Non-performing loans (NPLs) of the Philippine National Bank (PNB) is expected to increase after the Bayanihan to Recover as One Act expires on Dec. 19.
PNB president and chief executive officer (CEO) Wick Veloso said they registered a big jump in NPLs after it merged with PNB Savings Bank last March, which resulted in “some technical past due” loans.
He, however, said this is being addressed now.
“So the real picture will come out after Bayanihan 2, which I estimate would be around (the) end of December. One thing is certain, after the law expires, NPLs will increase but I cannot provide you with a number as we continue to monitor how the situation will be,” he said.
Under Bayanihan 2, borrowers are given a 60-day leeway on the payment of their loans.
Borrowers that PNB officials are monitoring are those into restaurants, hotels, construction and transportation that are greatly affected by the pandemic.
“Because if their businesses eventually will be able to survive, as long as the economy continues to grow, then we can continue to give support to these kinds of businesses,” Veloso added.
As of end-September this year, the bank registered a gross NPL ratio of 6 percent.