Mumbai16 minutes ago
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The bank said that it will transfer bad bad loans i.e. NPAs worth Rs 8 thousand crore to the bad bank. Although the bad bank that has been established, the bad bank NARCL is yet to become operational from next month.
- The bank expects three times more profit next year
- The bank has made a profit of Rs 586 crore in the March quarter
The country’s second largest bank Punjab National Bank (PNB) expects that it can make a profit of 6 thousand crore rupees in the financial year 2022. The bank has made a profit of Rs 2,022 crore in the financial year 2021 i.e. between April of last year and March of this year. That is, next year he is expected to make three times more profit.
quarterly result released
The bank declared its March quarter results on Saturday. The bank said that it expects to see a three-fold increase in its annual profit in the financial year 2022. Despite Corona, the bank has made good profit in the last financial year. Its profit in March 2020 was only Rs 363 crore. It increased by more than 6 times in March 2021. The bank has made a profit of Rs 586 crore in the March quarter.
Projection of three times more profit
Bank’s Managing Director (MD) S.S. Mallikarjuna said that our projection is three times more profit for the 2022 fiscal year. It will all depend on lending and demand in the economy. However, its exact estimate will be known only after the first quarter of FY 2022. In terms of loan growth, Mallikarjuna said it could be between 8-10% for the banking industry. This will happen when the country’s economy will grow at the rate of 9.5%.
can grow at the rate of 8%
He said that at the conservative level, we can grow at the rate of 8%, if the country’s economy grows at the rate of 9.5%. However, the case of Corona can affect it. He said the stake in Canara HSBC OBC Life Insurance Company may be sold in the next 12-18 months. It had taken 23% stake in this insurance company after the merger of Orienter Bank of Commerce.
Will sell stake in insurance company
Mallikarjuna said Punjab National Bank has stake in two insurance companies. The insurance regulator had approved a stake in both of them till March 2021. However, the bank cannot hold more than 10% stake in another insurance company. This is the reason why the bank is looking for a way to sell stake in Canara HSBC OBC Life Insurance.
Share sale process continues
He said the stake sale process is on and since these insurance companies are not listed, their valuations have been finalised. Let us inform that PNB is already the promoter of PNB MetLife Insurance in which it has 30% stake. It was set up in 2001. The rest of the stake is with other shareholders. Similarly, the bank is also planning to sell its stake in the asset reconstruction company. He expects to get Rs 50-60 crore from this.
Promoter to remain in housing finance
On PNB Housing Finance, Rao said the bank will continue to maintain its stake in it. Shares of PNB Housing have seen a rise of 4 consecutive days and during this time its share has increased by 60%. Last month itself, its board had given approval to raise Rs 4,000 crore. This sale will be done at the rate of Rs 390 per share while the share price is above Rs 800.
Will transfer bad debt of 8 thousand crores
The bank said that it will transfer bad bad loans i.e. NPAs worth Rs 8 thousand crore to the bad bank. Although the bad bank that has been established, the bad bank NARCL is yet to become operational from next month. In the first phase, PNB will transfer 8 thousand crores to him. It will be completed by 30 June.