PNB to undertake Rs 2360cr capital infusion
Punjab National Bank (PNB) plans to undertake capital infusion to the tune of Rs 2,360 crore to maintain the financial strength of the bank.
March 12, 2012 / 22:29 IST
Punjab National Bank (PNB) plans to undertake capital infusion to the tune of Rs 2,360 crore to maintain the financial strength of the bank.
While the bank would go for capital infusion of Rs 1,075 crore from LIC of India, an amount of Rs 1,285 crore has been sought from the government, Chairman and Managing Director of PNB, K R Kamath told reporters.Stating that the bank continues to hold its leadership position in business, network and technology adoption, Kamath said the capital infusion would impart flexibility in its operations by adding to the bank's financial strength.The PNB CMD ruled out any adverse impact of telecom scam on the bank.Highlighting the performance of the bank during the first nine months of the current fiscal, he said total business of PNB crossed Rs 6,00,000 crore milestone to reach Rs 6,19,122 crore, recording a growth of 21.4%.Net profit for nine months ended December, 2011 amounted to Rs 3460 crore, regisering a y-o-y growth of 7%, Kamath said adding net profit of the bank for the third quarter of 2011-12 recorded a growth of 5.5% to reach Rs 1,150 crore.Similarly, operating profit grew by 17.3% to reach Rs 7,678 crore during first nine months of current fiscal.Core operating profit excluding trading profit rose by 18.9% to Rs 7,490 crore during the period, he said.While deposits at the end of December, 2011 amounted to Rs 3,56,517 crore, exhibiting a growth of 23.4%, total income for the nine month period increased by more than 30%, Kamath said.Referring to financial inclusion, the CMD said that PNB would cover 4588 villages with population of over 2,000 by the end of this month. Out of these, 4,084 villages have been covered by December 31, 2011. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
