{"id":17210,"date":"2020-08-24T15:07:44","date_gmt":"2020-08-24T15:07:44","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=17210"},"modified":"2020-08-24T15:07:44","modified_gmt":"2020-08-24T15:07:44","slug":"pnb-expects-to-restructure-loans-worth-rs-40000-crore","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=17210","title":{"rendered":"PNB expects to restructure loans worth Rs 40,000 crore"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"article-image\">\n<figure><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden size-full wp-image-2053378\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/08\/pnb-reuters-small.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"lazy lazy-hidden size-full wp-image-2053378\" data-lazy-type=\"image\" src=\"https:\/\/images.financialexpress.com\/2020\/08\/pnb-reuters-small.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><noscript><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2053378\" src=\"https:\/\/images.financialexpress.com\/2020\/08\/pnb-reuters-small.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2020\/08\/pnb-reuters-small.jpg 660w, https:\/\/images.financialexpress.com\/2020\/08\/pnb-reuters-small-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/08\/pnb-reuters-small-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/08\/pnb-reuters-small-401x267.jpg 401w, https:\/\/images.financialexpress.com\/2020\/08\/pnb-reuters-small-440x293.jpg 440w, https:\/\/images.financialexpress.com\/2020\/08\/pnb-reuters-small-80x54.jpg 80w, https:\/\/images.financialexpress.com\/2020\/08\/pnb-reuters-small-313x209.jpg 313w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\"\/><\/noscript><\/noscript><span class=\"article-caption\">The corporate loans will be restructured based on the recommendations of the K V Kamath committee.<\/span><\/figure>\n<\/div>\n<p>The country\u2019s second largest lender <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/punjab-national-bank-stock-price\/\" rel=\"noopener noreferrer\">Punjab National Bank<\/a> on Monday said it expects to restructure loans worth about Rs 40,000 crore as per <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/tag\/rbi\/\" rel=\"noopener noreferrer\">RBI<\/a>-approved guidelines, scheduled to be out soon.\u00a0The Reserve Bank of India (RBI) had earlier this month allowed one-time restructuring of corporate and personal loans to help entities amid the COVID-19 crisis.<\/p>\n<p>\u201cOur total loan book is Rs 7.21 lakh crore at June end. MSME (loan book) stands at Rs 1.27 lakh crore. Out of this, 14 per cent is under NPA. Now with respect to the book that we are looking at (for loan restructuring), a rough estimate what we are seeing is that anything around 5-6 per cent of the credit book may be eligible under the restructuring profile.<\/p>\n<p>\u201cThis 5-6 per cent comes to about Rs 40,000 crore. Major composition of this, of about 50 per cent, would be corporate books,\u201d <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/punjab-national-bank-stock-price\/\" rel=\"noopener noreferrer\">PNB<\/a> Managing Director and Chief Executive Officer S S Mallikarjuna Rao told reporters at a virtual news conference.<\/p>\n<p>The corporate loans will be restructured based on the recommendations of the K V Kamath committee.\u00a0\u201cWith respect to larger credit books above Rs 100 crore, RBI has appointed a committee headed by K V Kamath. Now they are going to give us the details\u2026whether it would be sector specific or category specific, that we will come to know in next few days. \u201cIf you remember, RBI governor on Friday had also come to the public domain indicating that within 30 days those details will be available,\u201d the PNB chief said.<\/p>\n<p>The RBI had on August 7 announced a five-member expert panel under former <a target=\"_blank\" href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/icici-bank-ltd-stock-price\/\" rel=\"noopener noreferrer\">ICICI Bank<\/a> chairman Kamath to make recommendations on the required financial parameters for recasting corporate loans. RBI Governor Shaktikanta Das had last week said that after studying the recommendations of the Kamath committee, the central bank will notify the broad financial criteria for sectors and borrowers by September 6.<\/p>\n<p>Besides, Rao said PNB is also working from its end on the loan restructuring, details of which will be announced after the Kamath panel\u2019s recommendations are out. He said the bank will identify the accounts based on their criticality and then restructure those loans.<\/p>\n<p>In response to a query on the bank\u2019s asset quality, Rao said he does not expect PNB\u2019s non-performing assets (NPAs or bad loans) to increase at this stage.\u00a0The lender\u2019s net NPA ratio stood at 5.39 per cent as of June-end, compared to 7.17 per cent a year ago and 5.78 per cent in the preceding quarter.<\/p>\n<p>The gross NPA ratio was 14.11 per cent as on June 30, against 16.49 per cent a year ago and 14.21 per cent in the March 2020 quarter. Rao further said the lender is not expecting its net interest margin (NIM) or net interest income (NII) to get adversely impacted this fiscal despite the COVID-19 pandemic.<\/p>\n<p>As on June 30, 2020, bank\u2019s domestic NIM \u2014 the difference between interest earned and expended \u2014 fell to 2.47 per cent from 2.55 per cent in the same period last year. Global NIM stood at 2.50 per cent, compared to 2.59 per cent earlier.\u00a0Interest income grew by 1.1 per cent to Rs 20,605 crore during Q1 FY21, from Rs 20,381 crore earlier.\u00a0Rao also clarified that following the merger of OBC and UBI with PNB, there will be no retrenchment of employees.<\/p>\n<p>PNB has a strength of 1.03 lakh employees and as the business grows, this figure will further increase, he added.<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/s-p-bse-sensex-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">BSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nifty-50-stock-price\/\" target=\"_blank\" rel=\"noopener noreferrer\">NSE<\/a>, <a href=\"https:\/\/www.financialexpress.com\/investing-abroad\/\" target=\"_blank\" rel=\"noopener noreferrer\">US Market<\/a> and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\"https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\"https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<p class=\"telegram-text\"><img loading=\"lazy\" decoding=\"async\" class=\"telegrma_img\" src=\"https:\/\/images.financialexpress.com\/2020\/04\/telegram.png\" alt=\"\" width=\"24\" height=\"24\" style=\"margin: 0px 5px 4px 0px; float: left;\"\/>Financial Express is now on Telegram. <a href=\"https:\/\/t.me\/TheFinancialExpressOnline\" target=\"_blank\" rel=\"noopener noreferrer\">Click here to join our channel<\/a> and stay updated with the latest Biz news and updates.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\\\"https:\/\/www.financialexpress.com\/industry\/banking-finance\/pnb-expects-to-restructure-loans-worth-rs-40000-crore\/2064143\/\\\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The corporate loans will be restructured based on the recommendations of the K V Kamath committee. The country\u2019s second largest lender Punjab National Bank on Monday said it expects to restructure loans worth about Rs 40,000 crore as per RBI-approved guidelines, scheduled to be out soon.\u00a0The Reserve Bank of India [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":17211,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-17210","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/08\/pnb-reuters-small.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/17210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17210"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/17210\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/17211"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}