None of the loans discussed recently in public forums have been written off: People’s Bank

In view of the recent discussions in several public forums relating to the Non-Performing Assets (‘NPA’) portfolio of People’s Bank, the Bank has issued a media release setting out the following matters of fact:

•  NPAs are loans whose interest and/ or principal have not been duly serviced for a stipulated time period. A mere classification to NPA does not constitute a write-off.

•  If/ when a facility is classified as NPA, the Bank commences its due process to recover which includes actions such as follow-ups, negotiations, auctioning, and litigation. In this context, the following points are emphasized for better understanding;

a.   A write-off is undertaken only if and after every other avenue for recovery is fully exhausted.

b.   The Bank’s portfolio of NPAs consists of those originating/ having been so classified during a period of over two decades.

c.   None of the loans discussed recently in public forums have been written off.

•  People’s Bank’s NPA portfolio compares well with industry averages.

•  As a responsible Financial Services Provider who provides unparalleled security for customer deposits, People’s Bank considers the recovery of NPAs as a matter of utmost priority.