PNB to customers: Have strong sovereign backing, adequate capital

By: | Published: February 22, 2018 4:29 AM

Putting up a brave face, crisis-ridden Punjab National Bank (PNB) on Wednesday assured investors and customers that it has a strong sovereign support and enough capital to deal with the Rs 11,400-crore fraud.

Punjab National Bank, pnb fraud case, nirav modi case, CASA deposits,  investors, mumbai, Fitch Ratings, Moody’s Investor Service and Fitch RatingsThe core strengths of the bank is the brand image with rich 123 years of existence, strong CASA base, stable asset quality and increased pace of digitisation,” PNB said in a series of tweets.

Putting up a brave face, crisis-ridden Punjab National Bank (PNB) on Wednesday assured investors and customers that it has a strong sovereign support and enough capital to deal with the Rs 11,400-crore fraud. “Be rest assured we have a strong sovereign backing. The core strengths of the bank is the brand image with rich 123 years of existence, strong CASA base, stable asset quality and increased pace of digitisation,” PNB said in a series of tweets. “We have adequate capital coupled with strong non-core asset base,” it said, adding it has the capacity and capability to “handle the situation” and safeguard the interest of the institution. The second-largest public-sector lender also scotched speculations that it had curbed withdrawals from the bank. “Some news like restrictions on withdrawals etc is floating in some channels. It has been created by some miscreants and is totally baseless,” PNB said. “We assure you that in your bank, it is business as usual,” it said.

PNB’s net profit rose 11% in the December quarter and it improved its asset quality, as gross non-performing assets dropped to 12.11% by the end of December 2017 from 13.7% a year earlier and 13.31% in the preceding quarter. The bank’s CASA deposits stood at a decent Rs 2,67,685 crore as of end-December, up almost 2% from a year earlier. Its capital adequacy stood at a healthy 11.58% at the end of the December quarter.

In the wake of the fraud, rating agency Moody’s Investor Service and Fitch Ratings on Tuesday warned PNB of rating downgrades on grounds of likely net-worth erosion and widening losses at the bank. Last week, PNB announced that it had detected fraudulent transactions worth $1.77 billion (`11,400-crore) at a branch in Mumbai.

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