Intent is to bring gross NPA below FY16 levels: PNB Chief

Latha: Slippages - that's the best number you have. It is much lower. Will we continue to see this improvement over the next few quarters?

A: The last few quarters, if you are talking about June or March or December, you must appreciate that the asset quality review (AQR) was implemented. A lot of large assets were tackled through this to get into the standard book or restructured book into non-performing asset (NPA) book. So, today a majority of the large advances are out, which have to be classified and have already been classified either through AQR or proactively they have been classified. Therefore, as I said it is a direction setting for us, for the management and for all of us that from hereon we look to reduce slippages happening in the quarters to come. It is an expectation that we are also working with.

Sonia: Where does the watch list stand currently and do you have visibility on whether you will be adding more accounts to it?

A: They have already been with amounted stress on them. They have slipped into NPAs. Watch list and special mention accounts-2 (SMA-2) list, I still believe they are very dynamic. The numbers keep changing, what is today in watch list moves out if the servicing fully happens. It all happens like that. So there could be one or two but according to me one or two shipping accounts have got classified and some medium level accounts.     

Latha: Your recovery list is the most heartening. You gave a guidance of Rs 15,000-20,000 crore for the year and as of the first half you have achieved about Rs 10,000 crore. You think you will achieve Rs 15,000-20,000?

A: I would maintain at this point in time because even the first month of this quarter, the Q3 recovery has been encouraging and it looks doable going forward. Already Rs 11,000 crore have been done; Rs 10,778 to be precise, in the first half. The first month of Q3, with a lot of holidays and festivities around, has still been encouraging and giving us a confidence that we can move forward with this kind of committed guidance.

Anuj: Your gross NPAs have improved sequentially and you said they will improve further. What is the target?

A: The endeavour and the work in progress is to minimise the slippages because majority of large accounts have seen their day. So whatever is remaining are under the credit monitoring activity and going forward the intent is to go below March level of Rs 55,818, which we posted in March. The endeavour is to go below through slippage prevention and accelerated recovery.

Sonia: Your housing finance company will list today. The shareholding will go down to about 38 percent post the initial public offering (IPO), but tell us what the long-term plans are. By when do you think you may be able to divest further?

A: They have just gone public and as the company have been doing exceedingly well. We had a very rousing response in terms of investors. However, at this point there is no intent to dilute that and stay at 38 percent maybe over a period of time when the requirement comes as the stock does well, we may look to it, but at this point in time there is nothing.