PNB sees credit growth of 25-26 pc in FY’09

Punjab National Bank, the country’s second largest public-sector lender, today said it expects a credit growth rate of 25-26 per cent in the current fiscal.

Punjab National Bank, the country’s second largest public-sector lender, on Wednesday said it expects a credit growth rate of 25-26 per cent in the current fiscal.

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“Credit growth now is 30 per cent and we see the growth at 25-26 per cent in fiscal year 2008-09,” PNB Chairman and Managing Director KC Chakrabarty said.

The bank also expects net interest margin at 3.5 per cent this fiscal.

“Our goal is to reduce non-performing assets (NPA). Gross NPA should be around two per cent and net NPA should be around 0.4-0.5 per cent,” he said.

Current gross NPA of the bank is around Rs 32,000 crore, the bank’s CMD said at a CII function in New Delhi.

On whether PNB would slash rates, Chakrabarty said, “There is no room to cut lending rate.”

In the fiscal FY’10, the bank expects profit growth of 20-25 per cent.

Further, he said that PNB Gilts is to be merged with the parent bank next fiscal.