PSU

Reducing people risk and implementing FinMin’s EASE top priority: PNB Board

sarkarimirror

Reducing people risk and implementing FinMin’s EASE top priority: PNB Board
• PNB’s business plan for FY ’19: Total business worth INR 12 lakh cr; CASA worth INR 3 lakh cr
• Change in processes to reduce people risk and minimize leakages
• Focus on FinMin’s EASE for customer responsiveness and responsible banking

May 6, 2018, National: The Board of the Punjab National Bank (PNB), in a meeting held on Saturday, deliberated on the future roadmap for the bank and implementation of the Finance Ministry’s Enhanced Access & Service Excellence (EASE). The bank will aim at growing by 10.8% year-on-year to aim at total business of INR 12 lakh crore in FY ’19. Similarly, the bank has planned 13.7% growth in CASA to aim for an amount of INR lakh crore in the next financial year.
Over the last few weeks, the bank has focused on changing and improving its systems and processes to reduce people risk and further strengthen the bank. This includes increased intervention of technology, segregation of responsibilities, introduction of new verticals and realignment of processes. The Bank’s Mission Parivartan is helping drive this change to refresh business processes and better meet present day requirements.
Mr. Sunil Mehta, MD&CEO, Punjab National Bank, said, “As a 124-year-old bank, PNB continues to enjoy a special place in many hearts. The response from the team to step up and face a new challenge as well as our customers who have placed their trust with us has been overwhelming. The ‘business remodeling’ brought alive by changes at PNB is essential to ensure that the bank continues to grow and compete with its peers better.”
PNB has been actively working towards reducing people risk and improving internal systems over the past few weeks. Firstly, harnessing the power of technology, the bank plans to use Artificial Intelligence (AI) for reconciliation of accounts and incorporating analytics for improving audit systems. Secondly, the Bank has strengthened the process of underwriting of credit to minimize the possibility of fraudulent behavior by splitting the process into four components with different employees focused on sourcing; appraisal, process and underwriting; documentation and disbursement; and recovery. Thirdly, internal audit process has been augmented to give higher weightage to the off-site monitoring mechanism and reduce dependence on physical inspection and audit to identify risks. Fourthly, innovative steps have been taken by the bank to accelerate NPA recovery and a stressed asset vertical has been constituted for early identification of NPAs. Fifthly, personnel development and training is being undertaken on a large scale by the bank to make it future-ready.

Mr. Mehta, MD&CEO, PNB highlighted the significance of recommendations from ‘PSB Manthan’ in November 2017 towards ensuring responsive and responsible banking. “Accounting for 70% of the country’s total banking system, PSBs form the backbone of the nation’s economy. The direction from Finance Ministry in the form of EASE is helpful and its implementation will help take PNB closer to its goal of becoming a ‘Preferred National Bank’.”
The Bank’s Mission Parivartan aims at driving this change by incorporating fresh ideas on People, Processes, and Products. These ideas will help align PNB with EASE’s focus areas: (a) customer responsiveness; (b) responsible banking; (c) credit off-take; (d) udyamimitra for MSMEs; (e) deepening financial inclusion & digitization and (f) ensuring outcomes: HR. Some of the early steps taken by the bank in this direction include:
• Customer benefit: Providing ‘instant credit-cards’ and improving ambience of customer areas
• Responsible banking: Creation and monitoring of a stressed-asset vertical and tie-up with external credit agency for alternate data on defaulters
• Credit off-take: UPI partnership with the expense management app WALNUT that comes embedded with features such as bill reminders, bill-split and instant paperless loans
• Fueling MSME growth: Exceeding government targets under MUDRA scheme and providing additional working capital limit to MSMEs
• Embracing financial inclusion and digitization: Launch of model branch called PNB Digihut
• Developing personnel: External training for officers to improving outcomes along with reverse mentoring program pilot for select General Managers (GMs)
PNB has crossed a significant milestone of a 100 million plus customers who continue to have strong faith and confidence in the 124-year-old bank.