PNB floats one-time settlement to clear small-ticket bad loans

To clean up books, Punjab National Bank has floated a one-time settlement scheme (OTS) for loans up to Rs 5 crore. The recoveries will improve bottom line.
 

The Delhi-based public sector lender is also working on plans to monetise non-core assets. The assets and investments under consideration for sale include stakes in primary dealer (PNB Gilts), housing finance company (PNB Housing Finance) and insurance venture, its managing director and chief executive Sunil Mehta told reporters here on Friday. The value of non-core assets is about Rs 10,000 crore.

Under OTS, the lender is working on two segments of non-performing asset (NPA)