PNB's New Direction Under Ashok Chandra
Punjab National Bank (PNB), the second-largest public sector lender in India, is embarking on a new journey under its new Managing Director and CEO, Ashok Chandra. The focus is on enhancing customer service, boosting retail lending, and pursuing selective corporate financing.
Chandra, who took charge in January, is implementing a tech-enabled customer feedback system that mandates all front-facing employees to collect at least 50 reviews via QR codes. He emphasizes, "Customer service is our top priority, and feedback will be included in the annual assessment of each employee." This initiative is set to launch in May, mirroring a successful model he previously established at Canara Bank.
Driving Deposits Through Customer Experience
In addition to improving service, PNB aims to regain its lost CASA (current account and savings account) share, which has decreased from 42.5% to 38% in the past year. Chandra aims to position PNB as the primary bank of choice for retail customers, especially those managing multiple accounts, as low-cost deposits are crucial for profitability.
While engaging with the top 100 corporates, Chandra makes it clear that the bank's lending strategy will focus on profitability over volume. He notes, "Low-yielding advances don’t generate good income. We need to be mindful of the opportunities in the system, and pricing is key for corporate loans."
PNB's leadership is shifting from a desk-driven approach to a more hands-on strategy, directly engaging in business expansion and loan recovery efforts. Chandra states, "Slippages are under control, but we can improve recovery of bad debt. One-time loan settlements are being pursued aggressively."
With inputs from TOI
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