Only one-fifth of loans up for recast availed of moratorium, says PNB

Borrowers with repayments worth Rs 28,000-30,000 crore hadn't paid a single loan instalment from March-September

Only about one-fifth of the corporate loan restructuring proposals received by Punjab National Bank, the country’s second-largest state-owned bank, availed of the moratorium facility on loan repayments during the Covid-19 pandemic.

“Of the 15 proposals finalised for corporate restructuring, only three were under moratorium,” PNB Managing Director and Chief Executive Officer S S Mallikarjuna Rao told investors in a conference call last week.

The bank has received 15 corporate loan proposals amounting to Rs 2,200 crore for restructuring, four of which are part of a consortium, 11 are of “small amount” and one is a big account (in the retail sector).

So far,