Punjab National Bank (PNB) — which was recently hit by a $2-billion fraud involving jewellers Nirav Modi and Mehul Choksi — is targeting a decent 10.8% rise in business for the current fiscal to Rs 12 lakh crore, the bank said on Tuesday.
Punjab National Bank (PNB) — which was recently hit by a $2-billion fraud involving jewellers Nirav Modi and Mehul Choksi — is targeting a decent 10.8% rise in business for the current fiscal to Rs 12 lakh crore, the bank said on Tuesday. Speaking at a conference organised by PNB, Niti Aayog chief executive Amitabh Kant ruled out any privatisation of public-sector banks (PSBs) at this juncture. Kant said the bigger challenge for PSBs today is the advent of new players and increased competition.
Last month, in a letter to his staff, PNB managing director Sunil Mehta had said despite the scam the bank had recorded a total business of around Rs 11 lakh crore in FY18. Of this, domestic business accounted for as much as Rs 10 lakh crore, with a 7.9% jump from a year before. PNB’s domestic business had touched Rs 9.35 trillion in FY17, having registered a 9.6% growth from a year earlier. Details of the bank’s FY18 financials will be known when it announces its results, expected later this month.
Recently, Mehta had told FE that the bank wouldn’t approach the government for fresh capital to cover fraud losses and it had enough capacity to bear the entire burden of the fraud. The bank is rationalising its operations — both overseas and domestic — and will focus more on profitable ventures.
PNB has crossed 100 million customers for the first time, the bank said and sought to stress that the bank showed larger profit during the third quarter of 2017-18 than some industry peers—before the scandal hit it and forcing it to pay for fraudulent bank guarantees issued to firms of Nirav Modi and Choksi. It “continues to leverage the power of 5Cs i.e., one of the highest CASA share, stable credit quality, robust credit growth, adequate capital and low cost to income ratio,” the company said.