How do I check if my PNB account qualifies for a scheme OTS?

Ask the branch or SARB for the latest applicable OTS circular. Scheme eligibility is typically based on outstanding size band, NPA vintage and sector — no negotiation, standardised waiver.

My loan was originally with OBC — where do I go?

Post-amalgamation, all legacy OBC and United Bank MSME accounts sit within PNB. Verify current SARB mapping and file with the mapped SARB.

Who approves my PNB MSME OTS?

For most MSME cases, the Chief Manager (SARB) at zonal level. Larger exposures escalate to AGM (Recovery) at Zonal Office or DGM / GM at Circle.

Does PNB accept structured OTS?

Yes for regular Compromise Policy files, up to 12 months with 10–15% on sanction. Scheme-based OTS files are typically shorter (60–90 days).

Punjab National Bank · SARB

PNB MSME Loan Settlement

Chief Manager (SARB) at zonal level is the effective approver
Circular-driven schemes run periodically
Legacy OBC / United Bank accounts route through PNB SARBs

Free Case Assessment Talk to a Consultant

PNB is one of India's largest PSU banks with a deep MSME portfolio, particularly across North and Central India. Post-amalgamation with Oriental Bank of Commerce and United Bank, its recovery structure centralises through zonal Stressed Assets Recovery Branches (SARBs).

For most MSME cases, the Chief Manager (SARB) at zonal level is the effective approving authority. PNB rolls out periodic circulars announcing time-bound OTS schemes with standardised waivers — these are the fastest closure route when the case fits.

For legacy OBC and United Bank borrowers, the first step is always to confirm current SARB mapping. Filing at the wrong branch loses weeks.

Free Assessment

30-minute confidential case review

A senior consultant reviews your outstanding, NPA stage and options — no obligation, no cost. All conversations are covered by NDA.

• Waiver band estimate for your case
• Best-fit authority / branch to file at
• Risk of SARFAESI / auction escalation
• Documentation checklist

PNB OTS Policy — What Actually Governs Your Case

PNB works from a Board-approved Compromise Policy with a defined matrix. The SARB is the case owner; circulars announce time-bound schemes with standardised waivers. Watch the circulars and file to the SARB.

Board-approved Compromise Settlement Policy with defined waiver matrix
RVS + PV formula as waiver floor
Periodic circular-driven OTS schemes for MSME segments
Down-payment 10–25%; structured tranches 3–12 months

PNB Observed Waiver Bands by NPA Stage

NPA Stage / Route	Observed PNB Waiver Band	Down-Payment	Balance Window
Sub-standard (regular)	40–55%	10–25%	3–6 months
Doubtful (regular)	55–70%	10–20%	3–9 months
Loss Asset (regular)	60–80%	10–15%	3–12 months
Circular / scheme OTS	55–72%	10–20%	60–90 days

PNB Settlement Process — Step by Step

Step 1
Confidential Assessment
Case review — outstanding, NPA stage, security cover, promoter exposure. 30-minute consultation.
Step 2
Documentation & Hardship File
3-year financials, bank statements, GST, sanction letters, hardship narrative and source-of-funds evidence.
Step 3
OTS Proposal Drafting
Structured proposal referencing RBI framework, RVS working, precedent cases and payment schedule.
Step 4
Bank Submission
Proposal filed with the right authority — SAM branch / SARB / SAG / Regional Collections Head.
Step 5
Committee Negotiation
Follow-up, counter-offers, precedent deployment and final waiver / structure negotiation.
Step 6
Sanction & Payment
OTS sanction letter, down-payment, balance tranches, and receipt reconciliation.
Step 7
No Dues & Closure
No Dues Certificate, security release, CIBIL update, guarantor discharge.

PNB Recovery Approach & Escalation Ladder

PNB Stressed Assets Recovery Branches (SARBs) at zonal offices handle MSME NPA cases. Legacy OBC / United Bank accounts route through PNB SARBs — always verify current mapping.

Branch Manager — pre-NPA / small ticket
Chief Manager (SARB) — effective approving authority for most MSME cases
AGM (Recovery), Zonal Office — larger MSME exposures
DGM / GM, Circle / HO — very large or policy-band cases

SARFAESI at PNB — Practical Realities

PNB's SARFAESI cadence follows the PSU norm — 13(2) at 90–180 days NPA, 13(4) on procedural default. Reply drafts submitted with a parallel scheme application typically freeze escalation more effectively than a generic reply.

Post-13(4), e-auction stays are available on filed OTS proposals under SARB / zonal review. Cases at this stage should file with the SARB directly, with a copy to the AGM (Recovery), Zonal Office.

Eligibility

Account classified as SMA-2, NPA sub-standard, doubtful or loss asset
Not tagged as wilful default or fraud
Realistic source of funds for at least the down-payment tranche
Willingness to sign a full and final settlement with the bank
Promoter/guarantor cooperation in documentation and negotiation
No parallel criminal / recovery proceedings that block settlement

Standard Documentation

• Latest sanction letter and all amendments / renewals
• 3-year audited financials (P&L, balance sheet, notes)
• Latest GST returns (12 months) and income-tax returns
• Complete bank statements — 24 months across all lenders
• CIBIL commercial and consumer reports (self and guarantors)
• Hardship narrative — cause and consequences of stress
• Source-of-funds evidence for OTS payment
• Security valuation report (secured cases)
• SARFAESI notices, DRT filings, correspondence trail

Bank-Specific Documents

• PNB sanction letter and NPA classification
• PNB Statement of Account (24 months)
• Current SARB mapping (from CBS)
• Latest PNB OTS circular (from branch or SARB)
• 13(2) / 13(4) notices from PNB, if issued

PNB OTS — close-out window 90–180 days; scheme cases 60–90 days

Week 1–2
Assessment
Case diagnosis, document collection, hardship narrative drafted.
Week 3–4
Proposal Filed
OTS proposal submitted to competent authority with all annexures.
Week 5–10
Negotiation
Committee cycle, counter-offers, RVS reconciliation.
Week 11–16
Sanction & Payment
Sanction letter, down-payment, balance tranches.
Week 17–20
Closure
No Dues Certificate, security release, CIBIL update.

Settlement Calculator (Indicative)

Rough waiver band based on NPA stage. Actual outcome depends on bank, RVS, DPD and negotiation.

Outstanding (₹)NPA Stage

Estimated waiver band: 55%–70%

Indicative payable: ₹15,00,000 – ₹22,50,000

OTS Eligibility Checker

Quick 4-question check. Not a formal opinion.

Account is NPA (Sub-standard / Doubtful / Loss) or SMA-2 Account is tagged Wilful Default / Fraud Realistic source of funds for down-payment Promoter / guarantor cooperation available

Needs review — some flags reduce OTS eligibility. Speak with a consultant.

Case Studies

Textile — ₹4.9 Cr at PNB SARB, Delhi Zone

Panipat textile SME, ₹4.9 Cr doubtful. Chief Manager (SARB) cleared OTS at ₹2.35 Cr (52%) with 15% on sanction and 4 tranches over 6 months.

Legacy OBC — ₹3.6 Cr Sub-standard

Gurgaon legacy OBC account, now PNB SARB. ₹3.6 Cr sub-standard. OTS at ₹1.7 Cr (52.8%) with 15% down and 3 tranches over 4 months.

Trading — ₹7.2 Cr Circular Scheme

Ludhiana trading firm fitting a year-end circular scheme. ₹7.2 Cr doubtful. Sanctioned at ₹2.9 Cr (59.7%) with 20% on sanction and balance in 75 days.

Client Voices

"Filed clean OTS with the right authority. Sanctioned in 4 months at 62% waiver."
— Rajesh K., Auto Ancillary Promoter

"Timely SARFAESI reply and structured OTS saved the shop unit. Closed with No Dues in 5 months."
— Anita S., Textile Trader

"Post-13(4) proposal filed with SAM branch — auction stayed and settled at 68% waiver."
— Vikram J., Food Processing

Frequently Asked Questions

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