Punjab National Bank has launched another auction of non-performing assets, putting bad loans worth more than ₹760 crore up for sale to asset reconstruction companies. The latest offering includes several high-value corporate accounts, marking the bank's continued efforts to clean up its loan portfolio.

Major Corporate Accounts in Current Auction

The current auction features significant exposures across various sectors, with construction and sugar industries prominently represented.

The bank is also seeking buyers for smaller exposures to Shree Basaveshwar Sugars, D.H. Enterprises India, and Bros Entertainment Shoppe, though specific amounts for these accounts were not disclosed.

Recent Portfolio Sale Initiatives

This auction follows Punjab National Bank's much larger sale attempt from December 27, when the lender invited expressions of interest from asset reconstruction companies for loans aggregating ₹2,500 crore. That earlier portfolio included diverse corporate accounts across multiple sectors.

The December auction also included approximately 20 other corporate loan accounts, bringing the total value to ₹2,560 crore.

Strategic Shift Toward Corporate Asset Sales

The move represents a relatively rare instance in recent times of a bank offering corporate loan accounts for sale. Most lenders have been prioritising the disposal of retail and microfinance portfolios rather than large corporate exposures. This strategic shift indicates Punjab National Bank's focused approach to addressing its corporate non-performing asset challenges.

Management's Recovery Expectations

In an August interview, Punjab National Bank managing director and chief executive Ashok Chandra outlined the bank's comprehensive bad loan disposal strategy. The bank had identified over 100 non-performing accounts with an aggregate value of ₹4,000-5,000 crore for sale to asset reconstruction companies. Chandra expressed optimism about recovery prospects, stating the bank expects to recover "something in the range of 40-50%, minimum" from these sales.

Market Context

The current auctions demonstrate Punjab National Bank's proactive approach to balance sheet cleanup, utilising asset reconstruction companies as key partners in the resolution process. The bank's systematic approach to disposing of large corporate exposures reflects broader industry trends toward accelerated non-performing asset resolution.

Punjab National Bank has disclosed receiving a monetary penalty from the Reserve Bank of India for operational deficiencies at one of its currency chest facilities. The bank announced this development through a regulatory filing on January 6, 2026, in compliance with stock exchange disclosure requirements.

Penalty Details

The Reserve Bank of India imposed a monetary penalty of ₹4.85 lakh on the bank for shortage of notes at its currency chest. The bank received the penalty order on January 6, 2026, and promptly disclosed the information to stock exchanges as mandated under regulatory guidelines.

Regulatory Compliance

Punjab National Bank made this disclosure pursuant to Regulation 30 read with Schedule III Para A Sub Para 20 of SEBI (LODR) Regulations, 2015. This regulation requires listed entities to disclose material events and information that could impact stakeholder decisions, including regulatory penalties and actions.

Financial Impact Assessment

The bank has assessed that the financial impact of this penalty is limited to the monetary amount imposed by the regulatory authority. According to the disclosure, there are no additional operational or financial implications beyond the ₹4.85 lakh penalty amount.

Currency Chest Operations

Currency chests are facilities where banks store cash on behalf of the Reserve Bank of India to facilitate currency distribution and management across different regions. Banks operating these facilities must maintain adequate stock levels and comply with specific operational guidelines set by the central bank.

The penalty reflects the importance of maintaining proper cash management systems and adherence to regulatory requirements for currency chest operations. Such facilities play a crucial role in the banking system's cash distribution network across the country.