Punjab National Bank shares was up approximately 3.04% recently. The bank is confident to come out of more than 130 billion Nirav Modi fraud case in six months. To overcome the present situation PNB has received lot of support from the government, other stakeholders and employees.
Further, PNB’s business has grown better than the industry, as the bank witnessed a credit growth rate of approximately 10 per cent, which is in line with the guidance that the bank shared with the investors. The bank has recorded a deposit growth of 6.2 per cent.
Additionally, PNB has planned to reform the credit processes as it will divide it into four verticals. The bank has also launched ‘Mission Parivartan‘ to realign all business processes for meeting present-day requirements.
PNB NPA’s for sale
Meanwhile, the two leading public sector banks, State Bank of India and Punjab National Bank have put their 15 non-performing assets of aggregate Rs 10.63 billion for sale. They have stated that they will conduct the e-auction on 20th of April 2018. In this State Bank of India has put up a total of 12 accounts along with total outstanding of Rs 8.48 billion for sale to asset reconstruction companies (ARCs)/banks/NBFCs/financial intuitions).
Additionally, PNB is expected to offer three NPA accounts with the total outstanding of Rs 2.14 billion for sale to ARCs/NBFCs/banks or other financial institutions.
Overall, as on December 31st, 2017, the 21 public sector banks had gross bad loans of over Rs 7.33 trillion. Of this, the SBI had the gross bad loans of approximately Rs 2.01 trillion. Then it is followed by Punjab National Bank having Rs 552 billion of gross bad loans, IDBI Bank having Rs 445 billion, Union Bank of India Rs 380 billion, etc.
Indian Banking Stocks Recovery and PNB Share Price Rise
Recently, the banks stocks showed positive movement. Among PSU bank stocks, Allahabad Bank (up 2.44%), Bank of Baroda (up 2.03%), Bank of India (up 2.39%) and Union Bank of India (up 2.11%) etc. gained. Canara Bank (down 0.21%) fell. State Bank of India also rose approximately 0.29% to Rs 260.55.
SBI has announced today during trading hours that a meeting of executive committee of the central board of the bank is scheduled on 13th April 2018. This is to examine the status and decide on extension of validity period for raising of ATI capital by way of Basel III Compliant debt instruments in single/multiple tranches in domestic/international markets in INR/USD through private placement at appropriate time.