Govt to infuse fresh capital in P&SB

The ailing Punjab and Sind Bank has been assured more capital infusion from the government, but were asked to gear up deposit collection and loan recovery.

Finance Minsister P Chidambaram has asked the bank to target 12-15% growth in credit portfolio.

"I am confident that we can turn around the bank in 2-3 years as we have turned around five banks beginning 1996-97," Chidambaram said after meeting the top personnel of the bank where he laid out a three-pronged strategy for the bank to grow.

"The customers and client of the Punjab and Sind Bank should continue to repose confidence and faith in the bank," FM said, asking them to do more business with the bank.

Punjab & Sind Bank had sought a Rs 600 crore bailout package from government as part of its action plan to improve its financial health, according to sources.

FM has urged all the officers, employees and unions to work towards turning around the bank and said "we will have a grant centenary celebrations on June 24, 2008."