IBC played a big role in this, says MD
Scam-hit Punjab National Bank’s recovery of more than 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 MD Sunil Mehta said.
He said the Insolvency and Bankruptcy Code resolution process had helped. The bankhit by an almost $2 billion fraud allegedly carried out by jeweller Nirav Modi and his associates.
‘Two accounts resolved’
“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,” he said. During the quarter (April-June 2018-19), two big accounts — Bhushan Steel and Electrosteel— were resolved through the Insolvency and Bankruptcy Code process.
“Last financial year, the bank had made recovery of about Rs. 5,400 crore. Against that, we have done recovery of more than 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.
Going forward, Mr. Mehta said, the resolution of other accounts, including Essar Steel and Bhushan Power and Steel (BPSL) are expected to give ‘good value’.
Source: The Hindu, July 16,2018