PNB plans to sell NPA worth Rs 100-200 cr

Here is the beginning of my post. And here is the rest of it.Punjab National Bank (PNB), which is sitting on around Rs 4,800 crore worth bad loans or non-performing assets (NPAs), may sell off at least Rs 100-200 crore to asset reconstruction companies, according to a top official. “We are looking at the option of selling some of the NPAs to asset reconstruction companies, but only if we get a good price for it. But our first priority is recovery of NPAs,” said PNB chairman and managing director Dr KC Chakrabarty. For the three quarters ended September 30, 2007, PNB’s gross NPAs were Rs 4,716.57 crore or 4.57% of total advances. Dr Chakrabarty said that the bank hoped to recover at least Rs 1,500 crore by the end of the year. However, the timeline for PNB’s insurance foray is still undecided. Dr Chakrabarty had earlier said that the bank would take a call to strengthen or segregate its insurance joint venture by the end of the year after restructuring the bank’s subsidiaries. “It may take another six months to decide,” he said. PNB is part of a proposed four-way life insurance JV with Berger Paints, Principal Financial Group and Vijaya Bank. Recently, Vijaya Bank said it is pulling out of the JV, sparking speculation that PNB would do the same.