Merger and relocation of PNB branches

As a part of restructuring exercise, to make operations more efficient, Punjab National Bank (PNB) has identified 300 branches to either be merged with better run ones, or be relocated.

PNB has identified 300 branches to either be merged with profitable ones or be relocated.

A group of senior officials will carry out a detailed study to decide on strategies including study of the surrounding competitive landscape and the availability of the bank’s business correspondent (BC) network before deciding the fate of the 300 branches.

The country’s second largest public sector lender has a customer base of 100 million. Since March, it has shut down 928 ATMs—it had 9,753 ATMs as of September end, down from 10,681 in March. The bank added nine branches to its network from April to June, but also closed six in the second quarter, taking the total to 6,940 till September end.

The net profit of period ended September 2017 increased by 2% to Rs 560.6 crores from a year ago, as provisions for bad loans increased.

The profit came on a 4% increase in interest and non-interest income to Rs14, 205 crores. As the financials improved, the PNB is viewed as a strong contender for a large capital infusion from the government.