The fraud-hit Punjab National Bank (PNB) on Wednesday said it had begun a credit restructuring exercise that will ensure that large accounts as well as lending operations are concentrated in a few specially designated branches.
“To ensure better accountability and operations, the bank is shifting most of the borrowal accounts above ₹50 crore to branches which will be designated Systemically Important Branches (SIBs),” the bank said in a release.
“There will be over 60 such branches across the country and creation of these branches will not only mean better servicing of these accounts but will also ensure better checks and balances over large accounts. The bank is in the process of shifting most of the large accounts to SIBs.”
Apart from this, PNB said that most of the bigger accounts will be operated from branches designated as Large Corporate Branches (LCBs) while the regular branches will concentrate on regular savings accounts and CASA. The release, citing a senior PNB official, added that contrary to reports, the bank “has no plans to close operations in branches like the Brady House branch in Mumbai.”
Aim is to centralise
“Reallocation of some of the accounts is part of the restructuring process aimed at centralisation of critical functions and large corporate accounts,” the senior official was quoted as saying.
“Retail operations for PNB customers continue to operate from the branches like Brady House.”