Punjab National Bank (PNB) has zeroed on Boston Consulting Group (BCG) to advise on reworking its operating model, human resources (HR) set-up and skill development.
The consulting outfit is also expected to draw a road map for global expansion, for the Delhi-based state-owned bank.
A senior PNB official said BCG is expected to start work in this quarter (January-March 2012) . The engagement comprising assessment, plan development and rollout would be spread over 18 months.
Those in the race to get a mandate included consulting outfit McKinsey and advisory firms E&Y and KPMG.
Earlier, BCG had advised PNB on entry into the insurance sector. The selection for consultant for the present initiative, termed ‘Organisational Transformation and Business Excellence Programme’ was an independent process, the official said.
In the beginning of January 2012, the bank’s business of deposits and advances stood at a little more than Rs 6,00,000 crore, with a customer base of 70 million.
The consultant would focus on branch network rationalisation, productivity excellence and assist in scouting new business opportunities.
The customer profile would shift towards the younger population. These days customers are realising the value of time and money, due to changing pace of life. It is driving up the use of alternate banking channels like plastic money, ATMs and electronic payments.
The bank has grown and kept pace with industry changes. But, manpower and HR strategy need to be worked upon, the official added. It has to take a strategic look at manpower to upgrade skills and to match the changing needs of customers.
The consultant would prepare a projected plan reflecting future organisational needs and employee-age profile. It would also frame a recruitment plan to meet manpower requirements and assist in the first round of recruitment, he added. Another crucial part of the assignment is preparing a succession plan.
A road map for global expansion would involve prioritisation of global markets for its network and reach. PNB has already established a subsidiary in the UK and is working on plans for a base in Canada.
