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PNB hopes to double advances in personal banking segment

Rajalakshmi Menon

MUMBAI, July 10

PUNJAB National Bank (PNB) has drawn up plans to double its advances in the personal banking segment in the Mumbai zone this fiscal.

The bank had achieved business of Rs. 132 crores through its specialised branches last year. In the current year, it hopes to generate business of Rs. 350 crores in the zone, according to Mr. D. P. Singh, General Manager, PNB, Mumbai Zone. The bank had c onverted 18 of its branches into `personal banking boutiques' last year. The number of such branches was expected to go up to 75 in six months and 150 by the end of the fiscal.

``Of the Rs. 132 crores business that we achieved in the year 1999-2000, more than Rs. 80 crores came from these branches,'' said Mr. Singh. The target of Rs. 350 crores advances this year will be achieved comfortably, he added.

The advantages with personal banking branches was that they attracted retail customers and facilitated diversification of the bank's activities, besides having lower deposit mobilisation costs.

These specialised branches need total branch computerisation and trained personnel. Fifty branches in the zone have been computerised and the bank intends to computerise 20 more in the next four months. On a national scale, 600 branches would be intercon nected through V-SATs by the year-end.

Recently, Mr. S. S. Kohli, the bank Chairman and Managing Director, had said the bank intended to open corporate credit branches in Mumbai and Delhi. In the Mumbai zone, corporate credit worth Rs. 2,800 crores had been disbursed in 1999-2000. With the co mmencement of this branch, PNB expects to increase its corporate credit by Rs. 1,000 crores.

PNB intends to add seven more ATMs and two extension counters by the year-end.

``In the Mumbai zone, the bank's first priority is technological upgradation followed by personal banking, besides targeting mid-corporates,'' said Mr. Singh.

The bank is also finalising plans for its insurance foray. Mr. Singh said the bank was likely to venture into general insurance and most of the insurance products would be distributed in select branches in the city.

The bank will issue co-branded credit cards along with HSBC by October. It plans to issue two lakh credit cards in the first year.