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PNB sets recovery target of Rs 10K cr for Q4: MD
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SME Times News Bureau | 25 Mar, 2019
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.
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 per
cent 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.
"Apart from placing
the details of the upcoming e-auctions on our own portal, the bank is
also uploading the auctions on the common portal designed by the Indian
Banks' Association (IBA) for displaying properties being auctioned by
the banks, starting with public sector banks," Mehta said.
Last
month, the lending major decided to place more than 4,000 properties all
over India on e-auction as part of its loan recovery effort.
The
PNB is also expected to recover a substantial amount from its NPA
recovery mechanism -- "Mission Gandhigiri" -- which will be completing
two years of its operations. Launched in May 2017, the mission has
consistently delivered positive results.
It was born out of the
need to name and shame the defaulters and urge them to pay back by
increasing societal pressure. "Mission Gandhigiri" has a dedicated
recovery team across all circles of the bank.
Accordingly, the
passive recovery mechanism entails the team members visiting the
borrowers' office or residence and sitting there silently with placards
that have hard-hitting messages such as "It is public money, please
repay the loans".
However, for high value stressed assets, the
National Company Law Tribunal (NCLT) has emerged as the primary platform
for resolution, Mehta said.
Recently, the bank bounced back into
the black for the first time in the last three quarters with a net
profit of Rs 247 crore for the third quarter ended December 2018.
The
net profit during the quarter under review had risen 7.1 per cent to Rs
247 crore over the Rs 230 crore profit after tax (PAT) reported for the
corresponding quarter of 2017-18.
The bank, hit badly by the
multi-million dollar Nirav Modi scam last year, posted a net loss of Rs
4,532 crore during the July-September quarter of the current fiscal.
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