PNB to expand network

At a time when the global banking industry is bearing the brunt of financial meltdown, Punjab National Bank (PNB), the second largest public sector bank in India, has decided to expand its overseas presence and also strengthen its existing overseas offices.

The PSU bank has already received the approval from Reserve Bank of India (RBI) for upgrading its Shanghai office to a full-fledged branch, opening a branch in Dubai International Financial Centre (UAE), setting up its representative office in Norway, opening an offshore banking unit in Singapore, setting up a subsidiary at Vancouver (Canada) and also a joint venture bank in Bhutan.

 

"The bank has a presence in overseas locations like Dubai, United Kingdom, Hong Kong, Shanghai, Singapore and Kabul. Plans are also afoot to set up our overseas branches in Canada, Norway and Bhutan", KC Chakrabarty, chairman and managing director of PNB told Business Standard.

This apart, the bank has received a proposal recently to open its branch in Fiji."I have talked with the representatives of Fiji for opening a branch in that country", he added.

PNB’s strategy to expand its international presence is in line with the bank's plan to attract export-import businesses as well as non-resident external deposits and foreign currency non-resident deposits.

With the continuing depreciation of the rupee vis-à-vis the US dollar, several public and private sector banks in the country, including PNB are looking to tap the trade related business and remittances income from NRI deposits. In a bid to tap the NRI deposits, PNB has increased the interest rates on NRI deposits this week.

“PNB’s international operations have not been impacted adversely despite financial meltdown due to effective measures of the bank”, Chakrabarty claimed.

The PNB chairman inaugurated the 62nd branch of the bank in Orissa at Daringibadi in the tribal dominated Kandhamal district and also launched the technology based financial inclusion scheme in the district. PNB has a network of 4,335 branches across the country with a customer base of over 3 crore.