PNB sees Rs 2,000 cr compensation

Punjab National Bank (PNB) expects to get Rs 2,000 crore from the government in the financial year beginning April for farm loan waiver, Chairman and Managing Director K C Chakrabarty on Tuesday said.

"We expect to get Rs 2,000 crore in the coming financial year from the government for farm loan waiver and rescheduling of loans," he said.

The Budget had announced a Rs 60,000 crore farm loan waiver scheme covering all agricultural loans disbursed by commercial banks, regional rural banks cooperative credit institutions up to March 31, 2007 and overdue as on December 31, 2007.

"I propose to release cash to lending institutions after June 30. Immediately after June, banks will be given Rs 25,000 crore in cash between July 1 and June 30, 2009," Finance Minister P Chidambaram said last week in Parliament during a discussion on the 2008-09 Union Budget.

Thereafter, cash amount of Rs 15,000 crore would be given to banks in 2009-10, Rs 12,000 crore in 2010-11, and Rs 8,000 crore in 2011-12.

Chakrabarty said PNB is likely to post a net profit of Rs 1,800-1,900 crore in the current financial year that ends March 31. The bank had posted a net profit of Rs 1,540 crore in 2006-07.