PNB to turn profitable in FY 19, says Mehta

Punjab National Bank is expected to turn profitable this fiscal and is poised for growth, its Managing Director Sunil Mehta said asserting that the Rs. 14,000 crore Nirav Modi scam is a bygone. Mr. Mehta said he hopes PNB will be back in the black during 2018-19 due to various efforts taken by the bank after the fraud came to light in January this year.

“The bank has demonstrated its capability to absorb such a shock and hopefully, it would be back into the black during this financial year itself,” he told PTI in an interview after donating Rs. 5 crore for the flood relief and rehabilitation to Kerala Chief Minister Pinarayi Vijayan said.

The bank is slowly getting on to the growth path, he said adding that credit growth is picking up and has surpassed industry average.

PNB reported a loss of Rs. 940 crore for the June quarter of 2018-19. It clocked a profit of Rs. 343.40 crore a year earlier. To give a fillip to expansion plans, the bank’s board has sought Rs. 5,431 crore capital support from the Centre through a preferential share issue.