PNB received debt restructuring requests worth Rs 12,000 crore: Mallikarjuna Rao
Requests for restructuring had not been as expected, PNB Managing Director Mallikarjuna Rao said.
February 07, 2021 / 09:09 AM IST
Punjab National Bank (PNB) Managing Director Mallikarjuna Rao said the state-run lender had received lower debt restructuring requests than expected.
PNB has received debt restructuring requests worth Rs 12,000 crore, Rao told Mint, adding that requests for restructuring had not been as expected.
"Out of this Rs 9,000 crore was for corporates, which we have already invoked before December 31," he told the publication, adding that the lender had earlier expected a total amount of Rs 40,000 crore.
The Reserve Bank of India (RBI), in August 2020, allowed one-time restructuring of some loans to provide businesses some relief during the COVID-19 pandemic.
On February 5, PNB reported an 18.5 percent sequential decline in profit at Rs 506 crore for the quarter ended December 31, 2020.
Gross non-performing assets (NPA) declined to 12.99 percent in Q3FY21, as against 13.43 percent in the previous quarter. Net NPA fell 72 bps QoQ to 4.03 percent in Q3FY21.
"If you remember, the last time we had given the guidance of around Rs 8,000 crore cash recovery…there are big major accounts such as Bhushan Power and in that we are anticipating cash recovery of Rs 3,800 crore," he said.
Rao added that PNB expected good recovery from the Dewan Housing Finance (DHFL) account.