Staff Reporter

Low cost deposits continue to be the thrust area

  • Total business stood at Rs.2,673.09 crore as on December 31, 2006
  • Advances were higher at Rs.1,116 crore against Rs. 912.11 crore in 2005

    Kozhikode: Punjab National Bank (PNB) has posted 39 per cent growth in deposits in the State in 2006 when compared to the previous year.

    Deposits at the end of December 2006 stood at Rs.1,557.09 crore as compared to Rs.1,115.24 crore in December 2005, registering a growth of 39.62 per cent on year-on-year basis.

    Low cost deposits continued to be the thrust area and their share was 32.13 per cent of total deposits, PNB zonal manager S.P. Singh said here on Wednesday.

    He said that the total business stood at Rs.2,673.09 crore till December 31, 2006. In 2005, it was Rs.2,027.35 crore. The growth was 31.85 per cent.

    The advances was Rs.1,116.00 crore as compared to Rs.912.11 crore in 2005. The growth was 22.35 per cent. The retail credit amounted to Rs.615.00 crore in 2006 while it was Rs.391.70 crore in 2005, a growth of 57.01 per cent.

    The advances in the priority sector also increased from Rs.513.18 crore to Rs.649.82 crore registering a growth of 26.63 per cent. The ratio of priority sector advances to net bank credit was much higher at 58.23 per cent against the national goal of 40 per cent, Mr. Singh said.

    The PNB had a network of 130 branches and eight extension counters in the State. A new branch at Kakkanad, Thrikkakara in Ernakulam, would be opened shortly, he said.

    Mr. Singh said that core banking solution was implemented at 77 branches in the State. The Real Time Gross Settlement (RTGS) facility was operational at 80 branches in the State for providing inter-bank funds transfer facility.

    The Structured Financial Messaging System was implemented at 66 branches for intra-bank transfers.

    Debit cards were also being issued free of cost to all eligible customers, which gave access for any time cash withdrawal. The bank's arrangement with other banks gave the customer access to more than 25,000 ATMs all over the country.

    The PNB launched a simple, fast and convenient facility of RTGS-online through its Internet banking channel on January 25.

    It was the first public sector bank to offer the facility of remittance of funds through the RTGS using Internet. This would enable an Internet banking customer to initiate inter-bank remittance just by click of a button, Mr. Singh said.