RBI<\/a>) by the end of the current fiscal, newly-appointed PNB managing director S S Mallikarjuna Rao said after announcing the quarterly numbers here. \u201cIf you look at the guidance, we are very confident that we can bring down the net NPA by March 2020 below 6 per cent,\u201d he said.<\/p>\nRao, who was appointed the head of the country\u2019s second largest lender last month, has set an ambitious recovery target of Rs 24,000 crore for the entire fiscal. Of this, the bank has already done recovery of Rs 7,000 crore during the first half of the current fiscal and the remaining Rs 17,000 crore would be done in the remaining half through cash recovery and reduction, he added. \u201cIn NCLT there are 14 cases which are in final stages. From NCLT we are expecting Rs 11,000 crore reduction from NPAs\u2026the real amount received will be around Rs 6,500 crore, against which the write-back will be about Rs 3,800 crore,\u201d he said.<\/p>\n
Total income during July-September quarter rose to Rs 15,556.61 crore from Rs 14,035.88 crore in the same quarter last year, PNB said in a regulatory filing. The bank has earned a healthy operating profit of Rs 3,561 crore during the quarter as against Rs 2,839.50 crore in the same period a year ago. During the quarter, gross NPAs in absolute term stood at Rs 78,472.70 crore at the end of September, lower than Rs 86,620.05 crore reported in the second quarter of 2018-19. Net NPAs were valued at Rs 32,658.69 crore as against Rs 38,278.84 crore. Talking about fresh slippages, Rao said, \u201cOur guidance is that it should be around Rs 19,000 crore for the entire year.<\/p>\n
Already Rs 5,200 crore and Rs 7,460 crore in April-June and July-September respectively. So, another Rs 7,000 crore we are expecting in the second half of the year.\u201d When you look at Rs 7,462 crore fresh slippages, he said, major contribution is from 10 corporate accounts. \u201cSome of them are in public domain like Suzlon (Rs 600 crore), Jet airways (Rs 700 crore), that have contributed to these. Agriculture Rs 632 crore, retail Rs 498 crore, MSME Rs 1,506 crore. So these are the three RAM accounts and others are Rs 4,786 crore. This is the composition of Rs 7,462 crore of total slippages,\u201d he said.<\/p>\n
During the quarter, the total interest income of the bank rose to Rs 13,292 crore from Rs 12,326 crore in the same quarter in the previous fiscal. As a result, the operating profit of the bank rose to Rs 3,561.95 crore during the quarter as against Rs 2,839.50 crore in the same period a year ago. On the way forward, Rao said, credit is expected to grow 8-10 per cent by March 2020. NIM will hover around 2.40 per cent. \u201cWe have not removed the focus from non-core assets but the important thing is that capital is currently available and we have an important task of amalgamation exercise besides we need to protect the valuations of our sister concerns and our wholly-owned subsidiaries.<\/p>\n
At this point of time, he said, the bank does not need to raise capital from the market till March. During the quarter, the bank received capital of Rs 16,061 crore from the government for undertaking amalagamation and meeting growth requirement. Following the infusion, the capital adequacy ratio of the bank increased to 14.07 per cent from 10.08 per cent in the same period a year ago. Also, the shareholding of the government also increased to 83.19 per cent from 75.41 per cent in the previous quarter.<\/p>\n
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