PNB partners NGO for financial inclusion

Punjab National Bank (PNB) has initiated its first financial inclusion project in south India for informal sector workers in Bangalore. The bank has partnered with a non government organisation (NGO) - Labournet - and has opened 1,000 accounts of construction workers, 350 accounts of garment industry workers and 60 accounts of contract workers in Railways.

The bank will finance the NGO and a BPO for maintaining the data base which will provide these workers with an opportunity of improving their working conditions and will thus open avenues for better income and standard of living.

Addressing a press conference here on Friday, bank’s chairman and managing director K C Chakrabarty, said, “The NGO has so far registered 4,500 construction and other sector workers. These workers have migrated from other states and bank plans to cater to growing demand of these skilled workers.”

“It is proposed to extend this model to other cities and so far the bank has successfully rolled out financial inclusion initiatives through 20 rural and seven urban pilot projects in 10 states. So far we have covered 51,024 villages, 15 million households and the a target is to reach 75 million people by 2010,” he added.

PNB has opened 20.64 lakh no frill accounts and extended a loan amount of Rs 331 crore.

About 51,000 smart cards have been issued with 82 business facilitators and 14 business correspondents.