- PNB CEO, Atul Kumar Goel, urges patience regarding RBI’s proposed infrastructure financing guidelines, emphasizing the need for final guidelines before assessing their impact.
- Goel highlights the ongoing debate over the proposed 5% provisioning during construction phase, stating it’s too early to determine its appropriateness.
- Punjab National Bank reports a significant surge in net profit and improvement in asset quality in the fourth quarter of FY 2023-24.
In recent discussions, Atul Kumar Goel, CEO of Punjab National Bank, urged caution regarding the Reserve Bank of India’s (RBI) proposed guidelines on infrastructure financing. Stressing the importance of awaiting final guidelines, Goel emphasized the need for a comprehensive understanding of the potential impact on banks’ balance sheets due to significant exposure in this sector.
Speaking about the draft norms, Goel mentioned the ongoing debate surrounding the proposed 5% provisioning requirement during the construction phase of projects. He suggested that assessing the appropriateness of this provision would require further deliberation and input from stakeholders.
Meanwhile, Punjab National Bank showcased impressive performance in the fourth quarter of FY 2023-24, with a 160% surge in net profit to Rs 3,010.27 crore. The bank also demonstrated improvement in asset quality, with its gross non-performing assets (NPA) ratio declining to 5.73% and net NPA standing at 0.73% as of March 31, 2024. Additionally, the Board of Directors recommended a dividend of Rs 1.50 per equity share, reflecting confidence in the bank’s performance.
