INSUBCONTINENT EXCLUSIVE:
State run Punjab National Bank (PNB) was able to raise around Rs 500 crore after its Employee Stock Purchase Scheme (ESPS) was 90 per cent
subscribed.
“The eligible employees could subscribe equity share at a discounted price of Rs 53.95 per equity share
The scheme was well accepted by the employees,” said an official aware of the developments.
So far no other bank has been able to achieve
90 per cent ratio under ESPS and the credit goes to all the PNB employees, the official added.
Employees from Chennai, Bhopal and Meerut had
the maximum participation in the offering.
The lender has posted a loss of Rs 4,532 crore for the quarter ending September 2018 owing to
sharp increase in provisioning
PNB had reported a profit of Rs 560 crore in the corresponding period last year.
PNB’s managing director Sunil Mehta, however, had
expressed hope that the bank will be in black by the end of this fiscal and that they have up fronted provisioning requirements.
PNB sharply
increased its provisions to Rs 9,757 crore from Rs 5,758 crore in the previous quarter
Of this it kept aside Rs 7,773 crore for bad loans as against Rs 4,982 crore in the previous quarter.
The provision coverage ratio saw an
increase from 59 per cent last year to 67 per cent as of end September 2018.
The bank has now posted losses in the last three quarters
Post Nirav Modi scam it had posted a staggering loss of Rs 13,416.91 crore for the fourth quarter 2017-18, the biggest ever by any domestic
lender.
Till July 2018, the bank had made provision of Rs 9,041.88 crore against the loss of around Rs 15,000 crore in the scam
The bank had noted that it has made provisions of Rs 3,295.12 crore during the September quarter.
The remaining provision will be made
during the next quarter of the current financial year as per terms of RBI's dispensation, it stated.
PNB’s capital adequacy ratio stood at
10.08 per cent at the end of the September quarter compared to 9.62 per cent at the end of the last quarter.
