PNB to Recover from Fraud Setback in Six Months, Says CEO | CORPORATE ETHOS

PNB to Recover from Fraud Setback in Six Months, Says CEO

By: | May 2, 2018

May 2: Punjab National Bank, which was in the headlines for the Rs 13,000-crore fraud, said that it will recover from its impact in the coming six months. The bank is currently employing artificial intelligence and analytics to improve upon its internal systems.

Sunil Mehta, CEO and Managing Director at PNB, has been quoted by news sources as saying that third-party analytics will be utilized to zero in on PNB defaulters who have good credit record with other lenders.

With the help of third-party analytics, PNB will get access to contact information of PNB defaulters who have good credit record with other lenders and identify and automate profitable lending strategies and minimize credit and fraud risk, Mehta said. PNB was subject to a Rs 11,400 crore fraud involving Nirav Modi and Mehul Choksi that was disclosed during February this year.

Speaking at the bank’s circle heads’ conference in Delhi, he also said that the bank had the capability and capacity to come out of the situation. The PNB chief had separately mentioned in a letter to the employees that the bank has reached milestone by registering a 7.9 percent growth for 2017-18. Growth guidance from PNB’s leadership for FY19 is pegged at Rs 12 lakh crore, which will account for a 10.8 percent year-on-year growth.

PNB has also strengthened its process of underwriting credit to wean out the possibility of fraud in addition to ensuring fair evaluation. It involves the division of process into components for employees to focus, namely sourcing, appraisal, processing and underwriting, documentation and disbursement, and recovery.

Niti Aayog CEO Amitabh Kant was at the event as the keynote speaker. Ruling out the need for privatisation of public banks, Kant emphasized that the PSBs had a greater role in nation building. He also added that the bigger challenge was the advent of new players in banking sector.