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Wednesday, December 18, 2013

HDFC Bank seeks change in criteria for giving ranks in Punjab

Expressing displeasure over not being in Punjab government's top 10 banks list, private lender HDFC Bank sought tweaking in criteria for giving ranks to banks for alloting government business.

"The state (Punjab) government should bring competition among banks (for ranking purpose) which will help the state... we want those parameters which should encourage banks to focus on the state," HDFC Bank Branch Banking Head (North) Govind Pandey told reporters here.

HDFC Bank, which has 400 branches in Punjab, will seek from state government consideraion of the bank's network or branch strength and size of business in the state while ranking any bank for allocating business.

"Bank's network or branches in the state, size of business in the state...these things should also be taken into consideration," he added.

The bank also sought to differentiate large or commercial banks with cooperative or small banks while working out rank for any bank as later normally have less presence or branch strength. "Cooperative banks should be put in separate category (for ranking purpose)," he said.

He said that the matter would soon be taken up with the appropriate authority for bringing change in the parameters.

The Punjab government had decided that it would allocate government business, including placement of deposits to banks as per ranking done by the state.

As per latest ranking done by the Punjab government, Punjab State Cooperative Bank has replaced HDFC bank by acquiring first rank among the list of top 10 banks in the state. HDFC bank is not in the new list of top 10 banks.

During last ranking done by the state six months back, HDFC Bank had secured first position in the ranking list.

The state government, currently, considers achievement of national goals set by RBI towards lending to priority sector, agriculture, weaker section and credit deposit ratio by banks in Punjab to give ranks.

Banks vie hard among themselves for acquiring sizeable government business, including heavy deposits, advances, salaries, etc.

HDFC Bank at present handles about Punjab government's business to the tune of Rs 1,000 crore including one lakh accounts of state police department.

The bank, which today opened its 400 branch at Jhanjheri in Mohali district, plans to ramp up branch strength in the state by adding 150 more branches in next one year.

"Our focus will be to further penetrate in semi-urban and rural areas to cover unbank and underbank areas in Punjab," Pandey said.

HDFC, which has about 81 per cent of its network dedicated to semi-urban and rural areas, has deposits and advances to the tune of Rs 11,210 crore and Rs 10,535 crore, respectively in Punjab as on September 30, 2013.

Source: EconomicTimes


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