Even as Indian banking industry is faced with sluggish growth in low cost deposits, public sector Punjab National Bank (PNB) has launched a pan-India campaign to augment its Current and Savings Account (CASA) deposits.
The two-month campaign aims at taking its savings deposits to Rs 1,00,000 crore from the current level of Rs 95,000 crore.
Interestingly, the bank has involved its staff in this campaign, wherein each member would get at least 10 Savings Bank account.
“The low cost deposit growth has come down to 16-17 per cent in banking industry from 25-30 per cent during the last financial year,” PNB CMD K R Kamath said here.
He said through the special campaign, PNB was aiming to sustain its ‘supremacy’ in CASA growth in the banking space.
“The campaign would increase our client base, sustain CASA growth and involve staff members with the help of incentives and rewards scheme. It would also bring about a positive change in their attitude towards customer service,” he said.
On his decision to announce the launch of campaign from Lucknow, Kamath underlined that UP was PNB’s strongest base and accounted for 19 per cent of its net worth.
At the end of the first quarter (Apr-June 2011) of current fiscal, the total business of PNB stood at Rs 5,67,000 crore comprising deposits and advances of Rs 3,24,000 crore and Rs 2,43,000 crore respectively. While deposits grew by about 27 per cent year-on-year, advances grew by 23 per cent.
In UP, PNB has a network of 1,059 branches, of which 383 are in rural areas. It has 1,000 ATMs. PNB’s total business in UP has crossed Rs 73,000 crore, growing 37 per cent year-on-year. PNB’s credit-deposit ratio in UP is above 53 per cent.
