Punjab National Bank has registered 12 per cent rise in net profit at Rs 343 crore during the first quarter of 2017-18, but farm debt waiver in some states has hit its bad debts.
The bank has got board approval to raise Rs 3,000 crore from equity and bonds each this financial year. Of this, the bank has already raised Rs 1,500 crore from bonds. As such, the bank has not asked the government for any capital this financial year, Sunil Mehta, MD & CEO, PNB told reporters here.
The bank has not taken a decision to cut savings rate in line with the leader SBI, but its asset and liabilities committee (ALCO) will deliberate on the issue and take a call next week, Mehta said before the release of the RBI monetary review.
The bank plans to raise Rs 1,000 crore from the sale of its non-core assets, but has not taken a call to sell stake in PNB Housing, where its lock-in period ends in November.
PNB’s credit grew 6.8 per cent during the quarter, Mehta said. However, credit to corporates grew just one per cent, while retail advances rose 16 per cent, showing subdued industrial performance.
In the previous quarter ended March 2017, PNB had earned a net profit of Rs 262 crore, recovering from a loss of Rs 5,367 a year ago.