Consumer master of their services: PNB CEO

NEW DELHI: Ananthasubramanian, Managing Director and CEO, Punjab National Bank (PNB) said bank has put a sharp focus on hassle-free, accessible technology and services. Rapid technological changes are transforming the way even ordinary Indians conduct their banking transactions. And in a country with more than a billion mobile phone subscribers, an increasing number owning smartphones, lenders have to focus on digital initiatives. "Punjab National Bank (PNB) has always been at the forefront of technology," says Usha Ananthasubramanian, Managing Director and CEO, PNB. "We are now trying to reinforce technology and create Digital PNB. This will very sharply focus on hassle-free, easily accessible technology and services."

Ananthasubramanian says that the bank has introduced a concept of 'green PIN,' where a customer does not have to go to a branch to get an ATM PIN generated. "The consumer can be the master of his own services," she says.

PNB has also created powerful e-lobbies, where customers can get most of their work done. "A customer has certain basic needs including depositing a cheque (which is any way getting outdated), depositing and withdrawing cash and updating the passbook," says the PNB chief. "Our e-lobbies feature cash machines and other gadgets, which provide most of the basic banking services." Migrants in urban India usually send money to their dependents back home in villages. These e-lobbies enable them to deposit the cash and have it transferred to the beneficiary's account within a minute. The bank is also moving from a web-based regime to an app-based one as part of its digital initiative, she points out. For instance, the app has an ATM locator, which will give proper directions to the nearest PNB ATM for the customer. For customers who travel abroad often, PNB offers a facility where they can lock their login details and password; when they return to India, they can regenerate the details through OTP (one-time password).

Many digital initiatives were rolled out by PNB in the new year. "We are designing products keeping in mind safety, security and appropriate usability," explains Ananthasubramanian. "We visualise that the bank will soon become Digital PNB. We want to migrate our customers to this channel, discouraging them from visiting branches." Asked about the bank's NRI engagement, she says PNB would like to put through a mechanism of online transfer of remittances if possible. "We want to connect to NRIs in the Gulf in a big way," says Ananthasubramanian. "After the acquisition of Nedungadi Bank, we have a strong presence in Kerala." PNB now has 150 branches in the southern state. The bank is also strong in other states that have seen large-scale migration of Indians to the Gulf, Europe and North America. PNB has about 700 branches in Punjab, and a strong presence in Gujarat and Bihar. Speaking about inward remittances from the Gulf, Ananthasubramanian says that many NRIs working in the region are aspirational, who aim to save substantial amounts and invest it in a good house, provide good education to their children and lead a good life. "NRIs in the Gulf look to India for savings," she says. "Their focus is on savings, aspiraton-driven savings." PNB has a branch at the Dubai International Finance Centre and a representative office in Dubai. "Both are doing well," says the bank's Managing Director and CEO. The bank also recently opened a rep office in Dhaka (Bangladesh) and is upgrading its rep office in Sydney (Australia) to a full-fledged branch. It also has a wholly-owned subsidiary, Punjab National Bank (International) Ltd in the UK, which operates seven branches. It also has a subsidiary in Kazakhstan and one in Nepal (Everest Bank Ltd), in which it has a 20 per cent stake. Druk PNB Bank is a joint venture in Bhutan. Asked about the prospects for the Indian banking sector in 2016, Ananthasubramanian says she expects more improvements to happen. "Some green shoots are visible and these will strengthen during the year," she notes. "We hope 2016 would be a year to set the tone for improvement in the future." The PNB chief believes that the introduction of the Marginal Cost of Funds based Lending Rate, which will come into force from April 1, will bring about transparency in the interest rate scenario in India. "It will help both banks and customers and will open up a new phase for interest rates," adds Ananthasubramanian.