PNB plans vertical to recover stressed assets

 New Delhi, March 26 : Faced with a multi-billion dollar fraud, along with the problem of non-performing assets (NPAs), state-run lending major Punjab tiol Bank (PNB) has decided to form a separate “vertical to deal with its stressed assets”. According to sources, the move is expected to aide the lender in effectively dealing with NPAs and increase possible recoveries. The move being initiated on a pilot basis is a first for state-run banks, said a PNB source. The vertical will solely focus on stressed assets and recovery of NPAs, according to the source.  This will be tried out as a pilot beafore a roll out tiolly in next six months, the source said. Another move that the lending major plans to set up “separate pre-sanction appraisal and post sanction monitoring teams” for credit disbursal. This measure, the source said, will ensure better governce and transparency. “A new monitoring group will be set up to keep track of whether cash flow from projects is being used to repay bank loans and that there are no slippages,” the source said. The new initiatives are part of the bank’s overall strategy — Mission Parivartan — which has commenced to tighten checks and balances in the system, including “strengthening interl control mechanisms”. The strategy among other initiatives envisions the lender to form an independent think-tank to provide both directiol and policy inputs to its magement. The lending major is also actively looking to leverage benefits of emerging technology including AI (artificial intelligence) and alytics both from a greater control over the audit process. The bank also outlined a multi-pronged agenda to tighten checks and balances in the system, including “strengthening interl control mechanisms”, “extensive outreach to customers, investors and other stakeholders”, “focus on Current and Savings Account (CASA)” and “thrust on recovery of bad debts”. (IANS)