Punjab National Bank (PNB), a state-run institution, is going to utilise data analytics to study the repayment patterns of its customers, thereby enhancing the efficiency of loan recovery processes. This initiative also involves the utilization of specially-abled personnel, particularly visually impaired individuals, to engage with borrowers who exhibit tendencies to delay payments.
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Atul Kumar Goel, the managing director of PNB, speaking to TOI said, the pivotal role of data analytics in identifying customers within the database who display tardiness in repayment. Through this system, the bank can pinpoint individuals requiring reminders post the due date, those necessitating repeated calls to ensure EMI compliance, or even those meriting personal visits from bank representatives. This precision-driven approach ensures a targeted effort towards timely loan repayments.
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Differently Abled To Reach Out Borrowers
PNB’s strategy is the integration of visually impaired executives within their call centers. These individuals play a crucial role in reaching out to borrowers who have defaulted on their EMIs. By employing specially abled staff in these roles, PNB not only enhances inclusivity within its workforce but also leverages their unique skills in engaging with customers effectively.
Goel further highlighted the effectiveness of these measures in bolstering loan recovery outcomes. Despite disbursing loans amounting to Rs 7.1 lakh crore since July 2020, NPAs (Non-Performing Assets) stand at a relatively low figure of around Rs 1,775 crore. This success underscores the significance of employing data-driven strategies coupled with innovative approaches to address repayment challenges.
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NPAs Reduction
Agricultural sector NPAs within the bank’s portfolio. Previously, these NPAs stood at alarming rates of 14-15 per cent, but with the implementation of new mechanisms, they have been substantially reduced to a mere 0.4 per cent. This remarkable decline showcases the efficacy of PNB’s proactive measures in curbing loan defaults within specific sectors.
PNB has also adopted proactive measures to facilitate timely repayments. Direct deduction of EMIs from customer accounts is one such initiative. Additionally, for customers holding accounts with other banks, the National Automated Clearing House (NACH) is utilized to ensure seamless and punctual repayment processes. These interventions streamline repayment procedures, reducing the likelihood of defaults and enhancing overall loan recovery rates.
