PNB sets recovery target of Rs 10,000 crore for Q4: MD
After returning to black in the last quarter, lending major Punjab National Bank (PNB) has set a recovery target of Rs 10,000 crore for the concluding Q4, said the company’s Managing Director and Chief Executive Officer Sunil Mehta ...
“The bank has set a recovery target of Rs 10,000 crore during the current quarter. The target for the next fiscal is yet to be fixed,” Mehta told IANS in an interview in March. The state-owned lender has recovered about Rs 16,000 crore in the last three quarters of the current fiscal. Apart from a separate stressed asset vertical, the bank has exercised a large number of steps to resolve the non-performing asset (NPA) issue.
Currently, the bank runs a special “one time settlement” (OTS) scheme for NPA-2018 which deals with accounts of up to Rs 25 crore (outstanding as on March 31, 2018). “OTS camps are held throughout the country where borrowers and the bank try to arrive at a suitable negotiated amount,” Mehta said.
Besides, the company has also intensified the campaign for recovery in specifically identified accounts having 100 percent provision provided for which is operative up to March 31, 2018. The move is significant as any recovery made under this campaign will directly impact the bank’s profitability by way of release of provision. According to Mehta, more focus has been laid on recoveries through putting securities into e-auction under SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002) on an all-India basis.