Analyst Meet / AGM - Analyst Meet

08-Nov-2016, 08:19
Punjab National Bank conducted an analyst meet on 08 November 2016 to discuss the financial performance of bank for the quarter ended September 2016 and the prospects of the bank. Usha Ananthasubramanian - MD&CEO addressed the meet:

Highlights:

• The bank has marginally improved asset quality, while reducing fresh slippages and improving recoveries and upgradations in Q2FY2017.

• Bank has continued to improve CASA deposit ratio to 42.1% at end September 2016 from 40.2% at end September 2016. The bulk deposits were mere at Rs 403 crore at end September 2016.

• On advances front, the growth was muted at 6% at end September 2016 mainly on account of conversion of Rs 7200 crore of loans to power distribution companies into bonds.

• The bank has maintained the share of small ticket loans at 58.6% at end September 2016.

• Fresh slippage of advances to NPA category eased to Rs 5089 crore in Q2FY2017 compared to Rs 7533 crore in the previous quarter. However, the NPA reductions (though recoveries, upgradations and write-offs) were higher than fresh slippages at Rs 6391 crore during Q2FY2017.

• Two large shipping accounts slipped to NPA category in Q2FY2017. The fresh slippages of around Rs 1500 crore were contributed by the restructured advance book.

• Bank expects fresh slippages to moderate going forward.

• Steel sector contributed about Rs 14000 crore of Gross NPAs at end September 2016. About 55% of the steel book is in to NPA category.

• Standard restructured advance book declined to Rs 18094 crore (4.4% of advances) at end September 2016.

• The standard outstanding under strategic debt restructuring (SDR) scheme stands at Rs 2833 crore and 5/25 refinancing scheme is Rs 3411 crore at end September 2016.

• Bank has recorded recoveries and upgradations of Rs 10778 crore in H1FY2017. The recoveries and upgradations have touched four-digit level in Q3FY2017, while bank is hopeful of meeting its full target of recoveries and upgradation of Rs 20000 crore for FY2017.

• So far bank has refrained from any asset sale to asset reconstruction companies, while bank has identified some accounts for sale going ahead.

• The watchlist account list of the bank stands at Rs 3000 crore at end September 2016.

• The Gross NPA ratio of the bank was higher at 13.63% at end September 2016 compared with 12.9% at end March 2016. The bank aims to reduce Gross NPA ratio below March 2016 level by end March 2017.

• Bank has exposure of Rs 10000 crore to Tata group companies.

• The business of the bank in Jammu and Kashmir stands at Rs 6900 crore of which loans amounts to Rs 1070 crore at end September 2016. Bank has network of 108 branches in the state.

• Despite decline in bonds yields, the bank has made higher provision for depreciation of investment of Rs 368 crore Q2FY2017, which was mainly contributed by exposure to discom bonds at Rs 968 crore requiring provision at the rate of 15% (Rs 144 crore), while bank has also made provision for SDR case for share being allotted.

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