ALSO READPunjab National Bank third-quarter net profit surges; bad loans stable Punjab National Bank Q3 net profit surges; bad loans stable Punjab National Bank posts fourth-quarter profit as bad loans ease Punjab National Bank reports standalone net profit of Rs 261.90 crore in the March 2017 quarter Punjab National Bank drops after reducing MCLR
State-run Punjab National Bank today said it has devised a three-pronged strategy including strengthening of credit monitoring and recovery system and evaluation of all it's verticals to improve efficiency and maximise profitability. "We have found that the credit monitoring and recovery mechanism (of the bank) is not up to the mark and that is the reason heavy slippages were seen in the fiscals 2016 and 2017. We are working on strengthening our credit monitoring and recovery mechanism," the bank's newly appointed managing director Sunil Mehta said during the analyst meet, post announcement of the fourth quarter results for the fiscal ended 2017 here. As of March 31, 2017, the bank's fresh slippages stood at Rs 22,415 crore as against Rs 42,252 crore in the same period last year. Mehta further said the bank has also started doing profitability analysis of all its businesses to see whether those verticals are adding value to the shareholders. "If it (vertical) is adding value, then we will continue and try to capitalise on it.
If it is not then we may exit from that business. We do not mind even exiting from few of our businesses," Mehta said. The bank has various subsidiaries like PNB Gilts, PNB Investment Services and PNB Insurance Broking. Third area where the bank will be focusing on is creating proper system and procedures to improve delivery of it's products. In the quarter ended March 2017, the bank reported a net profit of Rs 262 crore as against a net loss of Rs 5,366 crore. For the full fiscal 2017, the net profit was Rs 1,325 crore as against net loss of Rs 3,974 crore. Gross non performing assets of the bank during the previous fiscal was 12.53 per cent while net NPA stood at 7.81 per cent. It reported a disclosure in divergence of Rs 200 crore in gross non-performing assets (NPA)as on March 31, 2016.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)