PNB Sets Recovery Target At Rs 16k cr

New Delhi: Punjab National Bank (PNB) is targeting a significant recovery of Rs 16,000 crore and aims to keep slippages below 1 per cent in the current fiscal year to sustain profitability, the top official of the country’s second biggest state-owned lender said. The total recovery of the bank stood at Rs 4,733 crore for the fourth quarter and Rs 14,336 crore for FY25 while overall slippages ratio was 0.73 per cent during the last financial year. “Going forward, maximization of recovery and preventing fresh slippages are going to be priority areas. We are targeting a higher total recovery of Rs 16,000 crore as against of recovery of about Rs 14,000 crore in FY’25...we are expecting that the quarterly our slippages will be in the range of around Rs 1,500 crore to Rs 1,700 crore,” PNB MD and CEO Ashok Chandra told PTI in an interview.

The bank is going to focus on recovery through the technical write off accounts, he said, adding, “I am expecting that Rs 6,000 crore of recovery will happen in the technical right off book. So, we have set up a target of Rs 1,500 crore of minimum recovery every quarter.”

The technical write off book of the bank stands around Rs 91,000 crore with the provision coverage ratio of more than 96 per cent and recoveries from such accounts are added to the bottomline directly.