PNB East UP Zone NPA Level Drops To 3.6 Per Cent

Lucknow, May 19: | Updated: May 20 2003, 05:30am hrs
The East UP Zone of the Punjab National Bank (PNB) has achieved a record fall in the net NPA level during the year 2002-03. The net NPA has come down to 3.58 per cent during this period.

BM Mittal, the outgoing general manager of PNB East UP Zone, said during the last financial year, the net NPA level stood at 4.6 per cent and the present level of around 3.58 per cent showed a record decline in net NPA to net credit.

In real value terms, the NPA reduction in the zone was Rs 45.51 crore, which was more than zones own budgetary target of Rs 45 crore.

He claimed that the zone had surpassed all budgetary targets under key banking parameters like deposits, advances, net profits, schematic lending, priority sector advances, agriculture advances, Kisan cards and the NPA level.

The Banking Securitisation Act too had come in handy for the zone as it identified 399 accounts for default in payment involving about Rs 29.53 crore and by far had issued notices to 151 loan defaulters for recovery of about Rs 12.63 crore. About 43 parties had approached the bank where the amount involved totalled about Rs 3.07 crore and compromise had been reached in 25 cases and the bank has been able to recover Rs 1.77 crore, which amounted to 14 per cent recovery.

He agreed that the clause relating to Banking Secrecy was still grey as it prohibited bankers to disclose names of defaulters. But the zone by organizing demonstrations and protest marches against defaulters has been able to bring many loan defaulters for one-time settlement through compromise.

Mittal also disclosed that as on March 31, 2003, PNB East UP zone deposits zoomed to Rs 7,002.23 crore against the budget target of Rs 7,000 crore, showing a growth of 16.50 per cent over March 2002.

The zone, in fact, has been able to achieve its deposit targets for 14 successive half years. Share of the prime deposits of the zone increased from 51.70 per cent to 54.40 per cent during the year. Deposits under current accounts and savings rose 17.70 per cent and 24.1 per cent during this period. Similarly the zones total advances moved up to 1,959.33 crore at the end of March, 2003, showing a growth of 22.01 per cent over the corresponding period last year. Priority sector advances constituted 61.05 per cent or Rs 1057.85 crore against the national goal of 40 per cent. PNB, which has been laying special focus on retail lending, was able to achieve a growth rate of 22.43 per cent and total disbursement under this was to the tune of Rs 351.89 crore against allocated budget of Rs 350 crore.

The direct agriculture advances stood at Rs 342.82 crore up by 36.07 per cent over the previous year.

The overall net profit of the zone also showed a record 129.20 per cent spurt this year at Rs 137.25 crore in comparison to the corresponding period during the previous year. The zone had achieved this figure against zones own budgetary projection of Rs 92.0 crore.

Mittal said that the zone has been able to successfully launch Centralized Banking Solution at four branches in Lucknow enabling customers to do any type of transactions from CBS branches across the country. The target for the current year was 31 branches in the zone. About 95 per cent of banks business was presently done through computers and all the 301 branches by now had been computerized. The PNB CABS have been introduced in the zone to provide technical support to comp uterized branches through mobile vans and all the five regions of the zone have this facility now.

The general manager agreed that there was need to make people aware about the use of 25 ATMs and other technological innovations introduced in the bank.On the technology front, the bank has set up six fast collection centres for outstation cheques in the zone, which are connected through VSAT and Internet with a central server.