PNB seeks consultant for profit maximisation
Public sector lender Punjab National Bank (PNB) is looking for a consultant to help it formulate strategy to maximise profit by pruning unnecessary expenses and increasing revenue.
The consultant, according to a request for proposal (RFP), will be appointed for a period of two years.
PNB said it is looking to improve its profitability with measures ensuring revenues are improved and cost are optimised.
The profit maximisation exercise will be undertaken across its subsidiaries, joint-ventures and affiliates.
Public sector banks in the country have piles of bad loans on their books and they have clear directions from RBI and the government to improve their balance sheets and bring down stressed assets.
Besides, these banks have also been asked to hive off their non-core businesses.
Public sector banks' bad loans increased by over Rs 1 lakh crore to Rs 6.07 lakh crore during April-December period of the current fiscal, from Rs 5,02,068 crore at the end of 2015-16.
As of third quarter ended December, PNB's gross non-performing assets (NPAs) were 13.70 per cent of gross advances at Rs 55,627.51 crore.
PNB in its request for proposal (RFP) to hire consultant wants to know about areas including lease rentals, travel, stationary etc where cost optimisation is feasible.
The consultant will also be tasked with how to improve deposit mix strategy, to reduce cost of deposits or launch of new schemes.
Assessment of productivity levels and capabilities of employees, identification of reasons behind lower productivity and how to address such issues through policy, process and technology are among other scope of work areas.
"The project is envisaged for a total duration of 24 months from the date of signing the agreement. The bank may continue the services of the Management Consultancy firm for handholding for a further period of not exceeding 12 months agreement," PNB said.
Interested parties have been asked to submit their bidding through e-procurement/physical submission from April 12-13 by 5 pm.