Punjab National Bank
The country’s government bank Punjab National Bank (PNB) has expressed confidence of excellent performance in the current financial year. Managing Director (MD) and CEO of the bank Ashok Chandra says that if the current pace continues, the net profit of the bank this financial year can exceed Rs 2,000 crore. In the last financial year, PNB had earned a net profit of Rs 16,904 crore. Now the bank hopes that this time this figure will create a new record.
Target of more than Rs 5,000 crore profit every quarter
Ashok Chandra said that since the second quarter of the last financial year, the bank has been continuously earning a net profit of more than Rs 5,000 crore every quarter. The same trend has been seen in the first quarter of the current financial year also. He said that the bank is trying to increase profits in every coming quarter and create new records. On this basis, he is confident that the profit for the whole year can cross the figure of Rs 20,000 crore.
Which areas will be the most focused?
PNB is paying special attention to many areas to expand its business this year. The focus of the bank will be mainly on retail loans, agriculture, MSME sector and self-help groups. The bank estimates that loans will increase by 12-13% this financial year, while deposits may increase by 9-10%.
Will also enter new business
PNB is also preparing to enter a new business, Acquisition Finance, this year. This is such financing in which a bank gives a loan for the acquisition of a company. RBI has recently given relief to banks by changing the rules of such financing. After this, PNB has approved this policy in its board meeting. According to Ashok Chandra, the bank is currently looking for a good partner and this business can be started from the third quarter (Q3) of the current financial year. Initially this facility will be given to domestic companies of India.
What do the new RBI rules say?
The Reserve Bank of India (RBI) has recently implemented new rules related to acquisition finance. Under the new rules, banks can now fund up to 75% of a deal, whereas the earlier proposed limit was 70%. However, some conditions have also been set for this. For example, the borrowing company should have a net worth of at least Rs 500 crore, should have continuous profits for the last three years and the debt-to-equity ratio of the company after the acquisition should not be more than 3:1.
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