Punjab & Sind Financial institution on Saturday stated its internet loss in December quarter 2020-21 spiralled to Rs 2,375.53 crore on increased provisions for unhealthy loans.
The lender had posted a internet lack of Rs 255.49 crore in the identical interval a yr in the past. Within the September quarter additionally, the financial institution had a lack of Rs 401.27 crore.
Whole earnings within the quarter below assessment additionally fell to Rs 1,982.52 crore from Rs 2,077.01 crore in the identical interval of 2019-20, Punjab & Sind Financial institution stated in a regulatory submitting.
Internet earnings fell 9.1 % to Rs 1,763.10 crore and earnings on investments was down 12.1 % to Rs 455.42 crore.
The financial institution’s gross non-performing property (NPAs) remained excessive at 13.14 % of the gross advances as of December 31, 2020, in comparison with 13.58 % by the year-ago similar interval.
In worth phrases, gross NPAs or unhealthy loans stood at Rs 8,489.89 crore by the tip of December 2020 as in opposition to Rs 8,923.49 crore earlier.
Internet NPAs got here down considerably at 2.84 % (Rs 1,638.25 crore) as in opposition to 8.71 % (Rs 5,417.79 crore).
Provisions for unhealthy loans and contingencies spiked to Rs 2,924.69 crore throughout the quarter, as in opposition to Rs 494.30 crore. Of this, provisions for unhealthy loans have been Rs 1482.17 crore, which was increased than Rs 464.01 crore a yr in the past.
The financial institution stated throughout the quarter, it has totally supplied for frauds declared as much as December 31, 2020.
Within the case of two NPA accounts having a steadiness excellent of Rs 758.77 crore the place the availability of Rs 486.81 crore was held until September 2020 and are declared fraud as much as the reporting date, the financial institution has supplied for the steadiness quantity of Rs 271.96 crore until December 31, 2020.
“As such, a complete provision of Rs 903.33 crore together with these two accounts has been made throughout the quarter,” the financial institution stated.
Additional, the provisions held in respect of whole borrowal accounts referred to NCLT stood at Rs 4,429.26 crore as in opposition to steadiness excellent of Rs 4,965.66 crore, it added.
Additionally, as a part of the one time MSME restructuring, the financial institution has restructured as many as 9,378 accounts price Rs 470.54 crore.
With respect to the Supreme Courtroom order and RBI pointers, the financial institution has saved Delhi Airport Metro Specific Pvt Ltd (DAMEPL) as a typical account, it stated additional.
Nonetheless, vital provisions as per norms have been made whereby it has not handled quantity price Rs 156.52 crore (DAMEPL) as NPA and has held provisions of Rs 81.61 crore, which is increased than the required quantity of Rs 62.88 crore, it stated.
Provision protection ratio stood at 87.99 % by the tip of the December quarter in opposition to 76.12 % a yr in the past.
Apart from, Rs 609.95 crore has been saved as provisions throughout the quarter with respect to accounts that weren’t declared as NPA until August 31, 2020, in accordance with the Supreme Courtroom interim order of September 3 in response to a public curiosity litigation, the lender stated.