The global financial crisis has had an adverse effect in the entire nation but the country's second largest PSU, Punjab National Bank is still in the safer zone. The Bank said that it is not facing any liquidity crunch amid the crisis.
The borrowers of can depend on PNB for the financial support as it has sufficient funds to lend money to their customers. PNB Chairman and Managing Director K C Chakrabarty said, "We are not facing any sort of liquidity crunch as we have thousands of crore of money as reserves for lending purposes."
He confirmed that the bank's current position was also stable enough in terms of lending and this would be reflected in the quarterly results expected by the month-end. The Indian financial market was protected by the repercussions of global turmoil due to the frequent measures taken by regulators. Policymakers in the country have made moves that are proving beneficial in times of slowdown.
"Our policy makers took quite a few steps (following the global mayhem). As a result of which our market was away from the impact," said Chakrabarty.
He also believes that the present situation of Indian banks is ideal for overseas expansion as assets are available at a cheaper price. The global slowdown would not have any impact in the expansion.
"This is a time to buy anything in the overseas markets as everything was available at cheaper rates. Therefore those who (banks) have strength must go for it," he said.
He further added that PNB had enough reserves and is expanding its overseas operations in order to strengthen its position. The Bank is planning to expand in Dubai, Norway, Canada and Singapore.
Punjab National Bank has net non-performing assets (NPAs) of 0.06 % and gross NPAs of 2.7 % reported the Chairman.