We’re bitten by steel sector: PNB MD Usha Ananthasubramanian

“We have been bitten very largely by the steel sector. We will keep away from those sectors where we have been bitten until that sector turns around. Apart from steel, we have exposure to textiles. We will be cautious on these sectors too,” she said.

PNB MD said earlier banks looked more at the names of the promoters, but today, “since we are bitten so badly, we are in the process of having high collateralised or good quality proposals”. “There are certain sectors to be avoided and there are certain sectors even if we do not have expertise like nuclear power, we may hire consultants,” Ananthasubramanian said.

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The bank set aside Rs 11,380 crore for bad loans, which included Rs 385 crore for discoms and Rs 167 crore for losses on Punjab food-grain related loans. She said earlier banks looked more at the names of the promoters, but today, “since we are bitten so badly, we are in the process of having high collateralised or good quality proposals”.

“There are certain sectors to be avoided and there are certain sectors even if we do not have expertise like nuclear power, we may hire consultants,” Ananthasubramanian said, adding that there is a conscious decision on processing of proposals and upskilling of its employees.

PNB MD said in the banking business nobody can afford to claim that the bad days are over. “We are working in a dynamic environment. If steel is able to pick up, possibly something else will get impacted. But the conscious attempt is to repair these assets,” she said.

On asset sales to ARCs, Ananthasubramanian said the bank has identified 53 accounts worth Rs 6,600 crore for this quarter. PNB expects around Rs 7,000 crore of letters of credit (LCs) to get devolved in the year. The bank has nine SDR accounts worth Rs 5,458 crore as of now and none of them have reached a resolution.

Under the 5/25 scheme, the bank has restructured 17 accounts worth Rs 7,239 crore. Under the Uday scheme, it has resolved Rs 4,700 crore worth of SEB loans and has an NPA of Rs 1,620 crore from one of the UP discoms, Ananthasubramanian said.