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“The bank has demonstrated its capability to absorb such a shock and hopefully it would be back into the black during this financial year itself,” he told news agency Press Trust of India in an interview, after donating Rs. 5 crore for flood relief and rehabilitation to Kerala Chief Minister Pinarayi Vijayan on Monday.
The bank is slowly getting on to the growth path, he said, adding that credit growth is picking up and has surpassed industry average.
PNB reported a loss of Rs. 940 crore for the April-June period of financial year 2018-19. It clocked a profit of Rs. 343.40 crore in the corresponding quarter of 2017-18.
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So in all, PNB is set to get a fund support of Rs. 8,247 crore, out of the Rs. 65,000 crore earmarked for the entire public sector banking system for the current fiscal year.
The fund infusion would be made after clearance from an extra general meeting (EGM) due on October 30 and other regulatory approvals.
Nirav Modi and his uncle Mehul Choksi duped PNB of Rs. 14,000 crore through issuance of fraudulent Letters of Undertaking (LoUs), in connivance with certain bank officials.
A Mumbai branch of PNB had fraudulently issued LoUs for the group of companies belonging to Nirav Modi since March 2011.
Talking about PNB’s initiative for flood-ravaged Kerala, Mr Mehta said: “PNB has always shown commitment for the national cause. The major havoc flood has played in Kerala needs sympathetic consideration from all in the country and PNB cannot be behind.”
As part of the initiative, PNB employees and retirees have collected Rs. 5 crore for flood relief and rehabilitation.