PNB aiming at recovery of Rs 32,000 crore of bad loans this fiscal, Rs 8,000 crore every quarter

PNB has constituted a team of about 300 officials to attain its loan recovery target. The officials will monitor all NPA accounts. Goel said the lender is attempting to boost bad loan recoveries and is monitoring all accounts including those on which Sarfaesi or National Company Law Tribunal (NCLT) proceedings are underway.

ET Now Digital

Updated Jul 30, 2022, 10:49 IST

New Delhi: Public lender Punjab National Bank (PNB) is targeting the recovery of Rs 32,000 crore worth of bad loans this fiscal. The recovery in each quarter would be higher than the slippage, according to the bank’s managing director and chief executive Kumar Goel.

"We expect to recover Rs 8,000 crore every quarter and would ensure that its recoveries are higher than fresh slippages," he said at a news conference to discuss the bank’s June quarter earnings. PNB’s total recovery during the first quarter was Rs 7,057 crore while the slippages were at Rs 6,468 crore during the same period.

The state-owned lender is also aiming to cut down its net non-performing assets (NPA) ratio as a percentage of total assets to 3.5 per cent by March-end, from 4.28 per cent at the end of the June quarter.

PNB NPAs

The Non-performing assets of the lender dropped to 4.28 per cent in the June quarter from 5.84 per cent a year earlier and 4.8 per cent in the March quarter. In absolute terms, net NPAs declined to Rs 31,744 crore as of June-end, from 38,581 crore a year earlier.

Gross NPAs reduced to 11.27 per cent at the end of the June quarter from 14.33 per cent a year ago. In absolute terms, they stood at Rs 90,167 crore on June 30 compared to Rs 1.04 trillion a year earlier.

The CEO further announced that the bank is also looking to transfer Rs 2,486 crore of bad loans to the National Asset Reconstruction Company Ltd. All banks are expected to transfer bad loans worth Rs 50,000 crore to NARCL by September.

PNB’s deposit and lending rates could increase by 40-50 basis points by March 2023, Goel stated.

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