Rocked by a massive controversy involving diamond czar Nirav Modi in what has been termed as the biggest bank fraud the country, Punjab National Bank's top brass on Thursday asserted that the bank has the "capability" to detect and address the "cancer".
Rocked by a massive controversy involving diamond czar Nirav Modi in what has been termed as the biggest bank fraud the country, Punjab National Bank’s top brass on Thursday asserted that the bank has the “capability” to detect and address the “cancer”. Amidst this all hullabaloo, it has been learnt that the public sector bank has suffered downward growth in profitability in four of the last five fiscals. However, the Centre intervened and increased the capital support to Punjab National Bank. As per The Indian Express, the capital assistance to the bank by the government rose to Rs 5,473 in the ongoing financial year from Rs 500 crore in 2013-14, an increase of around Rs 5,000 crore .
According to official data, PNB’s net profit has slid from Rs 4,545 crore in 2012-13 to Rs 3,080 crore in 2013-14 and dropped further to Rs 2,679 crore in 2014-15. While the central government’s decision to continue to infuse capital and measures regarding non-performing assets (NPA) were seen as a strategy towards improving the bank’s health, the move could now be hit with the likelihood of the public sector bank shelling out Rs 11000 crore as the Letter of Undertakings (LoU). PNB’s Gross NPA stood at 12.53 per cent in 2016-17.
Earlier in January, the PNB revealed that it had crossed a total business turnover of Rs 11 lakh crore. The bank said in future its focus will be on notching up profit. “Punjab National Bank, the 123-year-old largest nationalised bank, has achieved another milestone by crossing its total business of Rs 11 lakh crore. Ultimately, profit is now going to be the main focus of the bank,” the bank had said.
In a statement released by PNB, the authority had said that capital adequacy ratio of the bank stands above 9 per cent. Generally, the required capital adequacy ratio is 8 per cent. The bank has also revealed that it had raised interest rates on fixed deposits of select maturities by up to 1.25 per cent.