PNB managing director and CEO Atul Goyal told ET that the lender is confident of recovering around ₹22,000 crore this fiscal year. “In the first quarter itself, we have made recoveries of ₹5,417 crore, which is higher than the slippages of ₹ 2,258 crore. Going forward, we are hopeful of bringing down the gross NPA to 6.5% and the net NPA level to 1% or below by March 2024,” he said, noting that the bank has earned its highest quarterly profit in 12 quarters and recorded a 26% growth in net interest income at ₹ 9,504 crore, the highest ever for the bank.
The provisions for bad loans came down to ₹4,374 crore in April-June against ₹4,814 crore in the year-ago period, and the Provisioning Coverage Ratio increased to 89.83% from 83.04% during the same period. PNB has maintained its guidance on credit growth at 11-12%. This growth will come from the RAM (retail, agriculture, and MSME), which will continue to be their focus areas, Goyal said.
“We are a consumption economy, and I don’t foresee any challenges as far as growth is concerned,” he said.
Goyal said the lender, as of date, has no plans to sell its 23% stake in Canara HSBC Life Insurance. “And there are no plans to bring down our stake in our other ventures as well.”
PNB expects ₹ 50-100 crore from the sale of attached Nirav Modi properties during the ongoing quarter, he said.The PNB chief said financial inclusion is one of the bank’s focus areas. “We are utilising our business correspondent network, or BC network, which is now over 25,000,” he said.
