Merger of Banks
Recently, a news has been received from Mallikarjun Rho, CEO and Managing Director of Punjab National Bank. You will remember that in the last month two big banks were merged with Punjab National Bank. Those two big banks were named Oriental Bank of Commerce and United Bank of India. The entire process was completed last year and from April 1, 2020, it has also become effective. As a result post merger of these banks, PNB has emerged as the second largest bank in the country. After State Bank of India.
Further The CEO said Post Merger of All the Three Banks PNB has said that he will not terminate any employee. This is a very big news from bank CEO. Apart from this, he has also said something to the customer. The customer had not to worry about anything. These Banks have been merged so that they can become stronger. Also can work on large scale and do it better.
Announcement of Finance Minister
It has also been decided that the branches of these two banks will be merged together. And new places will be explored where some more new branch network can open. You will remember that in August 2014, our finance minister Nirmala Sitaraman ji made an announcement. He said that ten big banks will be merged and they will be converted into 4 banks. And its main purpose will be to see more growth in retail loans. At the same time, Public got more and more services of the bank. Now the biggest thing is that merging will help the volume of the NPA. So if we talk about Public Sector Bank, then the volume of NPA on it is the highest. If we talk about Figures, then NPA has exceeded about 7%. Government wants to access all the banks and further work out the NPA volume.
NPA as a problem for public sector banks
Right now, the public sector banks NPA is the biggest problem of the bank and the government is thinking of ending it completely.
Apart from this, the CEO of Punjab National Bank has made another important announcement. In which he has said that the Moratorium will not be extended after 31 August.
Punjab National Bank is now thinking about restructuring. Now talk about total credit. Out of the credit given by Punjab National Bank, 5 to 4% of such loans are eligible for restructuring.
You would know that the meeting of the Committee of Monetary Policy of RBI, which was completed on 6 August. In this meeting, it has been decided that the bank will now provide loan restructuring facility to the customers. Also the moratorium will not be extended. A committee has also been formed for this, whose report is yet to come. This committee will decide how the bank loan restructuring facility will be brought on-floor in the future.
PNB stock analysis after merger:
If you have invested your money in Punjab National Bank or you trade with that bank, then this news is for you. Punjab National Bank is the most reputed bank of India. Some time ago its June Quarter result was declared. According to which it made quite good profit.
Along with this, it is news that Nirav Modi who had disappeared from PNB by taking a loan, his property of $ 3.2 million has been recovered. Sharekhan is a share trading company who has now announced for Punjab National Bank shares. According to it the PNB shares can go up to 40 rupees in the coming days. Which is Rs 35.40 rs. in reality on 26th August, 2020.
It has two reasons. The first one is the fund recovery which can make the bank work very well. Secondly, Target given by different stock trading companies.