‘PNB Hsg Finance to step u recovery efforts this month
PNB Housing Finance expects to manage its bad loans better from this month onwards, when the deadline of going soft on borrowers provided by the courts ends on August 31, and would ask the borrowers to start repaying if they are capable to do so, a top company official said.
The company’s gross nonperforming assets (NPAS) jumped to 6% of the gross advances (or ₹3,625 crore) in the quarter ended June 30, 2021, from 2.7% by the end of June 2020, mainly on account of the impact of the second wave of the pandemic.
The increase in NPAS is also on account of legal forbearance up to August 31, 2021, as per high court orders, the company said after its June quarter earnings last week.
Various courts and high courts across the states indicated to the lenders not to take any legal or administrative action during the second wave of the pandemic, which mainly spread during April and May.
“During the quarter, there were 45 days of lockdown. So, there was hardly any activity in this period.
“We expect to manage these better from this month onwards even as we have managed to pull back some NPAS. We have pulled back about ₹80 crore of NPA in July itself,” Hardayal Prasad, managing director and CEO of PNB Housing Finance, told PTI in an interview.
The restrictions led to a little bit of problems on the recovery front, he said.
He added that if someone has borrowed money from the company, the person is bound to return it unless there is a demise in a family, or someone’s business is wiped out.
“But, if you have borrowed, your business is running. I have every right to ask for my money,” Prasad said.
However, the company will be considerate enough to fi solution on a case-to-case b if there are genuine borro facing any kind of proble repay, he added.
The company’s Covid-rel restructured loans stoo ₹1,733 crore as of June 30, 2
It posted a five per cent fa its net profit to ₹243 crore in first quarter ended June 202 against ₹257 crore in the y ago quarter.
The company, promote Punjab National Bank, sai collection efficiency was lowest in May due to the sec wave of the pandemic. H ever, it witnessed an uptic June and further in Jul added.
On being asked about Carlyle-led deal of ₹4,000-c equity capital infusion, the ter related to which is awai final order from the Secur and Appellate Tribunal (S Prasad said: “It is a sub-ju matter. So, we are not c menting on that part.” “O they (SAT) come out with order, we will take a call, said. Markets regulator Se June had asked the compan go for valuation of the is price of ₹390 a share for deal from an independent r tered valuer.