During the current financial year to Rs 6,000 crore, Punjab National Bank (PNB) India’s second-largest lender expects to triple net profit, compared to Rs 2,022 crore during FY21, said MD and CEO SS Mallikarjuna Rao on Saturday.
The net profit of Rs 586 Cr for the quarter ended by March 31 for the previous year, this Friday.
Despite Covid-related impacts, the lender expects the loan book to grow by 8% during FY22.
During the earnings call on Saturday for FY22, our net profit should not be less than Rs 6,000 crore at the conservative level. It all depends on credit growth, demand in the economy,” mentioning the accurate
estimation after the first quarter ends for FY22, says PNB MD SS Mallikarjuna Rao.
Rao said, “Although a growth rate of 8% can be shown at the conservative level if the economy is in expected figures, where the GDP growth is 9.5% with reduced Covid-19.
Non-performing assets (NPAs) worth Rs 8,000 crore will be transferred to the National Asset Reconstruction Company (NARCL). However, the operational guidelines are in the final stages, and it is yet to decide about the non-performing assets to be transferred to NARCL.
The bank would not divest its stake in the housing finance company concerning PNB Housing Finance. Since due to the equity raising issue by the housing financier, the stake of PNB will be diluted to around 20%.
A capital raise of up to Rs 4,000 crore has been approved by PNB Housing Finance’s board issuing equity shares and convertible warrants to entities led by Carlyle Group firms.
The bank’s net interest income (NII) rose 48% YoY to Rs 6,937 crore during the March quarter.
Similarly, non-interest income rose 48% YoY to Rs 3,742 crore in the quarter under review.