To beef up its capital base, fraud-hit Punjab National Bank (PNB) has set a target to mobilise Rs 8,583 crore in H2FY19 by monetisating non-core assets. In the January-September period, it had mopped up Rs 1,567 crore from sale of such assets.
PNB’s projected receipts from non-core asset sale for H2FY19 is 46% of the Rs18,665 crore target for all 16 PSBs. These banks mopped up Rs 5,062 crore since January 24, 2018, via this route. SBI could raise an extra Rs 2,218 crore, followed by Rs1,590 crore by Bank of India and Rs1,253 crore by Bank of Baroda, sources said.
As FE reported recently, PNB recovered a record Rs 11,378 crore from defaulters in the first five months of this fiscal, which is more than the state-run lender’s total recovery in the two years through 2017-18, according to the bank’s data.
PNB is eyeing sale of non-core assets such as its property at Bhikaji Cama Place in Delhi and a stake in its housing finance arm. PNB incurred losses of `13,417 crore in Q4FY18.
Board okays proposal to raise Rs 5,431-cr fund from govt
The PNB board on Thursday approved a proposal to seek Rs 5,431-crore capital support from the government.
The capital infusion of Rs 5,431 crore by the Centre would be through preferential allotment of the bank’s equity shares at a price determined as per the regulation, PNB said in a filing to stock exchanges.
The extra general meeting in this regard will be held on October 30, it said.
The finance minister on Tuesday committed capital support to banks after meeting heads of public sector lenders.
Source: Financial Express