Punjab National Bank (PNB) 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, Chairman and Managing Director of PNB, K R Kamath said.
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.
The PNB CMD 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 PNB crossed Rs 6,00,000 crore milestone to reach Rs 6,19,122 crore, recording a growth of 21.4 per cent.
Net profit for nine months ended December, 2011 amounted to Rs 3460 crore, registering a y-o-y growth of 7 per cent, Kamath said adding net profit of the bank for the third quarter of 2011-12 recorded a growth of 5.5 per cent to reach Rs 1150 crore.
Similarly, operating profit grew by 17.3 per cent to reach 7678 crore during first nine months of current fiscal. Core operating profit excluding trading profit rose by 18.9 per cent to Rs 7490 crore during the period, he said.
While deposits at the end of December, 2011 amounted to Rs 3,56,517 crore, exhibiting a growth of 23.4 per cent, total income for the nine month period increased by more than 30 per cent, Kamath said.
Referring to financial inclusion, the CMD said that PNB would cover 4588 villages with population of over 2,000 by the end of this month. Out of these, 4084 villages have been covered by December 31, 2011.
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