PNB slips over 6% as asset quality worsens in Q2, provisions rise 5% QoQ

Punjab National Bank declined 5.7 per cent to Rs 64.30 on the BSE on Tuesday after the bank's asset quality worsened in the September quarter of FY20.

The bank's gross non-performing assets (GNPA) ratio increased to 16.76 per cent in the recently concluded quarter from 16.49 per cent reported in Q1FY20. In absolute terms, the GNPA stood at Rs 79,459 crore, up 2.8 per cent YoY, from Rs 77,267.3 crore reported in Q2FY19. Similarly, NNPA increased to 7.65 per cent from 7.17 per cent. In firgures, the amount came in at Rs 32,658.7 crore, up 8.2 perr cent YoY, from Rs 30,179.7 crore.

The asset quality, however, remained stable on a yearly basis. The GNPA was 17.16 per cent in the corresponding quarter of the previous fiscal, while the NPA was 7.65 per cent.

The public sector lender's slippages jumped 38 per cent sequentially from Rs 5,412 crore reported in Q1FY20 to Rs 7,460 crore in the quarter uknder review, the bank's management said.

PNB, however, reported a net profit of Rs 507.1 crore in the quarter under review, as against a loss of Rs 4,532.35 crore reported in Q2FY19. The metric beat analyusts expectations, who had on average, anticipated loss of Rs 1,500 crore. The net interest income (NII) came in at Rs 4,263.8 crore, up 7.3 per cent YoY from Rs 3,974.1 crore.

The bank's provisions declined from Rs 7,733.2 crore reported in Q2FY19 to Rs 3,253.3 crore in Q2FY20. The provisions, however, increased sequentially from Rs 2,147.1 crore.

At 2:50 PM, the shares were trading 5.2 per cent lower at Rs 64.65 apiece, as against a 0.23 per cent decline in the S&P BSE Sensex.

Naresh Goyal has pledged 26% stake in Jet as security for loans from PNB

Jet Airways founder Naresh Goyal has pledged 26 per cent stake in the ailing airline as security for loans from Punjab National Bank, according to a regulatory filing.

Last month, Goyal and his wife Anita Goyal quit the board of cash-strapped carrier as part of a debt resolution plan.

Jet Airways Thursday informed the stock exchanges that Goyal has pledged over 2.95 crore shares or 26.01 per cent stake with Punjab National Bank.

The pledge was created on April 4 as "security for existing/ new borrowings taken by Jet Airways (India) Ltd," the filing to the BSE said.

On the same day, over 5.79 crore shares held by him were released. Those were kept under "non disposal undertaking" as security for borrowings taken by the airline, as per the filing.

Goyal gave up the chairmanship of Jet Airways, which he founded more than 25 years ago, under a debt restructuring plan wherein lenders have taken control of the carrier.

Shares of the airline were trading flat at Rs 264.65 apiece on the BSE.