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PNB expects to clock business of Rs 11.50 lakh cr by fiscal-end (Lead)

Kolkata, Oct 25 (IANS) State-run lender Punjab National Bank (PNB), which is eyeing a total business of about Rs 11.50 lakh crore by the end of the current financial year, is hoping to bring down the net NPA (non-performing asset) ratio to less than 8 per cent by end 2017-18, an official said here on Wednesday.

“Currently, our total business stood at about Rs 10.50 lakh crore and of which, 60 per cent was of deposits and the rest constitutes the credit. We are targeting a total business of Rs 11.50 lakh crore by end of the current fiscal,” PNB Executive Director Sanjiv Sharan told IANS.

As on June 30 this year, the bank’s NPA as a percentage of total loans was at 13.66 per cent while its net NPA ratio was at 8.67 per cent.

“We are hoping that the level of gross NPA would come down to less 12 per cent while net NPA ratio is expected to be less than 8 per cent by end March 31, 2018,” he said.

The Reserve Bank of India (RBI) had identified 12 large accounts with exposure of more than Rs 5,000 crore and more than 60 per cent of which is recognised as NPAs.

Banks have to refer to the new Insolvency and Bankruptcy Code (IBC) for these accounts.

“The PNB has the exposure in nine accounts out of these 12 stressed accounts referred to IBC and the exposure would be to the tune of Rs 12,000 crore in the nine accounts. In addition to this, we have exposure of about Rs 6,000 crore in 20 stressed accounts, out of 29 in additional list,” he said.

The bank had reported that its gross NPAs, as on June 30, 2017, stood at Rs 57,720.70 crore while its net NPAs were at Rs 34,572.71 crore.

Meanwhile, PNB reduced Marginal Cost of Funds Based Lending Rate (MCLR) by 20-25 basis points with effect from September 1 and it also slashed base rate by 20 basis points from 9.35 per cent to 9.15 per cent from September 1.

Post Source: Ians feed

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