The bankrupt Punjab National Bank (PNB) has managed to recover a record-breaking total of Rs 11,378 crores within five months since Nirav Modi scam was revealed. The recovery amount breaks record of the total recovery made by PNB in past two fiscal years.
In February this year, the Punjab National Bank aka PNB suffered a major financial setback with a dent of Rs 14,357 crore fraud perpetrated by the fugitive Indian diamantaire Nirav Modi of Gitanjali Group. The alleged fraudulent trader has been on the go and out of the reach of Indian judicial system with loopholes of citizenship system. However, the fraud-hit bank launched radical measures to recover maximum money from the defaulters and pull itself together by bringing up the stock value.
To achieve maximum recovery from defaulters and money launders, PNB deployed as many as 3000 employees dedicated to the task. PNB also made unprecedented efforts to boost the Insolvency and Bankruptcy Code (IBC) Act, under which, they recovered almost Rs. 3,081 crore from the acquisition of Bhushan Steel. With continuous efforts, the bank recovered a total of Rs 11,378 crore from defaulters in the first five months – breaking records of marking highest recovery rates that exceeds the total recovery made in last two fiscal years.
As per the stats of first quarter of fiscal year 2018-19, the overall total of Rs 36,551 crores has been recovered by 21 PSBs; of which, PNB contributed a humongous 23% of the total. With the mega recovery campaigns in this year, PNB’s performance has exceeded not just its own record, but it is the highest compared to all Public Sector Banks (PSBs) who have stepped up with intrusive recovery programmes and pulled its stock value up.