Arun Jaitley: PNB has potential to raise capital

Mar 06, 2018, 18:47 IST | IANS

Jaitley's statement comes in the wake of a Rs 12,600 crore fraud in the state-run PNB allegedly by accused diamantaire Nirav Modi and his uncle Mehul Choksi

Arun JaitleyFinance Minister Arun Jaitley

Finance Minister Arun Jaitley on Tuesday said the fraud-hit Punjab National Bank (PNB) has "sound fundamentals" and high potential to raise capital through sale of non-core assets.

Jaitley's statement comes in the wake of a Rs 12,600 crore fraud in the state-run PNB allegedly by accused diamantaire Nirav Modi and his uncle Mehul Choksi.

"With a high share of current account and savings account deposits, low cost-to-income ratio, robust credit growth, stabilisation of gross non-performing assets, healthy provision coverage ratio of over 60 per cent and high potential for mobilising capital through sale of non-core assets, PNB too has sound fundamentals and strong growth potential", the Minister said in a written reply to Rajya Sabha.

"These position PNB for sustained good performance and, going forward, generating positive market sentiment and market capitalisation gains." PNB had earlier said that it will honour all its bonafide commitments under the guidelines of the Reserve Bank of India.

Catch up on all the latest Crime, National, International and Hatke news here. Also download the new mid-day Android and iOS apps to get latest updates

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever

Trending Video

Mumbai's beautiful gardens struggling for basic facilities