PNB expects 4-6% credit growth this fiscal, says Mallikarjuna Rao

Punjab National Bank on Monday said its overall credit growth is likely to be at around 4-6 per cent in the current fiscal year as it expects the economy to return to normalcy from October onwards.

Punjab National Bank (PNB) on Monday said its overall credit growth is likely to be at around 4-6 per cent in the current fiscal year as it expects the economy to return to normalcy from October onwards.

"We still maintain that our overall credit growth would be around 4-6 per cent. We are expecting the economy to come back more effectively from October onwards. Though some of the sectors would be impacted, it will take longer period for them (to recover)," PNB managing director and CEO S S Mallikarjuna Rao said at a virtual news conference here.

Rao said tourism, hospitality and aviation are among the sectors that will take longer time to recover or get back on track in view of the changing social behaviour after the COVID-19 outbreak.

However, it is expected that a majority of the economic sectors will return to normalcy by October, he said.

"So as on date, we are not recalculating or reviewing our credit growth anticipation or guidance. We will stick to 4-6 per cent. We may look at the position only after October," Rao said.

Earlier in June, PNB had revised its loan growth target to 6 per cent for the current fiscal due to the COVID-19 crisis.

Meanwhile, the lender has reported a standalone net profit of Rs 308 crore for the quarter ended June 2020.

PNB had posted a net profit of Rs 1,018.63 crore during the corresponding April-June period of 2019-20.

It, however, clarified that the numbers for the latest quarter were not comparable vis-a-vis a year-ago figures as the peer Oriental Bank of Commerce and United Bank of India were merged into PNB with effective April 1, 2020.