Mergers will depend on different circumstances says PNB's Mehta

Last Updated: Mon, Oct 08, 2018 18:25 hrs
Punjab National Bank

According to Sunil Mehta, debt-laden Punjab National Bank is not looking at inorganic growth.

Mehta, Punjab National Bank's Managing Director was quoted as saying in a media report that the bank, post the NiMo scandal was looking at internal consolidation.

This, even as the bank was recovering from the Rs 142 billion NiMo scandal.

Mehta said that the government's assistance of Rs 54.31 billion in capital support was testimony to the bank's credit growth, which he believe is more than industry average, and reflects the  pace of recovery.

"You are fully aware that financial services secretary has said that they are giving this capital (Rs54.31 billion) for growth. PNB is the second largest public sector bank and we are poised for the growth," he was quoted as saying.

Mehta replied "There is nothing on the cards from our side" when quizzed on the aspect of mergers and acquisitions.

The merger of Bank of Baroda, Dena Bank and Vijaya Bank had resulted in a speculation of a probable merger of Punjab National Bank.

Although Mehta did not rule out the possibility of a merger, he said that it would depend upon "different circumstances."

"Right now we are focused on internal consolidation and we are not aspiring for any inorganic expansion," he said.

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