Credit card business to get fresh push from November onwards: PNB MD

In a bid to enhance other income, Punjab National Bank (PNB) plans to give a fresh push to its credit card operations from November onwards as it expects its revamped IT infrastructure to be in place by that time.

"PNB credit card is not visible in the market, although the features are at par with any other card in the market. Therefore, we have strengthened the credit card division and put a general manager in-charge for the business.

"We are also enhancing digital infrastructure to support the business. So, total revamping is happening in the credit card business," the bank's MD Ashok Chandra told PTI.

The bank is planning to reshape this entire activity and come up with new direction for growing the credit card business, he said, adding that "in next 3 months, the revamped IT infra will be in place and I am very hopeful that by November or December onwards, PNB will be in full swing as far as credit card business is concerned".

Chandra also said the bank is in the process of improving its internet banking and the mobile banking facility, and the PNB One mobile app for retail and current account customers will also get a facelift.

"This project is going on for the last one year...we have a very good mobile app, but we are coming out with some good AI model, and the vendor, Infosys, is working on that. By the end of September, the revamped mobile app will be launched with enhanced features, convenient for the customers to use," he said.

Besides, he said, the business mobile app, which is also an important priority for the bank, is coming up with a new version.

"So, digitally, the bank is doing a lot of activities, and we always feel that whatever we do, it should improve the process and it should enhance the customer experience," he added.

In a bid to shore up realisation from recovery, PNB has identified about 100 non-performing assets (NPA) accounts for sale to Asset Reconstruction Companies (ARCs) during the current financial year.

"More than 100 accounts we have identified...the book size will be somewhere around Rs 4,000-5,000 crore. That is the outstanding book (for sale to ARCs)," Chandra said.

Asked what the amount the bank can realise from the sale, he said, "We expect to recover something in the range of 40-50 per cent minimum. Through that route also, we are expecting a good recovery should happen this financial year".

There may be an account where 100 per cent recovery is also going to take place because you have a good security now, but in some cases, it could be low, he said, adding that "we are anticipating that average recovery should be 40-50 per cent minimum".