Delhi: Punjab National Bank (PNB) managing director SS Mallikarjun Rao said on Saturday that his bank will return to the state’s second-largest bank PNB in March in the current financial year to make a profit on the basis of fiscal income and core banking activities. There is a loss of Rs 697.20 crore in the fourth quarter ended. However, after a gap of two years of Nirav Modi’s fraud, the bank made a profit of Rs 363.34 crore during 2019-20.
He also said that the bank has reduced its loan growth target to 6 percent for the current financial year due to the Covid-19 crisis. He told reporters here, originally, we had planned a loan increase of 12 percent, But due to the Kovid effect, we have limited the loan growth target to 6 percent, although, he said, the bank gets fiscal benefits due to the reduction in interest rates.
Rao said that PNB has already made a profit of more than one thousand crore rupees as a result of the decrease in the prices of government securities (G-Sec). Banks are selling G-Sec at a high coupon rate in the market and the sale of these securities Reason is earning profit. He said, my hope is that the financial gains will continue. If the interest rate increases, then such profit will be moderate in the third and fourth quarters.
He said that if we look at the profit from operations other than this, during 2019-20 we have consistently improved it was only due to the provision that the net profit was very low in the results we announced in the third and fourth quarter or The loss was now whatever provision is yet to be made, we will fully deal with it by September 2020. He said that from the third quarter onwards the provisioning effect will be less, while the operating profit will increase Language Suman Manohar Manohar