PNB to hire insolvency resolution professionals for FY18

Public sector Punjab National Bank (PNB) seeks to hire insolvency resolution professionals for 2017-18, according to a notification by the bank.
The bank has invited applications for empanelment of insolvency resolution professionals (IRP) for 2017-18, the notification said.
PNB said IRPs should be registered with the Insolvency & Bankruptcy Board of India (IBBI) and applicants are desired to submit applications on or before November 3, 2017.
Insolvency resolution professionals work in the area of reorganisation and insolvency resolution of corporate, partnership firms and individuals in a time bound manner.
"Besides having registration with IBBI, preference shall be given to the IRPs having five years of relevant experience in handling matters relating to rehabilitation of companies, which may include corporate debt restructuring/strategic debt restructuring scheme or arrangement under Companies Act," the notification said.

On fee structure for the IRPs, who are also appointed as resolution professionals by the committee of creditors, PNB said for an outstanding of Rs 1 crore on the books of the bank, the maximum fee is Rs 2 lakh per borrower (not per account and that will include bank's share only.

For over Rs 1 crore and up to Rs 50 crore, the maximum fee is capped at Rs 3 lakh; above Rs 50 crore and up to Rs 100 crore, the maximum fee payable is fixed at Rs 5 lakh and for outstanding above Rs 100 crore, the IRPs can claim a maximum fee of Rs 10 lakh per borrower (bank's share only).

For the IRPs not appointed as resolution professionals by the committee of creditors, the maximum fee is Rs 1 lakh for up to Rs 50 crore outstanding and Rs 2 lakh for loan dues over Rs 50 crore.
For the quarter ended June 2017, PNB's gross non- performing assets stood at Rs 5,77,207 crore. Net NPAs or bad loans were Rs 3,45,727 crore.
Percentage-wise, the gross NPAs were 13.66 per cent of gross advances as on 30 June, 2017 and net NPAs were 8.67 per cent of the net advances as at end-June this year.
The domestic banking sector is grappled with dud assets of over Rs 8 lakh crore, of which Rs 6 lakh crore is with public sector banks (PSBs).