Punjab & Sind Bank.
Credit: Punjab and Sind Bank
Punjab & Sind Bank is aiming for 2,000 branches and as many ATMs in the country in the next three years as part of its strategy to increase touch points and brand visibility.
The bank intends to open 50 branches during the current financial year, taking the branch count to over 1,600, Punjab & Sind Bank Managing Director Swarup Kumar Saha told PTI.
The bank added 28 branches in the last financial year, taking the total count to 1,555.
"Overall, the branch network would cross 2,000 by the end of three years say by March 2026. The bank is now present in 319 districts of the country. The idea is to have a presence in each district of the country. Tier II and III cities would be the focus area and we will expand presence where the bank is sparsely present," he said.
The addition of branches would help mobilise low-cost deposits and also increase penetration of loan products, he said.
"We are trying to build operational efficiency more so that I can reduce my cost and increase my fee income. We are moving to very granular areas like increasing ATM network, improving digital banking experience," Saha said.
He said the ATM network can itself be a profit centre because outside customer pays about Rs 17 per transaction for the use of an ATM.
The bank is in the process of upgrading its core banking solution (CBS) which would help the digital journey much better and also bring in efficiency, he said.
With regard to recovery, Saha said the outlook for the current financial year is Rs 1,500 crore and "we are taking all efforts to achieve the target. The bank intends to pre-load recovery and sensitise all borrowers about the virtues of debt servicing," he added.
The state-owned bank is also keeping a close tab on slippage and it should not exceed more than Rs 900 crore during the year, he added.
Meanwhile, rating agency Crisil has upgraded the bank's rating to AA 'Stable' from AA 'Negative' on the back of sustained improvement in earnings, asset quality and strengthening of capital position which is likely to be maintained over the medium term.
Asset Quality has improved with Gross Non Performing Assets (NPAs) at 6.80 per cent as on June 30, 2023, compared with 6.97 per cent as on March 31, 2023, and 12.17 per cent as on March 31, 2022.
The capital position has improved, supported by timely capital infusion and internal accrual, leading to Tier 1 and overall capital adequacy ratio (CAR) improving to 14.5 per cent and 17.2 per cent, respectively, as on June 30, 2023, from 13.1 per cent and 16.8 per cent, a year ago.