2018 A Year of Recovery, Rebound, Says PNB MD Sunil Mehta After Nirav Modi Scam

New Delhi, July 7: Punjab National Bank (PNB) Managing Director (MD) and Chief Executive Officer (CEO) Sunil Mehta on Tuesday said that the bank is aiming at significant recovery and rebound in 2018, after the Nirav Modi scam that has led to the fallout of its reputation. "After the Nirav Modi fraud case which has shaken the PNB, we have targetted 2018 as a year of recovery and rebound. The PNB is right on track to bounce back. The recovery vertical is also doing well. We have taken a well-prompt action against the fraudsters as well," Mehta told ANI.

While there is a concern that the gross slippages have grown to Rs. 7200 crore in Q1, Mehta said that the bank is all set to sale Rs 8600 crore of non-core assets during the current Financial Year. Talking about the recovery trajectory of the bank, Mehta noted that the management aims to recover around Rs.20, 000 crore in the first half of the current fiscal, largely through the resolution of insolvency cases pending before the National Company Law Tribunal (NCLT).

"For defaulters on loans up to Rs.25 crore, we are working on a new non-discretionary One Time Settlement policy. Secondly, a stressed asset management vertical has been created, comprising four general managers and 3,000 employees, primarily to curb slippages. This could help us recover around Rs.8, 445 crores. Resolution of insolvency cases by the NCLT will allow us room for another Rs.7,000 crore recovery," he explained.

The bank is also expected to take a call on the interest rate next month, based on the liquidity situation, Mehta added. Fraud-stricken PNB posted a net loss of Rs. 940 crore for the quarter ended June 30, against a net profit of Rs 343.40 crore for the same quarter last year. While the bank's loan growth went up to nearly to Rs. 4.15 lakh crore, deposit growth remained the same at Rs. 6.30 lakh crore.