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Over 6,000 PNB employees opt for VRS

Over 6,000 officers and employees have opted for the voluntary retirement scheme of the public sector Punjab National Bank, according to bank chairman and managing director S S Kohli.

Addressing a press conference after the inauguration of the new corporate branch in Bombay, he said that about 2,000 employees including experienced officers had already been relieved from the bank under the VRS.

On an average, each employee has received consideration of Rs 600,000-700,000 ( 50 per cent in cash and 50 per cent in bonds) under the scheme.

Asked about the target of reducing the staff strength under the VRS, Kohli said that the numbers depend on the manpower planning as well as the amount of amortisation to be approved by the government towards VRS expenditures.

As per the common norm, all the public sector banks are looking at reducing their manpower strength by 10 per cent of their total employees. PNB has a workforce of 65,000, of which all the 6,000 persons are likely to be obliged with the VRS.

He said that the bank has accepted the recommendations of Boston Consultancy Firm which suggested restructuring of the bank based on products, process and profitability. The bank has recovered Rs 400 million of NPAs from one-time-settlement scheme out of the total recovery of Rs 2.85 billion up to September this year.

The net NPA of the bank is currently around 8.5 per cent which is likely to come down to 7 per cent by the end of March, 2001.

The PNB's second large corporate branch at Cuffe Parade in South Bombay which would address borrowers of over Rs 250 million. As per the plan, the bank would open seven such branches in major cities, 17 mid-corporate branches for borrowers between Rs 10-250 million and rule-based retail outlets for consumer borrowing.

The first large corporate branch was opened in Delhi on December 6.

The bank is also focussing on expanding and liberalising the educational loans to the students because of the emerging trend in high-end education sector.

Besides, it is also in the process of restructuring its asset management company and open for any alliances for revival.

The bank which has achieved an operating profit of 20 per cent in the first half of the year, is likely to have a business volume of over Rs 1000 billion by the year ended March, 2002. Currently, it has a business volume of Rs 750 billion. It will also achieve 70 per cent branch computerisation by the end of current fiscal year.

UNI

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