MUMBAI: PNB Housing Finance announced on Thursday that the National Housing Bank (NHB) has instructed it to reveal an additional ₹933 crore in bad loans from March 2023, following supervisory audits.
Initially, the lender reported gross non-performing assets (NPAs) at ₹2,271.36 crore. However, after inspections, an extra ₹933.58 crore was discovered, raising the total gross NPAs to ₹3,204.94 crore.
The discrepancy originated from a restructuring process in FY22-23 that did not comply with regulatory standards. This involved two project finance loan accounts, where interest rates were lowered for competitive advantages, even though both accounts were performing well at the time.
Of these accounts, one loan totaling ₹598.39 crore has been fully repaid, while the second has been reduced to ₹67.39 crore and continues to be in good standing.
The company clarified that there is currently no financial impact and that this disclosure is made in the interest of good governance.
