PNB targets Rs4,000cr from state

The Orissa circle of Punjab National Bank (PNB) expects to achieve a total business volume of Rs 4,000 crore by the end of March next year, up from the existing figure of Rs 3,200 crore.

Addressing mediapersons on the sidelines of the sixth triennial conference of PNB Officers’ Association, BP Sharma, head of PNB’s Orissa circle said, “PNB’s business volume for the Orissa circle has jumped from Rs 1,228 crore to Rs 3,200 crore over the past two years, thereby clocking a growth of about 146 per cent. We expect to achieve our targeted business volume of Rs 4,000 crore by March next year.”

 

PNB’s Orissa circle has also presented a proposal to the bank’s top management for setting up 10-15 more branches in the state. These branches are likely to be established in districts like Boudh, Sonepur, Malkangiri, Koraput and Nuapada where the bank does not have a presence now. At present, PNB has 62 branches in Orissa and it aims to ramp up the branch network to 100 by the end of 2010. Sharma said that PNB’s deposits for the Orissa circle stand at Rs 2,211 crore and the bank’s advances have grown from Rs 455 crore to Rs 812 crore in the last two years.

He, however, felt that it would be challenging for banks to record high growth in advances in the wake of the prevailing global economic crisis. If the economy does not improve by March 2010, then the delinquency on advances is likely to go up, he stated, adding “The priority of public sector banks in the country is to boost advances in the agricultural sector as it is in the interest of the nation’s economy.” Asked on the PNB’s NPA (non-performing assets) status in the Orissa circle, he said that the bank’s NPA has been brought down to Rs 13.75 crore, surpassing the target of Rs 18 crore fixed for 2008-09.