State-run Punjab National Bank (PNB) on Tuesday said the strong recoveries helped the bank to post robust operational performance in the third quarter ended December 31, 2018.
"Same period of the last year, we had said that give us two quarters and we will bounce back and we have kept our promise. What has contributed is our strong recoveries," said Sunil Mehta, MD and CEO, PNB.
The bank reported a 7 percent year-on-year (Y-o-Y) jump in net profit at Rs 246.5 crore in Q3, driven by fall in provisions.
"During Q1 of the current financial year, we have made a recovery of Rs 8,445 crore and that was unprecedented because last full year recovery was Rs 5,617 crore. The journey continued for the remaining two quarters and we had made a total recovery of Rs 16,000 crore which has contributed a lot into our write backs, into our profitability,” Mehta said.
On slippages, he added that quarter-on-quarter (QoQ) basis, the bank has been able to reduce fresh slippages.
In terms of bank’s exposure to IL&FS, Mehta said, “Recently a few landmark decisions have been taken by the Supreme Court (SC) as well as the insolvency and bankruptcy code (IBC). In the current quarter, we are bullish about the recoveries because we are going to get a good value from the assets which are unlocked into the resolution processes."