PNB posts surprise quarterly profit

NEW DELHI, Feb 5 (Reuters): Indian state-run Punjab National Bank (PNB), which has been hit badly by a $2.0 billion fraud, posted a surprise quarterly profit on Tuesday, helped by a sharp drop in provisions.

The results come nearly a year after PNB disclosed that two jewellery groups had defrauded it in India's biggest banking scam, raising credit overseas with fake guarantees issued by rogue bank staff.

PNB, India's second-largest state-run lender by assets, reported losses for three straight quarters following the scam, on account of higher provisions.

This included the biggest ever quarterly loss for an Indian bank recorded by PNB in the March quarter last year.

In the three months to December 31, PNB posted a profit of Rs 2.47 billion ($34.44 million), compared to a profit of Rs 2.3 billion a year earlier, and compared to analysts' expectations for a loss of Rs 10.63 billion, according to Refinitiv Eikon data.