Punjab National Bank(PNB) Q3 profit jumps over three-fold


State-owned Punjab National Bank (PNB) on Thursday posted an over three-fold increase in its profit to Rs 2,223 crore for the third quarter ended December 2023.


The bank had earned a net profit of Rs 629 crore in the same quarter a year ago.


Its total income increased to Rs 29,962 crore during the quarter under review against Rs 25,722 crore in the same period last year, PNB said in a regulatory filing.


The bank's interest income rose to Rs 27,289 crore compared to Rs 22,384 crore in the third quarter of the previous fiscal.


Its gross non-performing assets (NPAs) declined to 6.24 per cent of the gross loans at the end of December 2023 from 9.76 per cent a year ago.


Similarly, net NPAs or bad loans came down to 0.96 per cent from 3.30 per cent at the end of the third quarter of the previous fiscal.

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Punjab National Bank(PNB) Q2 Net profit zooms 327%

 


Public sector lender Punjab National Bank (PNB) reported a 327 per cent year-on-year (YoY) rise in net profit at Rs 1,756 crore for the September quarter compared with Rs 411.27 crore in the corresponding quarter of the last fiscal. Net interest income (NII), the difference between the interest earned from lending activities and the interest paid, rose to Rs 9923 crore in the September quarter of the current fiscal.


Operating profit of PNB climbed 11.66% to Rs 6216.43 crore in Q2 against Rs 5567.21 crore in the September quarter of the last fiscal. 


Asset quality of the lender improved in the last quarter. Gross NPAs fell to Rs 65,563.12 crore in Q2 against Rs 87,034.79 crore in the September 2022 quarter. Gross NPA ratio slipped to 6.96% in Q2 against 10.48% in the corresponding quarter of the previous fiscal. 


Debt to equity ratio of PNB fell to Rs 0.76 in Q2 against 0.91 in the September 2022 quarter. 


Net NPA ratio slipped to 1.47% in Q2 against 3.80% in the September 2022 quarter. Net NPAs declined to Rs 13,114.12 crore in Q2 compared to Rs 29,348.16 crore in the September 2022 quarter.



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Punjab National Bank(PNB) Q1 Results: Net profit rises 307%, asset quality healthy


Punjab National Bank (PNB) on July 26 reported a 307 percent rise in net profit at Rs 1255.41 crore for the April-June quarter of FY24 as against Rs 308.44 crore a year ago.


The public-sector lender's gross non-performing assets (GNPA) declined to 7.73 percent from 11.2 percent in this period and the net non-performing assets (NNPA) fell to 1.98 percent from 4.28 percent.


The net interest income of the bank, difference between interest earned and interest expended, was reported at 9504 crore in the April-June quarter compared with Rs 7543 crore in the year-ago quarter.


New Delhi-based bank's Provision Coverage Ratio improved by 679 bps on YoY basis to 89.83 percent as on June’23 from 83.04 percent as on June’22.


The slippage ratio improved to 1.19 percent in Q1 FY24 from 3.75 percent in Q1FY’23. Housing loan increased by 12.5 percent on YoY basis to Rs 83,893 Crore. Moreover, vehicle loans increased by 27.1 percent on YoY basis to Rs 17,093 Crore and personal loans increased by 46.4 percent on YoY basis to Rs 18,940 Crore.


Savings deposits increased to Rs 4,64,004 Crore as on June’23 from Rs 4,47,258 Crore as on June’22.


Bank has currently, 10080 domestic branches which comprise 3898 rural (39%), Semi-Urban: 2456 (24%), Urban 1998 (20%) Metro: 1728 (17%) and 2 International Branches.


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Punjab National Bank Q1 net profit falls 70%

 


State-owned Punjab National Bank on Thursday reported a 70 per cent decline in standalone net profit to Rs 308.44 crore in the June quarter, mainly due to higher provisioning for bad loans and decline in interest income.


The bank had posted a net profit of Rs 1,023.46 crore in the year-ago period.Total income in the first quarter of the current fiscal fell to Rs 21,294 crore. In the year-ago period, it was at Rs 22,515 crore, according to a regulatory filing.


The lender's interest income fell to Rs 18,757 crore from Rs 18,921 crore in the same quarter a year ago.


The gross Non Performing Assets (NPAs) declined to 11.2 per cent of the gross advances by June 2022 from 14.33 per cent a year ago. It was at 11.78 per cent as of March 2022.


In absolute terms, the gross NPAs or bad loans stood at Rs 90,167.10 crore at the end of the first quarter of FY23 compared to Rs 1,04,075.56 crore a year earlier.


The net NPA too declined to 4.26 as against 5.84 per cent in the same period of the previous year.


However, provisions for bad loans increased to Rs 4,814 crore in the April-June FY23 as against Rs 3,248 crore in the year-ago period.


As on June this year, the Provisioning Coverage Ratio stood at 83.04 per cent as compared to 80.26 per cent at the end of June 2021.


"Covid-19 pandemic has adversely impacted the economic activity across the globe, including the Indian economy for more than two years. The bank's results, operations and asset quality, however, have not been much affected because of the pandemic," it said.


In the latest June quarter, the bank's operating profit fell to Rs 5,379.21 crore.


On a consolidated basis, the bank reported a net profit of Rs 281.73 crore in the quarter ended June as against Rs 1,168.33 crore a year ago.


The consolidated financial result of the bank comprises five subsidiaries and 15 associates.


The capital adequacy ratio of the bank declined to 14.62 per cent at the end of June compared to 15.19 per cent in the year-ago period.

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Punjab National Bank(PNB) Q4 Net profit declines 66%

  




Punjab National Bank (PNB) reported a 66 percent decline in standalone net profit at Rs 202 crore for the fourth quarter of financial year 2021-22 on higher amounts parked towards provisioning, even as its NPA levels declined.



The PNB reported a net profit of Rs 586 crore in the corresponding quarter a year ago. The total standalone income during the January-March quarter stood at Rs 21,095 crore, down from Rs 21,386 crore in the corresponding period last year.



For the entire fiscal 2021-22, the bank's standalone net profit rose to Rs 3,456.96 crore, compared to Rs 2,021.62 crore in FY21, according to a regulatory filing by PNB to the stock exchanges.



The asset quality of the lender improved, with the gross non-performing assets (GNPAs) dropping to 11.78 percent of the gross advances as of March 2022, from 14.12 percent a year ago. PNB's net non-performing assets (NPAs) or bad loans also declined to 4.8 percent from 5.73 percent



The lender kept a higher provision for bad loans and contingencies for the January-March quarter at Rs 4,851.47 crore, compared to Rs 3,540.32 crore earlier.





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PNB Q3 results: Profit zooms 123%

 


Government-owned lender Punjab National Bank (PNB) on Thursday said its net profit for December-ending quarter was Rs 1,126.78 crore, up 122.71 per cent compared to reported profit of Rs 506.03 crore in the same quarter last year.

Net profit was higher on account of lower provisions. The company provided Rs 3,353.55 crore for the quarter down from Rs 5,175.99 crore. However, provisions for bad loans increased by Rs 536 crore.

Operating profit (before contingencies and provisions) of the company came in at Rs 5,076.31 crore, down 17.24 per cent from Rs 6,134.20 crore in the year ago quarter.

Operating margin came in at 23.05 per cent, down from 26.62 per cent in the same quarter last year. However, it was significantly higher than September quarter’s 18.91 percent.

Net profit margin for the quarter was 5.12 per cent, down from 5.20 per cent quarter-on-quarter and up from 2.20 per cent year-on-year.

Gross net performing assets (NPA) stood at 4.9 per cent of total assets. This compares with 5.49 per cent and 4.03 per cent, respectively, in the September 2021 quarter and December 2020 quarter. Similarly, net NPA stood at 0.34 per cent during the quarter, against 0.33 per cent and 0.15 per cent, respectively.

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Punjab National Bank(PNB) Q2 profit up by 78%

  


State-owned Punjab National Bank (PNB) on Wednesday reported a 78 per cent rise in net profit to Rs 1,105 crore for the second quarter ended on September 30 despite a fall in income.

The country's second-largest lender had posted a net profit of Rs 620.81 crore during the corresponding quarter a year ago.

However, the bank's total income during the July-September quarter declined to Rs 21,262.32 crore as against Rs 23,279.79 crore in the corresponding period last year, PNB said in a regulatory filing.

The bank's operating profit too declined to Rs 4,021.12 crore from Rs 5,674.91 crore in the same quarter in the previous financial year.

On the asset quality front, the lender's gross non-performing assets (NPAs) increased marginally to 13.63 per cent of the gross advances at the end of September 2021, from 13.43 per cent a year ago period. Net NPAs also increased to 5.49 per cent as against 4.75 per cent a year ago.

However, provisions for bad loans declined to Rs 2,692.74 crore in the quarter, against Rs 3,811.17 crore in July-September 2020.

Provisions (other than tax) and contingencies declined to Rs 3,261.37 crore as against Rs 4,696.15 crore at the end of the second quarter of previous fiscal.

The government holding in the bank stood at 73.15 per cent at the end of September quarter. The Provisioning Coverage Ratio as of September 30, 2021, works out to 80.77 per cent compared to 83 per cent, it said.

Capital-to-risk-weighted assets ratio (CRAR) as per Basel-III increased to 15.20 per cent as against 12.8 per cent at the end of September 2020 quarter.
It further said the extent to which the Covid-19 pandemic will impact the bank's results will depend on future developments.

"The major identified challenges for the bank would arise from eroding cash-flows and extended working capital cycles. The bank is gearing itself on all the fronts to meet these challenges," it said.
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Punjab National Bank(PNB) Q1 net profit zooms 232% YoY

 

 Punjab National Bank(PNB)'s net profit for the quarter ended 30 June, 2021, zoomed 232% to Rs.1,023 crore, it said on Monday. The lender had posted a net profit of Rs.308 crore in the year-ago period.


The lender's Net Internet Income (NII) rose 6.5% to Rs.7,226 crore as against Rs.6,782 crore in the year-ago period.PNB's gross NPA marginally rose to 14.33% from 14.12% QoQ while the net NPA came at 5.85% as against 5.73% in the previous quarter (Q4F21).


The operating profit of the bank increased during the quarter to Rs.6,098.65 crore from Rs.5,280 crore. Its operating expenses during the quarter came down to Rs.4,722 crore from Rs.5,156 crore in the year-ago period. The total recovery, including cash recovery and up-gradation, during Q1FY22 improved to Rs.8,270 crore, PNB said.



The lender said it has availed dispensation for deferment of provision of Rs.392.69 crore in respect of frauds, as per RBI norms. Accordingly, an amount of Rs.98.17 crore has been charged to the profit and loss account and Rs.294.52 crore has been deferred to subsequent quarters. "Further, out of the amount of Rs.1,013.10 crore, which was debited to other reserve in Q4FY21, an amount of Rs.606.14 crore has been charged to profit and loss account and remaining Rs.406.96 crore will be charged to profit and loss account in subsequent quarters," it said.


On a consolidated basis, PNB reported a net profit of Rs.1,080.30 crore in the quarter ended June 2021, as against Rs.475.19 crore a year ago. The consolidated financial result of the bank comprises five subsidiaries and 15 associates. The capital adequacy ratio of the bank was at 15.19 per cent by June quarter-end, compared to 12.63 per cent a year ago. Provision coverage ratio works out to 80.26 per cent by June 30, 2021, it said.



PNB said it is holding a total provision of Rs.8,397.97 crore, as per RBI list-1 and list-2, with regard to accounts admitted under Insolvency & Bankruptcy Code (IBC) as of June 30, 2021. This provisioning is 100 per cent of the gross NPA advances, it added.


On the bank's quarterly performance amid Covid-19, the lender stated, "The extent to which the COVID-19 pandemic will impact the Bank's results will depend on future developments, which are highly uncertain including among other things, the success of vaccination drive. The major identified challenges for the Bank would arise from eroding cash flows and extended working capital cycles. The Bank is gearing itself on all the fronts to meet these challenges."

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Punjab National Bank posts net profit in Q4; NII rises 48%

 

State-owned lender Punjab National Bank (PNB) on Friday reported standalone net profit of Rs 586 crore for the quarter ended March 31, 2020 (Q4FY21). The lender had posted a profit of Rs 506 crore in the previous quarter (Q3FY21), and a standalone loss of Rs 697 crore during the corresponding period last year (Q4FY20).

On a sequential basis, the net profit rose 16 per cent.

The Delhi-based lender's net interest income -- the difference between interest earned through lending and interest paid to depositors -- rose 48.3 per cent to Rs 6,938 crore for the period under review. It was Rs 4,677 crore in the same quarter a year earlier.


The bank’s gross non-performing assets (NPAs) increased to 14.12 per cent in the March quarter, compared with 12.99 per cent in the previous quarter. Meanwhile, its net non-performing assets (NPAs) stood at 5.73 per cent.

The total income of the bank during the quarter stood at Rs 22,531 crore as compared with Rs 16,388 crore in the year-ago period.

The bank made provisions for NPAs to the tune of Rs 5,293 crore for the period under review. This is higher by 15 per cent as compared to the provisions of Rs 4,618 crore in the same period, a year ago

As of March 31, 2021, the Capital Adequacy Ratio (CAR) of the lender stood at 14.32 per cent.

"The current coronavirus situation continues to be uncertain and the Bank is evaluating the impact on an ongoing basis. The extent to which the Covid-19 pandemic will impact the Bank's results will depend on future developments, which are highly uncertain including among other things, the success of vaccination drive," the lender said in a filing.

The lender's deposits at the end of March quarter stood at Rs 11 trillion as compared with Rs 7 trillion in the year-ago period.

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Punjab National Bank(PNB) reports Net profit in Q3


State-owned Punjab National Bank on Friday reported a net profit of Rs 506 crore for the quarter ended December 31, 2020 (Q3FY21). Sequentially, the profit declined 18.5 per cent. The lender had posted a profit of Rs 621 crore in the previous quarter (Q2FY21), and a standalone loss of Rs 492.28 crore during the corresponding period last year (Q3FY20).


The Delhi-based lender's net interest income -- the difference between interest earned through lending and interest paid to depositors -- came in at Rs 8,313 crore for the period under review . The NII had been Rs 8,393 crore during the September quarter. It had been Rs 4,355 crore during the same period a year earlier (Q3FY20).


The bank’s gross non-performing assets (NPAs) reduced to 12.99 per cent for the December quarter of this financial year, compared with 13.43 per cent in the previous quarter. Meanwhile, its net non-performing assets (NPAs) stood at 4.03 per cent.


The total income of the lender came in at Rs 23,298 crore during the quarter, against Rs 15,967 crore in the same period a year earlier. Its total expenses in Q3FY21, meanwhile, stood at Rs 16,907 crore.

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Punjab National Bank(PNB) Q2 net profit rises 22%; asset quality improves

 


State-owned Punjab National Bank on Monday reported 22% jump in standalone net profit at ₹621 crore for the quarter ending 30 September, 2020. It was ₹507 crore in the year-ago period.

Interest earned during the quarter rose 58% to ₹20,946 crore as against ₹13,292 crore in September 2019.4

The bank's total income during July-September rose to ₹23,438.56 crore as against ₹15,556.61 crore in the year-ago period, PNB said in a regulatory filing.

PNB's asset quality improved on a sequential basis. Gross non-performing assets (NPAs) during the quarter were at 13.43% of gross advances as against 14.11% in the June quarter. Net NPAs during the September quarter eased to 4.75% from 5.39% in the previous quarter.

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This Indian PSU banks' have exposure to Sintex Industries


Punjab National Bank (PNB)
reported yet another scam on Thursday to the tune of Rs 1,203.26 crore. The public sector reported its exposure to Sintex Industries as “fraud”, its exposure to Sintex Industries.

“Pursuant to the applicable provisions of Sebi's Listing Obligations and Disclosure Requirements (LODR) and the bank's policy, "we inform reporting of borrowal fraud of Rs 1,203.26 crore in NPA account of Sintex Industries Ltd (SIL)," PNB said in a regulatory filing.

The fraud reporting pertains to the large corporate branch at Ahmedabad zonal office, it added.

"The fraud of Rs 1,203.26 crore is being reported by bank to RBI in the accounts of the Company (SIL). Bank has already made provisions amounting to Rs 215.21 crore, as per prescribed prudential norms," the PSU bank said in a BSE filing.

This after the stressed textile company said it defaulted on its debt repayment of Rs 49.54 crore to a total of 10 investors. Of this amount, Rs 45.84 crore is the principal amount while the remaining Rs 3.70 crore was the due interest.

Sintex Industries’ total debt stands at Rs 7,358.88 crore. According to a TOI report, the total exposure of public sector banks to Sintex could be as much as Rs 6,000 crore. The banks have already classified the Sintex account as a non-performing asset (NPA) but will now will have to make full provision for the loan within four quarters – which is a requirement account classified as fraud.

According to Brickwork Ratings, at Rs 1,203.26 crore, PNB has the highest exposure to Sintex followed by Bank of Baroda (BoB) at Rs 649 crore, it rises to Rs 949 crore if the exposure of Dena Bank and Vijaya Bank, which merged with BoB, is taken into account. Another PSU bank Union Bank of India has an exposure of Rs 621 crore, including the erstwhile Andhra Bank which was merged into Union Bank followed by Canara Bank (erstwhile Syndicate Bank) at Rs 472 crore, Exim Bank at Rs 416 crore, Punjab & Sindh Bank Rs 333 crore, Andhra Bank Rs 250 crore.

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Punjab National Bank (PNB) Q1 result, net profit down 70%

State-owned Punjab National Bank (PNB) on Friday reported a standalone net profit of ₹308 crore for the quarter ended June.

The country's second largest lender had posted a net profit of ₹1,018.63 crore during the corresponding April-June period of 2019-20.

The numbers are not comparable as the bank merged Oriental Bank of Commerce and United Bank of India with itself effective April 1, 2020, PNB said in a regulatory filing.

Total income rose to ₹24,292.80 crore during the June quarter of 2020-21, as against ₹15,161.74 crore in the same period of the previous fiscal.

On the assets front, the lender's gross non-performing assets (NPAs) fell to 14.11 per cent of gross advances at the end of June 2020, as against 16.49 per cent at the end of June 2019.
Net NPAs declined to 5.39 per cent as against 7.17 per cent earlier.
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Top Public Sector Banks In India 2020

These banks have emerged to be trusted brands where people deposit and invest money without thinking twice. Some of these banks stand out when it comes to offering services and are thus a preferred choice of greater number of people.


Here is a look at some of the best public sector banks in India.

1] State Bank of India 


Commonly known as SBI, this bank was set up in the year 1955. It is one of the oldest and the most trusted public sector banks in India. SBI is owned by the Indian government. It offers all kinds of banking services and is known for maintaining transparency in its dealings. It boasts of more than 40 crore satisfied customers.

After receiving an overwhelming response from people in India, the bank went on to open its branches worldwide. Today, it has nearly 200 offices in 36 different countries.  The headquarters of SBI are located in Mumbai.

2] Bank of India

This bank was established in the year 1906 as a privately owned entity. However, after the nationalization of banks, it became a public sector bank. This change took place back in 1969. The bank has 5,500 branches operating across the country. 

It has been serving millions of Indians by catering to their banking requirements.The bank also has its branches outside the country. It operates in 22 other countries with around 60 branches. New York, Paris, London and Singapore are among the countries where Bank of India has its branches.

3] Punjab National Bank

This bank came into being in the year 1895. It was founded under the guidance of one of the greatest Indian leaders of all times, Lala Lajpat Rai. The bank was established as a part of the Swadeshi movement. PNB was managed solely by Indians.

It became extremely popular in the pre-independence era and is still trusted as much. It offers several banking services and is known for providing quality banking products. The bank has around 7000 branches and has its presence in every nook and corner of the country.

4] Bank of Baroda

Bank of Baroda was opened in Vadodara, Gujrat in the year 1908. The bank is known to offer quality banking and finance services to its customers ever since its inception.

It is known to be the second largest nationalized bank in the country. The bank does not only operate in India but has its presence around the world. It operates in as many as 25 countries across the globe with more than 75 million happy customers. Dena bank and Vijaya bank merged with Bank of Baroda recently thereby making it an even bigger entity.

5] Central Bank of India

Central Bank came into being in the year 1911. It has been serving the customers happily ever since the beginning. The bank is known to offer numerous banking products.

It has a team of qualified and experienced bankers who have the answer to all your banking related queries and are always happy to help their customers. The bank has nearly 5,000 branches operating pan India. It also has offices in Hong Kong and Nairobi.

The headquarters of this bank is set up in Mumbai.

6] Canara Bank

Established in the year, 1906, Canara bank has its headquarters in Bengaluru. The bank has more than 6000 branches and nearly 9500 ATMs operating across the country. It offers several banking products and is known to offer impeccable service. It has more than 8 crore happy customers.

The bank does not only operate in India but has its branches in many other countries too. It has been serving people in New York, Hong Kong, Shanghai, London, Manama, Leicester, Johannesburg and Dubai.

7] Union Bank of India


Union Bank of India started as a limited company in the year 1919. It became a full-fledged bank in the year 1969 after nationalisation. The bank offers numerous banking products. By providing quality banking services consistently for years it has managed to acquire more than 5 crore customers.
Its customer base is increasing with every passing year. It is the proud owner of over 4500 branches spread across India. It also has branches in 4 other countries including Hong Kong, Sydney, Dubai and Antwerp.

8] UCO Bank


UCO Bank was established back in the year, 1943. It has its headquarters in Kolkatta, West Bengal. The bank has around 50 branches across the country and nearly 4000 plus service units. It has also made its presence overseas with branches in Singapore and Hong Kong.



9] Bank of Maharashtra

Bank of Maharashtra came into being in the year, 1935. The bank has been offering excellent service to its customers ever since its inception. It provides all kinds of banking and finance services. It has its headquarters in Pune. 87.74% of the total shares of the bank are held by the Government of India.

10] Indian Overseas Bank

Indian Overseas Bank was established back in the year, 1937. It has more than 3,400 branches across the country. The bank offers a host of banking services to meet the requirement of different segments of customers. After its success in the country, the bank went on to open branches in foreign land. It has 6 foreign branches.

You can safely open account and acquire other banking services from any of these banks!

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Punjab National Bank Q4 net loss narrows

Punjab National Bank’s net loss narrowed down to Rs 697.20 crore for the quarter ended March 31, compared with Rs 4,749.64 crore loss in the corresponding quarter last year.

Asset quality of the lender improved with the percentage of gross non-performing assets (NPA) at 14.21 per cent against 15.90 per cent YoY. The figure stood at 16.30 per cent in the preceding quarter ended December 31.

Percentage of net NPA also improved to 5.76 per cent from 6.56 per cent YoY.

PNB made provisions of Rs 4,901.31 crore for bad loans during the quarter under review, down 51.33 per cent from the year-ago period.

The lender is evaluating the uncertainty caused by Covid-19. “The major identified challenge for the bank would arise from eroding cash flows and extended working capital cycles. The bank is gearing itself on the fronts to meet these challenges. The management believes that no adjustments are required in the financial results as it does not significantly impact the current financial year,” PNB said in a regulatory filing on Friday.

The provision coverage ratio of the bank stood at 77.79 per cent as of March 31.
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Merger News: Mega merger of 10 PSU banks takes effect; all you need to know

The merger of ten government-run banks into four will come into force from April 1. The branches of the merging banks will operate as branches of the banks in which they have been merged. Customers of merging banks will also now be treated as customers of the banks in which these banks have been merged. The banks' merger was announced last year in August and the union cabinet gave the final approval on March 4. In the past, various other bank mergers have taken place. For instance, in 2017, the country's largest public lender - the State Bank of India took over five of its associates and Bharatiya Mahila Bank. Last year, Vijaya Bank and Dena Bank were merged with Bank of Baroda. Kotak Mahindra Bankcand ING Vysya Bank merger and amalgamation of Centurion Bank of Punjab Ltd. with HDFC Bank took place in 2014 and 2008, respectively.

Here are a few aspects of the PSU bank merger:
1. As per the latest merger- Oriental Bank of Commerce (OBC) and United Bank of India (UBI) will be merged with Punjab National Bank (PNB). The merged entity will become the second-largest state-run bank. The new entity will have a business of Rs 17.95 lakh crore and 11,437 branches.

2. The amalgamation of Syndicate Bank into Canara Bank will create the fourth-largest public sector bank with Rs 15.20 lakh crore business and a network of 10,324 branches.

3. Allahabad Bank branches will operate as those of the Indian Bank. The merger of Allahabad Bank with the Indian Bank will create the seventh-largest public sector bank with Rs 8.08 lakh crore business.

4. Branches of Andhra Bank and Corporation Bank will function as the branches of Union Bank of India. Andhra Bank and Corporation Bank's merger with Union Bank of India will create India's fifth-largest public sector bank with Rs 14.59 lakh crore business and 9,609 branches.

5. The government had front-loaded Rs 68,855 crore to take care of the bank-merger plan.

6. Punjab National Bank was given Rs 16,091 crore, Union Bank of India Rs 11,768 crore, Canara Bank Rs 6,571 crore and Indian Bank Rs 2,534 crore. Allahabad Bank was provided Rs 2,153 crore, United Bank of India Rs 1,666 crore, Andhra Bank Rs 200 crore, Indian Overseas Bank Rs 4,360 crore and UCO Bank Rs 2,142 crore.

7. According to the government, the merger of the 10 banks will lead to the creation of stronger establishments. This merger would follow in the example of the amalgamation of Bank of Baroda, Vijaya Bank, and Dena Bank last year.

8. With this mega-bank mergers, the number of PSBs will get consolidated from 27 banks in 2017 to 12 banks in 2020.

9. The new 12 public sector banks will be -- six merged banks and six independent banks. State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India, Indian Bank will be the six merged banks. And Bank of India(BoI), Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab and Sind Bank, which have a strong regional focus, will remain independent entities.


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PSU banks announce share-swap ratios ahead of April 1 merger

Following the footsteps of State Bank of India and Bank of Baroda, the boards of 10 public-sector banks on Thursday approved mergers and issued share-swap ratios to create four large banks in the economy.
The four anchor banks will be Punjab National Bank, Canara Bank, Union Bank of India, and Indian Bank. The merger will be effective from April 1.
Last year, Bank of Baroda took over Vijaya Bank and Dena Bank. Before that, State Bank of India (SBI) had merged all its five associate banks with itself to enter the global top 50 banks’ list in terms of size. Punjab National Bank (PNB) will merge with United Bank of India and Oriental Bank of Commerce to create the largest bank in the country after State Bank of India.

According to notifications to the stock exchanges, Delhi-based PNB will issue 1,150 shares for 1,000 shares of Oriental Bank of Commerce, and 121 shares for 1,000 shares of United Bank of India.
Mumbai-based Union Bank of India will take Andhra Bank and Corporation Bank. Union Bank of India will issue 325 shares for 1,000 shares of Andhra Bank, and 330 shares for 1,000 shares of Corporation Bank.
Bengaluru-based Canara Bank will issue 158 shares for 1,000 shares of Syndicate Bank.
Allahabad Bank said for every 1,000 shares (face value Rs 10) of Allahabad Bank, there would be 115 shares (face value Rs 10) of Indian Bank.
The Union Cabinet had approved the consolidation to build the mega banks “to create more efficient and bigger public sector banks in the challenging environment to meet the credit needs of a growing economy and to achieve operational efficiency by scale of business”. The amalgamation will lead to a wide geographical reach, technology adaption, and, more importantly, better utilisation of scarce capital.
A grievance redress system has been put in place, and a committee has been formed headed by a retired judge. If shareholders have any issue with the swap ratio — for example, if they feel they didn’t get enough time or if they need information — they can raise it. This is the board-approved swap ratio.
“After the committee receives all the grievances, it will have seven days to recommend changes, if needed, which will be the final swap ratio,” said a top official of a PSB to be merged.
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Punjab National Bank(PNB) reported surprise loss in Q3


Public lender Punjab National Bank on Tuesday reported a surprise standalone loss of Rs 492.28 crore for the December quarter compared with a profit of Rs 246.51 crore in the same period last year.

Analysts were expecting a spike in the profit number on account of recovering from an NCLT account.

The PSU bank said provisions for the quarter jumped 73.25 per cent year-on-year to Rs 4,445.36 crore from Rs 2,565.77 crore.

Gross non-performing assets (GNPAs) eased to 16.3 per cent in December quarter from 16.33 per cent in the year-ago quarter, and 16.76 per cent in September quarter.

During the quarter, the bank availed dispensation for deferment of provision in respect of frauds amounting to Rs 238.84 crore.

Accordingly, an amount of Rs 59.71 crore has been charged to profit and loss account during the quarter and the rest Rs 179.13 crore has been deferred to subsequent quarters.

Further out of unamortised amount of Rs 2,284.32 crore up to quarter ended September 30, an amount of Rs 887.57 crore has been charged to P&L account during the quarter and remaining amount of Rs 1,396.75 crore has been carried forward to subsequent quarters. Total amount of remaining provision to be carried over to the subsequent quarters is Rs 1,575.88 crore,” the bank said.

Interest earned during the quarter rose 4.04 per cent to Rs 13,562.69 crore from Rs 13,035.08 crore last year.
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Punjab National Bank(PNB) report profit in Q2

Punjab National Bank (PNB) on Tuesday reported a net profit of Rs 507.05 crore for the September quarter.

The state-run lender had reported Rs 4,532.35 crore loss in the corresponding quarter last year.

Net interest income (NII) for the quarter rose 7.2 per cent to Rs 4,262 crore from Rs 3,974 crore in the corresponding quarter last year.

The bank made Rs 2,928.90 crore in provisions for the quarter, which were 44 per cent higher than Rs 2,023.31 crore provisions made in June quarter but 70 per cent lower than Rs 9,757.90 provisions the bank made crore in the year-ago quarter.

Gross non-performing assets as percentage of total advances rose sequentially to 16.76 per cent in September quarter from 16.49 per cent in June quarter. It stood at 17.16 per cent in the year-ago quarter.

“During the quarter bank has availed dispensation for deferment of provision in respect of frauds amounting to Rs 2580.72 crore. Accordingly, an amount of Rs 645.19 crores has been charged to profit and loss account during the quarter and Rs 1,935.53 crores has been deferred to subsequent quarter,” the bank said.


“Further, out of unamortised amount of Rs 718.38 crore up to June quarter, an amount of Rs 369.59 crore has been charged to P&L account and remaining amount of Rs 348.79 crore has been carried forward to subsequent quarters. Total amount of remaining provision to be carried over to the subsequent quarters is Rs 2,284.32 crore,” the bank said.
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