PNB has potential to raise capital: Jaitley

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New Delhi, March 6 (IANS) Finance Minister Arun Jaitley on Tuesday said the fraud-hit Punjab National Bank (PNB) has “sound fundamentals” and high potential to raise capital through sale of non-core assets.

Jaitley’s statement comes in the wake of a Rs 12,600 crore fraud in the state-run PNB allegedly by accused diamantaire Nirav Modi and his uncle Mehul Choksi.

“With a high share of current account and savings account deposits, low cost-to-income ratio, robust credit growth, stabilisation of gross non-performing assets, healthy provision coverage ratio of over 60 per cent and high potential for mobilising capital through sale of non-core assets, PNB too has sound fundamentals and strong growth potential”, the Minister said in a written reply to Rajya Sabha.

“These position PNB for sustained good performance and, going forward, generating positive market sentiment and market capitalisation gains.”

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PNB had earlier said that it will honour all its bonafide commitments under the guidelines of the Reserve Bank of India.

–IANS

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