Pedestrians walk past a Punjab National Bank (PNB) branch in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

PNB Invites Bids To Sell Three Bad Loan Accounts To Recover Over Rs 136 Crore

Punjab National Bank has put on sale three non-performing assets to recover Rs 136 crore dues from the borrowers.

“We intend to place these accounts for sale to ARCs/NBFCs/other banks/FIs on the terms and conditions stipulated in the bank’s policy, in line with the regulatory guidelines,” PNB said in the invite for expression.

The three bad loan accounts that have been put on sale are Gwalior Jhansi Expressways with an outstanding of Rs 55 crore; SVS Buildcon Pvt. Ltd. for Rs 50 crore and Shiva Texfabs Ltd. for Rs 31.06 crore. The process of e-bidding for the sale of these accounts will take place on July 20, the bank said.

All the public sector lenders, who account for the highest amount of bad loans of the banking industry, have stepped up measures to recover dues from bad assets.

The NPA in the banking sector stood at Rs 8.31 lakh crore as of December 2017.

Also read: PNB To Concentrate Processing Of Big Loans To 60 Designated Branches

Apart from referring potential NPA cases to the Insolvency and Bankruptcy Code, the banks are also selling off their non-core assets to improve their balance sheets.

Earlier in April also, the second largest public sector lender PNB had invited bids to sell three NPA accounts Shree Sidhbali Ispat Ltd (Meerut) with non-performing loans of Rs 165.30 crore, Sri Guruprabha Power Ltd.’s (Chennai) outstanding dues of Rs 31.52 crore and Dharamnath Investment’s (Mumbai) Rs 17.63 crore to recover dues.

The cumulative loss of public sector banks crossed a whopping Rs 87,357 crore in the 2017-18 fiscal, with scam-tainted Punjab National Bank topping the chart with a hit of nearly Rs 12,283 crore followed by IDBI Bank.

Out of 21 state-owned banks, only two – Indian Bank and Vijaya Bank – posted profits during the fiscal ended March 2018.

PNB, which is reeling under over Rs 14,000-crore scam allegedly perpetrated by Nirav Modi and associates, posted a net loss of Rs 12,282.82 crore last fiscal. In 2016-17, the Delhi-headquartered bank had posted a profit of Rs 1,324.8 crore.

Also read: PNB Recovered Rs 8,450 Crore, Will Bounce Back In Six Months: CEO