How effective is PNB's war room?

Slippages eased to Rs 3,517 cr in Q2; gross NPA ratio unchanged at 13%

With a gross non-performing assets (NPA) ratio at upwards of 13 per cent, investors are unlikely to believe that the firefighting by Punjab National Bank (PNB) is yielding the desired results. However, the lender’s September quarter (Q2) performance reveals that the war room created about a year back to fight against bad loan accretion is perhaps showing some results.

The biggest sign of improvement was that slippages or accretion of bad loans in Q2 reduced to Rs 3,517 crore — the lowest in recent times. This helped the gross NPA ratio dip to 13.31 per cent, from 13.63 per cent