Punjab National Bank (PNB), the second largest public sector bank in the country hopes that the overall credit growth of 10 percent in 2022-23 behind the strong credit request that is seen in the steel, road and cement sectors besides NBFCS, MD & CEO, said ATUL Kumar Goel on Thursday.

This is much higher than the overall credit growth of six percent seen in 2021-22.

We saw 2022-23 as an excellent year for the Indian economy. We have reached the level of pre-pandemic demand “, Goel said after the declaration of the Q4 bank results. He highlighted that the scope of PNB to collect Treasury revenue will almost not exist in the current fiscal, and therefore the bank bet large on the growth of business volume.

Q4 number
For the fourth quarter ended March 31, 2022, PNB on Wednesday reported based on independent net profit of ₹ 202 Crore, lower than net profit ₹ 586 Crore in the same quarter of fiscal. For all fiscal, PNB’s net profit jumped to ₹ 3,456 crore (₹ 2,022 crore). After the eight -year break, PNB returned in the dividend list with a dividend announcement of 32 percent (₹ 0.64 Paisa with a nominal value ₹ 2 per share).

Asked whether PNB would be able to maintain a full year profitability growth recorded in 2021-22 in the current fiscal, Goel said he would prefer not to provide any guidance in the front of the bottom line. However, he said that PNB was targeting 15 percent operating profit growth, which came on ₹ 20,762 Crore in 2021-22, during the current fiscal.

Goel said that PNB was targeting a net flower margin (NIM) by 3 percent for 2022-23, up from around 2.79 percent in 2021-22.

Transfer NPA to a bad bank
Goel said that PNB plans to transfer Non-Performing Assets (NPA) worth ₹ 8,000 crore to the new national asset reconstruction company made by Ltd (NarCL)- which is usually referred to as a bad bank in the phase. The first phase will involve a bad loan transfer worth ₹ 2,700 crore at the end of June, he said. PNB has made 100 percent of the provisions for this bad loan, he said.

He said that PNB would focus on this fiscal on credit quality, increase in CASA, NPA recovery and slippage. He is optimistic that PNB drops the level of dirty NPA percentage to one fiscal digit from 11.78 percent.

Non-synt assets
Goel said that PNB would guide the Ist Asset and HSBC Oriental Bank of Commerce Life Insurance Asset Insurance Insurance company. It will also participate in the issue of the rights of his housing finance arm.