PNB won't breach PCA criteria on capital even in worst case scenario: CEO

PNB MD&CEO Sunil Mehta
In an investors conference call on Friday, PNB MD&CEO Sunil Mehta said the lender aims to fix the current problem (of recently detected Rs 114-bn fraud) within six months and that it had more than sufficient regulatory capital. 

"The fraud is a standalone case and no such case has been detected in any other branches," Mehta said.

He said that the state-run lender will not breach Prompt Corrective Action (PCA) criteria on capital even in worst case scenario.

Mehta said the lender has not received any advisory from the Reserve Bank of India yet. 

PNB, he said, does not expect any major issues from other branches with respect to Letters of Understanding.

Mehta said the bank’s board is working on a strategy to exit non-core assets. 

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