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Punjab National Bank
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A frontline banking institution
Born on Baisakhi Day in 1895 at Lahore in Punjab (now in Pakistan), Punjab National Bank (PNB) has the distinction of being the first bank to have been started solely with Indian Capital. With its vast experience spanning 104 years. Punjab National Bank has emerged as a front line banking institution in the country. The bank due to its various inherent strengths, has been able to absorb the impact of many policy shifts arising, from banking sector reforms and deregulation of the financial sector and has remained consistently profitable.
PNB's 3 tier organizational structure with the head office at the apex, 12 zonal and 66 regional offices in the middle and branches at the grassroots level has functioned well over the years. The delegation of powers is decentralized upto the branch level to facilitate quick decision making. PNB has four subsidiaries - PNB Capital Services Ltd., PNB Hosing finance Ltd., PNB Gilts Ltd. and PNB Asset Management Company Limited.
The bank has largest network of branches amongst nationalised banks with 4167 offices at the end of March 99 including 374 extension counters. The bank has 30 specialiised branches, out of which 15 branches cater to the needs of small Scale Industry. The Bank has also set up 10 International Banking Branches serving exclusively to the banking deeds of exporters, importers and NRI clientele, 3 industrial Finance Branches for large corporate clients and two Hi-Tech agriculture branches to promote agriculture activities on modern lines.
With its presence in virtually all important centres of the country, PNB offers a wide variety of banking services which include corporate and personal banking industrial finance and agricultural finance. In keeping with national priorities, the bank attaches special importance to financing export business.
Computerization in Punjab National Bank (PNB) is a strategic area which receives top priority from the management. As of March 1999, there was total automation in 220 branches, 225 branches had PC-based branch software (ALPN), 90 offices were NICNET connected, and 71 branches were SWIFT connected. The bank has fully computerized support in clearing. Many of the branches provide telebanking and remote access facilities to customers.
The bank has three ATMs functioning live under SPNS network. One more will be installed under this project, while seven additional ATMs are being installed in various cities.
PNB is participating in the RBI VSAT project. Ten VSAT are being installed immediately. The bank has, jointly with TCA, developed IBR software, which has significantly speeded up IBRa reconciliation. Many banks are now evaluating the same for inducting this software.
The SWIFT system implemented in the bank allows computer-to-computer connectivity of the branches with international SWIFT system for immediately exchange of messages.
Combo connectivity is a combination of ON-LINE & OFF-LINE connectivity. Under such connectivity, ATM installed at the branch will be connected to the computers installed at the branch and the cardholders of the branch will use in ON-LINE mode whereas the cardholders of the other branches in the city can use the ATM in the OFF-LINE mode. Thereby the ATM(s) shall cater to all the cardholders of other branches in the city (s).
PNB is actively participating in the Electronic Funds Transfer (EFT) Scheme of Reserve Bank of India, whereby funds can be transferred through electronic media to and from all the four metros upto Rs.1,00,000.00.
Out EDI project is the first of its kind in the banking industry in India. Our Bank Computers at New Custom House, Delhi have been linked to the customers computer through EDI. Collections of custom duty is automated and importers are able to pay the custom duty based on the EDI message received from customs. The bank also disburses the duty draw payable to exporters based on EDI messages.
Year 2000 compliance is being given top importance by the Bank. Plans have been chalked out for tackling the issue. Bank has geared its resources to complete all amendments in software relating to Y2K problems by the year end.
To improve customer care, PNB is taking initiatives to acquire ISO 9002 certification for its select branches. Towards this end, 14 branches and 9 specialized branches have already obtained ISO 9002 accreditation for total branch operations, while 12 administrative offices have received the certification. 
To position Punjab National Bank (PNB) effectively for the next millennium, the bank has appointed The Boston Consulting Group CBCG) and Tata Consultancy Services (TCS) to conduct a comprehensive review and restructuring of the Bank's operations. An one of the leading public sector banks in India, PNB is setting its sights even higher.
Contributed by
Special Correspondent
New Delhi
Punjab National Bank
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