The second largest PSU bank, PNB posted a very disappointing performance for Q4FY22. It reported a 66% (YoY) decline in net profit at Rs.202 crore.
In terms of asset quality, the picture was better - Gross NPA came in at 11.78% v/s 12.88% and Net NPA was at 4.8% v/s 4.9% (QoQ). What hurt was the provisioning – it was at Rs.4,851 crore against Rs 3,540 crore (QoQ).
The Bank said it is holding total provision of Rs.8,384 crore (aggregate provision of RBI list 1 and list 2 accounts) as on March 31, 2022 (99.78% of gross NPA advances). In FY21, it was Rs.8,374 crore.
The bank raised Basel III compliant AT1 bonds and tier ll bonds of Rs.3,971 crore and Rs.1,919 crore, respectively, in FY22. Provisioning coverage ratio as on March 31, 2022 works out to 81.60% against 80.14% as on March 31, 2021.
The market gave this performance a big thumbs down and the stock, which had closed yesterday at Rs.33.10, hit a new low today at Rs.29.05 and is currently the top loser on the BSE.