The Punjab National Bank has found a new threefold mantra for growth in reducing Non Performing Assets, increase in Current and Saving Account Deposits and fast credit disbursements.
Gauri Shankar, Managing Director and CEO of the PNB told here today that “to bring down the high rate of NPA was the biggest challenge for the Public Sector Bank”. He said that the “PNB was working very hard in all directions and with new Administration at Centre since May 2014, many positives were emerging. He said that economy has seen a turn around and as all banks are proxy to to the economy of the country, the PSU banks in general and PNB in particular is sure to improve in next two to three quarters.”
It is learnt that what impacted the performance of this government-run bank were variety of factors like slow growth in net interest income and gross NPA as percentage of gross advances spiking upto 5.97 percent during the last October-December quarter.
Gauri Shankar who has been elevated as MD and CEO of Punjab National Bank told that “growth in CASA would propel profitability while credit disbursement and steps to contain NPA would bring out necessary improvements in the performance in1-3 quarters”. The CASA ratio is the ratio of deposits in the current and saving accounts of a bank to its total deposits and a high CASA ratio indicates that a higher portion of the banks deposits come from current and savings accounts which is money at low cost. Current and Saving Accounts are demand deposits and therefore pay lower interest rates compared to term deposits where the rates are higher.
He informed that a Central Registry has been introduced across the country to check frauds as now it would not be possible to mortgage any property which has already been mortgage. He said that in PNB mortgage registration was 100 per cent and without any delay.
Earlier addressing the state level bankers committee meeting for Punjab, Gauri Shanker informed that under Prime Minsiter Jan Dhan Yojna, as many as 29,45,090 have been opened covering all households in the state. Harpal Singh, Field General Manager of PNB and Convenor, SLBC, Punjab said that from January 2014 to December 2014 the total deposits of all commercial banks and regional rural banks have increased by Rs 32,099 crores from Rs 2,22,081 crores to Rs 2,54,180 crores showing an increase of 14.45 per cent. Total advances increased by Rs 17,103 crores from Rs 1,77,911 crores to Rs 1,95,014 crores recording a growth of 11.88 per cent.
Parminder Singh Dhindsa, Punjab’s Finance Minister presiding over the State Level Bankers’ Committee Meeting asked bankers to be partners in state’s development by implementing various schemes to accelerate the growth of state’s economy.