On Wednesday, Punjab National Bank (PNB) recognised bad loans value of Rs 20,008 crore from 62 accounts. It is to be transferred to the Government-backed National Asset Reconstruction Company (NARCL) for resolving in a phased method, Atul Kumar Goel, Managing Director, said.

“We have acknowledged nine accounts of Rs 2,752 crore to be relocated to NARCL in the first phase. There would be 11 accounts in the second phase worth Rs 2,685 crore and outstanding in the third phase. We have already received offers from NARCL on five accounts wherein we have an unsettled amount of Rs 1,099 crore,” he added.

NARCL was set up by commercial banks to aggregate and combine stressed assets for their succeeding resolution. Results professed by PNB on Tuesday presented that its standalone net profit jumped 62.8% year-on-year to Rs 411.3 crore during July-September. This was because necessities for non-performing assets (NPAs) went up by 32% to Rs 3,556 crore.

Goel said he was self-assured to recover Rs 3,995 crore from the current financial year from the National Company Law Tribunal (NCLT) cases. The outstanding bad loans mentioned to the NCLT stand at Rs 66,855 crore.

Through the first half of FY23, the bank had improved by Rs 1,471 crore. In FY22, it was clever to recover Rs 6,321 crore of bad loans from NCLT cases. In contradiction of a recovery goal of Rs 32,000 crore from bad loans for FY23, Goel said the bank has previously recovered around Rs 16,000 crore in H1.

Goel said the bank proposes to bring Gross Non-performing Assets (GNPAs) down to a single digit during the current financial year from 10.48% ending in the September quarter of FY23.