In a bid to give tough competition to its public and private sector peers,

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the country’s second largest public sector bank, the Punjab National Bank, is planning to introduce cash management system for corporate houses by November.

Every corporate organisation has receivables to collect from its dealers scattered in various centres across the country and make payment to them (dealers) at regular intervals. At present, these transactions take place through various accounts of these companies. Often big corporate houses remain clueless of their total liabilities and assets.

The cash management system provides solution for the same. Under the cash management system (CMS), a corporate house can remit fund to its various dealers through a single centralised account apart from various bank accounts. Similarly, funds credited in various accounts of the company across the country can be accessed through the centralised account and these funds can be put to use through that centralised account.

Thus, CMS, apart from enhancing the efficiency of a company, also helps it in better cash management, by furnishing information of their total balances as well as liabilities at given point of time.

While, some private sector banks already have this facility, most public sector banks including the country’s largest bank State Bank of India do not have the particular system in place.

“Though private sector peers have CMS in place, they do not have adequate branch network across the country to benefit business houses a great deal. As we have more than 4,500 branches across the country, we would be in much better position to benefit them once we launch the CMS platform,” J M Garg, executive director, Punjab National Bank told Financial Chronicle.

Meanwhile, the bank is in advance talks with San Francisco-based Visa as well as New York-based MasterCard to launch its credit card business. While PNB already has a tie-up with MasterCard for its debit card, it may prefer Visa for credit card business.