The Bank has been allotted 387 unbanked villages with population above 2000 for provision of banking facility.  It has planned to open 10 Brick and Mortar Branches in the years 2010-2011 and 2011-2012 each. Out of 10 branches proposed to be opened in 2010-11 the Bank has already opened branches in 8 unbanked villages and in 367 villages it proposes to provide door-step financial services by engaging Business Correspondents. 

The Bank proposes to provide Business Correspondents in 45 villages by 15.02.2011, 75 villages by 28.02.2011 and 190 villages by 30.03.2011. The remaining 177 villages shall be covered by 31.03.2012. The Business Correspondents shall open No Frill and other deposit accounts, identify prospective borrowers, promote Self Help/Joint Liability Groups, follow up recovery and undertake debt counseling.  

In order to promote operation in No Frill accounts, the Bank has instituted a Shield in every village to be given to account holder having maximum number of transactions in a year.  The Bank has also instituted a Trophy to be awarded to the village of a base branch generating maximum Micro Insurance business. For financial literacy the Bank is showing films with rural flavor like “Lagan” and using intermission for customer education.

Punjab & Sind Bank Cuts Interest Rates on Home And Auto Loans

Punjab & Sind Bank has reduced the rate of interest on all fresh home loans and auto loans with a view to meet the growing demand of consumers during the festive season. The reduced rate of interest for all new home loans upto Rs. 20.00 lakhs would be 8.25% p.a. for first 24 months, 9% p.a. for next 36 months and thereafter BPLR-2.5% p.a. subject to minimum of 10% p.a. Similarly, for all fresh home loans above Rs. 20.00 lakhs and upto Rs. 30.00 lakhs, the rates are revised to 8.5% p.a. for first 24 months, 9.5% p.a. for the next 36 months and thereafter to BPLR-2% p.a. with a minimum of 10.75% p.a. For home loans above Rs. 30.00 lakhs, the revised rates are 10% p.a. for first 24 months, 10.75% for next 36 months and BPLR-1.5% p.a. with a minimum of 11.5% p.a. thereafter.

For new auto loans, the bank has reduced interest rates by 50 basis point upto loans of Rs. 10.00 lakhs. Where collateral security is available, these loans shall attract still lower rates starting from 9.75% p.a. onwards linked to Bank’s BPLR.

The revised rates will be applicable for all fresh Home & auto loans with effect from 21st September, 2009 onwards and shall remain in force up to 31.03.2010.