PNB to sell about 100 NPAs worth ₹5,000 cr to ARCs: MD Chandra

We are anticipating that average recovery should be 40-50 per cent minimum, PNB MD and CEO Ashok Chandra said

- OUR CORRESPONDENT

NEW DELHI: In a bid to shore up recovery, the country's second-largest public sector lender Punjab National Bank (PNB) has identified about 100 non-performing asset (NPA) accounts for sale to asset reconstruction companies (ARCs) during the current financial year.

"More than 100 accounts we have identified...the book size will be somewhere around Rs 4,000-5,000 crore. That is the outstanding book (for sale to ARCs),"" PNB MD and CEO Ashok Chandra said.

Asked about the amount the bank can realise from the sale, he said, "We expect to recover something in the range of 40-50 per cent minimum. Through that route also, we are expecting a good recovery should happen this financial year".

There may be an account where 100 per cent recovery is also going to take place because you have good security now, but in some cases it could be low, he said, adding that "we are anticipating that average recovery should be 40-50 per cent minimum".

Chandra also said the bank has devised the right strategies to touch a milestone of Rs 30 lakh crore total business by the end of the current financial year.