Punjab National Bank (PNB), which was duped of Rs 14,000 crore by diamantaire Nirav Modi and associates, is looking at bad loan sale of Rs 17,800 crore from 159 accounts during this financial year to asset reconstruction companies (ARC), other banks, financial institutions or NBFCs.
The bank is adopting three pronged to climb out of its losses by selling its non-core assets, aggressive sale of its non-performing assets (NPAs) and recoveries.
It is expecting Rs 6,500 crore from the sale of its 33% stake in PNB Housing Finance and has put its old corporate house at the posh Bhikaji Cama Place in Mumbai, which is expected to bought by some government agency.
The bank is looking at a higher quantum of recoveries this year. In the first half of the financial year the bank hopes to recover about Rs 22,000 crore of bad loans.
The major recovery efforts will be one-time settlement, silent protests or demonstrations in front of premises of recalcitrant borrowers. The bank has also set up dedicated call centres which can call up NPA borrowers up to Rs 1 crore.
A senior bank official said, "The recovery efforts are going on all our branches with a co-ordinated efforts from the corporate centre of the bank. We are looking at one-time settlements, recovering through NCLT and direct communication with the promoters."
Some of the accounts that the bank has put on sale in the last few months were Sri Guruprabha Power Ltd (Chennai) with an outstanding loan amount of Rs 3,152 crore, Gwalior Jhansi Expressways Rs 55 crore, SVS Buildcon Pvt Ltd Rs 50 crore and Shiva Texfabs Ltd Rs 31 crore.Shree Sidhbali Ispat Ltd (Meerut) Rs 165 crore and Dharamnath Investment (Mumbai) Rs 17.63 crore.
Gross NPAs at the end of the quarter ended June 30, 2018, were Rs 82,888.79 crore, rising 43% over the same time last year. The fresh slippages for the quarter stood at Rs 5,250 crore. But the bank recoverd Rs 8,445 crore in the June quarter. The resolution of NCLT accounts of Bhushan Steel and Electrosteel helped the lender recover Rs 3,200 crore during the quarter. It also monetised assets worth Rs 167 crore during the quarter.
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