Punjab National Bank (PNB) has embarked on a five-pronged strategy for improving its financial position to become the "best bank" in the country.The bank has identified five areas viz reduction in cost of deposit, credit expansion, cut gross NPAs, improve asset-liability management and create more promotional opportunities for the staff in coming years, PNB Chairman S C Gupta said.Gupta, after his successful stint at Indian Overseas Bank, took charge of PNB this month and charted out the future roadmap that aims at a growth in business by at least 20% to over Rs 2,00,000 crore this fiscal.The first priority of the bank will be to reduce its cost of funds to 4-4.25% from the present 4.6%."Though the mix of deposit is good, we want to increase the share of demand deposit from 46 to 48% and reduce the proportion of time deposit from 54 to 52%," Gupta said, adding PNB will focus on semi-urban and rural areas for growth in time deposits and improve its net interest margins.PNB is also aiming to expand credit especially to retail, agriculture, trade and corporate sectors. The bank intends toallocate more funds for retail lending rather than give short term commercial loans at sub-PLR rates, Gupta said.Although PNB has almost wiped out net NPAs, Gupta said the bank would not be complacent and will aim at cutting gross NPAs, which are now at 5.86%.With these measures, PNB will improve its asset-liability management and aim to attain 50% of budgeted goals in the first half of the fiscal year so that the pressure in meeting the targets is less in the latter half."I have set the target of achieving 50% of the budgeted goals for 2005-06 in the first six months to reduce pressure in the second half," Gupta said.To improve staff productivity, Gupta said "we want to create promotional opportunities for staff, so that their aspirations are fulfilled. This will instil confidence among staff to perform better and accelerate PNB's growth."
