831 loan accounts of PNB involving Rs 1.03 lakh cr under IBC

State-owned Punjab National Bank (PNB) has informed that insolvency resolution process has been initiated in 831 of its loan accounts involving loans to the tune of Rs 1.03 lakh crore. Of those, 797 accounts involving loans of Rs 1.01 lakh crore has already been admitted by the National Company Law Tribunal (NCLT).

Managing Director of the bank — Atul Kumar Goel – in an analyst call recently said that 275 such accounts, involving Rs 47,444 crore, has already been resolved, and 304 accounts have already liquidated 35,120. As for the pending 218 accounts, the amount of NPA involved is Rs 19,351.

As far as asset transfer to the NARCL is concerned, the bank has transferred 14 accounts of involving Rs 3,778 crore. Against this, it has received cash of Rs 987 crore.  The PNB MD further said the bank is in discussion with NARCL for transferring 13 more accounts involving Rs 2,370 crore in NPA. Out of these 13 accounts, in NARCL has already submitted bids for nine accounts of outstanding Rs 1,691 crore. The bank is evaluating the NARCL bids.

The bank in its second quarter results showed a significant improvement in the gross NPA as well as the net NPA.

Gross NPA which was Rs 65,563 September 2023 has reduced to Rs 47,582 crore. In percentage terms, it was 6.96% in September ‘23, 4.98% in June ’24, and has now reduced to 4.48% in the September ’24 quarter.

Net NPA, which used to be Rs 13,114 in September ‘23 has reduced to Rs 4,674. In percentage terms, the net NPA was 1.47% in September ‘23 and 0.60% in June, and it has further improved to 0.46% in the September quarter.

The bank has given a guidance of 3.75% gross NPA by the end of March 2025.

As far as the movement of NPA is concerned, the opening balance of the Gross NPA was Rs 51,263 crore and Rs 2,181 crore was the addition of fresh NPA during the quarter.

PNB made cash recovery of Rs 1,508 crore and the upgradation Rs 1,407 crore during the quarter. It wrote off NPA’s worth Rs 2,946 crore during the quarter.

Total recovery including the recovery in the technical written-off was Rs 4,891 crore during the September quarter compared to Rs 3,249 crore in the previous quarter. The bank has a target of Rs 18,000 crore recovery for the entire year.

Also See: NCLT rejects resolution plan for ignoring operational creditors’ dues