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.
Wednesday, March 10, 2010
Friday, February 26, 2010
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.”
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.”
Monday, December 7, 2009
PNB installed first disabled-friendly ATM
Punjab National Bank a state-run lender considering its social responsibility has installed its first disabled-friendly ATM. PNB Chairman and Managing Director K R Kamath inaugurated biometric automated teller machine (ATM) at the Action for Ability Development and Inclusion (AADI) campus to celebrate International World Disability Day. In few years bank is expected to set up more such machines in the city.
During the inauguration Kamath said, "As part of PNB's corporate social responsibility, we brought in the initiative of disabled-friendly ATMs and we hope to bring in more and more such ATMs in the years to come".
Although, Kamath, did not specified that how many ATMs will be set up by PNB and in how much time.
The biometric ATM reduces the use of a debit card and can be accessed by reading biological features like finger prints, retina and face recognition.
During the inauguration Kamath said, "As part of PNB's corporate social responsibility, we brought in the initiative of disabled-friendly ATMs and we hope to bring in more and more such ATMs in the years to come".
Although, Kamath, did not specified that how many ATMs will be set up by PNB and in how much time.
The biometric ATM reduces the use of a debit card and can be accessed by reading biological features like finger prints, retina and face recognition.
Monday, November 23, 2009
PNB registered 25 per cent growth in Kerala
Punjab National Bank (PNB), a public sector commercial banking major has registered a 25 per cent growth in Kerala by doing a business of Rs 4,094 crore in the quarter ended September 2009, as against to Rs 3,266 crore during the corresponding period last year.
Deputy General Manager and Kerala Circle Head K K Shankar while making an announcement of the results told the reporters that this fiscal PNB deposits increased to Rs 2,221.13 crore, which is 19.6 per cent increase year-on-year as against Rs 1,854.60 crore last year.
He told the circle reported advances of Rs 1,873 crore in comparison to Rs 1,412 crore displaying a growth of 32.68 crore.
In the second quarter of this fiscal the circle profit increased by 32 per cent at Rs 19.58 crore as compared to Rs 14.88 crore during the corresponding period, he informed.
The bank is having 134 branches in the State, and has plans to open five more branches in Kozhikode, Guruvayoor, Trichur, Kollam and Kuttipuam by upgrading the extension counters. The bank will also set up three more ATMs at Meenchanda, Kunnamangalam and Kulapully this month after this the total number of ATMs will be 48 in the States, he told.
At the national level, the PNB has reported a 24.5 per cent growth by doing a total business of Rs 3,94,382 crore in the quarter ended September 2009 in comparison to Rs 3,16,747 crore in the corresponding period last year, he added.
Deputy General Manager and Kerala Circle Head K K Shankar while making an announcement of the results told the reporters that this fiscal PNB deposits increased to Rs 2,221.13 crore, which is 19.6 per cent increase year-on-year as against Rs 1,854.60 crore last year.
He told the circle reported advances of Rs 1,873 crore in comparison to Rs 1,412 crore displaying a growth of 32.68 crore.
In the second quarter of this fiscal the circle profit increased by 32 per cent at Rs 19.58 crore as compared to Rs 14.88 crore during the corresponding period, he informed.
The bank is having 134 branches in the State, and has plans to open five more branches in Kozhikode, Guruvayoor, Trichur, Kollam and Kuttipuam by upgrading the extension counters. The bank will also set up three more ATMs at Meenchanda, Kunnamangalam and Kulapully this month after this the total number of ATMs will be 48 in the States, he told.
At the national level, the PNB has reported a 24.5 per cent growth by doing a total business of Rs 3,94,382 crore in the quarter ended September 2009 in comparison to Rs 3,16,747 crore in the corresponding period last year, he added.
Wednesday, October 28, 2009
K R Kamath appointed as CMD of PNB
Allahabad Bank Chairman and Managing Director K R Kamath will be the new head of the Punjab National Bank (PNB), the second largest public sector lender. According to the official sources, the official announcement of the appointment of K. R. Kamath was issued on Tuesday.
Before him K C Chakrabarty was PNB head, he has been appointed as RBI Deputy Governor in June this year due to which the CMD post got vacant.
Earlier in August 2008, Kamath was appointed the CMD of Allahabad Bank he has also worked as the Executive Director of Bank of India. Now J P Dua, is likely to be promoted as CMD of the Kolkata-based bank, who is at present is the executive director of Allahabad Bank
PNB with 3.8 crore customers has a network of over 4,600 branches across the country, in 2008-09 has registered a net profit of Rs 3,091 crore. In the current fiscal for the first quarter the bank has reported a 62.39 per cent rise in net profit at Rs 832.05 crore.
During the April-June quarter bank total income increased to Rs 6,177.58 crore from Rs 4,594.62 crore in the corresponding period a year-ago.
Before him K C Chakrabarty was PNB head, he has been appointed as RBI Deputy Governor in June this year due to which the CMD post got vacant.
Earlier in August 2008, Kamath was appointed the CMD of Allahabad Bank he has also worked as the Executive Director of Bank of India. Now J P Dua, is likely to be promoted as CMD of the Kolkata-based bank, who is at present is the executive director of Allahabad Bank
PNB with 3.8 crore customers has a network of over 4,600 branches across the country, in 2008-09 has registered a net profit of Rs 3,091 crore. In the current fiscal for the first quarter the bank has reported a 62.39 per cent rise in net profit at Rs 832.05 crore.
During the April-June quarter bank total income increased to Rs 6,177.58 crore from Rs 4,594.62 crore in the corresponding period a year-ago.
Thursday, September 17, 2009
PNB plans to reschedule loans for drought hit areas
Punjab National Bank, after SBI, is planning to reschedule loans in the affected areas in addition to other measures.
This year nearly two-fifths of the districts have been affected by drought.
Gobinda Banerjee, GM, priority sector and lead bank division, PNB informed that about 15-20% of crop loans will need to be re-scheduled. He said the bank will have to convert these loans from short to medium term loans.
He told bank’s total agricultural credit portfolio amounts to Rs 200 billion, out of which crop loans accounted to Rs 120 billion.
He added bank will be rescheduling all loans as per Reserve Bank of India guidelines and instructions related to this have been issued to branches of the affected areas. He told the parts of Andhra Pradesh and Uttar Pradesh have been affected the most.
This year nearly two-fifths of the districts have been affected by drought.
Gobinda Banerjee, GM, priority sector and lead bank division, PNB informed that about 15-20% of crop loans will need to be re-scheduled. He said the bank will have to convert these loans from short to medium term loans.
He told bank’s total agricultural credit portfolio amounts to Rs 200 billion, out of which crop loans accounted to Rs 120 billion.
He added bank will be rescheduling all loans as per Reserve Bank of India guidelines and instructions related to this have been issued to branches of the affected areas. He told the parts of Andhra Pradesh and Uttar Pradesh have been affected the most.
Wednesday, September 2, 2009
PNB launched campaign opened school student accounts
A nation-wide campaign has been launched by Punjab National Bank from August 1 to September 30 for opening of current and saving accounts with an aim to bring all the sections of the society under the banking system. Under this program C.L. Mahajan, assistant general manager, Punjab National Bank, Ludhiana circle, started the process of opening of accounts at Govt Multi-Purpose Senior Secondary School, Raikhy Cinema Road.
During the program Mahajan explained the benefits of opening of accounts with Punjab National Bank to the students. He told the account of every student will be opened with zero balance. All the students will be given free ATM debit card and Internet Banking facility. Mahajan informed bank has attained 100% financial inclusion in 21174 villages. And by end of June 2009, bank had opened around 53.57 lakh “no frill” accounts. Besides this bank has also launched unique initiatives mainly focusing on the marginalized sections of the economy like projects for rickshaw pullers, vegetable vendors, dairy farmers linked to Mother Dairy and migrant construction workers etc.
At the occasion in his address HK Mayer, principal of Govt Multi-Purpose Senior Secondary School told the school was established in the year 1885 and is the oldest school in the city and also appreciated the efforts of PNB for opening accounts of students and teachers of the school.
S.K. Rajput, Senior Manager, Kesar Ganj in his address to the students said he was also the student of this school and he is feeling proud for opening the accounts of the students of his alma mater. During the campaign bank opened 100 saving accounts of the students and teachers. He stated within three days 500 more accounts of students and teachers of the school will be opened.
During the program Mahajan explained the benefits of opening of accounts with Punjab National Bank to the students. He told the account of every student will be opened with zero balance. All the students will be given free ATM debit card and Internet Banking facility. Mahajan informed bank has attained 100% financial inclusion in 21174 villages. And by end of June 2009, bank had opened around 53.57 lakh “no frill” accounts. Besides this bank has also launched unique initiatives mainly focusing on the marginalized sections of the economy like projects for rickshaw pullers, vegetable vendors, dairy farmers linked to Mother Dairy and migrant construction workers etc.
At the occasion in his address HK Mayer, principal of Govt Multi-Purpose Senior Secondary School told the school was established in the year 1885 and is the oldest school in the city and also appreciated the efforts of PNB for opening accounts of students and teachers of the school.
S.K. Rajput, Senior Manager, Kesar Ganj in his address to the students said he was also the student of this school and he is feeling proud for opening the accounts of the students of his alma mater. During the campaign bank opened 100 saving accounts of the students and teachers. He stated within three days 500 more accounts of students and teachers of the school will be opened.
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