SAURABH JAIN 08 BS 000 3005 IBS, CHENNAI

Overview of the Presentation
Overview of Bank Profitability analysis and Industry Analysis Share holding Patterns Ratio Analysis Future Plans Conclusion

Punjab National Bank
 Started in May 19, 1894 in Lahore.  Nationalized on July 19, 1969 with 13 other major commercial banks.  2nd largest network of branches • 4668 branches including 238 extension counters and 3 overseas offices.  3rd largest bank in the country (after SBI and ICICI Bank).  38 million satisfied customers.  Business grew to Rs 3,64,463 crore as March 2009.

Performance Analysis: FY’09
2009 NET PROFIT OPERATING PROFIT DEPOSIT ADVANCES TOTAL BUSINESS 3,091 5,774 2,09,760 1,54,703 3,64,463 2008 Growth(%) 2,049 4,006 1,66,457 1,19,502 2,85,959 50.87% 44.13% 26.01% 29.46% 27.45%

BALANACE SHEET

PROFIT & LOSS A/C

Ratio Analysis
Investment Valuation Ratio

Ratios…2
Profitability Ratios Mar '05 Mar '06 Mar '07 Mar '08 Mar '09 Net Interest Margin 3.67 3.94 4.4 4.18 4.18 Adjusted Cash Margin(%) 15.64 16.35 14.1 13.72 14.6 Net Profit Margin 13.84 14.5 12.53 12.68 13.76 Return on Long Term 81 74.57 80.76 111.5 129.8 Fund(%) 2 3 Return on Net Worth(%) 22.49 17.01 16.03 19 23.52 Return on Assets Excluding 248.93 287.7 321.6 341.9 416.7 Revaluations 9 5 8 4 Return on Assets Return on Equity Yield on Advances

Ratios….3
Management Efficiency Ratios Mar '05 Mar '06 Mar '07 Mar '08 Mar '09 Interest Income / Total 8.52 7.23 7.88 8.86 9.89 Funds Non Interest Income / Total 0.41 0.1 0.12 0.13 0.25 Funds Interest Expended / Total 3.91 3.63 3.92 4.86 5.55 Funds Operating Expense / Total 2.7 2.27 2.43 2.08 2.18 Funds Profit Before Provisions / 2.17 1.29 1.53 1.96 2.32 Total Funds Net Profit / Total Funds 1.24 1.06 1 1.14 1.4 Loans Turnover 0.18 0.15 0.14 0.15 0.16 Total Income / Capital 8.94 7.33 8 8.99 10.14 Employed(%) Interest Expended / Capital 3.91 3.63 3.92 4.86 5.55 Employed(%) Total Assets Turnover 0.09 0.07 0.08 0.09 0.1

Ratios….4
Profit And Loss Account Ratios Interest Expended / Interest 52.64 51.31 52.2 Earned Other Income / Total 4.62 1.33 1.52 Income Operating Expense / Total 30.19 31 30.36 Income Selling Distribution Cost 0.19 0.2 0.14 Composition Balance Sheet Ratios Capital Adequacy Ratio 14.78 11.95 12.29 Advances / Loans Funds(%) 61.93 64.26 72.04 Debt Coverage Ratios Credit Deposit Ratio 56.33 60.6 65.97 Investment Deposit Ratio 48.56 41.16 33.23 Cash Deposit Ratio 8.48 14.74 13.78 61.2 63.62 1.43 2.46

23.1 21.53 0.14 0.14

13.46 14.03 76.19 80.15 70.55 72.88 32.38 31.2 9.02 8.59

NPA Administration
 The gross NPA reduced by 552 crore to 2767 crore.  NPA coverage Ratio increased to 90% compared to 77.3% in March’ 08.  Rs. 4074 crore were restructured.
March’ 09 March’ 08 Gross NPA( Rs. Crore) Gross NPA as % to Gross Advances Net NPA( Rs. Crore) Net NPA as % to Gross Advances 2767 1.77% 263 .17% 3319 2.74% 754 .64% Variation in 1 year -552 -0.97% -491 -0.47%

Share Holding Pattern
Holding in (%) as of 31, March 2009 1. Central Government/ State Government(s) 2.A Mutual Funds/ UTI 2.B Financial Institutions/ Banks 2.C Insurance Companies 2.D Foreign Institutional Investors 2 Institutions 3 Others /Public 57.80%

5.54% 0.23% 15.28% 14.86% 35.91% 6.29%

New Initiatives
 To provide basic Financial Services to identified 34 Pilot Projects like Richshaw Pullers, Vegetable Vendors, Women and other unserved sections etc.  Tie up with NGOs to enlarge Microfinance in North-Eastern States.  Launched PNB Global Credit Card.  Associated with SMC Global Securities and NSBL to provide Demat and Trading Account.  Global Forays: Presence in 8 Countries.  A subsidiary unit in UK with 4 branches(PNBIL).

 Coming soon……
 A Subsidiary in Canada.  An Offshore Banking Unit in Singapore.  A branch at DIFC, Dubai. Upgraded Infrastructure/Hardware which can handle business of 6000 branches and 1 lacs terminals. “Project Namaskar” to cover villages by 2013 to create a large customer base. “Prepaid World Travel Card” in three currencies (USD, Euro, GBP).

Conclusion

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