India’s second largest public sector lender, Punjab National Bank (PNB) which last year was badly hit by an fraudulent collusion between its employees and infamous diamond traders Mehul Choksi and Nirav Modi, is now recuperating and has reported 246.5 crore profit in the third quarter of current fiscal year.
The increase in profit is a notch higher than its profit in the same quarter in the preceding fiscal year. But the lender’s total income fell 2.6% taking its total income to Rs 14,854 crore. The bank after being badly hit by the multi-million dollar scam reported a net loss of over Rs 4,000 crore between July- sept 2018.
“We have honored all our commitments. Our bank, as on date, has provided all for that incident( Nirav Modi scam). We suffered because of one-off incident which has now been absorbed by the bank,” PNB managing director and CEO Sunil Mittal Said.
PNB’s provision during the same period also witnessed a decrease of 28.9%, capping money for provision to Rs 2853 Crore, as compared to Rs 4,015 crore for the same quarter in the preceding fiscal year.
Also, the lender’s provisions for NPA also declined from Rs 2,996 to Rs 2,853 Crore which in terms of percentage change is around 14.4% cause its NPA decreased, which is helping the bank to come out of the financial crises unleashed by likes of Nirav Modi and Mehul Choksi.