Home / Industry / Banking /  PNB recovered 4,000 crore from sale of stressed asset in January-March 2019

NEW DELHI : State-owned Punjab National Bank (PNB) recovered 4,000 crore from sale of stressed assets in the quarter ended March, Managing Director and Chief Executive Officer of the bank Sunil Mehta said on Tuesday.

Mehta expects recovery of another 3,100 crore through sale of non-core assets in the first quarter of the current financial year 2019-20. Gross recovery for the bank stood at 16,608 crore during the first nine months of the financial year 2018-19, according to the bank’s data.

PNB has been trying to monetize its non-core assets through a stake sale in its mortgage lending arm PNB Housing Finance and sale of its property in Bhikaji Cama Place in Delhi to preserve its capital, after the lender was hit by 14,356 crore fraud, involving diamantaire Nirav Modi in February 2018.

The state-owned lender bounced back into black, posting net profit of 246.51 crore in the quarter-ended December, after incurring losses in the immediate past three consecutive quarters.

Meanwhile, a consortium of lenders, comprising PNB among others and headed by State Bank of India (SBI) is negotiating the stake sale of Jet Airways and a resolution is expected soon, Mehta said.

PNB is yet to announce its January-March financial results.

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