Punjab National Bank (PNB), a state-owned lender, has reported that insolvency resolution processes have been initiated for 831 loan accounts amounting to ₹1.03 lakh crore. Out of these, 797 accounts involving ₹1.01 lakh crore have been admitted by the National Company Law Tribunal (NCLT).
Progress on Resolved Accounts
PNB’s Managing Director, Atul Kumar Goel, stated in a recent analyst call that:
- 275 accounts involving ₹47,444 crore have been resolved.
- 304 accounts have been liquidated, recovering ₹35,120 crore.
- For the remaining 218 accounts, the non-performing assets (NPA) amount to ₹19,351 crore.
Asset Transfers to NARCL
PNB has transferred 14 accounts worth ₹3,778 crore to the National Asset Reconstruction Company Limited (NARCL), receiving ₹987 crore in cash. The bank is in discussions to transfer 13 more accounts totaling ₹2,370 crore in NPAs. NARCL has already submitted bids for nine of these accounts, involving ₹1,691 crore, and PNB is currently evaluating the bids.
Significant NPA Reduction
PNB has reported notable improvements in its asset quality for the second quarter of FY24:
- Gross NPA:
- Reduced from ₹65,563 crore in September 2023 to ₹47,582 crore in September 2024.
- Dropped from 6.96% in September 2023 to 4.48% in September 2024.
- Net NPA:
- Decreased from ₹13,114 crore in September 2023 to ₹4,674 crore in September 2024.
- Improved from 1.47% in September 2023 to 0.46% in September 2024.
PNB has set a target to reduce its gross NPA to 3.75% by March 2025.
NPA Movement in Q2 FY24
- Opening Gross NPA: ₹51,263 crore.
- Fresh NPA Additions: ₹2,181 crore.
- Cash Recovery: ₹1,508 crore.
- Upgradations: ₹1,407 crore.
- Write-offs: ₹2,946 crore.
- Total Recovery (including technical write-offs): ₹4,891 crore (up from ₹3,249 crore in the previous quarter).
Annual Recovery Target
The bank has set a recovery target of ₹18,000 crore for the fiscal year, demonstrating its commitment to improving asset quality and financial stability.
