“In terms of restructuring, it is surprising that today, if you look at it, not many people have requested. In terms of retail and MSME together before 30 September, we have carried out restructuring in the order of 41 million kroner. As today a another request for Rs 30 crore has come in regards to retail and MSME.
“But MSME, we expect the restructuring to take place to the extent of all around Rs 4,000-5,000 crore by 31 December,” PNB MD S S Mallikarjuna Rao said in a virtual interaction with the media.
As far as companies are concerned, he said, the bank has received applications from 15 applicants amounting to Rs 2,022 crore.
It is very important to note that if the restructuring is done in the case of corporate accounts, their ratings will be under pressure for a period of two years, he said.
“That could be one of the reasons why the response has not been very high. If you remember, the last time we declared the results, we suggested that around 40,000 cr. Rs could be the amount that might go under restructuring. But now we look at the way the answer comes to us, it may not even be 20,000 rs by 31 December, ”he said.
This would be less than 3 percent of the total advances, I have added.
In response to a query about the bank’s NPA outlook, Rao said he expects PNB’s defaulted assets (NPAs or bad loans) to be less than 14 percent gross, while less than 5 percent in net figures.
The lender’s gross defaulted assets (NPAs) moderated to 13.43 percent of gross receivables at the end of September from 16.76 percent in the same period last year. NPAs also fell to 4.75 percent against 7.65 percent.
In terms of service charge, he said, the bank has not increased it and there are no plans to raise it from the current level.
At the merger between Oriental Bank of Commerce and United Bank of India, Rao said business and HR integration have already taken place.
The merger of these two banks with PNB took effect from 1 April.
As for technology integration, he said, it is underway. One bank will complete the technology integration by 31 December and another by the end of January.
With the merger, the bank now has around 11,000 branches, more than 13,000 ATMs and 1.05 lakh employees.