Government in the process of cleaning corporate sector: PNB CEO

New Delhi [India], Nov. 6 (ANI): Punjab National Bank (PNB), MD and CEO, Sunil Mehta on Monday said that the government is in the process of cleaning the corporate sector.

"All these steps are in right direction which will prevent people from utilizing different channels for hoarding the black money, may be in cash form, in form of Shell companies. It is a process of cleaning of corporate sector and bad ethics," said Sunil Mehta.

Earlier on Sunday, The Ministry of Corporate Affairs (MCA) had struck off around 2.24 lakh companies post demonetisation, for remaining inactive for a period of two or more years.

A preliminary inquiry from 56 banks in respect of 35,000 companies, which involve approximately 58,000 accounts, has revealed that over Rs. 17,000 crore was deposited and withdrawn post demonetisation.

Mehta also said that the bank has sufficient capital to fund ops in the current FY.

Talking about the future plans of the bank, he mentioned that the bank has about Rs. 10,000 crores worth non-core assets and Rs. 5,000 crores worth non-liquid assets.

He further disclosed that the bank is open to selling the non-core assets if they get a good valuation.

Mehta also said that as of now there are no plans for consolidation with other Public Sector Banks (PSB), but they are open to re-considering this if the government has something in mind

"The consolidation of banks will start post banks get adequately recapitalized by the government," said Mehta.

On the issue of demonetisation, Mehta said that it was a symbolic step taken by the government which had benefits for the banking sector as well.

"We are still retaining the money which we received during demonetisation."

Mehta believes that this money will lead to softening of interest rates as the banks will be able to pump out money formally into the public domain with ease.(ANI)

This story has not been edited. It has been published as provided by ANI