PNB official financier for Atul Auto

Punjab National Bank has signed a memorandum of understanding with Atul Auto Limited a Rajkot based company. Punjab National Bank will provide financing on all the products by Atul auto.

An official statement from the lender confirmed that the bank will be the preferred financer for Atul Auto for all it’s products and will provide finance to the eligible candidates across the country.

Atul Auto Ltd. in collaboration with Punjab National Bank will promote schemes to offer easy finance options to their customers by leveraging the pan India presence of bank.

The agreement was signed by Paul Zachariah, vice president, marketing, Atul Auto and B P Sharma, general manager, Punjab National Bank.

PNB to acquire Dana Bank, waits for approval from Kazakhstan

Public sector lender, Punjab National Bank is waiting for approval from Kazakhstan for the acquisition of Dana Bank.

PNB Chairman and Managing Director K R Kamath, after announcing second quarter numbers said, "We are in process of completing formalities. We have submitted application (to acquire Kazakhstan-based Dana Bank) to the regulator there."

He said, "I am quite hopeful that things would fall in place and approval would come."

In fact, last year PNB Board had approved acquisition of 63.6 per cent stake Dana Bank for an estimated USD 24 million.

With the acquisition of Dana Bank, PNB will be able to penetrate in CIS (Commonwealth of Independent States) countries.

There are five branches of Dana bank doing a total business of USD 60 million (around Rs 276 crore).

At present PNB representative office is operating in Kazakh city Almaty. The bank is also having branches in eight countries, and is planning to open few more offices overseas, including Shanghai. Bank is planning to set up a subsidiary in Vancouver, Canada.

Regarding capital raising plan, Kamath said the bank is having a headroom of Rs 7,200 crore under Tier II. The bank will raise funds to meet credit growth after scrutinizing the interest rate situation and need.

He informed, in case interest rates are reduced the bank will raise resources for funds.

Regarding liquidity situation, Kamath said at present there is pressure on liquidity.

PNB revises deposit rates by 25bps

Punjab National Bank (PNB) has launched two special deposit schemes – PNB Dugna and PNB Lakhpati. According to bank sources these schemes have been launched on the demand from the customers.

Thus, the bank has revised its domestic deposit rates. It has raised the rates by 25 basis points (bps) for contractual maturity from 9 to 10 years, whereas the peak rate offered has been increased from 7.50% to 7.75%.

In the Sensex PNB has outperformed over the past one month till Aug. 30, 2010, it has gained a rise of 11.31% compared with the Sensex`s 0.92% rise. In past one quarter it has gained rise of 21.03% as against 6.93% rise in the Sensex.

PNB launches “PNB Festival Bonanza Offer 2010” for home and auto loans

Punjab National Bank a state-owned lender is organizing “PNB Festival Bonanza Offer 2010” for housing loans and car loans.

Under this bank will be offering housing loans up to Rs 50 lakhs at a teaser interest rate of 8.5% under fixed interest rate option (3years) across all repayment tenures. But there will be a provision that the applicable rate will be base rate if it crosses 8.5%.

Also, there will be full waiver of processing (upfront) fee and documentation charges the margin has also been reduced to 15% for housing loans up to Rs 20 lakhs.

For the new car loan borrower’s bank is offering a rebate of 0.50 per annum under fixed option. This festival offer is valid from August 20 to December 31, 2010.

PNB is the first bank to announce the festive offer on loans to cash in on festive passion.

PNB launched two new Debit cards – World Travel Card and Platinum Debit Card

Punjab National Bank organized a function to celebrate its achievement of crossing a major milestone of enrolling more than 10 million Debit Card holders. During the occasion bank launched two new products to meet customer expectations - the PNB World Travel Card and the PNB Platinum Debit Card. These cards have been launched in association with MasterCard. The PNB World Travel Card is a Prepaid Wallet for persons who frequently travel abroad. The card can be used outside India. The Card will be available in 3 currencies - US Dollar, EURO & British Pound and can be used at ATMs for cash or at Point of Sale terminals. The card can be reloaded also. For its premium customers, bank has introduced the PNB Platinum Debit Card. The function was held in New Delhi and chaired by KR Kamath, CMD of the Bank. At the function TV Seshadri, Country Head MasterCard and GM South Asia, was the guest of honour. At function MV Tanksale and Nagesh Pydah, EDs of PNB were also present, also important customers and senior executives of the bank were present in the function.

The bank has emerged as a technology savvy Bank offering world class technology products and services to its customers. The bank has become the largest nationalized bank with all its branches inter connected to each other with CBS network. In all these years bank has become peoples’ bank with more than 58 million customers across the country.

PNB has built a significant partnership with MasterCard a worldwide premier global payment solutions provider. MasterCard is committed to speed up business through fueling economic connections that drive real value for its customers, associates, merchants and consumers. Bank has partnered with big brands such as MasterCard(r), Maestro(r) and Cirrus(r), MasterCard through which it is serving consumers and businesses in more than 210 countries and territories and processes over 22 billion transactions each year.

Being a customer centric bank PNB maintain its tradition of providing maximum value to its customers.

PNB ties-up with SEED initiating ''earn money and run your account'' program to help small account holders

Punjab National Bank the largest public sector lender has tied-up with the Society for Educational Welfare and Economic Development (SEED) to start an ''earn money and run your account'' program with an aim to provide jobs to people. The program is a part of its drive to implement a banking model for rural areas.

In the beginning, under this program opening of poultry farms and dairies in Rohtak will be taken up so as to provide employment facilities for small account holders in the area.

Besides this, to promote microfinance and micro-credit services in the remote areas through rural banking services, bank will be issuing smart cards to these account holders, which they can use by approaching panchayats, who will be provided hand-held devices to verify the transactions made through these smart cards.

There are already 1.1 lakh smart cards users in PNB’s rural banking model.

Meanwhile SEED is working for the public sector units and large companies for the implementation of their financial inclusion projects.

Earlier it has helped ONGC, SAIL, Punjab National Bank, Bank of India in planning and implementation of socially relevant projects in 11 states with technology partners TCS, HCL, and Infotel.

PNB plans to achieve 100 per cent growth in overseas revenues

Punjab National Bank (PNB) chairman and managing director, Mr K.R. Kamath of India’s second largest public sector bank informed, bank is on expansion mode of its branches overseas to get hold of growth opportunities. In the next three years bank target will be to achieve 100 per cent growth in overseas revenues.

In view of this PNB will be opening a subsidiary in Canada to cater financial needs of its large Punjabi-dominated Indian emigrant population. Bank has already opened 5 branches in the United Kingdom. Mr Kamath stated, “We are also planning to start a representative office in Sydney, Australia. Our offices in Norway and China would also be upgraded.” The bank is also thinking of acquisition of Kazakhstan based JSC Dana Bank for a consideration of $24 million.

He said, “This buyout would help us gain a toehold in the central Asia and Russia region. The Reserve Bank of India has already cleared the deal while approval is awaited from the Kazakhstan authorities.”

The bank is also working on raising $100 million through debt to fund its global growth ambitions. He added, “We are conducting road shows for this. We may use the Greenshoe option if required.”

PNB launched exclusive credit card for visually impaired persons

The Reserve Bank of India has issued guidelines to the banks to provide banking services for persons with visual impairment and also make arrangements for such people so that they can easily use the banking services. The RBI has asked the banks to make provision at ATM for physically handicap people and visually impaired.

Working on these guidelines the Punjab National Bank (PNB) is the first commercial bank to launch an exclusive credit card scheme for the community.

Although banks are widely providing credit cards to persons with vision challenge, but this is the first time a bank is providing special scheme for the community.

On May 31, PNB issued guidelines to its branch offices across the country to accept application forms from visually impaired customers who have accounts with them for six months and have ‘satisfactory track record’.

According to circular the visually challenged within the age group of 18 to 65 yrs, with the minimum education of Standard 10 and possess a screen reader enabled mobile phones, are eligible for taking this credit card.

The bank is asking visually challenged persons to give personal undertaking declaring that they are taking responsibility for the judicious use of the card. The card is being issued to both salaried employees and self employed individuals based on income and address proofs.

However many persons with vision challenge are still struggling to get debit cards, make use of internet banking and other facilities, but the move by PNB to provide credit cards to the visually challenged has been welcomed by the community.

Akhilesh a visually impaired person working for a famous BPO company in Bangalore said, “Credit cards have become an important aspect of the way we transact today.” He said, "The move by PNB to issue credit cards especially for persons with vision impairment is a nice thing indeed. Hopefully this would extend to other services they provide for able-bodied customers."

But few of them from the community have questioned the requirement for an undertaking. One visually challenged person who has been struggling to get banking services, said, "We don't know if such undertakings are asked from other customers. Anything asked from us only because we are disabled has to be opposed."

He said, “Though the bank has provided the service, it remains to be seen if branch managers and other officials actually understand the significance of it and extend credit card services to us.”

PNB account holders get Oriental Insurance policy

Punjab National Bank (PNB) account holders will now get a unique health insurance scheme launched by Oriental Insurance.

During the launch of policy PNB executive director Nagesh Pydah told reporters, 'The policy covers the insurance proposes, spouse and two dependent children. Persons up to 80 years of age can be covered under the policy.”

Last year, a bancassurance deal was signed between the state-owned general insurer and the PNB for the distribution of insurance policies at bank counters.

Oriental Insurance's deputy general manager G. Anandan said insurance cover will be available from Rs.100,000 to Rs.500,000 on floater basis. All the family members will be covered under a single sum insured and the premium will be uniform across all age groups.

PNB opened fifth branch in UK at Ilford

Punjab National Bank, a public sector lender wholly owned subsidiary Punjab National Bank (International) Ltd located in UK has opened a fifth branch in the UK at Ilford, east London and plans to add two more this year.

Punjab National Bank (PNB) Chairman and Managing Director K R Kamath told that the two new branches will be opened at Wembley and Wolverhampton.

PNB is having more than 5,000 branches, 56 million customers and a total business of Rs 4.37 lakh crore.

Apart from pan-India operations, it has also opened branches in nine countries including UK, Hong Kong, the UAE (Dubai), China, Norway, Kazakhastan, Nepal, Bhutan and Afghanistan.

PNBIL MD S R Sharma told bank has a customer-centric approach and offers technology-based products like Chip & PIN-based debit card, Internet banking, competitive interest rates which has helped it in expanding its customer base and increase its profits rapidly.

PNB opened fifth branch in UK at Ilford

Punjab National Bank, a public sector lender wholly owned subsidiary Punjab National Bank (International) Ltd located in UK has opened a fifth branch in the UK at Ilford, east London and plans to add two more this year.

Punjab National Bank (PNB) Chairman and Managing Director K R Kamath told that the two new branches will be opened at Wembley and Wolverhampton.

PNB is having more than 5,000 branches, 56 million customers and a total business of Rs 4.37 lakh crore.

Apart from pan-India operations, it has also opened branches in nine countries including UK, Hong Kong, the UAE (Dubai), China, Norway, Kazakhastan, Nepal, Bhutan and Afghanistan.

PNBIL MD S R Sharma told bank has a customer-centric approach and offers technology-based products like Chip & PIN-based debit card, Internet banking, competitive interest rates which has helped it in expanding its customer base and increase its profits rapidly.

PNB to adopt blocks to rescue farmers from clutches of moneylenders

Punjab National Bank (PNB) had launched ‘Debt Swap Scheme’ for the villagers but this scheme progress has been very slow. Considering this bank has decided to adopt a block in each district and this way it will be able to rescue the farmers from the clutches of moneylenders who charge very high rate of interest.

In view of this bank has revised the conditions of the Debt Swap Scheme. According to the state provisions majority of moneylenders are not registered and they give money privately without any documentary proof. Thus, they do not issue any certificate to the farmers. To stop this practice, PNB has planned to provide finance under the scheme on the basis of affidavit of the farmer. Also farmers won’t require obtaining a certificate of the moneylender discharging the borrower from total liability has been snapped.

Therefore, if the borrower requests for loan and branch manager agree to it, the entire loan of Rs 50,000 will be credited in borrower’s saving or Kissan Credit Card and the receipt for repayment from the moneylender might not be required.

In the beginning, at the Bamial Block of Gurdaspur the scheme was launched. Till September 2009, farmers from 10 villages have been rescued. Therefore seeing the success of the scheme banks have decided to introduce it in other districts.

As per the SLBC (state level bankers committee) data, compiled by Punjab National Bank, during the financial year 2009-10, bank has set a target to distribute Rs 27,122.54 crore. Also, for the debt swap it has set a target (on the basis of 3 per cent of agriculture) of Rs 813.68 crore.

Since the launch of the Debt Swap Scheme none of the private sector and cooperative banks in Punjab have provided assistance to farmers. Only regional rural banks and public sector banks have provided assistance to the farmers under the scheme.

In the state out of the total debt of over Rs 30,000 crore, the non-institutional loan share amounts to around Rs 14,000 crore.

Thus, banks can play a positive role in saving the farming community from distress under the Debt Swap Scheme.

According to analysis up to September 2009 under the scheme the major banks like Andhra Bank, Bank of Baroda, Corporation Bank, Bank of Maharastra, Dena Bank and Indian Bank and all private sector banks have not assisted even a single farmer.

PNB in coordination with RBI opens biometric ATM for financial inclusion

The Reserve Bank of India (RBI) has been promoting financial inclusion in unbanked areas and has also been pushing the banks to offer banking facilities in these areas. In view of this RBI is planning to issue new guidelines on the business correspondent (BC) model so that banking services can be spread across more remote areas.

H R Khan, executive director, RBI, said at function organized at Ranikhera village, a rural area near New Delhi, “We are working on a fresh set of guidelines for the business correspondents’ model that would help in greater financial inclusion. At present, the model is too restrictive and we are constantly examining the correspondent model to make it more operative”. Khan was speaking at a function organized to commence banking facilities in the unbanked area.

Punjab National Bank, in coordination with RBI has opened a biometric ATM at Ranikhera village in order to provide banking facilities in the area. The biometric facility will make easy for people to operate ATM. The ATM will operate with the help of physical identification such as impression of finger or the palm.

Several other banks such as Syndicate Bank, State Bank of India, Oriental Bank of Commerce will be opening many such ATM branches.

Khan added, “PSU banks can set up an international benchmark with its strong technology with a focused approach to expand access to finance for the common man staying in unbanked areas.”

This ATM counter will cover four villages and approximately 300,000 villagers will be able to use this facility.

Nagesh Pydah, executive director, Punjab National Bank said, “There is an immense potential in the far-flung areas of our country. Around 65 per cent of India doesn’t have a bank account. Therefore, our approach is always to work towards the financial inclusion and provide knowledge of banking in those areas.”

BCs model is an intermediary facility through which banking transaction is possible using the formal banking system in villages or in areas where it is not possible for the people to reach a bank branch. BCs include entities such as kirana shop owners, public call office operators and retired teachers, among others.

BCs are intermediaries who facilitate banking transactions with the formal banking system in villages or in areas where it is not possible for the people to reach a bank branch. BCs include entities such as kirana shop owners, public call office operators and retired teachers, among others.

Speaking on the occasion, Sandip Ghose, regional director, Reserve Bank of India, said the central bank is working to improve financial literacy among the people.

Ghose added, “We are adopting a cluster approach by setting up a platform that will cater to the underprivileged in a cluster of villages. We are also trying to increase the level of financial literacy among them.”