PNB calls for change in loan recast scheme, cites 'tough times'

Call for closer look at borrowers who delay repayment up to eleventh hour just to avoid NPA tag

Stressed companies that have defaulted for more than 30 days, too, should get an opportunity to restructure their loan accounts, Punjab National Bank (PNB) Managing Director (MD) and Chief Executive Officer (CEO) S S Mallikarjuna Rao said in an interview to Business Standard.

“The economy has been passing through tough times in the past two years, especially MSMEs (micro, small, and medium enterprises). We have seen that repayments generally came at the last minute and a majority of stressed accounts wouldn’t slip into NPAs (non-performing assets) as the money is paid before it. We need to look at such customers