Public sector banks see sound recovery from bad loan accounts in Q1

Quick resolution in NCLT; Q1 earnings could be a precursor to asset quality movement

Most public sector banks (PSBs) have seen a sound recovery from bad loan accounts in the first quarter (Q1) of the current financial year, indicating that their consistent focus on containing non-performing assets (NPAs) is yielding results.

Factors like dedicated recovery teams, centralised follow-up of bad loan accounts, apart from resolution of big NPA accounts through the National Company Law Tribunal (NCLT), are driving this trend.  

For example, the scam-tainted Punjab National Bank (PNB) recovered a gross amount of Rs 77 billion in the April-June period of 2018-19, which was higher than the total amount of Rs 44.43 billion recovered during