NEW DELHI: The country’s second largest lender Punjab National Bank (PNB) on Monday said it
expects to restructure loans worth about Rs 40,000 crore or about 5-6 per cent of the credit book, as per the Reserve Bank-approved guidelines, scheduled to be out soon.
The central bank had allowed one-time restructuring of corporate and personal loans to help entities amid the Covid-19 pandemic. “Our 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,” said PNB Managing Director and CEO S S Mallikarjuna Rao, adding a major composition of this — about 50 per cent — would be corporate books.
Joining the long list of lenders raising money from the market, PNB said it intends to raise funds through qualified institutional placement (QIP) by the end of the quarter-ended December or during January-March period and does not envisage approaching the government for capital support.
“We have already taken the approval from the board for taking roughly around Rs 14,000 crore. The Rs 14,000 crore comprises Rs 7,000 crore for equity, Rs 3,000 crore for tier 2 bonds...we are very confident of going to the market…probably by end of Q2-Q3 will be working on it,” Rao further added.