PNB plans to undertake Rs 2,360 cr capital infusion

Punjab National Bank (PNB), the country's second largest public sector lender, plans to undertake capital infusion to the tune of Rs 2,360 crore to maintain the financial strength of the bank.

"While the bank would go for capital infusion of Rs 1,075 crore from LIC of India, an amount of Rs 1,285 crore has been sought from the government, PNB Chairman and Managing Director K R Kamath told reporters here.

Stating that the bank continues to hold its leadership position in business, network and technology adoption, Kamath said the capital infusion would impart flexibility in its operations by adding to the bank's financial strength.

Kamath ruled out any adverse impact of telecom scam on the bank.

Highlighting the performance of the bank during the first nine months of the current fiscal, he said total business of the bank crossed Rs 6,00,000 crore milestone to reach Rs 6,19,122 crore, recording a growth of 21.4%.

PNB's net profit for nine months ended December, 2011, stood at Rs 3,460 crore, registering a year-on-year growth of 7%, Kamath said, adding net profit of the bank for the third quarter of 2011-12 recorded a growth of 5.5% to reach Rs 1,150 crore.

Similarly, PNB's operating profit grew by 17.3% to reach Rs 7,678 crore during first nine months of the current fiscal. Core operating profit, excluding trading profit, rose by 18.9% to Rs 7,490 crore during the period, he said.

While deposits at the end of December, 2011 stood at Rs 3,56,517 crore, exhibiting a growth of 23.4%, total income for the nine month period increased by more than 30%, Kamath said.

Referring to the financial inclusion, the CMD said that the bank would cover 4,588 villages with population of over 2,000 by the end of this month. Out of these, 4,084 villages have been covered by December 31, 2011.