The Punjab National Bank as part of its consolidation plan is going to close down, merge and relocate 200-300 of its loss-making branches over the next few months, according to the latest media report.
According to Sunil Mehta, managing director, and chief executive, Punjab National Bank. "We have closed 2 or 3 branches so far. One of our departments is working on it. We have identified about 200-300 loss-making branches. So, either we will prepare a plan for revamping them, or merger, closure or reopening them at other locations," he said.
In this quarter, the bank has closed close to 6 branches taking the network tally to 6,940 branches. The bank also closed 928 ATMs. It had added 9 branches from April to June.
Apparently, RBI revised its banking outlet policy which allows for greater flexibility in the opening, closing and relocating branches, which will it easier for PNB to close down the loss-making branches. This marks as a change in the strategy of the bank.
The bank has set up a group of senior officials to conduct a detailed study before finalizing the strategy for the closure and relocation of the branches.