Banking sector is soon going to spread its wings in the field of IT too. The third largest lender of the country, Punjab National Bank (PNB) is soon to set up an IT subsidiary so as to provide technology related assistance to the financial sector of the country.
The bank's chief general manager, Mr. R.I.S. Sidhu said, "We have the technical know-how in the area of financial services and we want to share this know-how. So we applied for permission and the finance ministry has given its nod for an IT subsidiary."
"Now we are working out the finer details about the level of investment required, the mode of financing the project and the number of people we should employ for this project," Mr. Sidhu said.
"What we are sure about is that it will be a 100-percent subsidiary," he added.
According to him, majority of staff recruitment for the process will take place from PNB itself. The approximate number of recruits from internal sources will be approximately in the region of 50 odd engineers.
"These will be people who are already working 100 percent on core banking system."
PNB is also proud of having 100 % computerization in all its branches including 2000 in rural areas.
PNB is currently coming up with diverse plans and propositions for development. Recently, it came up with bio-metric ATMS as a step towards financial inclusion. Moreover, PNB has recently obtained RBI clearance to open a representative office in Australia and proposes to set up a wholly-owned subsidiary in Canada by December.
It plans to step up in the global market by setting foot in destinations like South Africa, Ghana and Indonesia. It already has a presence in Hong Kong, Dubai, Kazakhstan, Britain, Shanghai, Singapore, Kabul and Norway.
With such expansion plans, the bank aims at achieving Rs. 10 lakh crore target by 2013. It has targeted itself to this benchmark from the Rs 4 lakh crore businesses which it has earned as on December 2009. The bank had earned a net profit of Rs. 1,011 crore in the last quarter.
As of March 31, 2009, the bank reported having assets of Rs.2, 469 billion ($50 billion). It holds the third position amongst Indian banks in terms of assets with SBI being at the pinnacle followed by ICICI bank.
It stands second in terms of branch network.