PNB sees credit growth of 25-26% in FY09

PNB sees credit growth of 25-26% in FY09
PTI
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First Published: Wed, Mar 18 2009. 11 07 AM IST
Updated: Wed, Mar 18 2009. 11 07 AM IST
New Delhi: Punjab National Bank, the country’s second largest public-sector lender, today said it expects a credit growth rate of 25-26% in the current fiscal.
“Credit growth now is 30% and we see the growth at 25-26% in fiscal year 2008-09,” PNB chairman and managing director K C Chakrabarty said.
The bank also expects net interest margin at 3.5% this fiscal.
“Our goal is to reduce non-performing assets (NPA). Gross NPA should be around 2% and net NPA should be around 0.4-0.5%,” he said.
Current gross NPA of the bank is around Rs32,000 crore, the bank’s CMD said at a CII function here.
On whether PNB would slash rates, Chakrabarty said: “There is no room to cut lending rate.”
In the fiscal FY10, the bank expects profit growth of 20-25%.
Further, he said that PNB Gilts is to be merged with the parent bank next fiscal.
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First Published: Wed, Mar 18 2009. 11 07 AM IST
More Topics: PNB | Credit growth | K C Chakrabarty | Banks | NPA |