During the period under review, the Bank made fast provision for NPA accounts of approximately Rs 1,500 crore.  It has also made additional standard asset provisions of up to Rs 2,100 crore and provision for restructured assets up to Rs 1,030 crore.During the period under review, the Bank made fast provision for NPA accounts of approximately Rs 1,500 crore. It has also made additional standard asset provisions of up to Rs 2,100 crore and provision for restructured assets up to Rs 1,030 crore.

Private sector Pandhan Bank Friday announced a massive net loss of Rs 3,008.59 crore for the second quarter of this financial year, on the back of provisions of Rs 5,577.92 crore as the lender saw a massive rise in bad loans.

In absolute terms, the non-performing assets (NPAs) of the bank, which posted a net profit of Rs 920 crore in the second quarter of last fiscal year, increased 10-fold on a year-on-year basis to Rs 8,763.60 crore in the second quarter of this year. financials of Rs 873.97 crore in the period of last year. On a quarterly basis, NPAs grew by 36% from Rs 6,440.38 crore in the first quarter.

During the period under review, the Bank made fast provision for NPA accounts of approximately Rs 1,500 crore. It has also made additional standard asset provisions of up to Rs 2,100 crore and provision for restructured assets up to Rs 1,030 crore.

Chandra Shekhar Ghosh, Managing Director and CEO of Pandhan Bank said in a virtual press interview, “It has been a very critical quarter. But not just for us, everyone is going through the same thing. We have recognized this reality and strengthened our balance sheet so that we are ready to act in the future. Assessing and finalizing all the stressors at this moment.After this, the Bank made an additional one-time provision.The total provision for this quarter was Rs.5,578 crore.Due to this saving, the bank reported a loss of around Rs.3,000 crore in the quarter… It’s not a loss, it’s like taking a break comfortably, so from today, we can just focus on business growth and file quality.”

Ghosh said the bank believes these provisions should be “sufficient” to take care of any past asset quality issues due to the ongoing pandemic as well as protect them from disruptions caused by a possible third wave.

During the second quarter of this fiscal year, total NPAs as a percentage of total loans increased 964 basis points year over year to 10.82% from 1.18% during the same last fiscal quarter. On a quarterly basis, the total NPA increased by 264 basis points from 8.18% in the first quarter of fiscal year 22.

Net Interest Income (NII) for the quarter was Rs 1,935.41 crore, as against Rs 1,923.09 crore in the prior year period. The net interest margin was 7.6%, down 4 basis points from 8% in the second quarter of FY21.

Ghosh reported that collection efficiencies improved in the September quarter and credit growth has returned to roughly the pre-Covid situation. Growth in the bank’s loans and advances in the quarter was 7%.

“For the EEB segment (formerly the Small Banks segment), the collection efficiency was 83% in June, and now it is 129%, which is a very strong message for the bank from customers about how they can return to their pre-pandemic state. In the EEB segment, about 9% did not pay Of our customers any premium in June, while in September this figure was only 4%. Now, about 79% of our customers pay full installments, while the figure was 62% in June. September onwards, it will gradually improve. Hopefully this will be better for the bank in The future. We remain hopeful that if things continue to improve in the country from here now, we will reach our pre-Covid efficiency in the next two quarters,” added Ghosh.

Get live stock quotes from BSE, NSE, US market and latest NAV, mutual fund portfolio, see the latest underwriting news, best IPOs, calculate your tax with income tax calculator, see top market gainers, biggest losers and best stock funds. like us Facebook social networking site and follow us Twitter.

Financial Express is now available on Telegram. Click here to join our channel And stay up-to-date with the latest Biz news and updates.

Source link

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *