In a bid to clean up its balance sheet, the Punjab National Bank (PNB) has identified 53 corporate non-performing loans worth Rs 6,300 crore for sale to asset reconstruction companies (ARCs). The bank, which has substantial exposure to stressed sectors such as steel, will stop additional lending to these sectors.
The bank reported a net loss of Rs 5,367 crore for the March 2016 quarter. Its gross NPA grew to Rs 55,818 crore (12.9 percent) at the end of March 2016 from Rs 25,684 crore in FY15, compared to 6.55 percent a year ago. Its net NPAs, too, doubled to 8.61 percent from 4.06 percent.
