There will be no retrenchment of employees from PNB, following the merger with the Oriental Bank of Commerce and Union Bank of India.
Punjab National Bank’s MD and CEO, S. S. Mallikarjuna Rao today said that there will be no retrenchment of employees following the merger of the Oriental Bank of Commerce and Union Bank of India with PNB. During the virtual press conference held to discuss the Q1 FY21 results, S. S. Mallikarjuna Rao added that PNB has a strength of 1.03 lakh employees and as the business grows, this employee strength will further grow. Speaking about ways to raise capital, he further said that PNB has planned to go for Qualified Institutional Placement (QIP) by the end of the third quarter or early fourth quarter and there is no plan to approach the government for capital infusion.
Amid the expectation of a net loss, PNB has earned a net profit of Rs 308 crore in the first quarter. Also, the provisions decreased by 1.5 per cent during the June quarter. In accordance with RBI’s decision on one-time loan restructuring, the state lender underlined that around 5-6 per cent of its loan book may be restructured. At the end of June 2020, PNB’s loan book size stood at Rs 7.21 lakh crore, thus, the bank expects loans worth Rs 36,000-Rs 38,000 crores to avail the restructuring window provided by the RBI. Out of the total loan book, Rs 1.27 lakh crore belongs to the MSME category, where 14 per cent is under the non-performing assets (NPA) category.
Meanwhile, on the economic front, the MD & CEO said that the overall economy is likely to start reviving from October 2020 onwards and MSMEs are expected to do well as they will have a great opportunity from the restrictions on Chinese goods. Sectors like hospitality, tourism, and aviation will take a longer period to bounce back, he added.