INSUBCONTINENT EXCLUSIVE:
by selling some assets, according to people familiar with the matter.
Punjab National Bank is targeting net income of more than Rs 5,000
crore ($730 million) for the three months through Sept
30, boosted by asset sales and bad-loan recoveries, the people said
identified as the information is private.
The 124-year-old PNB is trying to regain its financial health and credibility following the
uncovering of a $2 billion fraud this year
March 31 as it had to account for the fraud
It has already provided for half of the roughly Rs 14,400 crore it owes other banks to make good for the scam, and said the rest will be
paid over three quarters -- approximately Rs 2,400 crore each quarter if spread equally.
PNB will probably report a loss of Rs 2,400 crore
for the three months ended June 30, according to the average of 11 estimates in a Bloomberg survey
This narrowing is expected to be led by a drop in bad loans following the sale of bankrupt Bhushan Steel.
For the current quarter, the
lender expects profit will be further boosted by more than Rs 8000 crore it estimates to get by selling so-called non-core assets, the
This includes its stake in PNB Housing Finance Ltd., they added
Finance, the bank told the stock exchange on Wednesday, without sharing more details
risk-weighted assets by more than Rs 20,000 crore and halve its net bad-loan ratio from 11.2 per cent over the year through March 2019, the
