Fraud-hit PNB signals recovery by Q2; eyes Rs 55 billion net profit

Govt refuses bank's demand for additional capital of Rs 80 bn

Fraud-hit Punjab National Bank (PNB), which recently reported the highest-ever loss by any domestic bank in history, is aiming to clock its largest-ever quarterly profit of Rs 55 billion in the July-August period this financial year.

However, the road to profitability has already hit some hurdles for the Delhi-based bank as the Union government has rejected its demand for an additional capital infusion of around Rs 80 billion in 2018-19, sources said.

Submitting its turnaround plan last month, PNB has told the department of financial services (DFS) and the Reserve Bank of India (RBI) that it is eyeing an ambitious