INSUBCONTINENT EXCLUSIVE:
Large accounts, lending operations will be concentrated in a "few specially designated" PNB branches.NEW DLEHI: State-run Punjab National
Bank (PNB) on Wednesday said that it has embarked on a credit restructuring exercise under which large accounts as well as lending
operations will be concentrated in a "few specially designated" branches
According to the lender, to ensure better accountability and operations, the bank has decided to shift most of the borrowal accounts above
Rs 50 crore to branches which will be designated "Systemically Important Branches" (SIBs)."There will be over 60 such branches across the
country and creation of these branches will not only mean better servicing of these accounts but will also ensure better checks and balances
over large accounts," the lending major said in a statement."The bank is in the process of shifting most of the large accounts to SIBs."As
per the statement, most of the bigger accounts will be operated from branches designated as "Large Corporate Branches" (LCBs) while regular
branches will concentrate on regular savings accounts and CASA (current account and savings account).The lender said that for centers
located in metropolitan cities, in addition to "LCBs/ MCBs/ IBBs", two to three branches are to be designated as SIBs depending upon
geographical convenience.A senior PNB official clarified that: "Contrary to false reports, PNB has no plans to close operations in branches
like the Brady House branch in Mumbai.""Reallocation of some of the accounts is part of the restructuring process aimed at centralization of
critical functions and large corporate accounts
Retail operations for PNB customers continue to operate from the branches like Brady House."The lender has already created a stressed asset
vertical in June to focus on recovery of stressed assets and NPA's and has also launched the first Central Loan Processing Centre (CLPC)
in Connaught Place, New Delhi."This will mean that credit operations will now be moved to specialised loan processing centers
PNB has roposed to establish CLPC, pan-India in a phased manner for processing of loans above Rs 50 lakhs across all key cities," the
statement said.The lender added that these changes are a part of the recommendations by the bank's independent think tank named 'Mission
Parivartan' that has pushed for centralisation of critical functions.(Except for the headline, this story has not been edited by
TheIndianSubcontinent staff and is published from a syndicated feed.)
