Fraud-hit Punjab National Bank (PNB) recovered a record
Rs11,378 crore from defaulters in the first five months
of this fiscal, which is more than the state-run lender’s
total recovery in the two years through 2017-18,
according to the bank’s data.
Desperate to return to profitability and avoid featuring on the
Reserve Bank of India’s watchlist after record losses last fiscal,
mainly due to the Rs14,357-crore fraud
involving jewellers Nirav Modi and Mehul Choksi,
PNB has stepped up efforts to get back money from defaulters.
It had made a recovery of Rs5,618 crore in the entire 2017-18
and Rs 5,643 crore in the previous year.
While the bank has set up a dedicated stressed asset vertical
this fiscal and deployed as many as 3,000 employees to pursue recovery
from various defaulters, its unprecedented efforts were duly bolstered
by the emergence of the Insolvency and the Bankruptcy Code (IBC).
PNB was badly hit by nirav modi fraud case
PNB was one of the biggest beneficiaries of the acquisition of debt-laden Bhushan Steel by the Tatas through the insolvency process, as it received Rs 3,081 crore.
It recovered almost 335 crore from Electrosteel and Rs 110 crore from Monnet Ispat through the IBC.
It also got back money from a number of other accounts using other modes such one-time settlements with borrowers.
These defaulters include Shree Sidhbali Ispat (almost Rs107 crore), GTL (Rs 84 crore) and Indo Rama Synthetics (Rs 52 crore).
It next eyes the resolution of Bhushan Power and Steel.
The National Company Law Appellate Tribunal will hear the Bhushan Power case on September 24 on the eligibility of various bids.
The finance ministry has already read the riot act to all the public sector lenders to improve recoveries, along with implementing a set of other reform measures, and boost business, even though it has promised infusion to shore up their capital base and enable them to meet regulatory requirements.
The overall recovery of all the 21 public sector banks (PSBs) stood at Rs 36,551 crore, almost a half of the total they had recovered in the entire 2017-18.
PNB, however, seems to have left almost all its PSB peers behind.
In fact, its recovery of 8,445 crore in the June quarter was 23% of the total recovery made by all PSBs.