{"id":1649,"date":"2020-06-21T09:30:07","date_gmt":"2020-06-21T09:30:07","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=1649"},"modified":"2020-06-21T09:30:07","modified_gmt":"2020-06-21T09:30:07","slug":"pnb-expects-to-post-a-moderate-profit-in-fy21-thanks-to-ibc","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=1649","title":{"rendered":"PNB expects to post a moderate profit in FY21, thanks to IBC"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"article-image\">\n<figure><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-1978125 size-full\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/06\/PNB-reuters-small.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-1978125 size-full\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/06\/PNB-reuters-small.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1978125 size-full\" src=\"https:\/\/images.financialexpress.com\/2020\/06\/PNB-reuters-small.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2020\/06\/PNB-reuters-small.jpg 660w, https:\/\/images.financialexpress.com\/2020\/06\/PNB-reuters-small-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/06\/PNB-reuters-small-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/06\/PNB-reuters-small-401x267.jpg 401w, https:\/\/images.financialexpress.com\/2020\/06\/PNB-reuters-small-440x293.jpg 440w, https:\/\/images.financialexpress.com\/2020\/06\/PNB-reuters-small-80x54.jpg 80w, https:\/\/images.financialexpress.com\/2020\/06\/PNB-reuters-small-313x209.jpg 313w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><\/noscript><\/noscript><span class=\"article-caption\">The bank has moderated credit growth target to 6% for FY2021. (Image: Reuters)<\/span><\/figure>\n<\/div>\n<p>Public sector lender <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/punjab-national-bank-stock-price\/\" rel=\"noopener noreferrer\">Punjab National Bank<\/a> (<a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/punjab-national-bank-stock-price\/\" rel=\"noopener noreferrer\">PNB<\/a>) is expecting to post a moderate profit in FY2021 due to recovery of around Rs 8,000 crore through resolution process in the third and fourth quarters, treasury gains and the receding impact of Covid-19, said SS Mallikarjuna Rao, MD and CEO of the bank. PNB on Friday had reported a net loss of Rs 697 crore in the March quarter of 2019-20.<\/p>\n<p>Rao also specified that instead of higher profits, the bank would like to strengthen the balance sheet. \u201cWe don\u2019t like higher profit, because we would like to strengthen the balance sheet during 2020-21, but we are very confident that we will be creating a better base for the bank, not only for booking moderate profits in 2020-21, but also creating a robust situation for the next financial year,\u201d he said.<\/p>\n<p>The CEO said around 30% of borrowers had availed the moratorium facility. \u201cAround 30% retail, MSME and mid-sized corporates have opted for the moratorium, while 70% have chosen to pay,\u201d he said.\u00a0 Largest lender <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/state-bank-of-india-stock-price\/\" rel=\"noopener noreferrer\">State Bank of India<\/a> had earlier declared that 21.8% borrowers had availed moratorium. \u201cPNB has provided 5% or Rs 142 crore against special mention account-2 (SMA-2), which would have turned non-performing assets (NPAs) on March 31,2020,\u201d he said.<\/p>\n<p>The Reserve Bank of India (<a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/tag\/rbi\/\" rel=\"noopener noreferrer\">RBI<\/a>) had provided relief with the availing of standstill option on the status of accounts till August 2020, with a condition to provide 10% provisioning in next two quarters. Banks follow stepwise mechanism to classify loans as NPAs if a borrower does not pay within 90 days. Missing a payment after 30 days leads to a loan being classified as special mention account-1 (SMA-1). Failing to make payments for two consecutive months leads to an account being classified as SMA-2.<\/p>\n<p>A loan is finally classified as NPA after missing payment more than 90 days. PNB has made total provisioning of Rs 4,629 crore in the March quarter. The bank expects provisioning pressure to reduce after the June quarter and recoveries to begin from the third quarter onwards.<\/p>\n<p>Rao said, \u201cWe expect recovery of around Rs 8,000 crore from the cases which are in final stages at National Company Law Tribunal (NCLT) in the third and fourth quarters of financial year 2021.\u201d The bank is also expecting to garner money from the sale of non-core assets. \u201cAs on today we have a lot of good real estate assets. However, we are not planning to sell anything at the discounted price,\u201d he specified.<\/p>\n<p>The bank has moderated credit growth target to 6% for FY2021. \u201cBefore the Covid-19 impact, we planned for 12% credit growth. Now, if the receding impact of Covid-19 takes place from August, we will be expecting 6% credit growth,\u201d Rao said. The loans and advances fell 10% to `66,628 crore in the March 2020 quarter, compared with March 2019.<\/p>\n<p>The bank is planning a review meeting next month after the merger with <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/oriental-bank-of-commerce-stock-price\/\" rel=\"noopener noreferrer\">Oriental Bank of Commerce<\/a> and <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/united-bank-of-india-stock-price\/\" rel=\"noopener noreferrer\">United Bank of India<\/a>. The merger had already taken effect from April 1. \u201cWe will review capital requirement of the merged entity in the board meet next month,\u201d Rao said. On a standalone basis, capital adequacy ratio (CAR) of PNB stands at 14.14% till March. The bank also expects to improve its provisioning coverage ratio (PCR) to 80% by June, from current level of 77.79%.<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/s-p-bse-sensex-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">BSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nifty-50-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">NSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/investing-abroad\/\" target=\"_blank\" rel=\"noopener noreferrer\">US Market<\/a> and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\"https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\"https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<p class=\"telegram-text\"><img loading=\"lazy\" decoding=\"async\" class=\"telegrma_img\" src=\"https:\/\/images.financialexpress.com\/2020\/04\/telegram.png\" width=\"24\" height=\"24\" style=\"margin: 0px 5px 4px 0px; float: left;\"\/>Financial Express is now on Telegram. <a href=\"https:\/\/t.me\/TheFinancialExpressOnline\" target=\"_blank\" rel=\"noopener noreferrer\">Click here to join our channel<\/a> and stay updated with the latest Biz news and updates.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\\\"https:\/\/www.financialexpress.com\/industry\/banking-finance\/pnb-expects-to-post-a-moderate-profit-in-fy21-thanks-to-ibc\/1998096\/\\\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The bank has moderated credit growth target to 6% for FY2021. (Image: Reuters) Public sector lender Punjab National Bank (PNB) is expecting to post a moderate profit in FY2021 due to recovery of around Rs 8,000 crore through resolution process in the third and fourth quarters, treasury gains and the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1650,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-1649","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/06\/PNB-reuters-small.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/1649","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1649"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/1649\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/1650"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1649"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1649"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1649"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}