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PNB to mop up Rs 10K cr from non-core asset sale, rights issue, write-back

twitter-logo PTI        Last Updated: May 29, 2019  | 20:23 IST

Mumbai, May 29 (PTI) State-owned Punjab National Bank is looking to raise Rs 10,000 crore in 2019-20 from sale of non-core assets, rights issue and expected write-backs from two large accounts undergoing insolvency proceedings. The lender is expecting a write-back of Rs 4,000 crore from Essar Steel and Bhushan Power and Steel which are undergoing resolution under the Insolvency and Bankruptcy Code. "For FY20, we are looking to raise Rs 10,000 crore. We are expecting Rs 1,000 crore from sale of non-core assets, Rs 4,000 crore write-back (from) two accounts (Essar Steel and Bhushan Power and Steel) and Rs 5,000 crore from markets," the bank's managing director and CEO Sunil Mehta told reporters. The bank expects to raise Rs 600 crore from sale of its erstwhile headquarters, situated at Bhikaji Cama Place in South Delhi, to the income tax department. The deal is in the final stage. It is also planning to raise Rs 400 crore by selling some real estate properties. Mehta said the lender would raise Rs 5,000 crore through rights issue or qualified institutional placement (QIP) route. The bank has set a recovery target of Rs 20,000 crore in the current financial year. In 2018-19, its recovery more than doubled to Rs 20,000 crore from Rs 9,666 crore in 2017-18. The bank narrowed its loss by nearly 65 per cent to Rs 4,750 crore during the fourth quarter of fiscal ended March 2019. Its net loss was at Rs 13,417 crore in the same quarter of 2017-18. Gross non-performing assets (NPAs) improved to 15.50 per cent from 18.38 per cent at the end of March 2018. Net NPAs also came down to 6.56 per cent as against 11.24 per cent in the year-ago period. PTI HV AP RVK RVK

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