PNB chairman and managing director SS Kohli, who was here on Friday to preside over the diamond jubilee meeting of the state-level banker's committee (SLBC) convened by Punjab zone, told The Financial Express in an exclusive interview that the bank has tied up with Hero Honda group and a foreign company.

PNB will have just 15 per cent stake in this venture while Hero Honda group will have 59 per cent share and the rest 26 per cent will be by the foreign company. Mr Kohli said that after clearance from the Reserve Bank of India, the same would be sent to Insurance Regulatory Authority for its clearance.

He hoped that this was "likely to happen soon" and the bank would make a grand entry into insurance sector.

About the sale of gold scheme, the CMD said that in just four months of its launch, it had notched about Rs 500 crore and now the scheme was to be sold to other centres. The international card launched by the PNB had by far reached 5,500 people. The banks focus now is to provide better service and it is considering a special scheme for high networth customers.Special branches would be opened for corporates" to cut down the delays".

The customers of corporate branches need not send their proposals through the regional offices or zonal offices, but these would be dealt with directly by the head office. One such branch was likely to be opened in Punjab at Ludhiana, the CMD disclosed.

PNB, which was a lead bank in Punjab, Haryana and Himachal Pradesh, has plans to create a special Tractor Welfare Fund. The farmers would not be required to pay premium for comprehensive insurance, but just Rs 250 per year and bank would take care if there was a breakdown.

The bank would also help state government set up rural training centres for farmers. Punjab, Haryana and Uttar Pradesh are likely to be covered under this scheme. The national bank for agriculture and rural development (Nabard) has given its consent to join hands with PNB for this scheme. About the non-performing assets, Mr Kohli said that last year the gross NPA stood at 13.5 per cent and net at 8.4 per cent. This year by March-end, the gross is likely to be brought down to 12 per cent while net NPA is likely to come down to about 7.5 per cent.

About the voluntary retirement scheme(VRS), the CMD said that about 5,700 employees had been given VRS and disclosed that the age group ratio made an interesting reading - the employees between the age group of 40-50 years were 33 per cent, between 50-55 about 33 per cent and 55-60 years 34 per cent.