Mallikarjuna Rao, Managing Director, Punjab National Bank (PNB) has confirmed that it has received loan restructuring requests worth Rs 12,000 crore out of the 40,000 crore it had anticipated keeping in view the Covid-19 pandemic on businesses and individuals.
Out of which, restructuring sought for corporate loans has been worth Rs 9,000 crore, and these have been invoked as on 31st December 2020. However, the process of restructuring will be completed in the current quarter, Rao said.
The bank has not classified any account as a bad loan which was not any non- performing asset (NPA) as on August 31, 2020, based on the Supreme Court’s blanket ban on fresh recognition of soured loans.
However, PNB has made a contingent provision of Rs 2,520 crore for such accounts that were not classified as NPA. If the bank would have classified such accounts as NPA, the lender’s gross NPA and net NPA ratio would have been 14.71 per cent and 5.65 per cent, respectively, PNB said while announcing its October-December earnings.
“While the challenge has been there for Q3, though Supreme Court judgement is a holding back on identification of NPA, but January appears to be much better in terms of the collections,” Rao added.
Source: – PNB receives loan rejig requests of only Rs 12,000 crore, says PNB MD
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