Mckinsey & Co, Tata Consultancy Services (TCS) and Andersen Consulting are among the five management consultancy firms shortlisted by public sector Punjab National Bank (PNB) for its proposed restructuring. The PNB board has shortlisted five firms for the restructuring process after a presentation by eight consultants, PNB general manager P K Gupta said. Apart from the above three, the other firms which have been shortlisted are Boston Consulting and KPMG Pete Marwick.
Final selection of the consultants will be made before the end of the current fiscal year after all the firms give their detailed presentations, Gupta said.PNB is undertaking a restructuring of its organisational structure, business process re-engineering, risk management, human resource development, training, management information system (MIS ) and information technology. PNBs decision to restructure comes at a time, when all major banks are gearing up for capital account convertibility and increased competition from private and foreign banks.
The bank had recently postponed its initial public offering (IPO) scheduled for the third week of January to July end due to subdued market conditions and the forthcoming general elections. PNB proposing to undertake the restructuring process in two modules, with MIS and it comprising one module and the remaining constituting the other, Gupta said and the time frame to implement it would rest with the firm selected.
Andersen Consulting, Mckinsey & Co and Boston Consulting are in the fray for restructuring on counts of business process re-engineering (BPR), risk management and HRD, while the other two firms, TCS and KPMG will vie for MIS and infotech, he said.
The eight consultancy firms which made their presentations before the PNB board last October are Mckinsey, Arthur Andersen, Ernst & Young, Coopers & Lybrand, TCS, KPMG Peat Marwick, Booze Allen Hamilton and Boston Consultancy. All short listed firms will now do a scoping exercise to find details of the bank, talk to senior managers and prepare their preliminary studies for the final presentation, Gupta added.
Once CAC comes into effect, competition from foreign and private banks will increase and the restructuring is timed to face the global competition, PNB chairman Rashid Jilani had earlier said.Jilani said PNB was exploring possibilities of giving the contract to more than one consultant, each on the basis of their strength in a particular area.
It was also contemplating selecting a firm with international expertise and capability to implement it in Indian conditions, he added.
Once CAC comes into effect, competition from banks will increase and the restructuring is timed to face the competition - Rashid Jilani PNB chairman.
