PNB back in reckoning
Scam hit PNB is in the green today, going up over 4% to Rs.94.20 and the mood on the counter currently looks positive.
The Bank has stated that it is hopeful of Rs 8,000 crore recovery from bad loans in the first quarter of the current fiscal. PNB had recovered Rs 5617.55 crore in the whole of last year as against which its recovery stands at Rs 6,000 crore by first week of June.
The Bank said that bigwig companies like Religare, Arcotech and Surya Alloys have recently settled bad loans worth Rs 350 crore in the last two months via the recovery camps setup by PNB.
And in another positive news, the Bank has said that it will get out non-core business and depending on the market conditions, plans to divest stake in PNB Housing Finance, ICRA Ltd, CRISIL Ltd and BSE Ltd.
PNB has a 32.96% stake in PNB Housing and 3.43% in ICRA. The stake in CRISIL is miniscule as collective stake of FIs and banks stood at 0.26% while collective stake of FIs and banks in BSE was at 67.80%. The bank hopes to raise Rs.13,000 crore from sale of all its non-core assets, divestment of stake in subsidiaries and second-tranche of capital infusion.
Net loss stood at Rs 13,417 crore in the fourth quarter of 2017-18, thanks to Rs 14,000-crore fraud of Nirav Modi and Mehul Choksi.