PNB in Rs 8000 crore technology push

Punjab National Bank plans to spend about Rs 8,000 crore on technology in five years. Also, by the next fiscal year, the bank plans to convert all its 4,500 branches into CBS (Core banking solutions) and open 100 new branches. It will inaugurate its subsidiary in Hong Kong on January 30 this year.

The bank, in order to serve rural masses, plans to introduce 50,000 touch points (smart card-based small kiosks) across the country in five years.

KC Chakraborty, CMD, Punjab National Bank, said this in an interaction with Business Standard. There are about 12,000 villages in Punjab, of which only 1,200 villages have bank branches. This is a mere 10 per cent.

"The figure suggests there is still a huge population to be served. Similarly if we consider the pan-India figure, only 30,000 villages of the 6,00,000 have bank branches. So we are planning to introduce 50,000 touch points across the country, making door-step banking common. This is likely to attract an investment of Rs 500 crore."

Already, the bank has launched such projects at Neemarana in Rajasthan, Patna in Bihar and Saharanpur in Uttar Pradesh.

Regarding expansion, he said: "We will open 100 more branches by the next fiscal year, and of the total, 70 per cent will be in the northern region.

He added, "PNB will expand overseas to gain international exposure and expertise. We will inaugurate our subsidiary in Hong Kong on January 30 and have plans to open subsidiary in Canada and repo office in Shanghai. We also plan to improve our office in Dubai and open offices in Sri Lanka and other SAARC countries."

He added: "We will focus on agriculture, SME sector and education loans. We don't want deserving students deprived of education because of money."

On the PNB Gilt business, he said: " The PNB Board has already given its nod. Further, the Board had given a go-ahead to PNB Gilts to work out a scheme of merger with the bank."

"PNB Gilts may prepare a scheme of its merger with the Bank and seek necessary approvals," he added. However, he ruled out the merging of its arm PNB housing finance with the bank.

On being asked is PNB is worried over the fact that by 2009 foreign banks will be given more freedom, he said: "We have been in banking for 112 years. We are fundamentally very strong. We are not worried."