 "Punjab & Sind Bank")
Punjab & Sind Bank would not require further capital infusion from the government to meet growth needs during the current fiscal year, the top official of the bank said.
During the previous two years, the government infused Rs 5,500 crore and Rs 4,600 crore through non-interest bearing recap bonds.
With the infusion of Rs 4,600 crore, the government holding in the bank increased to 98.25 per cent as on March 31, 2022.
Capital adequacy ratio of the bank improved to 18.54 per cent in March 2022 from 17.06 per cent as at March-end 2021 with the help of capital support from the government, bank's MD and CEO S Krishnan said.
The bank is sufficiently capitalised to meet expected credit growth in this financial year and may not need support from the government, he said.
As far as loan growth is concerned, he said, it is expected to grow at 8-10 per cent in FY23. He further said the bank has strengthened its balance sheet by making additional provisions and it has proactively made 100 per cent provisions in all fraud cases.
The state-owned bank has not sought any dispensation from the Reserve Bank for staggering the provision.
The bank last month declared Srei Infrastructure Finance with outstanding dues of Rs 510.16 crore and Srei Equipment Finance Ltd with outstanding dues of Rs 724.18 crore accounts as fraud.
In October last year, the RBI had superseded the board of directors of the two Srei group firms and appointed an administrator, following governance issues and default in payment obligations.
It also initiated a corporate insolvency resolution process against both companies. According to some estimates, banks have about Rs 28,000 crore exposure to Srei, and bondholders another Rs 18,000 crore.
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