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PNB fraud case: Bank weighing options to clean financial mess

The Finance Ministry has advised PNB to consolidate its branches, merge smaller offices and sell foreign branches.

Published: 17th February 2018 02:19 AM  |   Last Updated: 17th February 2018 06:43 AM   |  A+A-

PNB

Punjab National Bank | Reuters File Photo

Express News Service

NEW DELHI: Struggling to settle its liability worth Rs 11,300 crore, PNB, which has six months to fix the mess, is weighing various option including liquidating its equity and has sought a roadmap from the Finance Ministry.

“The bank has sought help in preparing a financial roadmap to pay the amount. It will take at least six months, till we get more clarity as investigating is still on,” a senior official from the Department of Financial Services said. In a conference call PNB said it was facing some problems that it intends to fix and will return to normalcy within six months.

A senior PNB official said, “The options they are weighing are selling assets seized from defaulters, liquidating market share, which will be subject to approval from the regulators and selling some expensive office spaces. The RBI is also monitoring the whole case”.

The Finance Ministry has advised PNB to consolidate its branches, merge smaller offices and sell foreign branches.

“It is too early to say PNB has to pay the entire amount. The ministry is closely monitoring the situation and will take a call when and where required,” a Ministry official said.



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