New Delhi, Jul 1 (KNN) Challenging economic environment has forced the Punjab National Bank (PNB), like several other PSU banks, to focus on earning growth from the grass root level.

“PNB is concentrating on growth…the core business strategy in FY 15 is ‘profitable growth from the grass roots’ which is essential given the challenging nature of the operating environment,” the bank chairman and managing director K R Kamath has said.

Kamath, while addressing at the 13th Annual General Meeting of Punjab National Bank held here yesterday told the stakeholders that PNB’s credit to MSME sector increased to Rs 75,051 crore reflecting a growth of 22.08 per cent as on March 31, 2014.

To give boost to the MSME business, PNB had launched MSME credit growth initiative in 250 branches in January 2014, Kamath said adding, “This initiative proposes to reduce turnaround time and to grow MSME portfolio by 30 per cent from December 2013 to December 2014.”

Apart from this, the bank has provided the facility of on-line submission of applications with a provision to track progress of applications under MSE segment, the bank CMD informed.

Further, a concession of 20 per cent in upfront fee and processing fee is extended to borrowers who submit application on-line as an incentive, Kamath said.

Several other banks including Dena Bank, Syndicate Bank, Bank of Baroda etc have taken similar initiatives. (KNN/SD)