Finance Minister Arun Jaitley on Tuesday claimed that following Nirav Modi scam on Punjab National Bank, it has “sound fundamentals” and high potential to raise capital through a sale of non-core assets.
Jaitley’s remark comes after the recent 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 percent 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.”
PNB had earlier said that it will honour all its bonafide commitments under the guidelines of the Reserve Bank of India.