PNB to implement loan data software

Punjab National Bank (PNB) has introduced Loans and Advances Data Desk for Evaluations and Reports, (LADDER), a computerised management information system for rationalisation of returns, asset classification and provisioning, credit monitoring and NPA management.

"We have been considering building a well-coordinated information transmission system which can act as the life-line of the organisation. The basic purpose is to ensure availability of consistent, timely and reliable information to perform effective management of risks, S S Kohli, chairman and managing director, Punjab National Bank, said.

"To reduce the burden of compilation and preparation of a number of returns, the bank has finalised the system for creation of comprehensive data base of borrowal accounts," Kohli said.

The implementation of the system comprises two modules. The first module would require branches to capture data on borrowal accounts as a one-time activity with transaction updates at periodic intervals.

The second module for implementation of the software envisages collection of information on the loan accounts from the stage of receipt of application to disbursement of sanctioned loans.

With the implementation of this system, manual collation of a large number of loan-related returns will become redundant and branch staff can concentrate on business development and objective monitoring of asset quality, he said.

The application software for creating the comprehensive data base of loan accounts is devised by the Mumbai-based D2K Technologies India Pvt Ltd.

"The bank considers technology as a key driver in business development and continues its efforts in upgradation of technology," Kohli said.

The bank has achieved 100 per cent branch computerisation at the end of the last financial year. Now over 97 per cent of the bank's business is through computers.

Core banking solution has already been implemented in 504 service outlets covering over 100 centres in the country.

The bank targets to achieve connectivity in over 1,500 branches over the next three years.

The bank has implemented structured financial messaging solutions for fund transfer from any of the core banking solutions branches at over 100 centres.

The bank has also introduced internet banking, which is availed by over 8,300 users, officials said.