PNB puts on block 6 NPAs with outstanding of over INR 1,000 crore - Eastern Mirror
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PNB puts on block 6 NPAs with outstanding of over INR 1,000 crore

By PTI Updated: Jun 16, 2019 11:45 pm

New Delhi, June 16 (PTI):  State-owned Punjab National Bank has put on sale six non-performing loans amounting to over INR 1,000 crore, including two accounts of Vandana Vidyut and Visa Steel. Asset reconstruction companies (ARCs), non-banking financial companies (NBFCs), other banks and financial institutions can submit binding bids till June 26. The bids will be opened on the following day.

“We intend to place the (six accounts) for sale to ARCs/NBFCs/Other Banks/FIs etc,” said a notice put up by PNB. The reserve price for the six non-performing assets (NPAs) has been fixed at INR 342 crore. Bhopal-based Vandana Vidyut Steel owes INR 454.02 crore, while Kolkata located Visa Steel has an outstanding balance of INR 443.76 crore. The rest four NPAs – Temptation Foods, Helios Photovoltaic, Cabcom Cables, and Zoom Vallabh Steel – are Delhi based.

The sale process is to be handled by the Stressed Assets Targeted Resolution Action (SASTRA) Division of the bank. The submission of financial bids will be only through e-auction method, which will take place on the portal of the bank, it said. Punjab National Bank (PNB), which was hit by a massive INR 14,000-crore scam allegedly perpetrated by jeweller duo Nirav Modi and Mehul Choksi, has enhanced its recovery mechanism by forming the Stressed Asset Management Vertical (SAMV) and SASTRA.

It is also looking to raise INR 10,000 crore in 2019-20 from sale of non-core assets, rights issue and expected write-backs from two large accounts undergoing insolvency proceedings. For the full fiscal 2018-19, the bank’s consolidated net loss was at INR 9,570.11 crore, as against a loss of INR 12,113.36 crore during 2017-18. Its income during the fiscal ended March 2019 rose to INR 59,514.53 crore compared to INR 57,608.19 crore in preceding year.

Gross NPAs of the bank stood at INR 78,472.70 crore at the end of the financial year 2018-19, lower than INR 86,620.05 crore reported in 2017-18. Net NPAs were valued at INR 30,037.66 crore as against INR 48,684.29 crore. The Delhi-headquartered bank had recovered INR 20,000 crore in 2018-19 as against INR 9,666 crore in the previous fiscal.

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By PTI Updated: Jun 16, 2019 11:45:31 pm