Scam-hit PNB’s recovery of over Rs 7,700 crore in bad loans during the first quarter in the current fiscal has surpassed the total amount it recovered in the entire 2017-18 financial year, indicating that it has embarked on the turnaround path, the bank’s top official has said. The Insolvency and Bankruptcy Code (IBC) resolution process has greatly helped Punjab National Bank, which was hit by nearly USD 2 billion fraud allegedly carried out by jeweller Nirav Modi and his associates, he said.
“In the first quarter itself, 2-3 big accounts have been resolved. As a result, the bank has got over Rs 3,000 crore only through the resolution process,” PNB Managing Director Sunil Mehta told PTI.
During the quarter (April-June, 2018-19), two big accounts –Bhushan Steel and Electrosteel were resolved through the IBC process. “Last financial year, the bank had made recovery of about Rs 5,400 crore. Against that we have done recovery of over Rs 7,700 crore in the first quarter itself. IBC played a big role in such huge recovery because two big accounts were resolved,” he said.