The plan is for Punjab & Sind Bank to inaugurate 50 new branches within the ongoing fiscal year, propelling the total branch count beyond 1,600, according to statements by Swarup Kumar Saha, the Managing Director of Punjab & Sind Bank, to PTI.
Pursuing a broader strategy to amplify touchpoints and enhance brand visibility, Punjab & Sind Bank has set a target of attaining 2,000 branches and an equivalent number of ATMs across the country within the forthcoming three years.
)
During the previous fiscal year, the bank successfully incorporated 28 new branches, elevating the aggregate branch tally to 1,555. Saha emphasized, "In the grand scheme of things, the branch network is projected to surpass 2,000 within the span of three years, presumably by March 2026. Our bank is now actively operational in 319 districts across the nation. The overarching objective is to establish a presence in every district within the country. The primary focus will rest upon Tier II and III cities, directing our expansion efforts towards locations where the bank's presence remains sparse."
Incorporating more branches would facilitate the mobilization of cost-effective deposits and additionally enhance the reach of our loan offerings, according to his statements.
"Our primary aim is to enhance operational efficiency, thereby reducing costs and augmenting fee-based income. Our endeavors are centered around venturing into minutely detailed regions, including the expansion of our ATM network and the enhancement of the digital banking experience," Saha commented.
He pointed out that the ATM network itself can evolve into a profitable venture, as external customers pay around Rs 17 per transaction when utilizing an ATM.
The bank is presently in the process of upgrading its core banking solution (CBS), a move that is poised to significantly enhance the digital journey and introduce efficiency, he elaborated.
Regarding the aspect of recovery, Saha mentioned that the anticipated target for the ongoing fiscal year stands at Rs 1,500 crore, and the bank is dedicating extensive efforts to meet this goal.
The bank has set its sights on proactive recovery strategies, along with the aim to educate all borrowers about the advantages of fulfilling their debt obligations, he emphasized.
Additionally, as a state-owned entity, the bank is closely monitoring its slippage, aiming to keep it below Rs 900 crore throughout the year, he further remarked.
Concurrently, the credit rating agency Crisil has upgraded the bank's rating to 'AA Stable' from 'AA Negative', citing consistent improvements in earnings, asset quality, and the reinforcement of its capital position. These positive trends are expected to persist over the medium term.
The quality of assets has demonstrated enhancement, evident in the Gross Non Performing Assets (NPAs) standing at 6.80 percent as of June 30, 2023. This is a decline from the 6.97 percent reported on March 31, 2023, and a significant decrease from the 12.17 percent recorded on March 31, 2022.
The bank's capital position has experienced positive growth, bolstered by well-timed capital injections and internal earnings. This has resulted in the Tier 1 capital adequacy ratio (CAR) and the overall capital adequacy ratio (CAR) improving to 14.5 percent and 17.2 percent, respectively, as of June 30, 2023. This is a noteworthy improvement from the figures of 13.1 percent and 16.8 percent, respectively, reported a year ago.
