The global financial meltdown is a blessing in disguise for the banking sector as assets are available at a cheaper price.
This provides banks a good opportunity to take forward their expansion plans, Punjab National Bank (PNB) Chairman K C Chakrabarty said on Monday.
Talking to the media on the sidelines of the Haryana bankers’ committee meeting in Chandigarh on Monday, Chakrabarty reiterated that his bank was in a comfortable position with sufficient liquidity and added that it would be reflected in the quaterly results expected by the month-end. He said banks were not averse to lending, but loans for investments in speculative ventures like real estate would be discouraged.
“Punjab National Bank has net non-performing assets (NPAs) of 0.06 per cent and gross NPAs of 2.7 per cent,” he added.
Answering a query on the farm debt waiver, he said the scheme, announced in the Union Budget for 2008-09, did not effect recoveries of the bank.
Chakrabarty added that the bank had enough reserves and planned to expand its overseas operations.
