Punjab & Sind Bank says it is on track to surpass its ₹1,000 crore bad loan recovery target for FY27, with Q1 recoveries and account upgrades totalling ₹366 crore.
The bank is using three main levers to drive this: One-Time Settlements (OTS) to speed up resolution of long-standing sticky accounts, SARFAESI enforcement to take direct possession of collateralized real estate, and NCLT resolutions to secure court-approved insolvency cash payouts.
Legacy non-performing assets have historically weighed on smaller public sector banks, tying up capital that could otherwise support fresh lending.
By recovering cash from written-off accounts, Punjab & Sind Bank is converting stressed assets into direct, low-cost capital that flows to its bottom line, alongside its ongoing digital transformation efforts.
