State - run Punjab National Bank (PNB) on Wednesday said that it has embarked on a credit restructuring exercise under which large accounts as well as lending operations will be concentrated in a "few specially designated" branches.
According to the lender, to ensure better accountability and operations, the bank has decided to shift most of the borrowal accounts above Rs 50 crore to branches which will be designated "Systemically Important Branches" (SIBs).
"There will be over 60 such branches across the country and creation of these branches will not only mean better servicing of these accounts but will also ensure better checks and balances over large accounts, " the lending major said in a statement.
"The bank is in the process of shifting most of the large accounts to SIBs. "
As per the statement, most of the bigger accounts will be operated from branches designated as "Large Corporate Branches" (LCBs) while regular branches will concentrate on regular savings accounts and CASA (current account and savings account).
The lender said that for centers located in metropolitan cities, in addition to "LCBs/ MCBs/ IBBs", two to three branches are to be designated as SIBs depending upon geographical convenience.
A senior PNB official clarified that: "Contrary to false reports, PNB has no plans to close operations in branches like the Brady House branch in Mumbai. "
"Reallocation of some of the accounts is part of the restructuring process aimed at centralization of critical functions and large corporate accounts.
Retail operations for PNB customers continue to operate from the branches like Brady House. "
The lender has already created a stressed asset vertical in June to focus on recovery of stressed assets and NPA's and has also launched the first Central Loan Processing Centre (CLPC) in Connaught Place, New Delhi.
"This will mean that credit operations will now be moved to specialised loan processing centers.
PNB has roposed to establish CLPC, pan - India in a phased manner for processing of loans above Rs 50 lakhs across all key cities, " the statement said.
The lender added that these changes are a part of the recommendations by the bank's independent think tank named 'Mission Parivartan' that has pushed for centralisation of critical functions.