Tag: punjab national bank

Punjab National Bank shares tumble nearly 10% after Q2 earnings, BFSI News, ET BFSI

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New Delhi: Shares of Punjab National Bank (PNB) on Thursday declined nearly 10 per cent after the company reported a fall in income for the second quarter ended on September 30. The stock tanked 9.93 per cent to Rs 41.70 on both BSE and NSE.

The earnings were announced post market hours on Wednesday.

The state-owned bank 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.

It 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.



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PNB net up 78 per cent in Q2

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Punjab National Bank (PNB), the country’s second-largest public sector bank, on Wednesday, reported a 78 per cent increase in standalone net profit for the quarter ended September 30 at ₹ 1105 crore as compared to net profit of ₹ 621 crore in same quarter last fiscal.

The public sector bank had registered a net profit of ₹ 1024 crore in the previous quarter ended June 30 this year.

The bottomline for the quarter under review was bolstered by a tax provision write-back of ₹ 345 crore.

For the six months ended September 30, PNB’s standalone net profit grew 129 per cent to ₹ 2129 crore ( ₹ 929 crore). This half-yearly bottomline performance was higher than the entire fiscal 2020-21 net profit of ₹ 2022 crore.

Total income for the second quarter ended September 30 this fiscal stood at ₹ 21,262 crore, lower than the total income of ₹23,280 crore in the same quarter last year.

The provision towards non performing assets saw a substantial reduction for the quarter under review at ₹ 2,693 crore against ₹ 3,811 crore in the same quarter last fiscal year.

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Bank, card firms receive 2 million auto-debit mandates after RBI order, BFSI News, ET BFSI

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Banks and card networks have received nearly two million auto-debit mandates after the Reserve Bank of India (RBI) made it mandatory from October 1 to take prior consent of a customer before debiting their accounts.

Most of the recurring payments are linked to credit cards, while such a facility is not available in most places for debit cards.

In August, total credit card transactions stood at 19 million, and debit card transactions at 358.5 million. In value terms, credit cards were at Rs 77,732.94 crore and debit cards at Rs 64,351.52 crore.

The readiness

State Bank of India, Axis Bank, HDFC Bank, Yes Bank, American Express, Bank of India, Bank of Baroda, ICICI Bank, HSBC, RBL Bank, IndusInd Bank and Kotak Mahindra Bank have implemented the recurring payment framework for their customers.

Canara Bank, Punjab National Bank and Standard Chartered Bank are making necessary system changes to allow e-mandates based transactions.

Service providers such as Razorpay, Billdesk, PayU have come up with solutions to help card issuers, customers, and merchants to register their mandates on their customised platforms. BillDesk has set up SI Hub, PayU has created Zion while Razorpay has set up MandateHQ.

RBI’s auto-debit rule

Under the new auto-debit rules that kicked in on October 1, there are no automatic recurring payments for services like recharge, utility bill as the additional factor of authentication (AFA) has now become mandatory.

To ensure safety and security of card transactions, the central bank had, in December last year, directed all banks that processing of recurring transactions (domestic or cross-border) using cards or Prepaid Payment Instruments (PPIs) or Unified Payments Interface (UPI) under arrangements/practices not compliant with AFA would not be continued beyond March 31, 2021.

However, non-readiness of some of the players had forced the RBI to extend the deadline on recurring payment till September 30. The rule is applicable to all types of recurring payments like utility bills, phone recharge, DTH and OTT, among others.

As per the guidelines, banks will send a one-time password (OTP) to customers for payments above Rs 5,000.



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Ashwani Kumar assumes charge as executive director of Indian Bank, BFSI News, ET BFSI

Banking & Finance

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Ashwani Kumar has taken charge as Executive Director of Indian Bank, after serving as the chief general manager of Punjab National Bank in Mumbai.

Kumar, who is a Chartered Accountant, Post Graduate in Commerce and a Certified Member of Indian Institute of Bankers has over two decades of experience.

Kumar rose through ranks serving various offices of four Public Sector Banks viz. Bank of Baroda, Corporation Bank, Oriental Bank of Commerce and Punjab National Bank.

His experience includes working in Wholesale Banking division and serving as Head of several branches (including Industrial Finance Branches, Mid Corporate Branches and Large Corporate Branches).



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Mudra loan disbursals rise in H1 on economic revival, BFSI News, ET BFSI

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As the economy revives, Mudra loans, or small-ticket loans up to Rs 10 lakh for entrepreneurs and small businesses, have made a comeback.

According to the latest data, Rs 1,17,332 crore has been disbursed as on October 15 in the current fiscal, as against Rs 85,000 crore, showing the trend of normalisation of the economy.

Total disbursals in 2020-21 had declined to Rs 3.11 lakh crore against Rs 3.29 lakh crore in the previous year.

While public sector banks are actively lending to small businesses, many private sector banks are cautious on the segment and lending, just to meet the priority sector norms.

Rise in NPAs

However, non-performing assets among such loans have also increased. In Maharashtra, public sector banks’ Mudra loan NPAs have risen to 32 per cent at June-end 2021, from 26 per cent a year ago.

SBI’s NPA on Mudra loans in the state is at 59 per cent as on June-end 2021, followed by Punjab National Bank at 44 per cent, Indian Bank at 33 per cent and Bank of Maharashtra at 31 per cent at June-end 2021.

In Jharkhand, Canara Bank’s Mudra NPAs are as high as 114.35 per cent and bad loans were Rs 183.63 crore, against the outstanding amount of loans at Rs 160.58 crore.

Among private sector banks, HDFC Bank’s Mudra loan NPAs in Jharkhand were at 26.21 per cent, followed by IDFC First Bank at 24.93 per cent.

Loan losses

Public sector banks have seen a sharp surge in the amount of Mudra loans turning into NPAs over the last three years. NPAs in Mudra loans had jumped to Rs 18,835 crore in 2019-20, from Rs 11,483 crore in 2018-19 and Rs 7,277 in 2017-18, according to finance ministry data.

Mudra loan disbursements by state-owned banks rose to Rs 3.82 lakh crore in 2019-20, from Rs 3.05 lakh crore in 2018-19 and Rs 2.12 lakh crore in 2017-18.

Banks and financial institutions have sanctioned Rs 14.96 lakh crore to over 28.68 crore beneficiaries in the last six years. The average ticket size of the loans is about Rs 52,000, it said.

Under Pradhan Mantri MUDRA Yojana, collateral-free loans of up to Rs 10 lakh are extended by Member Lending Institutions (MLIs) viz Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Non-Banking Financial Companies (NBFCs), Micro Finance Institutions (MFIs) etc.



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NARCL may get first bad loans tranche of Rs 90,000 crore by January, BFSI News, ET BFSI

Banking & Finance

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The National Asset Reconstruction Company (NARCL), or bad bank, is likely to get the first tranche of bad assets worth about Rs 90,000 crore by January 2022, according to a report. In the first phase, fully-provisioned toxic assets will be transferred.

Finance Minister Nirmala Sitharaman in the budget for 2021-22 had announced that an asset reconstruction company or a bad bank would be set up to consolidate and take over existing stressed assets of lenders and undertake their resolution. A bad bank refers to a financial institution that takes over bad assets of lenders and undertakes resolution.

Last month, the Cabinet had approved a proposal to offer sovereign guarantee on the security receipts (SRs) issued by the NARCL, It is estimated to cost the govenrment Rs 30,600 crore over five years.

Recovery hopes

The bad bank hopes to recover between Rs 50,000 crore and Rs 64,000 crore through the resolution of bad loans amounting to Rs 2 lakh crore.

NARCL may get first bad loans tranche of Rs 90,000 crore by January

The lowest recovery is seen at 25 per cent or Rs 50,000 crore, while the highest recovery rate is pegged at 32 per cent, or Rs 64,000 crore. The most likely recovery has been pegged at 28 per cent or Rs 56,000 crore.

The NARCL will buy the assets around Rs 36,000 crore or, about 18 per cent of the book value of Rs 2 lakh crore assets. About 15 per cent of Rs 36,000 crore would be paid by NARCL to banks in cash and the remaining 85 per cent via security receipts guaranteed by the Centre.

Close to liquidation

Though banks have made 100% provision for these assets, Rajkiran Rai, MD & CEO of Union Bank of India, does not expect more than 20-25 per cent recovery from these legacy accounts, he told a television channel.

The State Bank of India has identified NPAs with Rs 17,000-18,000 crore outstanding to be transferred to the NARCL, while Punjab National Bank has identified Rs 8,000 crore worth of NPAs, Union Bank of India Rs 7,800 crore of NPAs to be transferred to the National ARC. The Bank of India has identified about Rs 5,500 crores of assets for transfer while Indian Bank about Rs 1,900 crore.

Assets

NARCL may get first bad loans tranche of Rs 90,000 crore by January

Banks have identified Rs 82,496 crores worth of bad loans that could be transferred to the NARCL, which has names like Videocon’s VOVL (Rs 22,532 crores total exposure), Reliance Naval and Engineering Ltd (Rs 8,934 crore), Amtek Auto (Rs 9,014 crore), Jaypee Infratech (Rs 7,950 crore, Castex Technologies (Rs 6,337 crore), GTL Ltd (Rs 4,866 crore), Visa Steel (Rs 3,394 crore), Wind World India Ltd (Rs 3,161 crore), Lavasa Corporation (Rs 1,424 crore), Consolidated Construction Consortium Ltd (Rs 1,353 crores).

Several assets such as Videocon have seen realisable value close to liquidation value in NCLT proceedings. Many big-ticket resolutions at IBC have seen haircuts over 90%. With most of the NPAs proposed to be transferred to the bad bank being old legacy NPAs, there has been an erosion in value, making them more likely to head to liquidation.

Lavasa Corporation has got bids worth Rs 700 crore for loan claims of over Rs 8,000 crore at NCLT.



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Cabinet committee OKs seven appointments of executive directors at six PSBs, BFSI News, ET BFSI

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The Appointments Committee of the Cabinet (ACC) today approved seven appointments of executive directors at six public sector banks, the government said in a release accessed by ETBFSI. All appointments are likely to come into affect from the date of assumption of office.

The appointments will be effective provided that the officials are eligible for extension of the term of office, after a review of their performance by two years, or until further orders, whichever is earlier.

Rajneesh Karnatak has been appointed as the executive director of Union Bank of India for a period of three years. Karnatak is currently the chief general manager of Punjab National Bank.

Roy Joydeep Dutta has been appointed as the executive director of Bank of Baroda for three years, and is currently the chief general manager of the bank.

Nidhu Saxena has been appointed as the executive director of Union Bank of India for three years. Currently, Saxena is the general manager of UCO Bank. Saxena’s appointment can also come into force after February 1, 2022, or until further orders, whichever is earlier.

Kalyan Kumar has been appointed as the executive director of Punjab National Bank for three years. Kumar is currently the chief general manager of Union Bank of India.

Ashwani Kumar, currently the chief general manager of Punjab National Bank, has been appointed as the executive director of Indian Bank for three years.

Yadav Ramjass, currently the chief general manager of Bank of Baroda, has been appointed as the executive director of Punjab & Sind Bank. Ramjass’ appointment will be effective up to his date of attaining superannuation – April 30, 2024 – or until further orders, whichever is earlier.

Asheesh Pandey, currently the chief general manager of Union Bank of India, has been appointed as the executive director of Bank of Maharashtra for a period of three years, with effect from the date of assumption of office on or after December 31, or until further orders.



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Lenders get set for festive season; offer home, vehicle, gold loans at attractive rates, BFSI News, ET BFSI

Banking & Finance

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Lenders in the BFSI space are gearing up for the festive season, offering reduced interest rates on home and vehicle loans, and other discounts to customers.

Punjab National Bank, State Bank of India and Kotak Mahindra Bank are among the banks providing festive offers, while Mahindra Finance is among the non-bank lenders offering discounts on its loan products.

Also read: Ahead of festive season, banks slash interest rate on home loans. Get the details here

Here are the latest updates, so far, this week:

Mahindra Finance
Mahindra Finance on Wednesday launched festive offers on its vehicle loans for two months, providing offers and discounts to customers at competitive rates.

‘Shubh Utsav’ has been launched with immediate effect, and will continue till the end of November. It has special finance schemes, specifically for customers who plan to avail vehicle loans during these two months.

The offers can be availed across India. Below are the offers:
>SUV Loans (Mahindra brand) at interest rates starting 7.35%

>Up to 100% funding

>Loan tenure up to 7 years

>Buy now and pay after 60 days

>50% waiver on processing fees

>Pre-owned car loans at interest rates starting 12%

>Loan on tractor Implements at zero processing fee

>Quarterly and half yearly EMI for select customers for Car and Tractor loans

Punjab National Bank

PNB on Wednesday cut its gold loan rates by 145 basis points, and is now offering loans against sovereign gold bond at 7.20% and against gold jewellery at 7.30%.

The bank is also offering a full waiver of service charges and processing fee on the loans against gold jewellery and sovereign gold bond.

Earlier, the bank, as part of its festive offers, had announced a cut in home loan rate, which now starts from 6.60%, car loan rate, starting from 7.15%, and personal loan rate, from 8.95%.

ICICI Bank

ICICI Bank on Tuesday announced the launch of ‘Home Utsav’, a virtual property exhibition that digitally showcases real estate projects across cities. The exhibition will offer convenience to prospective home buyers as they can select their home by browsing through projects, approved by the bank, and avail benefits.

The offer is from October 7,2021, to December 31, 2021.

Attractive interest rate on home loans, special processing fees and digital sanction of loans and exclusive offers from developers are among the benefits that are being offered to the customers.

Furthermore, anyone, including those who are not customers of ICICI Bank, can avail of these benefits on buying a property through the exhibition, the bank said. Customers of ICICI Bank can further avail for the bank’s pre-approved home loan offers.



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PNB cuts gold loan interest rates by 145 bps, now loans against sovereign gold bond at 7.20%, BFSI News, ET BFSI

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As India nears its festive season, Punjab National Bank has cut its gold loan rates by 145 basis points, and is now offering loans against sovereign gold bond at 7.20% and against gold jewellery at 7.30%.

PNB is also offering a full waiver of service charges and processing fee on the loans against gold jewellery and sovereign gold bond, the bank said in a statement.

Earlier, the bank, as part of its festive offers, had announced a cut in home loan rate, which now starts from 6.60%, car loan rate, starting from 7.15%, and personal loan rate, from 8.95%.

The bank also slashed the margin on home loans. Home loan seekers can now avail of loans up to 80% of the property’s value without any upper ceiling on the loan amount.

With the reduction in interest rate and zero processing fee, funds are available at a very competitive rate on a range of retail loan products during this season, it said.



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PNB launches ‘6S Campaign’ under customer outreach programme, BFSI News, ET BFSI

Banking & Finance

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NEW DELHI: Punjab National Bank (PNB) on Thursday launched ‘6S Campaign’ under customer outreach programme to extend financial services at concessional rate during the festival season.

The ‘6S Campaign’ encapsulates different schemes such as – Swabhiman, Samruddhi, Sampark and Shikhar, Sankalp and Swagat, PNB said in a statement.

The objective is to drive a special awareness campaign for the development of financial services in the country and to accelerate credit growth, improve penetration of social security schemes and drive digital banking push, it said.

Through Swabhimaan, the bank aims to aggressively push the financial inclusion agenda by deepening penetration of the three Jan Suraksha or social security schemes pertaining to the insurance and pension sector, namely Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Yojana, and Atal Pension Yojana, it said.

The bank aims to drive credit outreach for the agricultural sector that is the cornerstone of the Indian economy through the Samruddhi scheme.

The scheme will cover all agricultural credit products like KCC, gold loans and investment credit, and the bank aims to leverage multiple strategic partnerships made in this sector to drive impetus, it said.

Under Shikhar, Sankalp and Swagat schemes, the bank has devised special rates of interest to drive credit offtake in retail and MSME sectors, it said.

In addition, focussed products and customer segments have also been identified for targeted outreach in line with the bank’s broader strategic agenda.

Further, it said, the bank has deepened concessions for select products in line with the ‘One District-One Product‘ policy to ensure access to affordable credit for MSMEs in the country.



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