Concerned with the rise of Non-Performing Assets (NPAs), country’s second largest public sector lender Punjab National Bank on Friday said the bank has restructured assets worth Rs15,241 crore during the quarter including bad loans of Rs404 crore. Meanwhile, the bank reported net profit at Rs306.5 crore for the fourth quarter ended March 31. “As the NPA issue is main concern for us we have restructured around 3,3350 standard restructuring account of assets worth Rs15,241 crore during the quarter, including bad loans of Rs404 crore.
Out of such accounts 90 per cent belongs to the industry accounts,” PNB Executive Director Gauri Shankar said while announcing quarterly results on Friday. The bank’s stress on NPA mostly came from infrastructure, power, sugar and textiles. “We restructured more than 42 per cent of accounts such accounts from infrastructure sector, followed by power and sugar,” Shankar added.
The bank also reported 62 per cent decline in net profit to Rs306.5 crore for the fourth quarter ended March 31 on account of higher provisioning for bad loans. As far as asset quality of the bank is concerned, the Gross Non-Performing Assets (NPAs) rose to 6.55 per at the end of March 2015, from 5.25 per cent a year ago. The net NPAs too rose to 4.06 per cent against 2.85 per cent at March 2014. Interest income of the bank during the quarter under review rose by 4.9 per cent.