State-run Punjab National Bank (PNB) on Friday reported a Rs 4,530 crore loss in the quarter ending September on rising bad loans.

The bank had posted a net profit of Rs 561 crore in the same quarter a year before.

CNBC-TV18 poll had predicted loss at Rs 1,211.3 crore for the quarter under review.

The bank's gross non-performing assets (NPAs) as a proportion of gross advances rose sharply to 17.16 percent (Rs 81,250.83 crore) at the end of September, from 13.31 percent (Rs 57,630.11 crore) a year ago, PNB said in a BSE filing.

As a result, provision for bad loans nearly tripled to Rs 7,733.27 crore in the September quarter as against Rs 2,693.78 crore in the same quarter of the previous fiscal.

During the quarter, the bank has made provision of Rs 519.18 crore in respect of 24 National Company Law Tribunal (NCLT) accounts under the provisions of Insolvency and Bankruptcy code (IBC). The total provision made in these accounts is Rs 10,736.14 crore. The remaining provision for fraud to be made in next quarter.

Net interest margin (NIM) improved to 2.68 percent in September 2018 from 2.60 percent in September 2017.

Shares of PNB were trading 1.01 per cent lower at Rs 73.50 apiece on BSE.

(With inputs from PTI)

First Published:Nov 2, 2018 12:47 PM IST