PNB to cover 4,700 villages by March '12

The public-sector Punjab National Bank (PNB) would cover 4,700 unbanked villages nationally having population of over 2,000 by March 2012. Initially, the bank would appoint business correspondents or business facilitators to provide banking services to the farmers’ doorstep and later on by opening branches at potential places. Also, it is planning to open at least 500 branches nationally and has plans to increase its global footprint.

This was stated by Punjab National Bank Chairman and Managing Director K R Kamath in an interaction with Business Standard, who was in the city to inaugurate its circle office.

He added, “We intend to provide banking services to the rural masses. Initially the bank has to cover 1,500 villages with population figure of over 2,000 by March 2011, of which 1,246 villages have been already covered. Nationally, we would provide banking services to 4,700 unbanked villages by appointing business facilitators or business correspondents”. In Haryana, the bank will cover about 500 unbanked villages.

 

In order to provide banking services to the masses, the Bank has already opened 62,64,000 ‘No Frill’ accounts and issued more than 53,700 general credit cards to the masses.

On being asked about expansion plans, “We have plans to add 500 more branches to our existing network and also have plans to recruit more staff. At the moment it is difficult to mention about the strength of the staff who would be recruited”.

On overseas expansion, he added, “We are expanding our global footprint. We have already acquired acquired 63 per cent stake in Kazakhstan-based Dana Bank. This will be gateway to the Commonwealth of Independent States (CIS) countries to expand their operations. We are planning to set up our subsidiary in Canada. Also, we are opening a repo office in Australia. We are also in the process of upgrading our representative office at Norway to full-fledged branch.”

When asked about the outlook for the next financial year, he mentioned, “We are expecting the overall business to grow by 22 per cent”.

He further added, “PNB continues to hold its leadership position in business, network and technology adoption. In terms of key financial and operational business parameters, the Bank steadily witnessed outstanding performance during the period April’10 - December’10 of the financial year 2010-11.