Data Analytics
How Punjab National Bank has revamped loan recovery with Data Analytics
Punjab National Bank (PNB) is leveraging technology and inclusivity to improve loan recovery. The bank has implemented data analytics to identify customers at risk of delayed payments.
“We can pinpoint which borrowers need a gentle reminder, require follow-up calls, or might benefit from a personal visit,” explained PNB managing director Atul Kumar Goel.
Beyond data, PNB employs a unique approach – specially-abled personnel, specifically mentioning visually-impaired staff, manage some call center positions. These dedicated staff members often reach out to customers with overdue payments.
This combined strategy, along with streamlined processes, has yielded positive results. Since July 2020, PNB has seen a significant reduction in non-performing assets (NPAs) for new farm loans. “Our new methods have brought down farm sector NPAs in the new portfolio to a mere 0.4%, compared to the historical range of 14-15%,” said Goel.
PNB has also implemented automated repayment options. They directly deduct EMIs from customer accounts whenever possible. Additionally, for customers with accounts in other banks, PNB utilizes the National Automated Clearing House (NACH) to ensure timely repayments.
These combined efforts demonstrate PNB’s commitment to responsible lending practices and fostering financial inclusion through innovative recovery methods.
“We can pinpoint which borrowers need a gentle reminder, require follow-up calls, or might benefit from a personal visit,” explained PNB managing director Atul Kumar Goel.
Beyond data, PNB employs a unique approach – specially-abled personnel, specifically mentioning visually-impaired staff, manage some call center positions. These dedicated staff members often reach out to customers with overdue payments.
This combined strategy, along with streamlined processes, has yielded positive results. Since July 2020, PNB has seen a significant reduction in non-performing assets (NPAs) for new farm loans. “Our new methods have brought down farm sector NPAs in the new portfolio to a mere 0.4%, compared to the historical range of 14-15%,” said Goel.
PNB has also implemented automated repayment options. They directly deduct EMIs from customer accounts whenever possible. Additionally, for customers with accounts in other banks, PNB utilizes the National Automated Clearing House (NACH) to ensure timely repayments.
These combined efforts demonstrate PNB’s commitment to responsible lending practices and fostering financial inclusion through innovative recovery methods.
