NEW ORGANIZATIONAL

STRUCTURE OF PNB 2.0

LKMC 1
 PNB 2.0 – A Brief Introduction

Government of India formalised and initiated the

consolidation process of 10 Public Sector Banks into
4 through Amalgamation in the month of March 2020
with a purpose to create a strong, productive,
competitive, growth oriented, profitable, technology
driven and customer centric banking system.

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 Amalgamation Benefits

◦ Full value chain financial linkages which is the

growth multiplier,
◦ Higher lending capacity.
◦ Improved reach for customers for better customer
services,
◦ Possibility of higher technology investment in order to
encourage Fin Tech based lending and higher market
capital raising potential through better profitability.

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The Central Government approved the Scheme of
Amalgamation of Oriental Bank of Commerce (OBC)
and United Bank of India (UBI) into Punjab National
Bank effective from 01.04.2020 which was published
vide Gazette Notification No. CG-DL-E-04032020-
216535 dated 04.03.2020.

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The amalgamation of 3 premier Public Sector Banks,
namely, Oriental Bank of Commerce (OBC) and United
Bank of India (UBI) into Punjab National Bank (PNB) w.e.f.
1st April 2020 has created the amalgamated entity PNB 2.0
which has become 2nd Largest Public Sector Bank of
India, after SBI, with General Branch network of 10094
branches, 12,645 ATMs & 28782 BC, 1 Lakh+ employees
as on 30.09.2023 with Total Business of around
Rs.22.51 Lac Crore.

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The guiding principles for building the amalgamated
structure PNB 2.0 as Bank of the Future are based on
the principles of shared Vision plans and goals,
Organisational Design and Governance, Capacity
Building, Change & Integration, Cultural Activation,
Cohesive HR Policies & Processes and Pay Benefits
Harmonization.

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The 6 pillars required to build PNB 2.0 as the Bank of the Future are :
1. Customer Centricity
2. Verticalization and Segmentation
3. Technology
4. Digital Delivery
5. Human Resource Alignment
6. Efficiency

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The 6 design principles for building the amalgamated
structure PNB 2.0 as Bank of the Future having
enhanced competitiveness, future focused and built to
scale entity with full legal compliance, procedural fairness
and transparency with 100% resource alignment for a
seamless change experience are as under:

1. Scalability – Built for future growth

Structure that not only supports the current volumes and
size but is geared for the future growth and managing an
organization with significant size.

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Customer Centricity
2. Designing the structure with customers at the centre of the overall
ecosystem.
3. Operational Agility
Building an agile structure that adapts to the changing needs.
4. Span of Control
Optimised chain of command & accountability for deliverables.

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5. Manpower Capacity
Manpower planning linked with business volumes in order to ensure
optimized staffing.

6. Centralization/ Decentralization
Structure facilitating right balance between control at HO and
responsible decision making down the line.

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In order to improve the administrative support, control &
transparent structure of reporting system, Bank’s Board in its
meeting dated 05.03.2020 approved reorganisation of Circles &
Zones and in its meeting dated 19.03.2020 approved new
Organisational Structure for Bank’s Corporate Office,
Administrative Offices in field and Verticals, for the new entity
post amalgamation.

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To achieve improvement in overall productivity of the Bank and to
ensure enhanced level of customer centricity, focused approach
has been taken towards Verticalization & Segregation of Roles &
Responsibilities along with Digitalization to push efficiency. Bank
has retained its core structure of 4 Tier Model with key changing
factors like Digital Focus, drive Efficiency through creation of Back
Offices and centralised operations, Verticalization and
segregation of responsibilities.

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The 4 Tier Structure of PNB 2.0 is under
overall supervision and control of The
Managing Director & Chief Executive Officer
(MD & CEO), 4 Executive Directors (EDs) and
Board of Directors of the Bank.

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T1 (Tier 1) includes Head (Corporate) Office Divisions & Departments
which is subdivided into 3 distinct categories depending on their assigned
duties :
(1) Business Divisions
(2) Support Divisions
(3) Control Divisions
◦ T2 (Tier 2) is the Zonal Level consisting of 22 Zonal Offices(ZOs), 22 Zonal
Audit Offices(ZAOs) and 15 ELCB AND LCB)
◦ T3 (Tier 3) is Circle Level consisting of 139 Circle Offices(COs) and various
verticals ( 116 Mid Corporate Centres-MCCs, 139 PNB Loan Points- PLPs,
57 Customer Acquisition Centres- CACs and 21 Government Business
Vertical Centres- GBVs)
◦ T4 (Tier 4) is the Business Unit Level consisting of 10,094 Branches,
12,645 ATM and 28,782 BC points.

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Corporate Office structure (T1) can be further segregated under 3 type of
Divisions as under :

A. Business Divisions :
This includes following Divisions : (1) Agriculture Division, (2) Business
Acquisition and Relationship Management Division, (3) Corporate Credit
Government Business, (4) Credit Card and Merchant Acquiring Business
Division, (5) Customer Acquisition Division (6) Digital Banking (7), (6) Group
Business, (7) Financial Inclusion (8) Fintech. (9) Group Business Management
Division (10) International Banking (11) MSME & Mid Corporate Division (12)
Retail Asset Business Division (13) Retail Asset Division (14) Retail Liabilities
Business Division (14) Treasury
B. Control Divisions :
This includes following Divisions: (1) Compliance Division (2) Credit Review and
Monitoring (3) Cyber and Information Security Division (4) Disciplinary Action
Division (5) Fraud Risk Management Division (6) Inspection & Audit Division (7)
Integrated Risk Management, (8) SASTRA (9) Vigilance Division
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C. Support Divisions :
This includes following Divisions : (1) Analytics Center of Excellence (ACoE)
(2) Board & Coordination Division (3) Corporate Communication Division (4)
Finance Division (5) General Services and Administration (6) Human Resource
Divelopment Division (7) Human Resource Management Division (8)
Information Technology (9) Law Division (10) LKMC (11) Mission Parivartan
Division (12) Operations Division (13) PF & Pension Division (14) Strategic
Management & Economic Advisory Division
* Integrated Risk Management reports directly to MD & CEO and Chief
Information Security Officer (CISO) reports directly to the designated Executive
Director.

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The Bank will have 22 zones at present across India based
on demographic separation and presence of branches.

Agra Chennai Jaipur Patna

Ahmedabad Dehradun Kolkata Raipur
Amritsar Delhi Lucknow Shimla
Bhopal Durgapur Ludhiana Varanasi
Bhubhaneshwar Guwahati Meerut
Chandigarh Hyderabad Mumbai

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The Zonal Office is headed by a officials of CGM/GM levels depending on
the size and business.

Under each Zonal Head, roles will be segregated into 4 aspects:

1. Business- (Credit) handles Monitoring of Lead Generation, MCCs,

PLPs, Credit Processing, Trade Finance. Deposits.

2. Control & Compliance handling Inspecting & audit, Finance, Credit

Monitoring and Compliance function.

3. Support handles Information Technology, HR & DAC,GSAD,

Operations, Customer Grievances and Cash Management and law.

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4. Business – (Deposit) handles deposits, Planning & development,
State level banker's Committee, Third Party and Digital Business, and
Rajbhasha Department.

*Zonal Mid Corporate Head will supervise, monitor and control all the Mid
Corporate Centres (MCCs)in the zone.

*Zonal PNB Loan Point Head will further supervise, monitor and control
Zonal Agri & MSME, Zonal Retail and all the PNB Loan Points (PLPs)in the
zone.

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Apart from above, the reporting pattern at Zonal level for respective
Verticals is as under:
Zonal Audit Office (ZAO) will monitor and control Internal Audit and
Concurrent Audit.
Zonal Risk Management Centre (ZRMC) will monitor and control Zonal
Operational Risk Team and Zonal Risk Rating Team.
Zonal SASTRA will monitor and control Zonal Resolution, Zonal Recovery
and NCLT Cell.
Zonal Vigilance under Vigilance Division will be a separate zonal structure to
monitor and supervise all zonal level structure from vigilance angle.

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Under 22 Zones, there will be total 139 Circles at present with each Zone
monitoring 3 to 10 Circles, depending on size and location.
The Circle Office is headed by a officials of DGM/AGM levels depending on
the size and business.

Under each Circle Head, roles will be segregated into 3 aspects which will
be looked in after by Deputy Circle Heads :

1. Business comprises of Deposits, Third Party and Digital Business,

Planning and development and Rajbhasha Department.
2. Control & Compliance comprises of Recovery Monitoring, Inspecting
audit, Credit Review & Monitoring and Compliance Department
3. Support comprises Customer Grievances and Cash Management,
GSAD & HR, , IT & Operations and Law & Complaint Department.

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Branches will be headed by Branch Heads of different scales depending on
the business. BHs will have overall responsibility and control of their branch.
They will be monitoring and responsible for Branch Operation and Loan
Sanction under their power.

Various activities of the branch like Branch Level Compliance, Credit

Monitoring, Recovery and Digital Champion are undertaken by designated
officers who directly report to the BH.
At present, Bank has 10094 General Branches.

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 CREDIT DELIVERY STRUCTURE
Credit Delivery model is structured in 4 level for delivery of different segments
of Credit through different Verticals & branches.
(1.) 13 Large Corporate Branches (LCBs) and ELCB for Corporate borrowal
accounts above Rs.50 Crore and 2 Extra Large Corporate Branches (ELCBs)
for Corporate borrowal accounts above Rs.500 Crore.
(2.) Corporate Banking Branch (CBB): to cater to the business at Centres not
having LCBs or where existing LCBs are having limited business potential, Bank is
introducing Corporate Banking Branch (CBB) Structure (by conversion of existing
General Banking Branches and LCBs) to handle corporate accounts above Rs.10
Crore.
(3.) 116 Mid Corporate Centres (MCCs) will deal with Mid Corporate
segment of borrowal accounts above Rs.1 Crore and up to Rs.50 Crore.

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 CREDIT DELIVERY STRUCTURE

(4.) 139 PNB Loan Points (PLPs) – RAM centres will cater to Core
Agriculture including KCC & KGS accounts above Rs.10 Lac and upto Rs.1
Crore, Retail accounts above Rs.10 Lac and MSME & other accounts above
Rs.10 Lac and upto Rs.1 Crore.
Apart from lead generation, all the responsibilities of Pre Sanction,
Processing and Sanctioning is with PLP. Post sanction monitoring of these
accounts remain with the branches.
(5.) Branches are 4th level of the structure catering to core Agriculture
including KCC/KGS accounts, Retail, MSME & other accounts upto Rs.10
Lac under their power. They are also responsible for Lead Generation for
PLPs-RAM & MCC.

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Responsibility of NPA recovery is as under :
1. For NPA=<Rs.1 Lac, recovery processing will be carried out by
Branches and OTS power is with the Branch Head.
2. For NPA>Rs.1 Lac , recovery processing will be carried out by Circle
Level SASTRA Centre and OTS power is with the Committee at Circle
Level.
3. For NPA above 10 crs, will be dealt by Zonal Sastra in those centres
Zonal office exist along with Circle office. In those Centres Where
Zonal office and Circle office are at different location then these NPA’s
recovery processing will be carried out by Circle Level SASTRA Centre
and OTS power is with the Committee at Zonal Level.

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 ZONAL RISK MANAGEMENT
CELLS (ZRMCs)

Total 24 dedicated Zonal Risk Management Cells (ZRMCs), one in every

zone, have been created to carry out rating processing of the account and
rating approval. The job distribution of rating is as under:
1. For proposal amount of more than Rs.50,000/- to Rs.10 Lac, Score/Rating
Entry & vetting is done at branches.
2. For proposal amount of more than Rs.10 Lac to Rs.1 Crore, Score/Rating
Entry and Score/Rating Vetting both are done at RAM Centre.
3. For proposal amount of Rs.1 Crore to Rs.10 Crore, Score/Rating Entry is
done at MCC and their Score/Rating Vetting is done at Zonal Risk Centre.
4. For proposal amount of Rs.10 Crore and above , Score/Rating Entry is
done at Zonal Risk Centre and their Score/Rating Vetting is at HO Risk
Centre.

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 Customer Acquisition Centres

57 Customer Acquisition Centres (CACs) for Lead Generation to sell liability

products to customers and are being created at select location with higher
business potential and lower market penetration of the Bank, which will work
with focus on Corporate / Institutional Sales and cross selling and upselling to
existing Corporate / Institutional customers. These centres will have dedicated
teams for targeting corporate and institutional clients for selling Bank’s own
products and third party products.
Some centres will have dedicated team for HNI/ NRI client servicing and
relationship building.
Branches and CACs will be responsible corporate and Institutional sales.

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 Government Business Verticals

21 Government Business Vertical Centres (GBVs) are being created at

state capitals with focus on Government institutions, PSUs, Defence
establishments through State Government Liaisoning team. The team’s role
is to cater to all the banking needs of the Government institutions, Defence
establishments, PSUs etc.

CASA Back Offices (CBOs) have been created and each one has been
mapped with a set of branches for Account Opening within a given TAT.

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THANK YOU

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