PNB to have a rise in profit of nearly RS 6,000 crores by the FY’22

Ongoing covid-19, the bank’s profit in flow over five times to Rs 2,022 crores during financial year ending March’21.

Country’s second largest lender Punjab National Bank(PNB) on Saturday said it is expecting  nearly three-fold jump in its net profit to Rs 6,000 crore. Ongoing the covid-19 there is a flow over five times to Rs 2,022 crore during the end of financial year march 2021 against Rs 363.34 crore during 2019-20. The overall projection for FY’22 net profit should not be less than Rs 6,000 crore at the rightist level.

It depends on the credit growth , demand in the economy said by the PNB Managing Director SS Mallikarjuna Rao while addressing the media on FY’21 quarter numbers.

On the loan growth , Rao said that it should be between 8 and 10 % for banking industry on the assumption that the economy will grow by 9.5% in 21-22. On the traditional  level with regard to selling  its stake in Canara HSBC OBC Life Insurance Company, Rao said it would be done over the next 12-18 months.

Besides this Rao said, we have shareholding in two insurance companies because of the amalgamation and IRDAI had given us forbearance to continue to hold stake in both companies upto March’2021.. IRDAI guidelines says  that  the bank cannot hold the stake more then 10% in the second insurance company. The time horizon will be depended on how we are going to complete the formalities, select a merchant banker and go through the process. Since it is not listed company the valuation has to be finalized and the process may take upto one or one and  a half year to approach IRDAI. Besides this PNB Metlife has the highest stake of 30% , the company was setup in 2001. He also said that bank will exit from Asset Reconstruction Company India Limited (ARCIL). However, PNB decided to continue as a part of the “promoter group” in completion of his transaction.

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