PNB not to acquire bank in 3-4 years, says CMD

Time is not yet ripe for a full-scale merger and consolidation of public sector banks on commercial lines. Whatever is happening today can at best be called sub-merger activity, according to K C Chakrabarty, chairman and the managing director (CMD) of Punjab National Bank (PNB).

"Consolidation is a necessity for banks having global ambitions, but we feel that the appropriate time for consolidation of public sector banks has not yet come," he said. He also ruled out the possibility of PNB acquiring any bank in next 3-4 years.

Rather, Chakrabarty said, the bank would focus more on financial inclusion and strive to emerge as a dominant player in the domestic market.

Agriculture, small and medium enterprises, education loan, infrastructure sector and assistance to the self help groups (SHGs) would be the thrust areas for lending, he added.

Addressing mediapersons here, PNB chief said, about 60 per cent of the countrymen were yet to have access to the banking system and about 90 per cent were without insurance coverage. In such a scenario, consolidation of the state-owned banks on commercial lines is not going to happen, he asserted.