Despite Rs 130-bn scam, PNB 's domestic business crosses Rs 10 trn in FY18

PNB's domestic deposits grew 6.2% to Rs 6 trillion in 2017-18

Punjab National Bank’s (PNB) domestic business turnover crossed Rs 10 trillion for the first time ever in 2017-18, registering a 7.9 per cent increase over the previous year.
 
The Delhi-based bank’s Managing Director and Chief Executive Officer Sunil Mehta on Monday in a letter to employees said that the bank continued to do strong business in 2017-18, even when it was hit by a Rs 130-billion scam.
 
“It gives me immense pleasure in sharing with you that while the global business of the bank hovers around Rs 11 trillion, the domestic business of the bank has reached new milestone by crossing Rs 10 trillion registering 7.9 per cent growth for 2017-18,” Mehta said.

 

The bank’s domestic business stood at Rs 9.35 trillion in 2016-17, growing at a faster pace of 9.6 per cent on an annual basis compared to 2017-18.
 
He said that the domestic deposits of the bank grew 6.2 per cent to Rs 6 trillion in 2017-18. The domestic deposit, however, grew 14.5 per cent in 2016-17. The domestic advances grew 10 per cent to surpass Rs 4.3 trillion compared to 3.1 per cent growth witnessed in the previous financial year, the PNB chief added.
 
“This reaffirms customers’ confidence in the bank even during the turbulent times in recent past. I feel that bank’s inherent strengths combined with the sincere efforts, commitment and hard work put in by you has enabled the bank to maintain its market position even during such testing times,” Mehta said.

“I would like to quote words from Theodore Roosevelt here ‘Each time we face our fear, we gain strength, courage, and confidence in the doing’,” he added.
 
In terms of the total business turnover, PNB is behind State Bank of India (Rs 45.8 trillion) and HDFC Bank (Rs 13.3 trillion) as on December 2017, according to their results reviewed by the Business Standard Research Bureau.
 
The bank’s CASA ratio — rate of current account and saving accounts in total deposits — declined to 43.9 per cent from 46 per cent in 2016-17.
 
Mehta signed off the letter saying, “Your hardest times often lead to the greatest moments in your life.”

 
PNB disclosed a Rs 130-billion scam in January related to fake letters of undertaking issued by its employees from its Brady House branch in Mumbai for companies belonging to Nirav Modi and Mehul Choksi. The scam has been on since 2011 and investigative agencies are probing the case.