PNB not looking for consolidation, says its MD&CEO Sunil Mehta
, ET Bureau|
Updated: Nov 03, 2017, 05.07 PM IST
Punjab National Bank is not actively looking at consolidation but will still go for it if the government puts forth any options, said its managing director Sunil Mehta.
The bank on Friday reported a marginal 2.2% increase in its net profit at Rs 561 crore for the September quarter as against Rs 549 crore in the corresponding period last fiscal.
Mehta said that PNB as of now is focussing to consolidate within the bank and sell its non-core assets.
“We intend to keep majority stake in some of these companies,” he said, adding that any asset which is not productive for the bank, PNB will monetise it including real estate.
The bank is looking to pare down its stake in PNB Housing Finance Ltd. and sell its entire stake in Principal PNB Asset Management Company and Principal Trustee Company Ltd.
The bank has 39% stake in PNB Housing Finance and the promoter stake holding will not go down below 30%.
The bank’s scrip closed at Rs 207.30 up by 5.07% at the Bombay Stock Exchange or BSE on a day when the banking sector barometer, Bankex gained 1%.
On the issue of consolidation, Mehta said that the bank will go for it in national interest. “In that case we will like to go for geographic spread he said that the government’s move to recaptialise banks is significant and will push growth and create more jobs in the economy,” he added.
The net NPAs for PNB came down to 8.44% by end September 2017 as against 9.10% in the corresponding last year. In absolute terms, net NPAs stood at Rs 34,570.15 crore, compared with Rs 35,722.32 crore.
“Our fresh slippages have considerably gone down by more than Rs 3,000 crore during this quarter,” said Mehta.
The bank may need around Rs 15,000 crore of capital in the next three years of which it expects around Rs 5,000 crore from the government.
“We are adequately capitalised during the current financial year to take care of our business growth requirement as well as our capital adequacy requirement,” said Mehta adding that the market offering and sale of non core assets will mainly depend upon the market conditions. “We are not going to sell in the distress.”
The bank on Friday reported a marginal 2.2% increase in its net profit at Rs 561 crore for the September quarter as against Rs 549 crore in the corresponding period last fiscal.
Mehta said that PNB as of now is focussing to consolidate within the bank and sell its non-core assets.
“We intend to keep majority stake in some of these companies,” he said, adding that any asset which is not productive for the bank, PNB will monetise it including real estate.
The bank is looking to pare down its stake in PNB Housing Finance Ltd. and sell its entire stake in Principal PNB Asset Management Company and Principal Trustee Company Ltd.
The bank has 39% stake in PNB Housing Finance and the promoter stake holding will not go down below 30%.
The bank’s scrip closed at Rs 207.30 up by 5.07% at the Bombay Stock Exchange or BSE on a day when the banking sector barometer, Bankex gained 1%.
On the issue of consolidation, Mehta said that the bank will go for it in national interest. “In that case we will like to go for geographic spread he said that the government’s move to recaptialise banks is significant and will push growth and create more jobs in the economy,” he added.
The net NPAs for PNB came down to 8.44% by end September 2017 as against 9.10% in the corresponding last year. In absolute terms, net NPAs stood at Rs 34,570.15 crore, compared with Rs 35,722.32 crore.
“Our fresh slippages have considerably gone down by more than Rs 3,000 crore during this quarter,” said Mehta.
The bank may need around Rs 15,000 crore of capital in the next three years of which it expects around Rs 5,000 crore from the government.
“We are adequately capitalised during the current financial year to take care of our business growth requirement as well as our capital adequacy requirement,” said Mehta adding that the market offering and sale of non core assets will mainly depend upon the market conditions. “We are not going to sell in the distress.”
