State-run Punjab National Bank has sought Rs 1,500 crore from the finance ministry for capital infusion in the current financial year.
We have approached the government and sought Rs 1,500 crore in the current fiscal, said KR Kamath,CMD,Punjab National Bank,while announcing the first quarter results on Friday.
The government,which holds 58 per cent stake in PNB,has allocated a total of Rs 14,000 crore for capital infusion in public sector banks in the current fiscal. PNB had received Rs 1,250 crore from the government in 2012-13 as preferential shares.
Poor credit growth along with higher provisioning squeezed margins and impacted profitability of the public sector lender,which posted a marginal 2.4 per cent growth in net profit at Rs 1,275.32 crore in Q1 of the fiscal. It had a net profit of Rs 1,245.67 crore in the first quarter of 2012-13.
There is little scope for corporate credit growth, said Kamath,adding that the bank will focus on agriculture,retail and MSME loans over the rest of the year. Total income of the bank remained flat at Rs 11,747 crore in the quarter ending June 2013 as against Rs 11,722 crore in the same quarter a year ago,registering a mere 0.2 per cent growth.
Net interest margin,a key indicator of profitability declined to 3.52 per cent in the first quarter of the fiscal as against 3.60 per cent during June end,2012. Interest income during the quarter declined by 1.4 per cent at Rs 10,405 crore against Rs 10,554 crore in the first quarter of the previous fiscal.
PNB chief says RBIs measures to stem rupee fall a bitter pill
Calling the recent RBI measures to stem the rupee fall as a bitter pill,Punjab National Bank chairman and managing director KR Kamath on Friday said that banks have accepted it in national interest. He also ruled out an immediate hike in rates by PNB.
For RBI,the main focus is to keep the exchange rate under control…To that extent,we hope,it is a temporary measure, Kamath said.
His comments come days after SBI chairman Pratip Chaudhuri said that the RBI should not choke liquidity but opt for transparent measures to contain the rupee volatility.