Punjab National Bank (PNB), the second largest public sector bank, in the country has unveiled an ambitious plan to gross a total business of Rs 10 lakh crore by 2013.
“We aim to increase its customer base to 150 million by 2013. Also, we are expanding our global footprint. We have already acquired Kazakhstan-based Dana Bank by infusing capital worth of Rs 150 crore and have 63% controlling stake. This will be gateway to CIS countries to expand our operations. We are also in the process of upgrading our representative office at Norway to full-fledged branch and other countries”, PNB chairman and managing director K R Kamath told “The ET”.
The Bank also plans to add 500 more branches in the country for which 1200 clerical staff have been recruited. “Last year, we had recruited 2000 people and in the next fiscal we may have to recruit even more to staff new branches as well as fill the vacancies caused by retirement of our employees”, Mr Kamath disclosed.
On the possibility of another round of hike in loan and deposit rates, the PNB chairman said, “There was already an upward bias to interest rates and the high food inflation has only accentuated the push. We need to maintain balance between deposit and credit growth rates as the pace of the growth is not the same”.
Mr Kamath, however, admitted that there is case for an increase in lending and deposit rates. “But when and how, the market will decide. In case banks are not getting deposits to fund the credit growth, then deposit rates will be increased first”, he said adding that Asset-Liability Committee (ALCO) will take the final call on interest rate hike.
Earlier addressing a press conference, Mr Kamath said the Bank would cover over 1,500 villages with population of over 2000 under the financial inclusion plan by March this year. “We have already covered 1,246 villages out of 4,800 villages allotted to us across the country for financial inclusion”, he added.
Claiming that the Bank with more than 116 years of sound and prudent Banking has emerged as a trend setter in the banking industry, Mr Kamath said, “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 FY 2010-11”.
The Bank posted a net Profit of Rs.3233 crore during April-December 2010 compared to Rs.2770 crore in the corresponding period of previous financial year, registering a YOY growth of 16.7% while operating Profit for the same nine months stood at Rs 6548 crore as against Rs 4994 crore in the previous financial year recording a YOY growth of 31.1%, the chairman added.
Total Business of the Bank crossed the landmark of Rs 5 lakh crore to reach Rs.5,10,125 crore as compared to Rs. 4,04,373 crore in Dec’ 2009, showing a y-o-y growth of 26.2%. Deposits of the Bank rose to Rs.2,88,873 crore as on 31.12.2010 as compared to Rs 2,33,946 crore exhibiting a y-o-y growth of 23.5%, the PNB chairman added.
The bank has opened 62.64 lakh ''No Frill''/PNB Mitra accounts and issued more than 53,700 general credit cards.
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