Agriculture Rs 632 million rupees, retailers Rs 498 million rupees, MSME Rs 1,506 million rupees. So these are the three RAM accounts and others are 4,686 crore. This is the composition of 7,462 million rupees of total landslides, he said.
During the quarter, the bank's total interest income increased to Rs 13,292 crore from Rs 12,326 crore in the same quarter of the previous fiscal year. As a result, the bank's operating profit increased to Rs 3,561.95 rupees during the quarter compared to Rs 2,839.50 rupees in the same period of the previous year.
On the way forward, Rao said, the loan is expected to grow between 8 and 10 percent by March 2020. The NIM will range around 2.40 percent.
We have not eliminated the non-core assets approach, but the important thing is that capital is currently available and we have an important amalgam exercise task in addition to the need to protect the valuations of our sister concerns and our wholly owned subsidiaries.
At this time, he said, the bank does not need to raise market capital until March.
During the quarter, the bank received a capital of Rs 16,061 million rupees from the government for undertaking a surprise and meeting the growth requirements.
After the infusion, the bank's capital adequacy ratio increased to 14.07 percent from 10.08 percent in the same period last year. In addition, the government shareholding also increased to 83.19 percent from 75.41 percent in the previous quarter. DP DP MR MR