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ximim eig.

imm puniab notional bank

.?!..6,04ationai
HO: FINANCE DIVISION SHARE DEPART ARG, NEW DELHI-110001
Tel Nos : 011-23708257 Fax No : lm*. 3 LiL ail : hosd@pnb.co.in
o Shari Dort
0- Fine ce Dry
SDFD/SE/256
08.06.2017
Script Code : PNB Script Code : 532461
The Assistant Vice President The Dy. General Manager
National Stock Exchange of India Limited Bombay Stock Exchange Limited
"Exchange Plaza", 1st Floor, Phiroze Jeejeebhoy Towers
Bandra — Kuria Complex, Bandra (E), Dalai Street,
Mumbai — 400 051 Mumbai — 400 001

Sir,

Reg.: AGM of the Bank to be held on 29.06.2017 — Annual Report for the financial year
2016-17.

We are attaching herewith Full version of Annual Report for the financial year 2016-17
containing notice of AGM. The same is sent to shareholders whose email ids are
registered with the STA/Depository Participants(s) whereas Abridged Annual Report
for 2016-17 has been sent to all other shareholders at their registered address in the
permitted mode.

The said Annual Report is also displayed on Bank's website www.pnbindia.in.

This is in compliance of the SEBI (LODR) regulations 2015.

Thanking you,

Yours sincerely,

Balbir Singh
Encl: A/a Company secretary

31NT9' Trzfi—
dzi : 7, 1-117UT -1T1T rc.11 - 110607 • TiTiq : 26102303 • c : www.pnbindia.in
Head Office : 7, Bhikhaiji Cama Place - 110 607 • Telephone : 26102303 • Website : www.pnbindia.in
Livii<{Arqa. 3 'et i1471 24 1471c4 tdi 317E TT t Punjab National Bank welcomes you to toll free 24 hours call center :1800 180 2222/1800 103 2222
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

GPLMXQI Contents
 JA#MB Page No.

VLTG7M 2-16 Notice 2-16


GVOTLELTBEIGKJLT7; 17-35 Directors’ Report 17-35
ÈDBVMBDBIGPQLKGPFL; PBGPZTLL 36-48 Management Discussion and Analysis 36-48
GVYGFSLLMVJKZTvLJKI\LELTELÈFLLJL 49-50 Auditors’ Certificate on Corporate Governance 49-50
GVYGFSLLMVJKGKJLT7; 51-81 Report on Corporate Governance 51-81
ELKLTDLKNºLKOLG3PGKJLT7; 82-97 Business Responsibility Report 82-97
GVYGFSMLFLGUEN3SKOLG3PGKJLT7; 98-109 Corporate Social Responsibility Report 98-109
DTMZII PBDTMZIIIETWBSY;SÈE7IEKL 110-111 Disclosure under Basel II & Basel III 110-111
GPºLIGPPKLJL MLTZLT
Financial Statements (Solo)
- SRZVJL 113-114 - Balance Sheet 113-114
- ZL)LHLGV<LLSL 115-117 - Profit & Loss Account 115-117
- WVRMXGQLB 118-127 - Schedules 118-127
- ÈFRvZTvLGPGMBDBIVIGSLB 128-140 - Significant Accounting Policies 128-140
- vLSLTBMTM&DG6SG7*JGLLB 141-179 - Notes to Accounts 141-179
- VEOIJ[PLHGPPKLJL 180-182 - Cash Flow Statement 180-182
- ZT<LLJKI\LELTBEIGKJLT7; 183-185 - Auditors’ Report 183-185
MFTGESGPºLIGPPKGLLB Consolidated Financial Statements
- SRZVJL 187-188 - Balance Sheet 187-188
- ZL)LHLGV<LLSL 189-191 - Profit & Loss Account 189-191
- WVRMXGQLB 192-204 - Schedules 192-204
- ÈFRvZTvLGPGMBDBIVIGSLB 205-218 - Significant Accounting Policies 205-218
- vLSLTBMTM&DG6SG7*JGLLB 219-233 - Notes to Accounts 219-233
- VEOIJ[PLHGPPKLJL 234-237 - Cash Flow Statement 234-237
- ZT<LLJKI\LELTBEIGKJLT7; 238-240 - Auditors’ Report 238-240
LLTLLLJL 241-242 Declaration Form 241-242
VLFLBEVJL 243-244 Nomination Form 243-244
0GºL2YSULVELKI 245-248 Personal Information 245-248
J[L8%MIJ2LF; 249-250 Proxy Form 249-250
NJG-'LGSJQI;MHJ[PTLJL 251-252 Attendance Slip cum Entry Pass 251-252

ZT<LLJKI\LE AUDITORS
/LUT. B.OLTLI Chhajed & Doshi
WLKOTPT6ÇERFLK B. MLTGM 7_M R Devendra Kumar & Associates
HTFMBOIJ B.E&JVI Hem Sandeep & Co.
MXKI B.E&JVI Suri & Co.
MJI FUI B.E&JVI SPMG & Co.

LTKWBSKL UTB7 SHARE TRANSFER AGENT


DI7ZJ2LC;VTBGLZ B.E&*X7KMGP;GMU ÈL
GZGF7T.
Beetal Financial & Computer Services (P) Limited
?DI7ZHLNM >SASISZ> ‘Beetal House’, 3rd Floor
>FOVYIK>ZLTEZLL8GJBYMTB7KETJI/T> 99, Madangir, Behind Local Shopping Centre
VC;GO:ZI New Delhi 110062
7TZIVB!!>J24%M Tel. No. 011-29961281/82/83, Fax: 011-29961284
C;FTZbeetal@beetalfinancial.com e-mail: beetal@beetalfinancial.com

1
ÈEL>)LIvL UIELFL*ZTM>VC;GO:ZI
C;FTZhosd@pnb.co.in

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GOVLBE ÈD6ÉLGVOTLE PBFR<EL;JLZEWGÉLELKI

2
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

Head Office : 7, Bhikhaiji Cama Place, New Delhi – 110 607


(email – hosd@pnb.co.in)

NOTICE
NOTICE IS HEREBY GIVEN that pursuant to regulations 56 of Punjab National Bank (Shares & Meetings) Regulations, 2000,
16th Annual General Meeting of the Shareholders of Punjab National Bank will be held on Thursday, the 29th June, 2017, at
10.00 A.M. at Punjab National Bank Auditorium, Central Staff College, 8, Underhill Road, Civil Lines, Delhi-110054 to transact
the following business:
1. To consider and adopt the Audited Balance Sheet of the Bank as at 31st March 2017, Profit and Loss Account of the Bank
for the year ended 31st March 2017, the Report of the Board of Directors on the working and activities of the Bank for the
period covered by the Accounts and the Auditor’s Report on the Financial Statements.
2. Election of one Shareholder Director of the Bank
To elect ONE Director from amongst the shareholders of the Bank, other than the Central Government, in respect of
whom valid nominations are received in terms of Section 9 (3) (i) of the Banking Companies (Acquisition and Transfer
of Undertakings) Act, 1970, (hereinafter referred to as “Act”) read with the Banking Regulation Act, 1949 (hereinafter
referred to as “B R Act”), The Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970 (hereinafter
referred to as “Scheme”) and the Punjab National Bank (Shares and Meetings) Regulations, 2000 (hereinafter referred to
as “PNB Regulations”) and Notification Nos. DBOD. No. BC. No. 46 & 47/29.39.001/2007-08 dated 01-11-2007 and No.
DBOD.NO. BC.No. 95/29.39.001/2010-11 dated 23-05-2011 of Reserve Bank of India (hereinafter referred to as “the RBI
Notification”) and the extant Government of India (GOI) Guidelines.
To consider and if thought fit, pass with or without modification, the following Resolution:
“RESOLVED THAT one Director elected from amongst shareholders other than the Central Government, pursuant to
Section 9(3) (i) of the Act read with relevant Scheme, Regulations made there under and RBI Notification, be and is hereby
appointed as the Director of the Bank to assume office from the day after the declaration of results and shall hold office until
the completion of a period of three years from the date of such assumption”.

By order of the Board of Directors


For Punjab National Bank

Place: New Delhi (Sunil Mehta)


Date: 16.05.2017 Managing Director & CEO

3
0L<L3FEE'LV EXPLANATORY STATEMENT
LTKÉLLKEGVOTLELTBELGVPL;QV Election of Shareholder Director

LTKÉLLKELTBELTGVOTLEETQRVLPELWGÉLELK RIGHTS OF SHAREHOLDERS TO ELECT DIRECTOR


Shareholders other than GOI hold 34.99 % of the share
GVOTLELTBELGVPL;QVEKVTETGZ LTKÉLLKELTBELWGÉLELK)LLKSMKELK capital of the Bank. As per Section 9(3) (i) of the Act, Bank is
ETWZLPLLTKÉLLKED4BEETJXBUIETœÉLLKEH4B"WGÉLGVFEI entitled to have a maximum of three Directors representing the
ÉLLKL 
(i)ET WVRMLK>JBULDV4LVZD4BE>D4BEET LTKÉLLKELTB ET6Ç shareholders of the Bank (other than the Central Government).
At present there is one vacancy of Shareholder Director on the
MKELKETWZLPL
ELÈGSGVGÉL3PEKVTPLZTWGÉLESFSIVGVOTLEKvVT
Board.
ELJLLH4"PS;FLVFTBDLT.;FTB ELTKÉLLKEGVOTLEELJOvLZIH4"
Accordingly, the vacancy shall be filled in the Annual
SOVRMLK>GKGºL2LTBELTD4BEEIGOVLBEELTWLLTGUSLTKÉLLKELTB General Meeting (AGM) of the shareholders of the Bank on
EIPLGL;EWLFD4#E UI F
FTBGVOTLEELJO)LKLUL YL" 29.06.2017.
The shareholders (other than the Central Government) are
WSLTKÉLLKE ET6ÇMKELKET WZLPL
WJVLVLFBEV)LTUVT ET JLL therefore entitled to send their nominations, if eligible, as per
H4BW'LPLM&DWGÉLGVF>DIWLKWGÉLGVF>LTUVL>JI VDIGPGVFV> the procedure detailed in relevant Act, B R Act, Scheme, PNB
WGÉLMXQVLGUVETMBDWBLCMFTBGOTYTH4B>EIGP-SASÈG¹LWVRMLK Regulations, Notification, the relevant portions of which are
QRVLPZ. MESTH4B"QRVTYTGVOTLEJO)LLKY[HLEKTBYTBWL4KJO)LLKY[HL indicated hereunder. The elected director will assume office
from the day after the declaration of results and will hold office
EKVTEIGSG'LLJGKLLFLTBEI LLTLLLEIGSG'LMTULT)LIDLOFTBHLTSIV for a period of three years from the date of assumption of
PL;EIWPGÉLSEETGZ DVTKHTBYTB" office.

ELVXVIÈLPÉLLV LEGAL PROVISIONS


The following table indicates the provisions contained in various
CM FLFZT MT MBDBGÉLS GPG)L6V WGÉLGVFLTB!LTUVLWLTB!JI VDI GPGVFLTB! Acts/ Scheme / PNB Regulations / Notification governing the
WGÉLMXQVLFTBGO ÈLPÉLLVGV&VSLGZELFTBOLL; Y H4B matter.

WGÉLGVF!LT U VLWLT B ! GPGVFV! ÈLPÉLLV ACTS / SCHEME / PROVISIONS


WGÉLMXQVL REGULATIONS / NOTIFICATION
Banking Regulations Act, 1949 Section 20
D4BEELKIGPGVFWGÉLGVF> ÉLLKL
Banking Companies (Acquisition Section 3 (2E), Section 9
D4BEELKI EBJVI NJ¹FLTB EL WU;V PB ÉLLKL  C;
> ÉLLKL  
(i)> and Transfer of Undertakings) (3) (i), Section 9 (3A) (A)
WBSKL
WGÉLGVF> ÉLLKL  

 MT MI
> Act, 1970 to (C), Section 9(3AA),
ÉLLKL 
> ÉLLKL  DI
> Section 9(3AB), Section
ÉLLKL DI
>ÉLLKL 
9(3B) Section 13(2)

KL7‹I²S D4BE ÈDBÉLV PB GPGPÉL vB.  


> vB.> vB.> The Nationalized Banks Clause 9 (4), Clause
(Management and Miscellaneous 10, Clause 11, Clause
ÈLPÉLLV
LTUVL> vB. > vB.DI> vB. Provisions) Scheme, 1970 11A, Clause 11B, Clause
 
12(8)
JBULD V4LVZ D4BE LTK PB D4#ETB
 GPGVF> MT Punjab National Bank (Shares Regulation 10, 61A to 70
GPGVF> and Meetings) Regulations 2000
)LLKSI GKUP; D4BE EI EI WGÉLMXQVL D4BEELKIEBJVI NJ¹FLTB EL Reserve Bank of India Pursuant to Section 9
Notification No. DBOD.No.BC. (3AA) and Section 9
MB<LGOVLBE.IDIWLT.IMB WU;V PBWBSKL
WGÉLGVF>
No.46&47/29.39.001/2007-08 (3AB) of the Banking
DIMIMBP!! EIÉLLKL 
WL4K dated 01.11.2007 and DBOD. Companies (Acquisition
PB  EI WGÉLMXQVL ÉLLKL   DI
 ET WVR¹F No. BC.No.95/29.39.001/2010-11 and Transfer of
MB<L .IDIWLT.I DIMI MB ! FTB dated 23.05.2011 Undertakings) Act, 1970
! KL7‹I²S D4BE ET DLT.; FTB – Fit and Proper criteria
for elected Directors
QGVS GVOTLELTB ET GZ  on the Boards of the
M\LFWL4KNJRºL2FLVOB. nationalized banks.
MTDI GOLLGVO;TL JGKJL MB<L  CZ4%7‹LGVEPLTG7BY SEBI guidelines – circular no. Electronic voting
MIWLC;WLK!MI J2.I !JL8GZMI MTZ! ! CIR/CFD/POLICYCELL/2/2014
dated 17.04.2014
GOVLBE

4
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

EBJVI ÈDBÉLVWL4KÈLLMV
GVF> The Companies (Management &
'LLMBLLTGÉLSEBJVI ÈDBÉLVWL4KÈLLMV
 vB.  CZ4%7‹LGVE FLÉF Administration) Rules 2014
As amended by The Companies Rule 20 – Voting through
MBLLTÉLVGVF> MTPLTG7BY (Management & Administration) electronic means
Amendment Rules 2015
GPºLI MTPL B È)LLY> GPºL FBLLZ> MLP;UGVE \LTL ET D4BELTB FTB Department of Financial Guidelines for
)LLKS MKELK JL MB J2MB WBLELGZE Y4K WGÉLELGKE Services, Ministry of Finance, appointment of part time
Government of India letter no. Non-Official Directors in
!!DIWLTWLC;WL4K GVOTLELTB EI GVRGºL2 HTSR F. No. 16/83/2013 – BOI dated Public Sector Banks.
WBLELGZE Y4K WGÉLELGKE GVOTLE GOLLGVO;TL 03.09.2013 and guidelines
ET QV HTSR GOLLGVO;TL GOVLBE  for selection of part time Non-
Official Director vide letter
 ET JL !!DIWLTWLC; no. 16/17/2010-BO.I dated
GOVLBE!!WL4KVLFLBEV)LKVT 13.10.2011 as on 01.06.2011
EI GSG'L SE_ CMFTB WLYLFI MBLLTÉLVLTB and subsequent amendments
ETWVRMLK thereto as on date of filing of
nominations.
NJ;R%SÈLPÉLLVLTBELMLKLBLVIQTGOLYLH4 THE GIST OF THE ABOVE MENTIONED PROVISIONS IS
DESCRIBED HEREIN BELOW:
D4BEELKIGPGVFVWGÉLGVF>
Banking Regulation Act, 1949
ÉLLKLFTB CMET GEMIGVOTLEELT LNMEIWLTKMT žLLWGY[F Section 20 places certain restrictions for granting any loan or
FBUXKEKVTJKER/TEMIFLWLTBELN:ZTvH4" advance to or on behalf of any of its directors.

D4BEELKI E&JVI NJ¹FLTB EL WU;V PB WBSKL


 WGÉLGVF> Banking Companies (Acquisition and Transfer of
 Undertakings) Act, 1970

● ÉLLKL C;
FTBET6ÇMKELKMTG)L6VGEMILTKÉLLKELTBETFSOLV ● Section 3 (2E) restricts the voting right of a shareholder
WGÉLELKELT M)LILTKÉLLKELTB ET ERZFSOLVWGÉLELKLTB ET  other than the Central Government to Ten per cent of the
ÈGSLSSEMIGFSGELYLH4" total voting rights of all the shareholders.

● LKL  
 (i) FTB TMT D4BELTB FTB LTKÉLLKELTB ^LKL QRVT ULVT PLZT ● Section 9(3) (i) prescribes the maximum number of
GVOTLELTBEIMB<LGVÉLL;GKSEIYC;H4" directors to be elected by the shareholders.

● LKL 

MT MI
FTBER/LT9SL B!LS;TBGVÉLL;GKSEIYC; ● Section 9 (3A) (A) to (C) prescribes qualifications and
special knowledge in certain fields for the directors to be
H4BGUVFTBGPGVGO;7H4GEÉLLKL 
(i)ETSHSVLGFSGE ULVT
nominated under Section 9 (3) (i).
PLZTGVOTLELTBELTER/TE\LTLLTBELGPLTL,LVHLTVLQLGH "
● LKL  
 WL4K  DI
 FTB H4 GE ELTC; )LI 0GºL2 SD ● Section 9 (3AA) and (3AB) prescribes that no person
shall be eligible to be elected as director unless he/she is
SEGVOTLEET JOJKQRVT ULVT HTSR JLLVHIB HLTYLUDSE
a person having “Fit and Proper” status based upon track
GE PH NMET GPYS GKEL.;> GV#L WL4K )LLKSI GKUP; D4BE record, integrity and such other criteria as per Reserve
^LKL WGÉLMXQVL MB<L .IDIWLT.IVB DIMIVB  S'LL ! Bank of India Notification Nos.DBOD.No.BC.No.46 &
! GOVLBE  VP&DK>  S'LL .IDIWLT.IVB 47/29.39.001/2007-08 dated 1st November, 2007 read
DIMIV!!GOVLBEFC;>ETUGK  with DBOD.No.BC.No.95/29.39.001/2010-11 dated 23rd
WGÉLMXGQSGE Y FLVOB.LTB ET WLÉLLKJKM\LFWL4KNJRºL2 May, 2011.
-SKELVHLT"
● Section 9(3B) deals with the right of Reserve Bank of India
● ÉLLKL DI
FTB)LLKSIGKUP;D4BEELTNºL2WGÉLGVFEIÉLLKL to remove a director so elected under Section 9(3) (i) of
 
(i)ETSHSCMÈELKQRVTY GVOTLEELTH7LVTELWGÉLELK the aforesaid Act, who does not fulfill the requirements of
GOLYLH4 ULT NºL2WGÉLGVFEIÉLLKL 
WL4K 
 Section 9 (3A) and Section 9(3AA) of the said Act.
EIWJT\LLWLTBELTJXKLVEKSLHLT" ● Section 13 (2) deals with the obligation as to declaration
● ÉLLKL 
FTBSIMKIWVRMXQIFTBGO Y GV#LS'LLYLTJVISL of Fidelity and Secrecy in the form set out in the Third
EI LLTLLLETWVRJHLTVLQLGH " Schedule.

5
KL7‹I²SD4BE ÈD6ÉLV PBGPGPÉLÈLPÉLLV
LTUVL> Nationalized Banks (Management and Miscellaneous
Provisions) Scheme, 1970
● vB. 
FTBEHLYLH4GEELTC;)LIGVPL;GQSGVOTLESIVPL;
ET GZ  JO JK KHTYL WL4K JRVGV;PL;QV HTSR JLL HLTYL JK6SR TML ● Clause 9(4) provides that an elected director shall hold
office for three years and shall be eligible for re-election.
ELTC; GVOTLE ZYLSLK  PL; MT WGÉLE WPGÉL ET GZ  JO JK Provided that no such Director shall hold office for a
VHIBKHTYL" period exceeding six years.
● vB.FTBGVOTLELTBETGZ ER/TEWLT9SL BGPGVGO;7H4" ● Clause 10 specifies certain disqualifications for
directors.
● vB.GVOTLELTB^LKLJOGKºL2GE ULVTMTMBDBGÉLSH4"
● Clause 11 deals with vacation of office by directors.
● vB.  TMIG-'LGSMTMBDBGÉLSH4UHLBWGÉLGVFEIÉLLKL 

● Clause 11 A deals with the situation where a director


(i)ET SHSGVPL;GQSGVOTLEELT H7LLULMESLH4 WL4KNMET
elected under Sec. 9(3) (i) of the Act may be removed
-'LLVJKGKºL2JOELT )LKVT ET GZ GEMIW60GºL2ELT QRVL and another person in his stead be elected to fill the
ULMESLH4" vacancy.
● vB.DIWLEG-FEGKGºL2LTBELT)LKVTMTMBDBGÉLSH4" ● Clause 11B deals with casual vacancy.

● <LB. 
GVOTLELTB^LKLEGSJGUVFTBNVELGHSH4>ETMBDBÉL ● Clause 12(8) deals with disclosure of interest by directors,
in certain arrangements in which they are interested.
FTBGHSLTBETÈE7IEKLMTMBDBGÉLSH4"
Punjab National Bank (Shares & Meetings) Regulations,
JBULDV4LVZD4BE LTK PBD4#ETB
GPGVFV> 2000
● GPGVFFTBLTKLTBEIMBRºL2ÉLLGKSLETFLFZTFTBFSOLVWGÉLELK ● Regulation 10 determines the voting rights in the case of
GVGQSGE Y H4B" joint holding of shares.

● GPGVF MTGVOTLEETJOJKQRVTULVTHTSRÈ3LLIETJ ● PNB Regulations 61A to 70 prescribes certain conditions


FTBGEMI0GºL2ELTVLGFSEKVTHTSRER/TELS;TBWL4KQRVLPWLLTGUS for nominating a person as a candidate for election as a
Director, the procedure for conducting an election and
EKVTEIÈG¹LS'LLW6ÈLMBGYEFLFZLTBMTMBDBGÉLSH4B" deals with other incidental matters.
MTDI GOLLGVO;TL  JGKJL M CIR/CFD/POLICY-CELL/2/2014 SEBI Guidelines – circular no. CIR/CFD/POLICY-CELL/2/2014
GOVLBE  FTB N:ZTv H4 GE E&JVI ÈD6ÉLV WL4K ÈLLMV
 dated 17.04.2014 mandates that e-voting should be facilitated
GVF>GOVLBEELTMBLLTGÉLSEILSLT’FTBLTKÉLLKELTBEI in General Meetings of shareholders in terms of The Companies
(Management and Administration) Rules 2014, as amended on
MLÉLLKLD4#EFTBC;PLTG7BYEIMRGPÉLLÈOLVEIULVIQLGH " 19.03.2015.
vB.CZ4%7‹LGVEFLÉF^LKLPLTG7BYEIÈGELELGPZTLLEKSLH4" Rule 20 enumerates the procedure for voting through electronic
v.(ii)EILSLT’ETWVRMLKCZ4%7‹LGVEFLÉF^LKLPLT7EIJLLSL means. In terms of Rule 20 (ii), cut-off date for determining
GVGQSEKVTEIE7WL8J2GSG'LLMLFL6D4#EEIGSG'LMLFL6D4#E eligibility to vote by electronic means or in the General Meeting
shall be a date not earlier than 7 days before the General
MTGOVJXP;MTEFEIGSG'LVHIBHLTYI" Meeting.
PTDMLC7 FTB WGÉLGVF! LTUVL! GPGVFV! WGÉLMXQVL ET PROVISIONS OF ACTS/ SCHEME/ REGULATION/
ÈLPÉLLV NOTIFICATION IN WEBSITE

LTKÉLLKELTB EI MRGPÉLL ET GZ  M&D DI WLK WGÉLGVF> WGÉLGVF> ● For the convenience of the shareholders, the relevant
JI VDIGPGVFV>LTUVLS'LL)LLGKD4BEEIWGÉLMXQVLD4BEEIPTDMLC7 B R Act, the Act, the PNB Regulations, the Scheme
as well as RBI Notifications are hosted on the Bank’s
www.pnbindia.in GVPTLEMXQVLJA#
H4 WL4KCMT .LNVZLT.GEL
website www.pnbindia.in – (Investor Info page), which
ULMESLH4" are downloadable.
N&FIOPLKETGZTLT9SLTB QUALIFICATION FOR A CANDIDATE
● N&FIOPLKELTWGÉLGVFEIÉLLKL 
FTB'LLGVÉLL;GKSLT9SLWLTB ● The candidate shall comply with the qualifications
ELT JXKLEKVLHLTYLS'LLLTUVLEIÉLLKLFTB GPGVGO;7WVH;SL prescribed in Section 9 (3A) of the Act and shall not suffer
PLZLVHLTSLTGPGVFVETGPGVFFTBNG:ZGvSLSLT’ELTJXKL the disqualifications specified in Clause 10 of the Scheme
and shall satisfy the conditions mentioned in Regulation
EKTYLGUVELGPPKLVIQTGOLYLH4"
65 of the PNB Regulations, which are detailed herein.
 I) WGÉLGVFEIÉLLKL 
ETWVRMKLFTBN&FIOPLKULTD4BE
I. In terms of Section 9(3A) of the Act, a candidate
ELLTKÉLLKEH4 PB WGÉLGVFEIÉLLKL 
(i)ET WÉLIV being a shareholder of the Bank and who desires to
D4BE EL GVOTLE DVVT EL C1/RE H4> ET JLM GV&VGZGvS be elected as a Director of the Bank under Section
LT9SL BHLTVIQLGH " 9 (3)(i) of the Act shall:

6
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

E
 NMT GV&VGZGvS FLFZLTB FTB E L WGÉLE EL GPLTL ,LV L (A) have special knowledge or practical experience in respect
0LPHLGKEWVR)LPHLTVLQLGH  of one or more of the following matters namely :-

i. ²GLWL4KY[LFILW'L;0P-'LL i. agriculture and rural economy,

ii. D4BGEBY II. banking,


iii. MHELGKSL III. co-operation,
iv. W'L;LL-L IV. economics,
v. GPºL V. finance,
vi. GPGÉL VI. law,
vii. Z LRN]LTY VII. small scale industry.
viii. GEMIW6FLFZTFTB GPLTL,LVWL4K0LPHLGKEWVR)LPULT
VIII. any other matter the special knowledge of and
)LLKSIGKUP;D4E B ETFSLVRMLKULTD4E B ETGZ NJLTYIHLT" practical experience in, which would, in the opinion
v
 PHUFLESL;WLTBETGHSLTBELÈGSGVGÉL3PEKSLHLTW'LPL of the Reserve Bank of India is useful to the Bank.

Y
 PHGEMLVLT>B ELFYLKLTB WL4KGL:JELKLTB ETGHSLTB ELÈGSGVGÉL3PEKSLHLT" (B) represent the interest of depositors; or
II.  NºL2WGÉLGVFEIÉLLKL 
WL4K)LLKSIGKUP;D4BE (C) represent the interest of farmers, workers and artisans.
EI WGÉLMXQVL ET WVRMLK D4BE EL LTKÉLLKE HLTVT ET II. In terms of Section 9(3AA) of the Act and RBI
VLST WL4KD4BEET GVOTLEJOET GZ VLFLBEVJOEKVT Notifications a candidate being a shareholder of
PLZT È3LLIELT ?M\LF PB NJRºL2 H4GMSPLZLHLTVL the Bank and who files nomination to be a Director
of the Bank should possess ‘Fit & Proper status’.
QLGH "
III. Further, the elected directors should execute the
III. CMET WGSGKºL2> GVPL;GQS GVOTLE ELT ÈMBGPOL GPZTv
Deed of Covenants and are required to furnish
GVJLGOSEKVLHLTYLWL4KCMMBDBÉLFTB)LLKSIGKUP;D4BE annual declarations, as prescribed by the Reserve
^LKL'LLGVÉLL;GKSPLGL;E LLTLLL BÈ-SRSEKVIHLTYI" Bank of India in this regard.
DISQUALIFICATIONS FROM BEING ELECTED AS A
D4BEETGVOTLEETJFTBQVETGZ WVH;SLTB DIRECTOR OF THE BANK
W KL7‹I²SD4BE ÈD6ÉLV PBGPGPÉLÈLPÉLLV
LTUVL>EIÉLLKL (A) In terms of Clause 10 of the Nationalized Banks
ETWVRMKLFTBELTC;0GºL2GVOTLEETJFTBGVRºL2HLTVTWL4K (Management & Miscellaneous Provisions) Scheme,
GVOTLEDVVTETGZ WLT9HLTYL 1970, a person shall be disqualified for being appointed,
 E
  GOPHGEMI)LIMFGOPLGZL6LGVLI;SHRWLHLT>L as and for being a Director:-
NMVTžLWOLVGELHLTLZTVOLKLTBETML'LMFL4SL a. if he has at any time being adjudicated an insolvent
GELHLT>W'LPL or has suspended payment or has compounded
with his creditors; or
 v
  GOPHGP²SFVELHLTLGEMIM\LF6LLZ^LKL
TML LLTGLSGELYLHLT>W'LPL b. if he has been found to be of unsound mind and
stands so declared by a competent court; or
 Y
  GO PH GEMI URF; FTB WLJKLGE 6LLZ ^LKL OLTLI
#HKLLYLHLTGUMFTBV4GSEWÉLFSLGVGHSHLT>W'LPL c. if he has been convicted by criminal court of an
offence which involves moral turpitude; or
 L
  GOPHGEMIJXL;ELGZEGVOTLE>ÈD6ÉLGVOTLEWL4K
d. if he holds any office of profit under any nationalized
WGÉLGVFEIÉLLKLEINJÉLLKL 
ETv. C;
 PB bank or State Bank of India constituted under sub-
J2
ETWÉLIVD4BEETEF;QLGKLTBFTBMTVLGFSGVOTLE section (1) of Section 3 of the State Bank of India
ET JOET GMPLGEMIKL7‹I²SD4BEL)LLKSI-7T7 Act , 1955 except for holding the post of a whole-
D4BEWGÉLGVFEIÉLLKLEINJÉLLKL 
EIÉLLKL time director, including the Managing Director and
FTB'LLJGK)LLGLSGEMIWVRLBYID4BEFTBELTC;ZL)LELJO directors nominated under clause (e) and (f) of
sub-section (3) of Section 9 of the Act from among
ÉLLGKSEKSLHLTWL4K the employees of the Bank and.
WL
)LLKSI GKUP; D4EB  EI WGÉLMXQVL .IDIWLT.IVBDIMIVB S'LL (B) If he/she is not found to be ‘fit and proper’ person, by
!!GOVLBES'LL.IDIWLT.IVBDIMI the Nominations Committee of the Directors of the Bank
VB!!GOVLBES'LL)LLKSMKELKET in terms of RBI Notifications No. DBOD.No.BC.No.46 &
47/ 29.39.001/ 2007-08 dated 01.11.2007 and DBOD.
PS;FLVGOLLGVO;T LLTB ETWÉLIVD4E
B ETGVOTLELTB EIVLFLBEVMGFGS No. BC.No.95/29.39.001/2010-11 dated 23.05.2011 and
^LKLGOPH?M\LF PBNJRºL2H4GMS PLZLVHLT" extant Government guidelines.

7
WBLELGZE Y4K WLGÉLELGKE GVOTLELTB VWLT.I
 ET QV HTSR Gist of Guidelines for selection of part time Non-Official
GOLLGVO;TLLTBELMLK Director (NOD)

GOGVOTLED4BE! J2WLC;ETGEMI)LI+TLIETSHSJHZTHILLGFZH4B> A Director already on the Board of a Bank/FI, under any


SLT NMJKGEMI)LIW6D4BE! J2WLC; ET Y4KWLGÉLELGKEGVOTLEET category, may not be considered for nomination as NOD on
any other Bank/FI.
JFTBFVLTVISEKVTETGZ GPQLKVHIBULMESL"
GEMI)LI0GºL2ELTD4BE! J2WLC;ETDLT.;FTBY4KWLGÉLELGKEGVOTLEET No person may be re-nominated as a NOD on the Board of
a Bank/FI on which he/she has served as Director in the past
JFTB GJ2KMT FVLTVISVHIB GELULMESLGUMVT GEMI)LI+TLIET under any category for two terms or six years, whichever is
SHSOLTEL;ELZLTBL/PLLT’ULT)LIWGÉLEHLTETGZ JXP;FTBGVOTLE longer.
ETJFTBMTPL BOIHLTB"
An NOD would not be considered for nomination as a Director
D4BE!GPºLIMB-'LLVETGVOTLEETJFTBFVLTVISET VWLT.IJKGPQLK on the Board of a Bank/FI if such Director has already been a
VHIB GEL UL YL GO TML GVOTLE JHZT HI / PLLT’ ET GZ > QLHT NOD/shareholder-Director on the Board of any other Bank/FI
GVGFSLDIQDIQFTB GEMIW6D4BE!GPºLIMB-'LLVET DLT.; FTB Y4K for six years, whether continuously or intermittently.
WGÉLELGKEGVOTLE!LTKÉLLKEGVOTLEH4B" The age of the Director should not be more than 67 years.
GVOTLEEIWLRPL;MTWGÉLEVHIBHLTVIQLGH "
Government guidelines for selection of part time NODs
WBLELGZE VWLT.I ET QV ET GZ  MKELK ET GOLLGVO;TL shall be applicable for election of Shareholder Directors
LTKÉLLEGVOTLELTBETQRVLPHTSR)LIZLYXHLTBYT" also.
GPºLIMTPL B GP)LLY>GPºLFBLLZ>)LLKSMKELKJLMB<L J2MB Full details are as per Department of Financial Services,
!!DIWLTWLC;GOVLBE!!WL4K!!S'LL Ministry of Finance, Government of India letter no. F. No.
CMETJQLSHR MBLLTÉLV PBVLFLBEVEI)LKVTEISLKIvSEW6 16/83/2013 – BOI dated 03.09.2013 and guidelines for
OXMKT MBLLTÉLVET WVRMLKJLMB<L!!DIWLTWLC; GOVLBE selection of part time Non-Official Director vide letter no.
16/17/2010-BO.I dated 13.10.2011 as on 01.06.2011 and
!!^LKLWBLELGZEY4KWLGÉLELGKEGVOTLEETQVHTSR
subsequent amendments thereto as on date of filing of
GOLLGVO;T LLTB ETWVRMLKJXL;$L4K"T  nominations.
È3LGLLTBELTLTKÉLLKELTBEIMXQI LIST OF SHAREHOLDERS TO CONTESTANTS
D4BEETLTKÉLLKELTBEIMXQI>GUMEI E7WL8J2GSG'L
 A list of shareholders of the Bank as on 19/05/2017 (Cut-off
H4>??JBULDV4LVZD4BE> VC; GO:ZI!GO:ZIET J\LFTB>OTWGÉLMXGQS Date1) will be available for sale on and from 23/05/2017 on
D4BE ET FLBY .‹L¾7!)LRYSLV WLOTL ET UGK   >! JT JQLM pre-payment of Rs.50,000/- (Rupees fifty thousand only) by
a demand draft/pay order of a Scheduled Bank in favour of
HULKETPZ
EL)LRYSLVEKVTJKGD¹IETGZ GOVLBEMT “Punjab National Bank” payable at New Delhi/Delhi along with a
EBJVIMGQP>LTKGP)LLY>GPºLÈ)LLYÈÉLLVELL;Z>MBMOFLY;>VC; request addressed to the Company Secretary, Punjab National
GO:ZIMT NJZ$ÉLHLTBYI"C1/REÈ3LLILTKÉLLKELTB ET KGU-7K Bank, Finance Division, Share Department, 5, Sansad Marg,
ELGVKI\LL)LIEKMESTH4BWL4KNMMTNKLGVELZMESTH4B" New Delhi 110001. The intending candidates may also inspect
the Register of shareholders and take extracts there from.
LTKÉLLKELTBETKGU-7KELGVKI\LL INSPECTION OF THE REGISTER OF SHAREHOLDERS
LTKÉLLKELTB ELKGU-7KLTKÉLLKELTB ^LKLGVKI\LLET GZ D4BEET ÈÉLLV The Register of shareholders will be open for inspection by the
ELL;Z FTB EBJVI MGQP> JBULD V4LVZ D4BE> LTK GP)LLY> GPºL shareholders, with the Company Secretary, Punjab National
Bank, Share Department, Finance Division, 5, Sansad
È)LLY>MBMOFLY;>VC; GO:ZIFTB GOVLBEMT
Marg, New Delhi 110001, on all working days commencing
SEM)LIEL;GOPMLTBFTBOLTJHKDUTMTMLBDUT from 23.05.2017 till 14.06.2017 between 3.00 p.m. and 5.00
SEvRZLKHTYLGUMMTÈ3LLILTKÉLLKEKGU-7KETGEMI)LLYETNKL p.m. on weekdays for the purpose of enabling the candidates
ZTMETLM&DG6ÉLS)LLYELTE&*X7KGÈB7ZTVTELD4BEMTWVRKLTÉLEK to take extracts of any part from the Register of Shareholders
or request the Bank for computer prints of the relevant portions,
METGUMETGZ N6HTB!JTÈGSHULKL$OLNMETWBLEIOK on prepayment of an amount to be calculated at the rate of Rs.
MTNMELJXP;)LRYSLVEKVLHLTYL" 5/- for every thousand words or part thereof.
GVPL;QVFTB)LLYIOLKI PARTICIPATION IN ELECTION

 ELT E7WL8J2 GSG'L


V .I Z!MI.I M Z! M7I  ^LKL Such of those shareholders whose names appear on the
Register of Shareholders/Beneficial owners as furnished by
S4LK ZL)LY[LGHLTB! LTKÉLLKELTB ET KGU-7K FTB GUV LTKÉLLKELTB ET VLF NSDL/CDSL/Share Transfer Agent (STA) as on 19/05/2017
H4B PT GVPL;QVFTB )LLYZTVT ET HEOLKH4B W'LL;S_ ET6ÇMKELKET WZLPL (Cut-off Date1) shall be entitled to nominate and contest the
LTKÉLLKELTB ET DIQFTB MT GVOTLELTB ET GVPL;QVFTB VLFLBEVEKVT>QRVLP election of Director from amongst Shareholders other than the
ETHEOLKH4B" Central Government.

8
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

VLFLBEV NOMINATIONS:
Validity of Nominations
VLFLBEVEIP4ÉLSL
In terms of Regulation 65 of the PNB Regulations and in terms
JI VDIGPGVFVETGPGVFWL4K)LLKSIGKUP;D4BEEIWGÉLMXQVL of Notifications of Reserve Bank of India – DBOD.No.BC.No.46
.IDIWLT.IVBDIMIVBS'LL!!GOVLBE and 47/29.39.001/2010-11 dated 01.11.2007 and DBOD No.
S'LL.IDIWLT.IVBDIMIVB!!GOVLBE BC No. 95/29.39.001/2010-11 dated 23.05.2011 and other
S'LLGPG)L6VWGÉLGVFLTBETW6ZLYXÈLPÉLLVLTBETWÉLIVGVOTLEETJ applicable provisions of various Acts, nomination of a candidate
FTBGVPL;QVHTSRN&FIOPLKELVLFLBEVP4ÉLHLTYLGEBSRNJDBÉLHH4GE for election as a director will be valid provided:
a. He/she is a shareholder holding as on 19/05/2017
 E
GOVLBE E7WL8J2GSG'L
ELT JBULDV4LVZ (Cut-off Date1), a minimum of 100 (one hundred)
D4BE FTB EF MT EF  LTK E ML4 LTK
 ÉLLGKS ! shares in Punjab National Bank and continue to
LTKÉLLKEHLTS'LLGOVLBESEEFMTEF hold a minimum of 100 shares till 29/06/2017 and
LTKÉLLGKSEKSLKHT WL4KNMET DLO)LIWYKPHGVPL;GQS thereafter if he/she is elected.
HLTSLH4!HLTSIH4" b. As on 14/06/2017 being the last date for receipt
of nomination, he/she is not disqualified to be a
 v
PHDIWLK %7> %7>LTUVL>JI VDIGPGVFVW'LPL)LLKSI director under the B R Act, the Act, the Scheme,
GKUP;D4BEEIWGÉLMXQVLETWÉLIVGVOTLEVLFLBEVEIÈLG*S the PNB Regulations or RBI Notifications.
EIWBGSFSLKI<L'LLELTGVOTLEHLTVTETWLT9 c. The nomination is in writing signed by at least
LLTGLSVGELYLHLT" 100 shareholders entitled to elect Directors
under the Act or by their duly constituted attorney,
 Y
VLFLBEV GZGvS J MT HLT WL4K NM JK CM WGÉLGVF ET provided that a nomination by shareholder who is
WÉLIVGVOTLELTBELTGVPL;GQSEKVTETGZ HEOLKEFMTEF a Corporate Body may be made by a resolution of
the Directors of the said Corporate Body and where
LTKÉLLKELTBLNVET^LKLM&EJMTGVSW7LVI;ET it is so made, a copy of the resolution certified to
H-SL\LKHLTBJKBSRHGEGOLTKÉLLKEELTC;>GVYGFSGVEL be a true copy by the Chairman of the meeting at
HLTSLTNºL2GVYGFSGVELETGVOTLELTBETMBE:J^LKLVLFLBEV which it was passed shall be dispatched to the
GELULMESLH4 WL4KUHLB TMLGELULSLH4>PHLB GUM Company Secretary, Punjab National Bank,
D4#EFTB HJLGKSGELYLHLT NMET WÉ\L^LKLÈFLGLS Finance Division, Share Department, 5, Sansad
Marg, New Delhi 110001 and such copy shall
MBE:J EI E M3ÈGS D4BE ET E&JVI MGQP> JBULD be deemed to be a nomination on behalf of such
V4LVZD4BE>LTKGP)LLY>GPºLÈ)LLY>MBMOFLY;>VC; Company.
GO:ZIETVLFÈTGLSEIUL YIWL4KNºL2ÈGSELT d. The nominations by the shareholders (Minimum
TMIE&JVIEIWLTKMTGELYLVLFLBEVFLVLUL YL" 100) is accompanied by a declaration by the
candidate, as per the specimen forms of nomination
 L
LTKÉLLKELTB 6XVSF
^LKLGEMI6LLÉLIL>GUZLÉLIL> and declaration furnished in this Notice, duly signed
WLPLMV KGU-7‹LK W'LPL NJ KGU-7‹LK L W6 KLUJGLS by the candidate before a Judge, Magistrate,
WGÉLELKI W'LPL )LLKSI GKUP; D4BE W'LPL GEMI W6 Registrar or Sub-Registrar of Assurances or other
KL7‹I²SD4BE ET GEMI WGÉLELKI ET MF\L N&FIOPLK ^LKL Gazetted Officer or Officer of Reserve Bank of
India or any nationalized Bank, that he accepts
H-SL\LGKSCMWLLEL LLTLLLJLVLFLBEVET ML'LMBZ9V the nomination and is willing to stand for election
GELYLH4GENMTVLFLBEV-PIELKH4WL4KPHGVPL;QVET and that he is not disqualified from being a director,
GZ v. LHLTVT ELC1/REH4 S'LLPHDIWLK %7LCM either under the B R Act or the Act or Scheme or
WGÉLGVFLCMLTUVLLJI VDIGPGVFLTB LWLKDIWLC; the PNB Regulations or RBI Notification or GOI
guidelines.
WGÉLMXQVLL)LLKSMKELKET GOLLGVO;TLET WÉLIVGVOTLE
HLTVTETWLT9VHIBH4" e. The Nomination Forms and the Declaration Form
are as prescribed by the PNB Regulations and as
 .
CMVLTG7METML'LVLFLBEVJ2LF;WL4KGPGVFV^LKL'LLGVÉLL;GKS per the Proforma annexed to this notice. The entire
LLTLLL J2LF; WL4K ÈLTJ2LFL; MBZ9V H4" CV ÈJLLTB MGHS MBJXL; notice inter alia comprising these Proforma is also
available on the Bank’s Website: www.pnbindia.in.
VLTG7MD4BEEIPTDMLC7www.pnbindia.in GVPTLEMXQVL (Investor Info Page)
JA#
JK)LINJZ$ÉLH4"
Submission of nomination forms
VLFLBEVJ2LFLT’ELÈ-SRSGELULVL Shareholders desirous of contesting the election of Director
should submit following documents in the formats annexed
TM)LICMVLTG7METML'L)LTUTYTÈLJLTBFTB?FLTHKDBOGZJ2LJ2TFTB EBJVI to this notice, in a SEALED ENVELOPE to the Company
MGQP>LTKGP)LLY>GPºLÈ)LLY>ÈÉLLVELL;Z>>MBMOFLY;> Secretary, Punjab National Bank, Finance Division, Share
VC;GO:ZIELTM)LIOAG7LTBMTJXL;M&DG6ÉLSO-SLPTULTBETML'L Department, 5, Sansad Marg, New Delhi 110001 together
D4#EEISLKIvMTEFMTEFGOVJXP;GEMIEL;GOPMELTW'LL;S_ with the connected documents, complete in all respects, on a

9
GOVLBEUXV>ELTMLBDUTD4BEEL;MFMFL*SHLTVT working day at least 14 days before the date of the meeting,
MTJXP;JHRBQULVTQLGH " i.e., on or before closing hours of the Bank at 5.00 pm on 14th
June, 2017.
E GPGÉLPS_JMT)LKLHRWL LLTLLLJL a) Duly filled in Declaration Form;
v Q
 RVLP Z. VT ET JLL EF MT EF  LTKÉLLKELTB EI WLTK MT b) Nominations from minimum of 100 shareholders entitled
VLFLBEV to nominate in the elections;
c) Personal Information, Declaration and Undertaking
Y 0GºL2YSMXQVL> LLTLLLS'LLNMETML'L EPQVJLGUVETML'L together with the connected documents, testimonials,
M&DG6ÉLS O-SLPTU> ÈFLL JL> HLTBYT U4MT GE 0GºL2YS JGKQ> viz., Bio Data, Certificates of Educational qualification,
L4\LGLELT9SL PBWVR)LPWLGOETÈFLLJLC3LGO experience, etc.
SCRUTINY OF NOMINATIONS AND ELECTION OF
VLFLBEVLTBEIULBQWL4KGVOTLELTBELQRVLP DIRECTOR
E
 VLFLBEVLTBEIULBQ>VLFLBEVLTBEIÈLG*SETGZ GVSGSG'LETDLO a. Nominations shall be scrutinized by the Nomination
JHZT EL;GOPMELT GP-SLGKSMKELKET GOLLGVO;TL Committee of the Board on 15.06.2017 i.e. the first
working day following the last date fixed for the receipt of
S'LLWLKDIWLC; WGÉLMXQVLET LSLT’ ET WVRMLK?GJ27 PB NGQS™ the nominations, to ascertain the ‘Fit and Proper’ status
-7T7METML'LEIULTYIWL4KGOELTC;VLFLBEVP4ÉLVHIBJLLYL in terms of the RBI Notifications and extant Government
SLTNMELELKLOU;EKSTHR NMTW-PIELKEKGOLULTYL" guidelines. In case any nomination is not found to be
valid, the same shall be rejected after recording the
v
 GOGVPL;QV^LKL)LKIULVT PLZI EGKGºL2ET GZ ETPZ E reasons there for.
P4]VLFLBEVHLTSLT TMTVLFLGESBN&FIOPLKELTSRK6SGVPL;GQSHRWL b. If there is only one valid nomination for the one vacancy
MFLULTYL PBNMETVLFWL4KJSLGVPL;GQSN&FIOPLKETJFTB to be filled by the election, the candidate so nominated
ÈELGLSGELUL YL"GJ2K)LIGVPL;GQSN&FIOPLKJGKLLF LLTGLS shall be deemed to be elected forthwith and his/her name
HLTVTETJQLSHIEL;Y[HLEKMESTH4B" and address shall be published as so elected. However,
the deemed elected candidate shall assume office only
Y
 HLT KHT QRVLPET MF>GO EMT WGÉLEP4ÉLVLFLBEVH4B SLT on the day after the declaration of result.
N&FIOPLKLTBETVLFMFLQLKJLLTBFTBÈELGLSGE ULTBYT"QRVLPFTB c. In the event of an election being held, if the valid nominations
DHRFSÈL*SEKVT PLZT È3LLIELT QRVLHRWLMFLULTYLWL4K are more than one, the names of the candidates shall be
NVET VLFD4#EFTB WÉ\L^LKL LLTGLSGE ULTBYT WL4KMFLQLK published in the news papers. The candidate polling the
majority of votes at the election will be deemed to have
JLLTBFTB)LIÈELGLSGE ULTBYT"PHJGKLLFEI LLTLLLETJQLS been elected and his/her name will be declared by the
ETGOVMTHIEL;)LLKMB)LLZTBYT" Chairman of the meeting after receipt of scrutinizer’s report
and will also be published in newspapers. He/She will
L
  GOELTC; GPPLOHLTSLH4 SLT NMELGVJ7LVJI VDIGPGVFVET assume office on the day after the declaration of result.
GPGVFETWVRMLKGELULTYL" d. If there is any dispute the same shall be settled as per
VLFLBEVPLGJMZTVL Regulation 67 of the PNB Regulations.

GOELTC; J[3LLIWJVLVLFLBEVPLGJMZTVLQLHSLH4 SLT PH TMLELT Withdrawal of Candidature


GOVLBEELTMLBDUTSED4BEETDBOHLTVTMTJXP;EK If any candidate desires to withdraw his nomination, he would
MESLH4" be entitled to do so at any time prior to closing hours of the
Bank i.e. on or before 5.00 pm on 16/06/2017.
GVOTLELTBELGHS
D4BEETELKLTDLKEINJ;RºL2FOFTBGEMI)LIGVOTLELTBELELTC;GHSVHIB INTEREST OF DIRECTORS
H4" None of the Directors of Bank is interested in the aforementioned
item of business.
G7*JGLL‚
NOTES:
 ÈL8%MIEIGVRGºL2
1. APPOINTMENT OF PROXY
D4#E FTB NJG-'LS HLTVT WL4K FS OTVT ET JLL LTKÉLLKE WJVT -'LLV JK
A shareholder entitled to attend and vote at the meeting,
NJG-'LSHLTVT WL4KFSOTVT HTSR ÈL8%MIGVRºL2EKVTEL)LIJLLHLTYL!HLTYIS'LL is entitled to appoint a proxy to attend and vote instead of
TMIÈL8%MIELD4E B ELLTKÉLLKEHLTVLWLPEVHIBH4ZTGEV TMIÈL8%MI himself/herself and such a proxy need not be a shareholder
ELTD4#EFTB DLTZVTELWGÉLELKVHIBHLTYL" TMLELTC; )LI0GºL2ULTD4E B EL of the Bank. The proxy so appointed shall not have any right
EF;QLKILWGÉLELKIH4>ÈL8%MIET JFTB GVRºL2VHIB GELULMESL" to speak at the meeting. No person shall be appointed as
D4#EFTB ÈL8%MIJLETYLKB7IESL;ELTPLT7OTVT ELWGÉLELKVHIBHLTYL"ÈL8%MI a Proxy who is an officer or an employee of the Bank. The
grantor of an instrument of proxy shall not be entitled to vote
ETJFTB GVRºL2EIULVTPLZIGZvSELTÈ)LLPIEKVTETGZ >NMTLTK in person at the meeting. The proxy in order to be effective,

10
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

GP)LLY>ÈÉLLVELL;Z>MBMOFLY;>VC;GO:ZIFT>B D4#EEI must be received by the Bank at the Finance Division, Share
SLKIvETEFMTEFGOVJXP; W'LL;S_ LGVPLKUXV>ELTELKLTDLKI Department, Head Office, 5, Sansad Marg, New Delhi-110001
not less than four days before the date of the meeting i.e. on
MFEIMFLG*SW'LL;S_ WJKLªDUT SEUFLEKOIUL "ÈL8%MI
or before the closing hours i.e. 5.00 p.m. on Saturday, the 24th
J2LF;ELÈLJPLGL;EGKJLT7; ETML'LMBZ9VH4" June, 2017.
 ÈLGÉL²SÈGSGVGÉLEIGVRGºL2 2. APPOINTMENT OF AN AUTHORISED
REPRESENTATIVE
ELTC;)LI TML0GºL2>GEMIGVYGFSGVELETGPGÉLPS_ÈLGÉL²SÈGSGVGÉL
ETJFTB>SDSED4BEEID4#EFTBNJG-'LSHLTVTLFSOTVTELJLL No person shall be entitled to attend or vote at any meeting as
duly authorized representative of a body corporate, unless a
VHIBHLTYL>UDSENMD4#E>GUMFTBHMBE:JJLGKSGELYLH4> copy of the resolution appointing him/her as a duly authorized
ETWÉ\L^LKLGPGÉLPS_JMTÈLGÉL²SÈGSGVGÉLETJFTBNMTGVRºL2 representative, certified to be a true copy by the Chairman of the
EKVTPLZTMBE:JEIM3ÈGSÈÉLLVELL;Z>>MBMOFLY;>VC;GO:ZI meeting at which it was passed, shall have been deposited at the
FTB G-'LSJBULDV4LVZD4BEET LTKGP)LLY>GP3SÈ)LLYFTB> Finance Division, Share Department, 5, Sansad Marg, New Delhi
110001, not less than four days before the date of the meeting
D4#EEISLKIvETEFMTEFGOVJXP;W'LL;S_LGVPLK>UXV> i.e. on or before the closing hours i.e. 5.00 p.m. on Saturday, the
ELTELKLTDLKIMFEIMFLG*SW'LL;S_WJKLªDUTSEUFLEKOI 24th June, 2017. No person shall be appointed as an authorized
UL " TMLELTC;)LI0GºL2ULTD4BEELEF;QLKILWGÉLELKIH4>ÈGSGVGÉL representative, who is an officer or an employee of the Bank.
ETJFTBGVRºL2VHIBGELULMESL" 3. ATTENDANCE SLIP CUM ENTRY PASS
 NJG-'LGSJQI;MHÈPTLJLM For the convenience of the shareholders, Attendance Slip-
cum-Entry Pass is annexed to this Notice. Shareholders/Proxy
LTKÉLLKELTBEIMRGPÉLLETGZ NJG-'LGSJQI;MHÈPTLJLMCMPLGL;E holders/Authorized Representatives are requested to affix their
GKJLT7;ETML'LMBZ9VH4"LTKÉLLKELTB!ÈL8%MIÉLLKELTB!ÈLGÉL²SÈGSGVGÉLLTB signatures at the space provided on the enclosed Attendance
MTWVRKLTÉLH4GEPTNJG-'LGSJQI;MHÈPTLJLMFTBNGQS-'LLVJKWJVT Slip-cum-Entry Pass and surrender the same at the AGM
H-ºLL\LKEKTBPPLGL;EWLFD4#E-'LZJKCMTMRJRO;EKTB" venue.

 LTKÉLLKELTBELKGU-7KD6OHLTVL 4. CLOSURE OF REGISTER OF SHAREHOLDERS

B ETLTKÉLLKELTB ELKGU-7KS'LLLTKWBSKLJR-SETB  LR¹PLK


 The
D4E Register of Shareholders and Share Transfer Books of
the Bank will remain closed from Friday, the 23rd June 2017 to
MT DAH-JGSPLK
SE OLTVLTB GOVLLGFZ
DBOKHTYB I" Thursday, the 29th June 2017 (both days inclusive).
 ZL)LLBLELÈL*SVHLTVL 5. NON RECEIPT OF DIVIDEND
LTKÉLLKE²JLVLT7EKTBGEMLBGPGÉLEÈLPÉLLVLTBETWVRMLK>GO Shareholders are also hereby informed that if any dividend
ZL)LLBLKLGLOTGSG'LMT PLLT’ SEGDVL)LRYSLVOLPLET KHSI amount remains unpaid/ unclaimed for 7 years from its
H4> SD )LRYSLV V EI YC; EG'LS KLGL )LLKS MKELK ^LKL YG#S due date, the said unpaid/unclaimed amount has to be
GVPTLE GL\LL PB MBK\LL J2B. WLC;C;JI J2
 FTB WBSGKS EKVI transferred to Investor Education & Protection Fund
(IEPF) set up by Central Government. As such, the unpaid/
HLTSIH4"WSGPºLPL;  WBGSF
>ET GZ ZL)LLBLvLST
unclaimed amount in Dividend Account for FY 2009-
FTB WÈO3S!WOLPL²SKLGLWLC;C;JI J2ELT WBSGKSEKOIULTYI" 10 (Final) is due for transfer to IEPF. The shareholders
WSPTLTKÉLLKEGU6HTBNºL2ZL)LLBLÈL*SVHIBHRWLH4>NVMTWVRKLTÉL who have not received/claimed the said dividend(s) are,
H4GEPTCMETGZ WJVLOLPLSEÈ-SRSEKTB"NVMT therefore, requested to claim the same not later than
WVRKLTÉLÈL*SHLTVTJKD4BEN6HTBOTKLGLEL)LRYSLVEKOTYL"²JL 27.07.2017 by giving their latest address, Mobile/Telephone
VLT7EKTBGEWÈO3SKLGLETWLC;C;JI J2vLSTFTBWBSKLETJQLS_ No. Folio No./ DP-ID & Client ID and Bank details viz. Bank
name, branch address, Bank account no. and IFS code etc.
D4BEETLWLC;C;JI J2ETGPELTC;0GºL2YSOLPLVHIBGELUL
for claiming the amount. Please note that once the unpaid
METYL" WBGSF
MTWLYTWÈO3S!WOLPL²SZL)LLBLLTBEI amount is transferred to IEPF, no individual claim shall
PL;PLKMXQID4BEETPTDMLC7www.pnbindia.inET GVPTLELTBEI lie against the Bank. Year-wise list of unpaid/unclaimed
MXQVL
ETWBSY;SWJZLT.H4" dividend from 2009-10 (Final) onwards is uploaded on
Bank’s website www.pnbindia.in under ‘Investors’ Info’.
 LTKÉLLKELTBMTWVRKLTÉL
6. REQUEST TO SHAREHOLDERS
E
 LTKÉLLKELTB ELT MXGQSGELULSLH4 GEPLGL;EGKJLT7; EIÈGSLB
PLGL;E WLF D4#E ET -'LZ JK GPSGKS VHIB EI UL BYI" WS a) Please note that copies of the Annual Report will not be
distributed at the venue of the meeting. Shareholders/
LTKÉLLKELT!B  ÈL8%MIÉLLKELT!B ÈLGÉL²S ÈGSGVGÉLLTB MT WVRKLTÉL H4 GE PT Proxyholders/Authorized Representatives are,
SÎ_PLKL)LTUIULKHIPLGL;EGKJLT7; EIWJVIÈGSWJVTML'LZL B" therefore, requested to bring their copies of the Annual
PLGL;EGKJLT7>; JGKGL7MGHSD4E B EIPTDMLC7www.pnbindia.in Report to the meeting. The Annual Report along with
JK)LINJZ$ÉLEIULKHIH4" formats is being posted on the Bank’s Website at www.
pnbindia.in.

11
v
  EI PLGL;E GKJLT7; ET GZ  NV M)LI LTKÉLLKELTB ELT> b) Electronic copy of the Annual Report for 2016-17 is
GUVFTB C;FTZ>WLC;.I> M7I FTB JBUI²SH4B>CZ4%7‹LGVEÈGS)LTUI being sent to all the shareholders whose email IDs are
registered with the STA / Depository Participant(s) for
UL YI" G.JLGU7KI MH)LLYI UD SE GE GEMI LTKÉLLKE ^LKL communication purposes unless any shareholder has
NVEIHL.; ÈGSVFLBYIHLT"GUVLTKÉLLKELTB EIC;FTZJBUI²S requested for a hard copy of the same. For shareholders
VHIB H4 N6HTB PLGL;EGKJLT7; EIÈGS E)LL4GSEJFTB who have not registered their email address, physical
copies of the abridged Annual Report for 2016-17 are
)LTUIUL YI" being sent in the permitted mode, separately.
Y
PIB PLGL;E WLF D4#E FTB VLTG7M EI CZ4%7‹LGVE ÈGS GUMFTB c) Electronic copy of the Notice of the 16th Annual General
Meeting (AGM) of the Bank, inter alia, indicating the
C;PLTG7BY EI ÈLLZI WL4K 0PHLK WVRDBÉL> NJG-'LGS JQI; WL4K process and manner of e-voting along with Nomination
ÈL8%MIJ2LF;JLLQLKWLGONÎTETGZ GUVEIUDSEGEELTC; forms, Declaration, Annexure, Attendance Slip and
LTKÉLLKE )LL4GSE J MT FLBY V EKTB" M)LI LTKÉLLKELTB GUVEI Proxy Form etc. is being sent to all the shareholders
whose email IDs are registered with the STA/Depository
C;FTZ WLC;.I M7I !G.JLGU7KI MH)LLYI ET ML'L JBUI²S H4 Participants(s) for communication purposes unless any
LTKÉLLKEELTC;FTZJBUI²SVHIBH4N6HTBPIBPLGL;EWLFD4#E shareholder has requested for a hard copy of the same.
EIMXQVL)LL4GSEJFTB)LTUIUL YIGUMFTBC;PLTG7BYEIÈLLZI For shareholders who have not registered their email
WL4K0PHLKWVRDBÉL>NJG-'LGSJQI;WL4KÈL8%MIJ2LF;JLLQLK> LLTLLL> address, physical copies of the Notice of the 16th Annual
General Meeting of the Bank inter alia indicating the
WVRD6ÉL>OLL;LYLH4" process and manner of e-voting along with Nomination
form, Declaration, Annexure, Attendance Slip and Proxy
L
 LTKÉLLKEH)LIVLT7EKTBGEPIB UI F!PLGL;EGKJLT7; Form etc. is being sent in the permitted mode.
ETVLTG7MD4BEEIPTDMLC7www.pnbindia.inJK)LI.LNVZLT. d) Shareholders may also note that the Notice of the
EKVT ET GZ NJZ$ÉLH4"EL; GOPMLTB JKMLFL6ELKLTDLKMF 16th AGM and the Annual Report for 2016-17 will also
ETOL4KLVGVKI\LLETGZ NJ;RºL2O-SLPTULTBEI)LL4GSEÈGSLTK be available on the Bank’s website www.pnbindia.in
for download. The physical copies of the aforesaid
GP)LLY>GPºLÈ)LLY>>MBMOFLY;>VIGO:ZID4BEET documents will also be available at the Bank’s Head
ÈÉLLVELL;ZFTB)LINJZ$ÉLHLTYI"CMETJQLS_C;E&RGVETLV> Office at Finance Division, Share Department, 5 Sansad
LTKÉLLKELTB ET GZ  JBUIEKL )LL4GSE J FTB TMI MXQVL ÈL*S Marg, New Delhi-110001 for inspection during normal
business hours on working days. Even after registering
EKVT ET GZ »IWLJ2EL-7.LE^LKLGPLTLWVRKLTÉLEKVT JK for e-communication, shareholders are entitled to receive
ÈL*SEKVTETWGÉLELKIHLTBYTB"LTKÉLLKEWJVTWVRKLTÉLELTD4BEEI such communication in physical form, upon making a
C;FTZWLC;.Ihosd@pnb.co.inJK)LI)LTUMESTH4B" specific request, by post, free of cost. The shareholders
may also send their requests to the Bank’s email-id:
.
LTKÉLLKE²JLVLT7EKTB GED4#E-'LZJKELTC; NJHLK!EXJV hosd@pnb.co.in
GPSGKSVHIBGELUL YL" e) Shareholders may kindly note that no gift/gift coupon will
be distributed at the meeting.
Q
E. T MRK\LL ELKLLTB MT WL8.I7LTGKF ET WBOK> D[IJ2ETM> vLVT EL f) Due to security reasons brief cases, eatables & other
MLFLV PBW6P-SR BZTULVTEIWVRFGSVHIBH4"D4#EFTB)LLY belongings are not allowed inside the auditorium.
ZTVT PLZT 0GºL2LTB ELT MZLHOIULSIH4 GEPT WJVT MLFLVEI Persons attending the meeting are therefore advised to
make their own arrangements for safe keeping of their
MRK\LLETGZ -PB0P-'LLEKTB" articles.
 C;PLTG7BYETFLÉFMTPLT7ELWGÉLELK 7. EXERCISE OF VOTING RIGHTS THROUGH E-VOTING
In terms of provisions of Section 3(2E) of the Banking
D4BGEBYE&JVI NJ¹FLTBELWU;V PBWBSKL
WGÉLGVF>EIÉLLKL Companies (Acquisition and Transfer of Undertakings)
 C;
ET ÈLPÉLLVLTB ET WVRMKLFTB D4BEELELTC; )LILTKÉLLKE>ET6Ç Act, 1970 (as amended) no shareholder of the Bank
MKELKETWGSGKºL2>NMET^LKLÉLLGKSLTKLTBETMBDBÉLFTBD4BEETMF-S other than Central Government shall be entitled to
exercise voting rights in respect of the shares held by
LTKÉLLKELTBETERZPLT7ETWGÉLELKETœMTWGÉLEPLTG7BYETWGÉLELK him in excess of 10% of the total voting rights of all the
ELHEOLKVHIBHLTYL"GOELTC;LTKOLTLWGÉLE0GºL2LTBETVLFJKH4 shareholders of the Bank. If any share stands in the
SLTGUM0GºL2ELVLFKGU-7KFTBJHZTOU;HLTYL>NMTPLT7OTVTETMBDBÉL name of two or more persons, the person first named in
the register shall, as regards voting, be deemed to be the
FTB EZÉLLKEFLVLUL YL" sole holder thereof.

EBJVI ÈDBÉLVWL4KÈLLMV
GVF>ETGVFETML'L'LLMBLLTGÉLS In terms of Rule 20 of the Companies (Management
and Administration) Rules, 2014, as amended by
EBJVI ÈDBÉLVWL4KÈLLMV
MBLLTÉLVGVF>LTKÉLLKED4#EFTB the Companies (Management and Administration)
NJG-'LSHLTVTS'LLPLT7OTVTELJLLH4>WL4KPTWJVLPLT7CZ4%7‹LGVEMLÉLV Amendment Rules, 2015, shareholders entitled to attend
^LKLFSOLVWGÉLELKELÈLTYEKMESTH4B" and vote at the meeting, can exercise their voting rights
through electronic means.

12
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

FSOLVÈG¹L VOTING PROCESS


VOTING THROUGH ELECTRONIC MEANS
CZ4%7‹LGVEFLÉFLTB^LKLFSOLV
I. Pursuant to Regulation 44 of the SEBI (Listing Obligations
I. M
 TDI MXQIEKLWJT\LLTB PBÈE7IEKLWLPESLTB
GPGVFV and Disclosure Requirements) Regulations, 2015, Listing
ETGPGVF>-7LE %-QTULTBETML'LMXQIEKLEKLKET Agreement with Stock Exchanges and provisions under Rule
WVRMKLFTB WL4KEBJVI ÈDBÉLVWL4KÈLLMV
GVFLPZI> 20 of the Companies (Management and Administration)
Rules, 2014, as amended by the Companies (Management
ETGVFETML'LJG#SWL4K'LLMBLLTGÉLSEBJVI ÈDBÉLVWL4K and Administration) Amendment Rules, 2015, the Bank is
ÈLLMV
MBLLTÉLVGVFET ÈLPÉLLVLTB EIWVRJLZVLFTB D4BE pleased to provide its shareholders facility to exercise their
^LKL LTKÉLLKELTB ELT M4B7‹Z G.JLGU7KI MGP;MTU )LLKS
 GZGF7T. right to vote on resolutions proposed to be considered in
MI.I M Z
 ^LKL WJVI CZ4%7‹LTGVE MLÉLVLTB JK NJZ$ÉL EKLT the Meeting by electronic means through e-voting platform
provided by Central Depository Services (India) Limited
YTC;PLTG7BYETFLÉFMTC;UI FFTBC;PLTG7BYEIMRGPÉLLOTKHL (CDSL) and voting at the general meeting. The Cut-off
H4" LTKÉLLKELTB EI C;PLTG7BY ET GZ  JLLSL GVÉLL;GKS EKVT EI Date2 for determining the eligibility of shareholders to
E7WLJ2GSG'LH4" exercise remote e-voting and voting at general meeting
is 22.06.2017.
II. F SJLETFLÉFMTPLTG7BYEIMRGPÉLL)LID4#EFTBNJZ$ÉLHLTYI
WL4KD4#EFTB )LLYZTVT PLZT MO-LTB GU6HLTVT GKFLT7C;PLTG7BY^LKL II. That the facility for voting shall also be made available at
the meeting & members attending the meeting who have
JHZTWJVLPLT7VHIBGELH4>FSJLETFLÉFMTWJVTWGÉLELK not already cast their vote by remote e-voting shall be
ELÈLTYEKVTFTBM\LFHLTBYT" able to exercise their right at the meeting.
iii. P HMO-GUMVTD4#EMTJHZTHIGKFLT7C;PLTG7BY^LKLWJVLPLT7 III. That the members who have cast their vote by remote
EKGOLH4D4#EFTB)LLYZTMESLH4JKBSRPHORDLKLWJVLPLT7 e-voting prior to the meeting may also attend the meeting
EKVTETGZ JLLVHIBH4" but shall not be entitled to cast their vote again.

iv. C;PLTG7BYETGZ WVROTLGV&VPS_H4 IV. The instructions for remote e-voting are as under
i. The remote e-voting period begins on 26/06/2017
 i. C; PLTG7BYEIWPGÉL ÈLSDUT
LRHLTYIWL4K (9:00 am) and ends on 28/06/2017 (5:00 pm).
 MLBDUT
SEMFL*SHLTUL YI"CMWPGÉL During this period, shareholders of the Bank,
FTB EIE7WLJ2GSG'LETWVRMLKD4E B ETLTKÉLLKE holding shares either in physical form or in
QLHT PH)LL4GSEJFTB LTKÉLLGKSEKST HLT LG.FT7GT KLZLC5. dematerialized form, as on the cut-off date2 of
22.06.2017, may cast their vote electronically. The
JFTB WJVLPLT7CZT%7‹LGVEJFTB .LZMESTH4"B C;PLTG7BYET remote e-voting module shall be disabled by CDSL
DLOMI.I M Z^LKLC;PLTG7BYFL8._ ZX H7LGOLUL YL" for voting thereafter.
 (ii)LTKÉLLKE> C;PLTG7BY ET GZ  P4DMLC;7 www.evotingindia. ii. The shareholders should log on to the e-voting
comJKZL8GYVEKTB" website www.evotingindia.com

 (iii)“Shareholders” 74DJKG%ZEEKTB" iii. Click on “Shareholders” tab.

 (iv)WDWJVIXUKWLC;.IÈGP7EKTB iv. Now Enter your User ID

a. For CDSL: 16 digits beneficiary ID,


  E
 MI.I M ZETGZ WBELTBEIZL)LL'LI;WLC;.I
b. For NSDL: 8 Character DP ID followed by 8
  v
  V M.I ZETGZ G.GU7EIY[LHEWLC;.I^LKL
Digits Client ID,
WVRJLGZSWBELTBEI.IJIWLC;.I
c. Members holding shares in Physical Form
  Y
 )LL4GSEJFTBLTKÉLLGKSLEKVTPLZTMO-LTBELTD4BEET should enter Folio Number registered with
ML'LJBUI²SJ2LTGZLTMBÈGP7EIULVIQLGH " the Bank.
v. CMET JQLSÈOGL;SCFTUM3LJVOU; EKTB WL4KZL8GYVJK v. Next enter the Image Verification as displayed and
G%ZEEKTB" Click on Login.

vi. GO WLJ .IF47 J FTB LTK ÉLLGKS EKST H4B WL4K www. vi. If you are holding shares in demat form and had
evotingindia.com JK ZL8GYV GEL H4 WL4K GEMI EBJVI logged on to www.evotingindia.com and voted on
ETGZ JXP;FTBPLTG7BYGELH4>SDFL4UXOLJLMP.;NJLTYFTB an earlier voting of any company, then your existing
ZL B" password is to be used.

13
vii.GO WLJ J2-7; 7LCF XUK H4B SLT VIQT GO  Y  QKLLTB EI vii. If you are a first time user follow the steps given
WVRJLZVLEKTB below:

.IF47 J WL4K )LL4GSE J FTB LTKÉLLKL EKVT PLZT For Members holding shares in Demat Form
and Physical Form
MO-LTBETGZ
PAN Enter your 10 digit alpha-numeric *PAN issued by
J4V WLEK GP)LLY ^LKL ULKI GEL YL WJVL  WBELTB EL Income Tax Department (Applicable for both demat
:J2L 6XFTGKE *J4V OU; EKTB .IF47 LTKÉLLKE OLTVLTB ET shareholders as well as physical shareholders)
GZ ZLYX
● Members who have not updated their PAN
with the Bank/Depository Participant are
● MO-GU6HLTBVTE&JVI!G.JLGU7KIMH)LLYIETML'L requested to use the first two letters of
WJVLJ4VVW]SVVHIBGELH4MTWVRKLTÉLH4GE their name and the 8 digits of the sequence
J4VJ2I:.FTBWJVTVLFETJHZTOLTW\LKLTBWL4K¹F number in the PAN field.
METWBELTBELNJLTYEKTB" ● In case the sequence number is less than
●
GO¹FMB<LWBELTBMTEFH4SLTE4GJ7ZZ47KM 8 digits enter the applicable number of
0’s before the number after the first two
FTBVLFETJHZTW\LKLTBETDLOZLYXMB<LUIKLTOU; characters of the name in CAPITAL letters.
EKTB U4MT GO¹FMET ML'LWLJELVLFKFTL Eg. If your name is Ramesh Kumar with
ERFLKH4SLTJ4BVJ2I:.FTBWLK OU;EKTB" sequence number 1 then enter RA00000001
U6FGSG'L WJVT.IF47vLSTLEG'LSvLSTLJ2LTGZLTETGZ EBJVI in the PAN field.
GKEL.;FTBOU;U6FGSG'LGOV!FLH!PL;ÈLJFTBOU;EKTB" DOB Enter the Date of Birth as recorded in your demat
account or in the Bank records for the said demat
ZL)LLBLD4BELSLTZL)LLBLD4BE$L4KLLU6FGSG'L GOV!FLH!PL;
WJVT account or folio in dd/mm/yyyy format.
$L4KL L.IF47vLSTLEG'LSvLSTLJ2LTGZLTETGZ EBJVIGKEL.; Dividend Enter the Dividend Bank Details or Date of Birth
U6FGSG'L FTBOU;ZL)LLBLD4BE$L4KLOU;EKTB" Bank (in dd/mm/yyyy format) as recorded in your demat
Details account or in the Bank records in order to login.
● GO H OLTVLTB $L4KL EBJVI L G.JL8GU7KI ET ML'L OR Date
● If both the details are not recorded with the
OU; VHIB H4>²JLG.GP.TB.D4BEG.7T:MJ2I:.FTB of Birth
depository or Bank, please enter the member
(DOB)
MO-WLC;.I!J2LTGZLT MB<LOU; EKTB U4MLGEFO id / folio number in the Dividend Bank details
M iv
FTBPGL;SH4" field as mentioned in instruction (iv).

viii. CV$L4KLTBELTNGQSÈELKMTOU;EKVTETDLO>“SUBMIT” 74D viii. After entering these details appropriately, click on
“SUBMIT” tab.
JKG%ZEEKTB"
ix. Members holding shares in physical form will then
ix. )LL4GSEJFTBLTKÉLLKLEKVTPLZTMO-MIÉLTEBJVIMZT%LV reach directly the Company selection screen.
-¹IVJKUL BYTBS'LLGJ.IF47JFTBLTKÉLLKLEKVTPLZTMO- However, members holding shares in demat form
JLMP.;G¹ LVGPE:JFTBUL BYTBGUMFTBNVMTV JLMP.;J2I:. will now reach ‘Password Creation’ menu wherein
FTB WJVLZL8GYVJLMP.; WGVPL; JMT OU; EKVLWJTG\LSH4" they are required to mandatorily enter their login
password in the new password field. Kindly
²JLVLT7EKTBGECMJLMP.;ELNJLTYGEMIW6EBJVIET
note that this password is to be also used by the
MBE:JLTBETGZ PLTG7BYHTSR.IF47ÉLLKELTB^LKLGELULVLH4>GUM demat holders for voting for resolutions of any
JKPT PLTG7BYET GZ JLLH4 DLS;T EBJVIMI.I M Z*ZT7J2LF; other company on which they are eligible to vote,
ETFLÉFMTC;PLTG7BYQRVTB"HOASLJXP;EMRLPGOLULSLH4 provided that company opts for e-voting through
GEGEMI)LIW60GºL2ETML'LWJVLJLMP.;MLLVEKTBWL4K CDSL platform. It is strongly recommended not to
WJVTJLMP.;ELTYLTJVIKvVTFTBMLPÉLLVIDKSTB" share your password with any other person and take
utmost care to keep your password confidential.
x. )LL4GSEJFT LTKÉLLKLEKVT PLZT MO-LTB ET GZ >$L4KT EL x. For Members holding shares in physical form,
NJLTYCMVLTG7MFTBGO Y MBE:JJKC;PLTG7BYETGZ GEL the details can be used only for e-voting on the
ULMESLH4" resolutions contained in this Notice.
xi. JBULDV4LVZD4BEETGZ EVSNJKG%ZEEKTBGUMJKPLT7 xi. Click on the EVSN for Punjab National Bank on
EKVTETGZ QRVSTH4B" which you choose to vote.
xii. On the voting page, you will see “RESOLUTION
xii. PLTG7BY JTU JK> WLJELT “RESOLUTION DESCRIPTION” DESCRIPTION” and against the same the option
GOvTYL WL4K CMET GPJKIS PLTG7BY ET GZ  “YES/NO” GPE:J “YES/NO” for voting. Select the option YES or NO
GOvTYL" TG1/EGPE:J“YES/NO“QRV"BT WLJMBE:JETMF'L;V as desired. The option YES implies that you assent
FTB H4 WL4KGPE:J NO ELSL3J; H4 GEWLJMBE:JET GP to the Resolution and option NO implies that you
H4" dissent to the Resolution.

14
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

xiii.GOWLJMBJXL;MBE:J$L4KLOTvVLQLHSTH4BSLT“RESOLUTIONS xiii. Click on the “RESOLUTIONS FILE LINK” if you


FILE LINK” JKG%ZEEKTB" wish to view the entire Resolution details.
xiv. After selecting the resolution you have decided
xiv.MBE:JQVETJQLS_WLJVTNMJKPLT7EKVTELGVL;GZL> to vote on, click on “SUBMIT”. A confirmation box
“SUBMIT” JKG%ZEEKTB"JRG7DL%MÈOGL;SHLTYL"GOWLJ will be displayed. If you wish to confirm your vote,
WJVLPLT7MRGVGQSEKVLQLHSTH4B>OKJKG%ZEEKTBZTGEV click on “OK”, else to change your vote, click on
PLT7DOZVTETGZ “CANCEL”G%ZEEKTBWL4KSOVRMLKWJVL “CANCEL” and accordingly modify your vote.
PLT7DOZTB" xv. Once you “CONFIRM” your vote on the resolution,
you will not be allowed to modify your vote.
xv.  E DLK WLJVT MBE:J JK WJVL “CONFIRM” EK GOL SLT
xvi. You can also take a print of the votes cast by clicking
WLJELTWJVLPLT7DOZVTEIWVRFGSVHIBHLTYI" on “Click here to print” option on the Voting page.
xvi.WLJPLTG7BYJTUJK“Click here to print”JKG%ZEEKET-PB xvii. If a Demat account holder has forgotten the changed
^LKLEIYIPLTG7BYELGÈB7WLN7)LIZTMESTH4B" password then enter the User ID and the image
verification code and click on Forgot Password &
xvii.GO .IF47 vLSLÉLLKE JGKPGS;S JLMP.; )LXZ YL HLT SD XUK
enter the details as prompted by the system.
WLC;.IWL4KCFTUM3LJVELT.OU;EKTBWL4KForgot Password
xviii. Shareholders can also cast their vote using CDSL’s
JKG%ZEEKTBWL4KGM-7F^LKLS4LKGELYL$L4KLOU;EKTB" mobile app m-Voting available for android based
xviiiMI.I M ZELÈLTYEKET LTKÉLLKE B.L‹  T .WLÉLLGKSFLTDLC;Z mobiles. The m-Voting app can be downloaded
JK FPLTG7BYMT )LIWJVLPLT7OT MEST H4"B  FPLTG7BY JELT from Google Play Store. Apple and Windows
phone users can download the app from the App
YXYZ*ZT-7LTKMT.LNVZLT.EKMESTH4"B  *JZWL4KGPB.LTUJ2LTV
Store and the Windows Phone Store respectively.
ETNJLTYESL;¹FL J-7LTKPGPB.LTJ2LTV-7LTKMT J.LNVZLT. Please follow the instructions as prompted by the
EKMESTH4"B ²JLWJVTFLTDLC;ZMTPLT7EKSTMFFLTDLC;Z J mobile app while voting on your mobile.
JKÈOGL;SGVO;T LLTB EIWVRJLZVLEKT"B  xix. Note for Non-Individual Shareholders &
xix.Y4KP4GºL2ELTKÉLLKELTB PBE-7LTG.6METGZ VLT7 Custodians:
● Non-Individual shareholders (i.e. other than
● Y4KP4GºL2E LTKÉLLKE W'LL;S_ 0GºL2LTB> QX J2> Individuals, HUF, NRI etc.) and Custodian are
VWLKWLC; WLGOMT G)L6V
WL4KE-7LTG.VMT WJTG\LSH4 required to log on to https://www.evotingindia.com
GE https://www.evotingindia.com JKZL8GYVEKTB WL4K and register themselves as Corporates.
-PBELTELKJLTKT7_METJFTBJBUI²SEKTB" ● A scanned copy of the Registration Form bearing
● NJ¹FEL-7L&JWL4KH-SL\LKMGHSJBUIEKLJ2LF; EI the stamp and sign of the entity should be emailed
-E4VELJIhelpdesk.evoting@cdslindia.comELTFTZ to helpdesk.evoting@cdslindia.com.
EKVLQLGH " ● After receiving the login details a Compliance
● ZL8GYV$L4KLÈL*SHLTVTETDLOE&*ZL BMXUK^LKLNJLTY User should be created using the admin log-in &
EI ULVT PLZI .GFV ZLGYV WL4K JLMP.; MAGUS EKVL password. The Compliance User would be able to
QLGH !E&*ZL BMXUKvLSL SLTB
GUMETGZ PTPLT7EKVT link the account(s) for which they wish to vote on.
ETC1/REH4BELTGZBEEKVTFTBM\LFHLTYL" ● The list of accounts linked in the login should be
mailed to helpdesk.evoting@cdslindia.com and
● vLSLTB EIMXQI helpdesk.evoting@cdslindia.comELT on approval of the accounts they would be able to
FTZEIULVIQLGH WL4KvLSLTB ET WVRFLTOVJKPT WJVL cast their vote.
PLT7OTVTETGZ M\LFHLTBYTB" ● A scanned copy of the Board Resolution and
● N6HTB DLT.; MBE:JWL4KJLPKWLJ2 7LVI; JIWLT
EI-E4V Power of Attorney (POA) which they have issued in
ÈGSWJZLT.EKVIQLGH GUMTN6HLTVB T E-7LTG.VETJ\LFTB favour of the Custodian, if any, should be uploaded
ULKIGELH4>GOELTC; H4>CMTM3LGJSEKVTETGZ MBPI\LE in PDF format in the system for the scrutinizer to
HTSR GM-7FFTB JI.I J2ÈLJFTB WJZLT.GELULVLQLGH " verify the same.
C;PLTG7BY MT MBDBGÉLS GEMI JX/SL/ L FLFZT ET GZ > WLJ W%MK In case you have any queries or issues regSArding e-voting,
JX/T ULVT PLZT ÈV (“FAQs”)WL4K help sectionET WBSY;S www. you may refer the Frequently Asked Questions (“FAQs”) and
e-voting manual available at www.evotingindia.com under help
evotingindia.com JK NJZ$ÉL C;PLTG7BY F4VRWZ OTv MEST H4B L
section or write an email to helpdesk.evoting@cdslindia.com .
helpdesk.evoting@cdslindia.comJKFTZGZvMESTH4B" The contact details of official for e-voting are as follows:
VLF  +IKLETL.L:PI Name - Mr. Rakesh Dalvi
JOVLF NJÈD6ÉLE Designation - Deputy Manager
JSL  MTB7‹ZG.JLGU7KIMGP;GMU CBG.L
GZ Address - Central Depository Services (India) Ltd.
C;FTZ  helpdesk.evoting@cdslindia.com e-mail ID - helpdesk.evoting@cdslindia.com
OXK)LLL  18002005533 Phone no. - 18002005533

15
 V. GO WLJ MI.I M Z ET ML'L C;PLTG7BY ET GZ  JHZT HI V. If you are already registered with CDSL for e-voting
JBUI²SH4BSDWLJFSOLVETGZ WJVTFL4UXOLXUKWLC;.I earlier then you can use your existing user ID and
WL4KJLMP.;!GJVELNJLTYEKMESTH4B" password/PIN for casting your vote.
VI.WLJJ2LTGZLTETXUKÈLTJ2LCZFTBWJVLFLTDLCZVBWL4KC;FTZ VI. You can also update your mobile number and
WLC;.I)LIW]SVEKMESTH4BGUMELNJLTY)LGPFTBGET e-mail id in the user profile details of the folio which
may be used for sending future communication(s).
ULVTPLZTJLLQLKLTBETGZ GELULMESLH4"
VII. C;PLTG7BYEIWPGÉL ÈLSDUT
LRHLTYIWL4K VII. The remote e-voting period commences on
 MLBDUT
SEMFL*SHLTUL YI"CMWPGÉL 26/06/2017 (9:00 am) and ends on 28/06/2017
(5:00 pm). During this period, shareholders’ of the
FTBE7WLJ2GSG'LETWVRMLKD4BEETLTKÉLLKEQLHTPH)LL4GSE Bank, holding shares either in physical form or in
JFTB LTKÉLLGKSEKST HLT LG.F47TGKZLC5.JFTB WJVLPLT7 dematerialized form, as on the Cut-off Date2 may
CZT%7‹LGVEJFTB .LZMEST H4B"C; PLTG7BYET DLO V M.I Z cast their vote electronically. The e-voting module
^LKLC;PLTG7BYFL8._XZH7LGOLUL YL"LTKÉLLKE^LKL EDLK shall be disabled by CDSL for voting thereafter.
MBE:JJKFSOLVEKVTETJQLS_LTKÉLLKEELTCMTDOZVTEI Once the vote on a resolution is cast by the
shareholder, the shareholder shall not be allowed
WVRFGSVHIBOIUL YI"
to change it subsequently.
VIII. LTKÉLLKE PLTG7BY EL ETPZ E FLT. W'LL;S_ L SLT UI F FTB VIII. Shareholders can opt for only one mode of voting,
NJG-'LSHLTEK)LL4GSEJFTBLC;PLTG7BYELGPE:JQRVMESL i.e. either physically by attending AGM or remote
H4" GO ELTC; LTKÉLLKE C;PLTG7BY EL GPE:J QRVSL H4 SLT PH e-voting. If any shareholder opts for remote e-voting,
UI FFTB)LL4GSEJFTBFSOLVEKVTETGZ JLLVHIBHLTYL" he will not be eligible to vote physically in AGM.

IX.  XBGEETPZ ELTKÉLLKEELQRVLPH4 CMGZ  EMT WGÉLE


Q IX. As the election is for one Shareholder Director
GVOTLEETGZ PLT7VHIGOLULMESLW6'LLPLT7WP4ÉLHLTVL only, vote be cast for not more than one Director
QLGH " else the votes cast shall be treated as invalid.

X. N JKLTºL2ETGPLLÉLIV>GPGVFVETWVRMLK>È3TELTKÉLLKE X. Subject to the above, as per Regulation 68,


each shareholder who has been registered as a
ULT E7WL8J2GSG'LSE EJBUI²SLTKÉLLKEH4 PHWJVT shareholder on the Cut-off Date2 shall have one
^LKLÉLLGKSÈ3TELTKETGZ  EPLT7OTMESTH4" vote for each share held by him/her.
XI. F4 WLLR YR*SL B. EBJVI C;FTZ WLC;.I agc.scrutinizer@ XI. Ms. Ashu Gupta, Practising Company Secretary
gmail.com
FTB EL;KSMR+IWLLR YR*SLEBJVIMGQP MO-L (Membership No. F4123, CP No. 6646) of M/s
Ashu Gupta & Co. (email ID – agc.scrutinizer@
MB<LF4123, CP No. 6646
ELTD4BE^LKLGVJ\L PBJLKOLI; gmail.com) has been appointed as the Scrutinizer
SKIETMTC;PLTG7BYÈG¹LEIMBPI\LLEKVTETGZ MBPI\LEGVRºL2 by the Bank to scrutinize the e-voting process in a
GELYLH4" fair and transparent manner.
XII.  BPI\LE>WLFD4#EETOL4KLVHRC;PLTG7BYETSRKBSDLO.LZTY 
M XII. The Scrutinizer shall after the conclusion of voting at
the AGM, will first count the votes cast at the meeting
PLT7LTB EIGYVSIEKTYLS3JQLS_ OLT 
ML\LTB EINJG-'LGS and thereafter unblock the votes cast through
FTB ULT D4BE ET GVLTUV FTB V HLTB> PLT7 WV$ZL8E EKTYL WL4K remote e-voting in the presence of at least two (2)
D4#EETWÉ\LELTLNMET^LKLWGÉL²S0GºL2ELTJ\LL witnesses not in the employment of the Bank. The
GPJ\LFTB .LZT YT PLT7EIGOELTC; HLT>GZGvSGKJLT7; D4#E Scrutinizer shall submit a consolidated Scrutinizer’s
Report on the total votes cast to the Chairman of the
ETWÉ\LELT UI FEIMFLG*SET LB7LTETW6OKÈ-SRS Meeting not later than 48 hours of conclusion of the
EKTYLLNVET^LKLGZGvSFTBÈLGÉL²S E0GºL2ÈGSH-SL\LK AGM and the Chairman or a person authorised by
EKTYL"WÉ\LLÈLGÉL²S0GºL2PLTG7BYETJGKLLFLTEI LLTLLL him in writing who shall countersign the same and
EKTYL" declare the result of the voting forthwith.
XIII. MBPI\LE GKJLT7; ET ML'L JGKLLFLTB EI LLTLLL> D4BE EI PTDMLC7 XIII. The Results along with the Consolidated
www.pnbindia.inJKWL4KMI.I M ZEIPTDMLC7JKWÉ\L Scrutinizer’s Report shall be placed on the Bank’s
website www.pnbindia.in and on the website of
^LKLJGKLLF LLTGLSGELUL YL" CDSL immediately after the result is declared by
GVOTLEF.ZETWLOTLLVRMLK the Chairman.
²STJBULDV4LVZD4BE By order of the Board of Directors
for PUNJAB NATIONAL BANK

-'LLVVC;GO:ZI MRVIZFTHSL
 Place: NEW DELHI (Sunil Mehta)
GOVLBE ÈD6ÉLGVOTLEPFR<EL;JLZEWGÉLELKI Date: 16.05.2017 Managing Director & CEO

16
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

HWPU
HQ‹MJHQQLM
MFHLKMU8<
Financial
Directors'Statement
Report

17
J[YGS EVUKFTB
PROGRESS AT A GLANCE
` EKLT. FT
B (` crore)
¹MB J4KLFI7K GPºLPL; GPºLPL; GPºLPL; GPºLPL; GPºLPL; GPºLPL;
S. No PARAMETERS FY'12 FY’13 FY’14 FY’15 FY’16 FY’17
1 LTKJXBUI 339 353 362 371 393 426
Share Capital
2 WLKG\LSGVGÉLL‚ 27478 32323 35533 38709 37917 41421
Reserves & Surplus
3 UFLKLGLLB 379588 391560 451397 501379 553051 621704
Deposits
4 WGY[F 293775 308796 349269 380534 412326 419493
Advances
5 ERZELKLTDLK 673363 700356 800666 881913 965377 1041197
Total Business
6 ERZWLG-SLB 458194 478948 550420 603334 667390 720331
Total Assets
7 LRGVPTL 122629 129896 143786 149877 157846 186725
Net Investment
8 ERZLL<LL B* MB<L
5670 5874 6201 6560 6760 6938
Total Branches*( Number)
9 7I FVT7PE; MB<L
6009 6313 6940 8348 9463 10681
ATM Network ( Number)
10 JGKQLZVZL)L 10614 10907 11384 11955 11339 14565
Operating Profit
11 ERZJ[LPÉLLV 5730 6160 8042 8893 15313 13240
Total Provisions
12 LRZL)L 4884 4748 3343 3062 -3974 1325
Net Profit
13 ELKLTDLK!EF;QLKI ` ZL<LFTB
1132 1165 1283 1319 1359 1417
Business/Employee (` lakh)
14 žLUFLWVRJLS %
77.39 78.86 77.38 75.90 74.55 67.47
Credit-Deposit Ratio (%)
15 UFLKLGLLTBEIZLYS %
6.59 6.82 6.33 6.09 5.85 5.33
Cost of Deposit (%)
16 WGY[FLTBJKWL %
11.67 11.06 10.36 9.88 9.10 8.29
Yield on Advances (%)
17 GVPTLJKJ[LG*S %
7.57 7.89 7.85 7.99 7.94 7.69
Yield on Investment (%)
18 LR$LUFLGU;V %
3.84 3.52 3.44 3.15 2.60 2.38
Net Interest Margin (%)
19 WLG-SLTBJKJ[GSJ2Z %
1.19 1.00 0.64 0.53 -0.61 0.19
Return on Assets (%)
20 ZLYSWLWVRJLS %
39.75 42.81 45.06 46.74 46.79 41.57
Cost to Income Ratio (%)
21 MEZ VJI  %
2.93 4.27 5.25 6.55 12.90 12.53
Gross NPAs (%)
22 LR VJI  %
1.52 2.35 2.85 4.06 8.61 7.81
Net NPAs (%)
23 JXBUIJL;*SSLWVRJLS DTMZIII
 %
- - 11.52 12.21 11.28 11.66
Capital Adequacy Ratio (Basel III) (%)
* E %M7TBLVELNB7KMGHS LKTZXLL<LL B
* Domestic Branches including one Extension Counter

18
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

J[FR<LGPºLIG-'LGSLB
KEY FINANCIAL POSITION

19
J[FR<LGPºLIWVRJLS
KEY FINANCIAL RATIOS

20
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

JXBUIJL;*SSLWVRJLS DTMZ III

CAPITAL ADEQUACY RATIO (BASEL III)

21
GVOTLEGKJLT7;  DIRECTORS’ REPORT 2016-17
D4BEELP4GPEELKLTDLKFLQ; EIMFLG*SJKœEIPL;OKPL; The Bank’s Global Business reached `1041197 crore as at the
PAGELT OLL;ST HR EKLT.  SEJHR‚QYL"UDGED4BEEI end of March’17 reflecting a growth of 7.9% on a yearly basis.
While the Global Deposits of the Bank at `621704 crore grew
P4GPEUFLKLGLL‚FLQ;JKœEIPAGETML'L
by 12.4%, Global Net Advances recorded growth of 1.7% to
EKLT. KHL>P4GPEGVPZWGY[FœEIPAGOU;EKSTHR  reach `419493 crore as on 31st March’17. The Bank recorded
EKLT. SEJHR‚QYC;"D4BEVTELMLFTBœEIPAGOU;EIS'LL LKTZX a CASA growth of 26.5% and the share of CASA to domestic
UFLKLGLLTBFTBELMLELLTKD EKœHLTYL" deposits increased to 46%.

ZL)LÈOSLFLVOB.LTBETWVRMLK>D4BEELJGKQLZVZL)LFLQ;ET In terms of Bottom-line parameters, the Bank’s Operating Profit


increased from `11339 crore as on 31st March’16 to `14565
EKLT. MTDEKFLQ;ELTEKLT. HLTYL" 
crore as on 31 March’17.
st

CMJA#)LXGFFTB>WLJETGVOTLEYLGPºLIPL; ETGZ D4BEEIPLGL;E In this backdrop, your Directors take pleasure in placing the
GKJLT7;ETML'LML'LZTvLJKIG\LSPLGL;EGPºLIGPPKLWLJETMF\LMHL; Bank’s Annual Report for FY’17 along with its audited Annual
È-SRSEKKHTBH4B" Financial Statements.

HFLKLÈOL;V Our Performance


GPºLIGPLTLSL B A. Financial Highlights
SRZVJL A.1. Balance Sheet
EKLT.FTB
(` crore)
FLVOB. FLQ;  FLQ;  PAG œ
Parameters 31 March’ 16 31 March’17 Growth (%)
st st

ERZELKLTDLK 965377 1041197 7.9 Total Business 965377 1041197 7.9


UFLKLGLL‚ 553051 621704 12.4 Deposits 553051 621704 12.4
GVPZWGY[F 412326 419493 1.7 Net Advances 412326 419493 1.7

ZL)L A. 2. Profit
EKLT.FTB
(` crore)
FLVOB. GPºLIPL;  GPºLIPL;  PAG œ
Parameters FY’16 FY’17 (%)
JGKQLZVZL)L 11339 14565 28.4 Operating Profit 11339 14565 28.4
ÈLPLV 15313 13240 -13.5 Provisions 15313 13240 -13.5
GVPZZL)L -3974 1325 - Net Profit -3974 1325 -
J[FR<LWVRJLS A.3. Key Ratios
(%) (%)
GPPKL GPºLIPL;  GPºLIPL;  Particulars FY’16 FY’17
GVGLTBEIZLYS 4.93 4.60 Cost of Funds 4.93 4.60
GVGLTBMTWL 7.28 6.74 Yield on Funds 7.28 6.74
CG%P7IJKÈGSJ2Z GVPZMBJGºL
žLL3FE 3.52 Return on Equity (Net Worth) -ve 3.52
GVPZ$LUFLGU;V LKTZX
2.95 2.69 Net Interest Margin (Domestic) 2.95 2.69
WLG-SLTBJKÈGSJ2Z žLL3FE 0.19 Return on Assets -ve 0.19
WLWVRJLSEIZLYS 46.79 41.57 Cost to Income Ratio 46.79 41.57

DI JGKQLZVYSGPLTLSL B
B. Operational Highlights
i. JI VDIVTZLvEKLT. ETERZELKLTDLKETWLE. TBELTJLK i. PNB crossed the Total Business Figures of `10 lakh
GEL"D4BEEIELMLUFLKLGLLTB VT )LIZLvEKLT.  ET crore. CASA deposits of the Bank also crossed `2.6
WBEELTJLKGEL" lakh crore mark.
ii. JI VDI 7TD D4BGEBY Q VWLC; WL4K VWLKWLC; ELT .LTK-7TJ ii. PNB Tab Banking: Saving Bank Account opening
YRLPºLL MTPL B ÈOLV EKVT ET GZ  74$ZT7 JIMI WLLGKS MFL through Tablet PC Based Solution was launched to
LVET FLÉFMT DQSvLSLvLTZVT EIMRGPLELWLKB)LGEL provide quality services to HNIs and NRIs at their door
YL" H Q VWLC; Y[LHELTB PB NVET JGKUVLTB> L4G\LE MB-'LLVLTB step. It caters to HNI customers and family members,
ETPTSVvLSLTB>EL8JL;TKT7GVELLTBWL4KMROXKG-'LSM46E4B7LTBFTB7EI salary accounts of educational institutions, corporate
bodies & remotely placed Army cantonments.
WLPESLWLTBELTJXKLEKSLH4"

22
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

iii. vROKL WLG-S ÈG¹L MTZ WLK JIMI


 D4BE VT vROKL žL iii. Retail Asset Processing Cell (RAPC): The Bank has
GPSKL FL8.Z ELT VL J GOL H4 WL4K GOVLBE  revamped the Retail Credit Dispensation Model and
replaced the existing model with RAPC model from
MT FL4UXOL FL8.Z ELT WLK JIMI FL8.Z ET ML'L DOZ GOL H4"
01.04.2016. RAPCs undertake all the activities from
WLK JIMILLvLWLTBETFLÉFMTžLWLPTOVEIÈLG*SMTZTEK receipt of loan application through branches till sanction of
vROKLžLEI-PI²GSSEM)LIYGSGPGLTBELTMBQLGZSEKSTH4B> retail loan which has resulted in qualitative improvement
GUMETJGKLLF-PJžLÈMB-EKLFTBYRLL3FEMRLKHRWLH4" in loan processing.
iv. vLSLvLTZVTETGZ D4EWL8GJ2MHFLKIETPLC;MIÈLLZIELT iv. Back office for account opening: To strengthen our
MROA EKVTETGZ >D4BEVTÈ3TEWBQZFTBETBÇI²SD4EWL8GJ2M KYC system, the Bank has started opening saving and
current account at centrally located Back office at each
JKDQSWL4KQLZXvLSLvLTZVLWLKB)LEKGOLH4" Zone.
v. O\LSL D LVT HTSR> GPºLI MFLPTLV È)LLY J2WLC;.I
 WL4K v. For bringing more efficiency, Financial Inclusion Division
ÈL'LGFESLÈL*S\LTLWL4KWY[LID4BEÈ)LLY JI MWL4K ZDI
 (FID) and Priority Sector & Lead Bank Division (PS&LB)
EL GPZ ²GL ELKLTDLK WL4K GPºLI MFLPTLV È)LLY ET J FTB were merged to form Agri Business & Financial Inclusion
GELYL"GK7TZWLG-SÈ)LLY WLK .I
 PBMBMLVMBY[HLÈ)LLY Division. Retail Assets Division (RAD) and Resources
Mobilization Division (RMD) were merged to form Retail
WLK F.I
ELGPZGK7TZD4BGEBYÈ)LLYETJFTBGELYL" Banking Division.
vi. —JI VDIGEËÑI VLFEJI VDIPL8ZT7ELLR)LLKB)LGELYL" vi. PNB wallet named as “PNB Kitty” was launched.
vii. JI VDIVT)LI?JI VDIPTP VJT VLFEMBJE;KGHS¹TG.7EL.;EI
vii. PNB also introduced Contactless Credit Cards namely
LRWLSEIH4"?JI VDIRPL VLFMT EW6FLTDLCZ G*ZETLV “PNB Wave and Pay”. Another mobile application, PNB
RPLWLTBETGZ LREIYC;" Yuva was launched for the youngsters.
viii. 7I F ET È)LLPI ELFELU ET GZ  7I F ZL)LÈOSL FL8.Z S4LK viii. ATM Profitability Model has been designed for effective
GELYLH4" functioning of ATMs.
ix. EÈGMWL4KN3MLHIRPLG¹ET7K+IGPKL7ELTHZIELT OTLET ix. Mr. Virat Kohli, a young and energetic Indian cricketer
RPLWLTBETDIQNVEIZLTEGÈSLETELKLD4BEETD[LB. BDTM.KET has been chosen as brand ambassador of the Bank
JFTBQRVLYLH4" because of his mass appeal to the youth of the country.
x. VC;GO:ZIFTBMT%7K^LKELFT7‹LT-7TLVJI VDIFT7‹LT-7TLVETJ x. Sector 10, Dwarka Metro Station in New Delhi was
FTBD[LB.GELYL'LL" branded as PNB Dwarka Metro Station.
MI WLG-SYRLPºLL C. Asset Quality
GPºLI PL;  FTB D4E
B  EI MEZ VJI   EKLT. GPºLI PL;  FTB
The Bank’s Gross NPA stood at `55370 crore in FY’17 (FY’16:
EKLT.
KHIS'LLGVPZ VJI GPºLIPL; FTB EKLT. GPºLI `55818 crore) and the Net NPA stood at `32702 crore in FY’17
PL; FTB EKLT.
KHI"WVRJLSLTB ET MBO)L; FTB MEZ VJI WVRJLS (FY’16: `35423 crore). In terms of ratios, Gross NPA ratio stood
GPºLIPL; FTB œ GPºLIPL; FTB œ
KHL PB GVPZ VJI  at 12.53% in FY’17 (FY’16: 12.90%) and Net NPA ratio stood at
WVRJLSGPºLIPL; FTB œ GPºLIPL; FTB œ
KHL" 7.81% in FY’17 (FY’16: 8.61%).
MEZ VJI ETML'LML'LGVPZ VJI ETÈGSLSFTBEFIHRC;"JIMIWLK Gross NPA as well as Net NPA percentage has come down.
GPºLIPL; ET œMT MRKEKGPºLIPL; FTB œHLT YL" PCR has also improved from 51.06% in FY’16 to 58.57% in
FLLLEIOAG7MTEISRZVLFTBFTBMEZ VJI OLTVLTB FY’17. In absolute terms also both Gross NPA and Net NPA as
on 31.03.17 reduced as compared to 31.03.16.
FTBHIGYKLP7WLC;H4"

23
GPºLIPL; ETOL4KLVEIYC;JHZTB Initiatives taken during FY’17

¾ ÈLVELL;ZMT PGK#WGELGKLTB VT PMXZIEL;PLHIFTB EFI ¾ During the year, bank initiated “Pan India Recovery Drive”
EIJHQLVEKVTHTSRWBQZELL;ZELOL4KLGELS'LLMKJ2TMI> (PIRD) giving targets for each quarter to each Circle
and Zone. These PAN India drives were successful in
.IWLK7IFLFZTOU;EKVTU4MIPMXZIMRGVGQSEI" 
increasing cash recovery and upgradation during the
¾ D4BEVTPL;ETOL4KLVGVJ7LVEIYGSFTBSTUIZLVTHTSRZ LRWGY[FLTB year.
FTBPMXZIELTD LVTETGZ FTYLžLFRGºL2GLGPKLTBEL)LIWLLTUV ¾ The Bank also organized Mega Rin Mukti Shivirs for
GEL"  giving impetus to recovery in small advances to expedite
the pace of settlement during the year.
¾ FLQ; JKNLKESL;WLTB ELT WLKDIWLC; ET GOLLGVO;TLLVRMLK
CKLOSVQXEESL;ETJFTB LLTGLSGELYL" ¾ As on March’17, 1009 borrowers were declared as wilful
defaulters as per RBI guidelines.
¾ PMXZIFTBSTUIZLVTETGZ MLVETJFTB EDLKYIGVJ7LVELT
One Time Settlement (OTS) was also explored as a
WJVLLYLS'LLGPºLIPL; ETOL4KLVvLSLTBFTBWLT7I M ¾
tool for expediting recovery during FY’17; OTS in 90165
ELWVRFLTOVGELYL"D4BEVT GPºLIPL; ET OL4KLV VJI  accounts was approved, `906 crore were recovered in
HR vLSLTBFTBEKLT. PMXZGE " approved OTS cases.
¾ JKEKLT. EIERZDELLKLGLLTBPLZT VJI  ¾ NPA accounts as on 31.03.17 with aggregate outstanding
vLST-74..;+TLIFTBWJY[T.GE Y  VJI vLSLTBFTBERZVEO of `2981 crore were upgraded to standard category. Total
PMXGZLBEKLT. KHI" cash recoveries in NPA accounts amounted to `10677
crore.
KLVIGSEJ2LTEM VJI ELMFLLV
Strategic Focus-Resolution of NPAs

.I WL4]LTGYEJRVY;#V D. Industrial Restructuring

¾ ODLPY[-SWLG-SLTBET-'LLIMBKQVLEILTUVL M
ET ¾ Under the Scheme for Sustainable Structuring of
SHS>D4BEVT GOVLBEJKEKLT.  EIDELL Stressed Assets (S4A), the Bank mandated 12 accounts
with outstanding of `2955 crore as on 31.03.2017.
KLGLPLZTvLSLTBFTBWGOTLGOL"

24
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

¾ GPºLIPL; ETOL4KLV>D4BEVTJKEKLT. EI ¾ During FY’17, the Bank invoked Strategic Debt
DELLKLGLPLZTvLSLTBFTBMLFGKEžLJRVY;#V M.IWLK
 Restructuring (SDR) in 9 accounts with outstanding of
`2564 crore as on 31.03.2017.
ZLYXGEL"
¾ During FY’17, 5/25 scheme was implemented in
¾ GPºLIPL; ETOL4KLVJKEKLT. EIDELL 10 accounts with outstanding of `2334 crore as on
KLGLPLZTvLSLTBFTB!LTUVLZLYXEIYC;" 31.03.2017.
¾ EL8JL;KT 7T žLJRVY;#V MI.IWLK
^LKLJRVY;G#SFL4UOX LvLSLTB ¾ Out of the existing 76 Corporate Debt Restructuring
ELTDELLEKLT.
MTvLSLTB FTB JI VDI (CDR) restructured accounts (with outstanding `11251
ELTGVYKLVIMB-'LLVEI)LXGFELML4JB IYC;'LI"PS;FLVPL;ETOL4KLV> crore as on 31.03.2017), in 14 accounts, PNB was
assigned the role of Monitoring Institution. During the
ÈGSJXGS;KLGLET)LRYSLVEKVTJKEKLT. EIDELLKLGLPLZT current year, the successful exit was finalized in 4 CDR
MI.IWLKvLSLTB FTB MJ2ZGVELMISEIYC;" accounts with outstanding of `285 crore on payment of
recompense amount.
¾ D4BE VT  MT F M FC; ET GZ  VC; JRVLK WL4K
JRVPL;M JKTvL J2WLKWLK
 HTSR VIGS WJVLC; H4" GPºLI ¾ The Bank has adopted the policy for New Framework
PL; ETOL4KLV> F M FC;ETGZ  J2WLKWLKETWBSY;S for Revival and Rehabilitation (FRR) of MSMEs w.e.f.
14.07.2016. During FY’17, 12 accounts were restructured
EKLT. EIDELLKLGLPLZTvLSLTBELJRV;Y#VGELYL" 
under FRR for MSME with outstanding of `77 crore.
¾ TMT F M FC; HTSR> GU6HTB MI.IWLK! M.IWLK! M ! J2WLKWLK ¾ For MSMEs, which cannot be covered under CDR/
ETWBSY;SEPKVHIBGELULMESLH4>D4BEVTMB)LLGPS0PHL; SDR/S4A/FRR, the Bank put in place a transparent
CELCLTBETžLLTBETJRVY;#VETGZ  EJLKOLI;SBL-'LLGJSGEL mechanism for restructuring of debts of potentially viable
H4"GPºLIPL; ETOL4KLV>EKLT. EIDELLKLGLPLZT units. During FY’17, 21 accounts were restructured with
outstanding of `2804 crore.
vLSTJRVY;G#SGE Y "
E. Digitalization: Towards ‘Digital PNB’
C; G.GU7ZIEKL?G.GU7ZJI VDI EIGOLLFTB
B VTY[LHELTB Moving towards cashless society and paperless banking, the
VEOKGHSMFLUWL4KELYUKGHSD4GB EBYEIGOLLFTB D ST HR D4E
Bank undertook several initiatives to provide better, prompt and
ELTDTHSK>3PGKSWL4KERLZMTPL BÈOLVEKVTETGZ EC;JHZEIH4"B  efficient services to the customers.
P4EG:JEGPSKLQ4VZ Alternative Delivery Channels:
  CB7KVT7D4GB EBYFLQ;JKCB7KVT7D4GB EBYMTPLFTB ZY)LY a. Internet Banking: As on 31.03.2017, around 0.93 crore
EKLT. Y[LHE GK7TZ PBEL8JL;KT 7T
JBUI²S'LT"PL;ETOL4KLV customers (retail and corporate) were enrolled in internet
EC;V J2IQKULT.T Y GUMFTB .TGD7EL.;>HL87GZG-7BYWL4KGK7TZ banking service. During this year, many new features
were added which included Debit card hot listing and
PBEL8JL;KT 7T CB7KVT7D4GB EBYFTB ZTVOTVEKVTHTSR ÈFLLIEKLETOXMKT
Digital signature as a second factor of authentication
ELKEETJFTB WL4KG.GU7ZH-SL\LKLLGFZH4"B  for doing transactions in Retail and Corporate Internet
Banking.
DI  FLTDLCZ D4BGEBY  JK FLTDLCZ D4BGEBY NJLTYESL;
EKLT. 'LT" b. Mobile Banking: As on 31.03.2017, the Mobile Banking
Users were 0.71 crore.
MI  M F MWZ7;MTPL ‚JKZY)LYEKLT. 
Y[LHELTB VT M F MWZ7; MTPLWLTB HTSR MO-SLZT KvIH4"H c. SMS Alert Services: As on 31.03.2017, around 4.65
MTPLWLYT WLKWLKDIELT ÈOLVEIYC;"DHR)LLLI)LLLLWLTB FTB crore customers subscribed to SMS Alert Services. The
service was further extended to 5 RRBs. OTP and SMS
WLT7IJI PB M F MWZ7;ELWLKB)LGELYL" alert was introduced in multilingual languages.
.I  7I FGPºLIPL; ETOL4KLVV  7I F-'LLGJSGE Y  d. ATMs: During FY’17, 1218 new ATMs were installed and
WL4KCMETJGKLLF-PJERZ 7I FVT7PE;SEJHRQ B YL" as an outcome, the total ATM network reached 10681.
ÈLLZI 7I FMLC7LTB JKC;GVYKLVI-'LLGJSEIYC;"GDUZIVKHVT E-Surveillance systems were installed at ATM sites.Solar
JK 7I FETGVG¹HLTULVTEI L7VLWLTB FTB EFIZLVTHTSR MLTZK UPS were installed to decrease the downtime of ATMs
on account of electricity failure. ESQ ATM Monitoring
XJI M-'LLGJSGE Y "WL8VZLCV 7I FGVYKLVIWL4K 7I FET System was installed for on line ATM monitoring and to
EVTEIG-'LGSFTB 3PGKSMRÉLLKL3FE!GVPLKEELK;PLC;EKVTETGZ  take prompt corrective/preventive actions in case ATM
C; M%X 7I FGVYKLVIÈLLZIEI-'LLJVLEIYC;" gets down.

25
GPºLIPL; ETOL4KLVGE Y ER/VC;JHZTBGV&VLVRMLKOIYC;H4B Some of the new initiatives taken during FY’17 are given as
under:
¾ XJIWLC; EI²S)LRYSLVCB7KJ2TM
 PB)LIFELLR)LLK&)LPL; ¾ Launch of UPI (Unified Payment Interface) and BHIM:
ET OL4KLV XJIWLC; VLFE E FLTDLCZ WLLGKS D4GB EBY *ZIETLV A mobile based banking application, called UPI was
ELLR)LLK&)LGELYLGUMET^LKLY[LHE EHI TJETFLÉFMT launched wherein the customers were able to access
GPG)L6VD4EB LTB ETML'LvLTZT Y <LLSLTB ELT %MTMEKMET"B GOVLBE their Bank accounts opened with different Banks in
JKJBUI²SNJLTYESL;WLTB EIERZMB<L'LI" a single App. Total number of Users Registered as on
31.03.2017 were 467475.
 JK)LIF XJIWLC;JKWLLGKSFLTDLCZ TJ
ETGZ  Number of PNB accounts registered for BHIM (Mobile
JBUI²SJI VDIvLSLTBEIMB<LZY)LYZLv'LI" app based on UPI) as on 31.03.2017 are approximately
600000.
¾ WLLK M\LF )LRYSLV ÈLLZI GPºLI PL;> JK ZTVOTV EI ¾ Aadhaar Enabled Payment System: Number of
MB<L  ZLv 'LI WL4K ZTVOTV EI ERZ KLGL  transaction carried out was 90.96 lakh and total amount
EKLT. 'LI" transacted was `3740.23 crore as on FY’17.

¾ JI VDIGEËÑIGOVLBEELTJI VDIGEËÑI> EFLTDLCZ ¾ PNB Kitty: Number of users registered for PNB Kitty, a
PL8ZT7>ETGZ JBUI²SNJLTYESL;WLTBEIMB<L'LI" mobile wallet, as on 31.03.2017 were 87144.

¾ .TGD7EL.; ET GZ Y[IVGJVJI FUT.IPLC; vLSLTB ELT /LT. EK ¾ Green PIN for Debit Card: Green Pin facility was
.TGD7EL.;ETGZ )LL4GSEGJVGÈBG7BYELTKLTEVTETGZ Y[IVGJV launched to curb physical pin printing for debit card
EIMRGPLEILRWLSEIYC;"D4BEVT CMY[IVJHZET SHS except PMJDY accounts. The Bank saved approximately
ZY)LYEKLT. EIDQSEI" `43.00 crore under this green initiative.

¾ GDUVTM.TGD7EL.; 7I FMT ZLvSEET WLHKLS'LL ¾ Business Debit Card: Business Debit Card was
launched with enhanced transaction limit permitting
ZLvSEEIC;EL8FM;ZTVOTVEIWVRFGSETML'LZTVOTV withdrawal up to `1 lakh from ATMs and e-commerce
EIN1QºLKMIFLPLZTGDUVTM.TGD7EL.;EILRWLSEIYC;" transaction up to `3 lakh.

¾ PQ;RWZEL.;M)LIPL8ZT7NJLTYESL;WLTBELTPQ;RWZ.TGD7EL.; ¾ Virtual Card: All wallet users are issued a virtual debit
ULKIGE ULSTH4B"CMPQ;RWZEL.;ELNJLTYC;EL8FM;ZTVOTV card. This virtual card can be used for e-Commerce
ETGZ GELULMESLH4" transactions.

¾ D4BEVT E.TGD7EL.;MTOXMKT.TGD7EL.;FTBGVGWBSKLEKVT ¾ Bank introduced Card to card fund transfer facility to


HTSREL.;MTEL.;GVGWBSKLEIMRGPLEILRWLSEIH4" transfer funds from one debit card to another debit card.

¾ -PB MTPL GELT-E D4BE VT OTL )LK FTB  VEO UFL!DHR ¾ Self Service Kiosk: The Bank installed 2561 Cash
ELL;3FEGELT-E JI VDIVEO-PIESL; MH 7I FMGHS
> Deposit /Multifunction Kiosk (including PNB Cash
WL4K  JLMDRE W]SVIEKL FLIVLTB ELT -'LLGJS GEL H4" Acceptor cum ATM), and 3378 Pass Book updating
Machines across the country. The machines installed
C;ZL8DIFTB-'LLGJSFLIVLTBELTY[LHELTBETGZ *NJZ$EKLL
in E-lobby are made available to customers 24*7. A
YLH4"È)LLPIGVYKLVIWL4KGVG¹MFELTEFEKVTETGZ  real time monitoring tool was implemented for effective
GKZ7LCFGVYKLVIVLFENJEKLELELL;6PVGELYLH4"  monitoring and to reduce the down time.

26
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

J2ÈDBVMXQVLÈLLZI F. Management Information System

WLKDIWLC;GOLLGVO;T LLTB ETWVRMLKD4E


B VTZ4.KÈLLZI FX:LBEVWL4KGKJLT7; ET As per RBI guidelines the Bank implemented Standardized
GZ žLWL4KWGY[F.T7L.T-E
ETFLÉFMTDTMZIIIETSHSFLVEI²S Approach for Credit Risk under Basel–III through LADDER
(Loans and Advances Data Desk for Evaluation & Reports)
OAG7ELTLELG¹L6PVGELWL4KCMÈELKžLWL4KWGY[FET MBDB FTB system thus enabling calculation of Risk Weighted Assets
ULTGvF)LLGKSWLG-SLTB WLK.$:X
EIYLVLELTM\LFGELYL" (RWAs) in respect of Loans & Advances.

GPºLIPL; ETOL4KLV>NJ)LLTºL2L+TLIETWBSY;S)LLPINLKESL;WLTBEI During FY’17, 1534885 Credit Information Reports (CIRs) of


>>MLvMXQVLGKJLT7;TB S'LLPLGLG5E+TLIET WBSY;S> prospective borrowers under Consumer category and 31555
CIRs under Commercial category were drawn from CIBIL,
MLvMXQVLGKJLT7;TBGMGDZ> %MJIGKV>HLC;FLE;WL4KCG%P %M.T7LDTM
Experian, High Mark & Equifax databases.
MTGVELZIYC;" 
FLQ;  SE D4E B  ^LKL ÈGS)LXGSEKL WLG-S JRVK;QVL PB ÈGS)LXS GHS Around 4.70 lakh Immovable Properties (IP) & Movable
properties were registered with Central Registry of Securitisation
MIC;WLK M WLC;
ETML'LZY)LYZLvWQZMBJGºLLTB WLC;JI
 PB Asset Reconstruction and Security Interest of India (CERSAI)
QZMBJGºLLTB ELJBUIEKL)LLKSEIET6ÇIKGU-7‹IFTB EKLLYL" by Bank till March’17.

VLLTVGVPLKL F Z
MFLLVLTBFTBERZJGKOAELL;BGPSGE  A total of 47 scenarios were implemented in Anti Money
Y " JI VDI ^LKL ÈLLTGUS JLBQ \LTLI Y[LFIL D4BELTB WLKWLKDI
 HTSR Laundering (AML) solutions. AML solution for five Regional
Rural Banks (RRBs), which are sponsored by PNB, was
F ZMFLLVMJ2ZSLJXP;EZLYXGELYL" implemented successfully.
UILLvLWL4KELL;ZVT7PE; G. Branch and Office Network
LKTZXNJG-'LGS Domestic Presence

JKD4BEET JLMLLvLWLTB ELMDMT D. LVT7PE; H4" The Bank has one of the largest branch networks of 6937 as
D4BEKGHS\LTLLTBEID4BGEBYWLPESLWLTBELTJXKLEKVTHTSRPL;ETOL4KLV on 31.03.2017. To fulfill the banking needs of unbanked areas,
LLvLWLTBETGPLLZVT7PE;FTBVC;LLvLWLTBELTULT. LYL" 178 new branches were added to the vast network of branches
during the year.
WBSKL;7‹INJG-'LGS
International Presence
PS;FLV FTB>  LLvLWLTB  HLBYELBY>  ORDC; WL4K  WLTDIXFRBDC;
>
At present, Bank has its overseas presence in 9 countries by
 WVRLBGYLTB ZBOV WL4K )LX7LV
>  MHLE EULv-SLV
>  MBRºL2 way of 4 branches (2 Hong Kong, 1 Dubai and 1 OBU-Mumbai),
N]F VTJLZ
WL4KÈGSGVGELL;ZLTB GM.VIWL8-7‹TGZL>LB LLC;QIV> 2 Subsidiaries (London and Bhutan),1 Associate (Kazakhstan),
LELDLB9ZLOTL WL4K ORDC;X C;
 ET FLÉF MT D4BE EI  OTLLTB FTB 1 Joint Venture (Nepal) and 4 Representative Offices (Sydney-
WBSKL;7‹INJG-'LGSH4" Australia, Shanghai-China, Dhaka-Bangladesh and Dubai-UAE).

Q WBSKL;7‹ID4BGEBY H. International Banking

GP3SIPL;FTBGPOTLIFRÇLELKLTDLKPL;OKPL;œPAGMGHS The foreign exchange turnover was `140814 crore for FY’17
with a growth of 5.18% on YoY basis. The Bank also has an
>>EKLT. 'LL"D4BEETJLMWLPEÈTLLELTMB)LLZVTETGZ VC; International Service Branch in New Delhi for handling inward
GO:ZIFTB EWBSKL;7‹IMTPLLLvLH4"GP3SIPL;ETOL4KLVD4BE remittances. During FY’17, the Bank handled remittance
VTÈTLLELKLTDLKFTBPL;OKPL;ZY)LYœPAGOU;EKSTHR  business of more than `58147 crore, showing a growth of
EKLT. ELELKLTDLKGEL" nearly 0.45% YoY.
WGVPLMI)LLKSILTB ELT ÈTLLEIMRGPLHTSR D4BEVT  %MQTBUHLNM The Bank has Rupee Drawing Arrangements (RDA) with 36
Y:J2FTB>GMBYLJRKFTB>MBR%SKL5WFTGKELFTBWL-7‹TGZLFTB Exchange Houses (30 in the Gulf, 2 in Singapore, 2 in the USA,
1 in Australia and 1 in Canada) to facilitate remittance from
WL4KEVL.LFTB
ETML'LJLWLHKL0P-'LLEI" NRIs.

27
WLC; JGKQLZV I. Operations

MBY#VL3FEJRVY;#VGOVLBEMT EQLK-SKIMBKQVLEI Organizational Restructuring: A four tier structure was


LRWLSEIYC;>GUMFTBWBQZELL;ZETFLÉFMTJ[ÉLLVELL;ZELT introduced from 01.04.2016 with Zonal offices linking Head
FB.ZELL;ZWL4KLLvLWLTBMTULT. LYL" Office to Circle Offices and branches.

EF;QLKIMRLPLTUVLEF;QLKIMRLPLTUVLET WBSY;SZY)LY Employee Suggestion Scheme: Around 460 suggestions


were perused and cash incentives were given to 14 Staff
MRLP ÈL*S HR > GUMFTB  -7LJ2 MO-LTB ELT NVET -PIEL;!ELL;BGPS members for suggestions accepted/implemented under the
MRLPLTBETGZ VEOÈLT3MLHVGOLYL" Employee Suggestion Scheme.

GPFRÇIEKL %MML;CUGPFRÇIEKLET MFD4E B VT GVGFSGOLLGVO;T L Demonetization exercise: At the time of demonetization,
ULKIGE WL4KELTKD4GB EBYÈLLZIFTB NJR%SGVBLLUL8Q B -'LLGJSGE S'LL the Bank issued regular guidelines, installed suitable checks
in Core Banking System and scrutinized irregularities. Steps
WGVGFSSLWLTB EIUL8Q B EIYC;"WLKDIWLC;!GP3SFBLLZMTÈL*SGOLLGVO;T LLT!B were taken to ensure proper implementation of guidelines/
GVOTLLTB EL NGQS ELL;6PV MRGVGQS EKVT ET GZ  EOF N#L  Y " directives received from RBI/MOF. The field functionaries
GPGV;GO7D4E B VLT7LTB ET KvKvLPET GZ \LTLIJOLGELGKLTB ELT ULYE were sensitized on handling of Specified Bank Notes and
GELYLWL4KW-JSLZLT>B KTZPT-7TLVLT>B UL8YKJLELT>’ DLULKLT>B ELKLTDLKIÈGS#LVLTB introduction of new series of currency notes and mobile ATMs
were placed in Hospitals, Railway Stations, Joggers’ parks,
S'LLELL;ZLTB C3LGOFTB EKTM
B IVLT7EIVC;+Av
B ZLWLKB)LEIYC;WL4KFLTDLCZ Markets, Business establishments and Offices, etc. Bank could
7I F-'LLGJSGE Y "CMWPGETOL4KLVDVLC;YC;YR.GPZETELKL mobilize huge amount of CASA due to the goodwill created
D4E
B D. IELMLKLGLUR7LMEL" during the period.

JI VDI7TDD4GB EBY Q VWLC;WL4K VWLKWLC;ELT.LTK-7TJYRLPºLLMTPL B PNB Tab Banking: Saving Bank Account opening through
ÈOLVEKVTETGZ 7T$LZT7JIMIWLLGKSMFLLVETFLÉFMTDQSvLSL Tablet PC Based Solution was launched as a step further to
provide quality services to HNIs and NRIs at their door step. It
vLTZVT EIMRGPLELWLKB)LGELYL"H Q VWLC; Y[LHE PB NVET
caters to HNI customers and family members, salary accounts
JGKUVLT>B L4G\LEMB-'LLVLTB ETPTSVvLSLT>B EL8JL;KT 7T GVELLTB WL4KMROKX G-'LSM46 of educational institutions, corporate bodies & remotely placed
E47B LTFB 7BT EIWLPESLWLTB ELTJXKLEKSLH4" Army Cantonments.

vROKLWLG-SÈG¹LMTZ WLK JIMI


D4E B VTvROKLžLGPSKLFL8.Z Retail Asset Processing Cell (RAPC): The Bank has
ELTVLJGOLH4WL4KGOVLBEMTFL4UOX LFL8.ZELTWLK JIMI revamped the Retail Credit Dispensation Model and replaced
the existing model with the introduction of RAPC model made
FL8.ZETML'LDOZGOLH4"WLK JIMILLvLWLTB ETFLÉFMTžLWLPTOV
effective from 01.04.2016. RAPCs undertake all the activities
EIÈLG*SMTZTEKvROKLžLEI-PI²GSSEM)LIYGSGPGLTB ELTMBQLGZS from receipt of loan application through branches till sanction
EKSTH4>B GUMETJGKLLF-PJžLÈMB-EKLFTB YRLL3FEMRLKHRWLH4" of retail loan.

vLSLvLTZVTETGZ D4EWL8GJ2MHFLKIETPLC;MIÈLLZIELTMROA  EKVT Back office for account opening: To strengthen our KYC
B VTÈ3TEWBQZFTB ETÇB I²SD4EWL8GJ2MJKDQSWL4KQLZX system, the Bank has started opening saving and current
ETGZ >D4E
account at centrally located Back office at each Zone
vLSLvLTZVLWLKB)LEKGOLH4"
J. Indian Accounting Standards (IND AS)
UT )LLKSIZTvLFLVE WLC; V.I M

GP3SI PL;  MT D4E
B  VT WLC; V.I M )LLKSI ZTvL FLVE
 ET The Bank has commenced the process of IND AS (Indian
ELL;6PVEIÈG¹LLREIH4WL4KQLZXZTvLMBKQVLWL4K)LLKSIZTvL Accounting Standards) implementation for FY’17 and made a
diagnostic study to identify the differences between the current
FLVEET DIQWLVT PLZT WBSKELT JHQLVVT ET GZ GVOLVL3FEWÉV
accounting framework and IND AS. Bank has quantified the
GELH4"D4E
B VTCMELÈ)LLPGVL;GKSEKSTHR WLKDIWLC;ELTGMS&DK
impact and filed the pro-forma financial statements for the half
ELTMFL*S/FLHIETGZ GP3SIGPPKLIÈLTJ2LFL;)LTUGOLYL"
year ended September 2016 with the Reserve Bank of India.
ET VPIVJHZÈ)LLY
K. New Initiatives Division
D4BEJHZT MT HI7_PI7KWL4KGZB%.CVJKFL4UXOH4" CMET WZLPL>D4BE
The Bank already has its presence on Twitter and LinkedIn.
VT UVSLET GZ ??JBULDV4LVZD4BE>ÈEL>VC; GO:ZI ET VLFMT Further, the Bank opened official Facebook page for the public,
J2TMDREJTUvLTZLH4"FLTDLCZ TJJI VDIGEËÑI JKPK1RZ.TGD7EL.; in the name of ‘Punjab National Bank, HO, New Delhi’. Virtual
NJZ$EKLLYLH4" debit cards were made available on mobile app PNB Kitty.

Z ELKLTDLKGPGPIEKL L. Business Diversification

¾ &RQRWZJ2B.GP3SIPL;ETOL4KLVD4BEVTEKLT.  ¾ Mutual Fund: During FY’17, the Bank mobilized total


amount of `4545 crore, Asset under Management (AUM)
EIERZKLGLUR7LC;WL4KÈDBGSWLG-SL8BEKLT. KHIGU6HLTBVT
stood at `814 crore and brokerage earned was `4 crore.
EKLT. ELD[LTEKTUWGU;SGEL"

28
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

¾ DIFLELKLTDLK ¾ Insurance Business

 UIPV DIFL ELKLTDLK GP3SI PL;  ET OL4KLV D4BE 1. Life Insurance Business: Bank’s earnings from Life-
^LKLœD LTºLKIOU;EKSTHR GP3SPL;ETEKLT.  Insurance business during FY’17 amounted to `110
crore as against `86 crore during FY’16, showing
EISRZVLFTBEKLT. WGU;SGE Y "D4BE^LKLUIPV
growth of 28%. Total Business mobilized under Life
DIFLELKLTDLKET WLK&)LMT WDSEJL8GZGMLTB MT Insurance since inception was `4152 crore from
EKLT. ELERZELKLTDLKUR7LLYLH4WL4KCMÈELK 566667 policies and thus total earnings amounted to
ERZWGU;SWLEKLT. KHI" `358 crore.

 Y4KUIPV DIFL ELKLTDLK GP3SI PL;  ET OL4KLV œ 2. Non-Life Insurance Business: The revenue earned
PAGOU; EKST HR KLU-PWGU;SWLGP3SPL; ET during FY’17 was `28 crore as against `25 crore during
EKLT. EISRZVLFTBEKLT. KHI"D4BEVTE-7FLC5. FY’16, showing a growth of 15%. Under ‘PNB-Oriental
-PL-'DIFLJL8GZMI>JI VDIWLTGK B7ZKL8ZFTG.EZTFFTB Royal Mediclaim’, a customized health insurance
GP3SIPL;ETOL4KLVGP3SIPL;ETEI policy, 181913 policies were sourced during FY’17 as
SRZVLFTBJL8GZGMLTBEIGD¹IEI" against 158175 policies sourced during FY’16.

¾ G.JL8GU7KIMTPL BGP3SIPL;ETOL4KLVD4BEVTG.JL8GU7KI ¾ Depository Services: The Bank earned an income of


MTPL BÈOLVEKZLvWLWGU;SEI" `76 lakh during FY’17 for providing Depository Services.

¾ WL8V ZLCV 7‹TG.BY MTPL B GP3SI PL;  ET OL4KLV WL8VZLC;V ¾ Online Trading Services: An income of `28 lakh was
7‹TG.BYYGSGPGLTBETJ2Z-PJCVMHLTGYLTBMTZLvEI received from Associates on account of Online Trading
WLÈL*SEIYC;" Activities during FY’17.

Merchant Banking: During FY’17, the Bank handled


¾ FQ;4B7 D4BGEBY GP3SI PL;  ET OL4KLV D4BE VT  EI ¾
more than 454000 Application Supported by Blocked
WPKLGLPLZTFLFZLTBET PUFTBWPKLGL Amount (ASBA) applications against 85 issues, blocking
^LKLMFG'L;SWLPTOVLTB ELMFLLVGELYLWL4KEKLT.  an amount of `2597 crore and earning Notional Income
MTWGEEIEG:JSWLWGU;SEI" more than `6.15 crore.

¾ ¹TG.7EL.;M)LIMLP;UGVE\LTLETD4BELTBFTBHFLKTD4BEVTMDMT ¾ Credit Card: Among the PSBs, the Bank is the largest
WGE¹TG.7EL.;ULKIGE WL4KGP3SIPL; FTB¹TG.7EL.; issuer of credit cards and achieved a growth rate of 31%
ULKIEKVTFTBœEIPAGOU;EI"D4BEVT¹TG.7EL.;EIMRK\LL in issuance of credit cards in FY’17. To enhance the
ELTD LVTETGZ GJVETML'LC; FPIGQJEL.;ULKIGE "¹TG.7 security level of Bank’s credit cards, EMV Chip cards with
EL.;ULKIEKVTETJ2Z-PJD4BEEILR:EWLLGKSWLD EK PIN were issued. As a result of issuance of credit cards,
EKLT. HLTYC;" the Bank’s fee based income increased to `14 crore.

● JI VDIGUVI>MRGPLWLTB MT )LKT E TJEILRWLSEI ● PNB Genie, an app full of features was launched.
YC;"HEL.;LKELTBETGZ GMBYZJLTCB7.T-7IVTLVETJ It will act as single point destination for cardholders
FTBEL;EKTYLGUMMTPTWJVTJI VDI¹TG.7EL.;ELTMHU to operate their PNB Credit Card seamlessly and
WL4KJKTLLVIKGHSSKIETMTMBQLGZSEKJL BYT" without hassles.

● JI VDIVTLVZCZT%7‹L8GVE7LTZMBY[HJI VDIJ2L-74Y ● PNB National Electronic Toll Collection: PNB


EL;¹F VJIMIWLC; ^LKLLRGE Y KL7‹ICZT%7‹L8GVE FASTag program is part of National Electronic Toll
Collection (NETC) initiative rolled out by NPCI.
7LTZMBY[H VC;7IMI
JHZELGH-MLH4"J2L-74Y EMKZ>
FASTag is a simple to use, reloadable tag which
JRV ZLT. EKVT LT9 74Y H4 ULT 7LTZ LR:E ET -PQLGZS
enables automatic deduction of toll charges
E7L4SIELTM\LFDVLSLH4"
¾ FQ;4B7WGY[HLELKLTDLKD4BEVTJIWLT M-'LLGJSGE  ¾ Merchant Acquiring Business: The Bank installed
WL4KCB7KVT7JTBFTB7YT7PTEL EIEKLGEL" 38841 PoS terminals and integrated 217 Internet
Payment Gateways.
F MKELKIELKLTDLK
M. Government Business
D4BEVT )LLKSJLT-7JTFTB7D4BE WLC;JIJIDI
ET ML'L)LLYIOLKIEIWL4K The Bank partnered with India Post Payments Bank (IPPB)
KL8BQIWL4KKLJRKETWJVTELL;ZLTBFTBÈD6EIMHLTYETML'LSEVIEI and provided technology platform alongwith managerial support
FBQÈOLVGEL" at their offices opened in Ranchi and Raipur.

29
MKELKET GZ $LUM$MI.I>FLGU;VFVI>MIUI7I F MC; LR:EWLGO Centralised on-line Collection & Disbursement (COCD)
MBY[HHTSRET6ÇI²SWL8VZLC;VMBY[HWL4KGPSKLJLT7;Z MIWLTMI.I
 Portal was developed for the Government for collecting Interest
subsidy, Margin Money, CGTMSE Fee, etc. This facility will also
ELTGPEGMSGELYL"CMMRGPLMTDRVEKLTBELTNVETvLSLTBFTBS3ELZ benefit weavers to get instant Margin Money Credit directly to
FLGU;VFVIUFLEKVTELZL)LGFZTYL"W6.PZT*FTB7GV&VLVRMLKH4B their accounts. Other developments are as under:

 VC; JTBLV LTUVL ELT WL8J2 ZLCV FLÉF MT MG¹ EK GOL YL 1. New Pension Scheme (NPS) was made live in off-
H4 W'LL;3L WLPTOV LLvLWLTB ET FLÉF MT MBY[H GEL UL YL> ULT line mode i.e. application will be collected through
JIWLTJI MJI *PLCB7WL8J2ÈTUTBMMTPLÈOLSL
ET JFTB EL; the Branches which are acting as POP-SP (Point of
EKKHIH4" Presence–Service Provider).

 PS;FLV ÈLV -'LLI MTPLGVPAGºL vLSL MB<L


LKELTB ET VJI M 2. NPS contribution was made live through on-line mode for
existing PRAN (Permanent Retirement Account Number)
LTYOLVELTWLVZLC;VFLÉFMTMG¹EKGOLYLH4"
holders.
 WL8VZLC;VELT.ETFLÉFMTC;;JI J2WLTMBY[HGELYLWL4KWLEK
3. EPFO collections were made live through on-line mode
GK7;V)LKVTETGZ CZT%7‹L8GVEM3LJVELT.MG¹GELYLH4" and generation of Electronic Verification Code (EVC) for
 D4BEET MF-SY[LHELTB ELT )LLKSMKELKELT NVET DELL EKELT Income Tax return filing.
/LT. EKW6
EL)LRYSLVEKVTETGZ Y4KEKKLU-PJLT7;Z V7I 4. Non-Tax Revenue Portal (NTRP) was introduced to
WLKJI
EIMRGPLEILRWLSEIYC;WL4KWLC;DI METFLÉFMT facilitate all banks’ customers to pay their dues (other
WL8J2ZLC;VWL4KWL8VZLC;VOLTVLTB
C%PZLCUTLVZTPIEL)LRYSLV than taxes) to GoI and Payment of Equalization Levy
GELYL" through IBS (Online and Offline - both).

 JTBLVGPSKLFTBO\LSLZLVTETGZ GV&VGZGvSMRGPLWLTBEILRWLS 5. To bring efficiency in pension disbursement, following


facilities were introduced:
EIYC;
● Pension slips were made available in the pension
● JTBLVMP;KFTBJTBLVJQI;NJZ$EKLC;YC;" server.
● .IWLC; PIGO:ZIE4B7WL4KQL8BOIFG6OKQB.IY  FTB C;ZL8DI ● An e-lobby cum veteran facilitation centre was
MHGPSKLMRGPLET6Ç-'LLGJSGELYL" set up at DiAV, Delhi Cantt. & at Chandimandir,
Chandigarh.
● JIMI.I VT ET6ÇI²SJTBLVÈLTMTGMBYE\L-'LLGJSEKVT ET
● PCDA allocated space for setting up Centralized Pension
GZ NVETCZLHLDLOETE4&JMFTB-'LLVGOLH4"
Processing Cell (CPPC) at Allahabad in its campus.
V 7‹TUKIJGKQLZV N. Treasury Operations
FLQ;SEMEZGVPTLFLQ;ETEKLT. MTD EK Gross Domestic Investment as on 31st March’17 stood at
EKLT. HLT YLWL4KCMFTB œEIPL;OKPL; PAGOU; EI `183297 crore up from `154727 crore as on 31st March’16 and
YC;"FLQ;ETWL4MSGVPTLGJ/ZTPL;CMIWPGETOL4KLV registered a YoY growth of 18.46%. The average investment as
ET PUFTB EKLT. 'LL"GP3SIPL; FTB GVPTLJLT7J; 2LTGZLT MT on 31st March’17 was `175774 crore as against `162548 crore
in the corresponding period last year. Interest income from
$LUWLGP3SIPL;ET>EKLT. MTD EK>EKLT. 
investment portfolio increased from `11935 crore for FY’16 to
HLTYL"GP3SIPL;FTB ERZ7‹GT .BYWL .TGKPTG7PMGHS
GP3SIPL; `12439 crore for FY’17. Total Trading Profit (including derivative)
ETEKLT. MTD EKEKLT. HLTYL" increased from `999 crore for FY’16 to `2654 crore for FY’17.

GVGQSWL M ZWLK! V M ZWLK


GP3SIPL; ET OL4KLV Fixed Income (SLR/NSLR): During FY’17, Bank booked a
D4BEVTGVGQSWLFTBGVPTLEIGD¹IMTGJ/ZTPL;CMIWPGETOL4KLV Trading Profit of `2214 crore from sale of investments in fixed
EKLT. EISRZVLFTBEKLT. 7‹TG.BYZL)LOU;GEL" income up from `504 crore during the corresponding period of
previous year.
CG%P7ID4BEVTCG%P7IMYFTB7FTBEKLT. WLWL4KZL)LLBLWL
Equity: The Bank booked `168 crore Trading Profit in Equity
EKLT. OU;GEL" segment and Dividend income of `96 crore.
J2LTKT%MGP3SIPL; ET OL4KLVLRGPOTLIFRÇLWLGP3SIPL; Forex: Net Forex income decreased from `1320 crore during
 ET  EKLT.  EI SRZVL FTB L7EK  EKLT.  HLT YL" FY’16 to `1155 crore during FY’17. However, Exchange Profit
HLZLBGEGP3SPL; FTB %MQTBUZL)LETEKLT. MTD EK from treasury operations increased from `386 crore in FY’16 to
`547 crore in FY’17.
EKLT. HLTYL"

30
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

WLT Y[LHEMTPL O. Customer Care

Y[LHEMTPLFTB MRLKHTSR GPºLIPL; ET OL4KLVEIYC; JHZLTB FTB Initiatives undertaken during FY’17 for improvement in customer
service included:
LLGFZH4B
● Four Sub-Committee meetings were conducted.
● QLKNJMGFGSEID4#ELTBELWLLTUVGELYL"
● The Standing Committee on Customer Service held four
● Y[LHEMTPLJK-'LLIMGFGSVTQLKD4#ETBWLLTGUSEIYC;" meetings.
● D4BEET WGELGKLTB VT JXKT )LLKSEILLvLWLTB FTB YR*SOL4KT ● Officials of the Bank made 1353 incognito visits to
GE "GPGUG7BYWGELGKLTB^LKLDSLC;YC;EGFLTBELTOXKEKVTHTSR branches pan India. Circle Offices took corrective steps
FB.ZELL;Z^LKLMRLKL3FEEOFN#L Y " to plug the loopholes pointed out by the visiting officials.
JLKOGL;SLD VTMTGPºLIPL; ETOL4KLVÈL*SGLELSLTBEIMB<L Due to increased transparency, the number of complaints
GPºLIPL; ETMTDEKHLTYC;"WÈ4Z received during FY’17 increased to 35257 as compared to
SEERZGLELSTBGVJ7LVHTSRLTLH4WL4KERZGLELSLTB 29654 complaints received during FY’16. 217 complaints
were outstanding as on 01.04.2016 and out of total number of
FTBMTGOVLBESEGLELSLTBELGVJ7LVEKGOL
35474 complaints, 35159 complaints were redressed as on 31st
YL"ELT GLELSTB ZBGDS'LIB>GUVELWDGVJ7LV March’17. The number of complaints pending as on 31.03.2017
GELULQRELH4" was 315 which have since been resolved.

GPºLIPL; ET OL4KLVD4BGEBYZLTEJLZELL;ZVT OLT GVL;JLGKS Two awards were passed by office of the Banking Ombudsman
GE "WJIZIÈLGEKLETJLMCVOLTVLTBWPL.;ETGPWJIZOLK during FY’17. Appeals were filed against the two awards.
Appellate Authority has set aside one award passed by Banking
EIYC;"WJIZIÈLGEKLVT D4BGEBYZLTEJLZELVJRK^LKLJLGKS E Ombudsman, Kanpur while decision is pending under second
GVL;ELTFR:SPIKvLH4UDGEOXMKIWJIZETSHSGVL;ZBGDSH4" appeal.
JI KLU)LLLLVIGSELELL;6PV P. Implementation of Official Language Policy

)LLKSMKELK>YAHFBLLZ>KLU)LLLLGP)LLY>^LKLGPºLIPL;ETGZ  For FY’17, the Bank achieved all the targets in the parameters
GVL;GKSFLVOB.LTBETM)LIZ\LTBELTÈL*SEKGZLYLH4" fixed by the Govt. of India, Ministry of Home Affairs, Department
of Official Language.
GPºLIPL;ETOL4KLV>D4BEELTGH6OIETÈLTYFTBN3²7ÈOL;VET
During FY’17, the Bank received more than 120 awards for
GZ MTWGEJRK-ELKÈL*SHR >GUVFTBER/M&FLVIJRK-ELKU4MT its excellent performance in the use of Hindi which included
)LLKSMKELKEIMPL;T1QJRK-ELKLTUVLKLU)LLLLEIGS;JRK-ELKMGHS prestigious Rajbhasha Kirti Shield – a top most award scheme
)LLKSIGKUP; D4BEKLU)LLLLLI:. ?E  PB ?Y \LTLFTB ÈLT3MLHV PB of Govt. of India, besides RBI Rajbhasha Shield (Consolation
?v \LTLFTBSASIJRK-ELKWL4KG^)LLGLEJGLEL+TLIFTBJI VDIÈGS)LL Prize in region ‘A’ & ‘C’, Third Prize in region ‘B’ and Second
ELT G^SI JRK-ELK
 S'LL YAH FBLLZ ET \LTLI-SK ET W6 JRK-ELK Prize for PNB PRATIBHA in Bilingual Magazine Category) and
LLGFZH4B" other Regional Level Awards of Ministry of Home Affairs.

PL; ET OL4KLVWLLTGUSGPG)L6VÈGSLTGYSLWLTB ET SHSÈL*SZTvLTB Articles received under various competitions organized during
ELT?JI VDIÈPLHMU;VETV WLLF JR-SEETFLÉFMTMBEGZS the year 2016, were compiled in the book ‘PNB PRAVAH-
Sarjna Ke Naye Aayam’.
EKÈELGLSGELYL"
%X JI VDIWVRLBGYLB PB\LTLIY[LFILD4BE Q. PNB’s Subsidiaries and Regional Rural Banks

 JI VDIGY:7_MGZGF7T. a. PNB Gilts Limited

 JK JI VDI GY:7M GZ FTB D4BE EL -PLGF3P œ H4" The Bank has an ownership of 74.07% in PNB Gilts Limited as
GPºLI PL;  ET OL4KLV> E&JVI VT ÈL'LGFE PB YL4L OLTVLTB DLULKLTB FTB on 31.03.2017. During FY’17, Company fulfilled all its obligations
EÈL'LGFE.IZKET JFTB WJVT MF-SOLG3PLTB ELT JXKLGEL"PL; as a Primary Dealer in both primary and secondary market.
ET OL4KLV> EK JXP; NMEL ZL)L  EKLT.  KHL> ULT WD SE MDMT During the year, its Profit before Tax stood at `257 crore, which
WGEH4"CMVTJLT7;J2LTGZLTBEID SIQGV;BYETELKLEKLT. EL is the highest since inception. It made an impressive Trading
È)LLPLLZIELKLTDLKIZL)LÈL*SGEL>GUMETJGKLLF-PJGPºLIPL;  Profit of `186 crore due to increased churning of portfolio which
ET ZLvEKLT.  ET FRELDZT YL4LDLULKELERZÈ3\LELKLTDLK led to total secondary market outright turnover of `6.5 lakh
ZLvEKLT. HRWL" crore as against `3.8 lakh crore in FY’16.

31
DI JBULDV4LVZD4BECB7KVTLVZGZGF7T. JI VDIWLC; Z
 b. Punjab National Bank International Limited (PNBIL)

JI VDIWLC; Z JBULD V4LVZ D4EB  ET JXL; -PLGF3P PLZI MHLE EBJVI PNBIL is a wholly owned subsidiary of Punjab National Bank.
Total Business of the Company decreased from $2,834 million
H4" EBJVI EL ERZ ELKLTDLK  ET $> GFGZV MT L7EK as at 31st March 2016 to $2,212 million as at 31st March 2017,
ELT$>GFGZVKHL>GUMFTB MFTEVETELKLPL;OKPL; a year-on-year decrease of 21.95% due to the consolidation
œEIEFIHRC"; exercise undertaken.

GPºLIPL; ET GZ ÈLPLV>EKS'LLZL)LLBLET JXP; JGKQLZVZL)L The Operating Profit before provisions, tax and dividends for
œ L7EK GPºLI PL;  ET $ GFGZV EI SRZVL FTB $ FY’17 decreased by 47.26% to $20.05 million from $38.26 million
GFGZVKHL"ERZWL$GFGZV œ
 L7EK$GFGZV in FY’16. The Total Income decreased by $19.16 million (35.20%)
MT$GFGZVHLTYL"LR$LUWLFTB $GFGZVWL4KLR from $54.43 million to $35.27 million. Net Interest Income fell
7‹GT .BYWLFTB $GFGZVEIGYKLP7WLC;"GV&VWLET J2Z-PJ by $12.59 million and Net Trading Income by $6.65 million. The
HLGVFTB FLFXZIEFIWLC;CMETDLPUXOWLWVRJLS0œMTD EK expenditure to income ratio increased to 43.16% from 29.71%
œHLTYL" despite slight reduction in cost due to lower income.

MEZC&JL.;WGY[F$GFGZV PL;FTB $GFGZV


Gross impaired advances increased to $299.39 million ($144.99
SE D LGUMETELKL$GFGZVELWGSGKºL2C&JL.;ÈLPLVLTB EI million in 2016) leading to additional impairment provisions
0P-'LLEIYC;"GVPZC&JL.;WGY[FGPºLIPL;ET$GFGZV of $153.39 million. The net impaired advances increased to
MTD EKGPºLIPL;FTB $GFGZVHLTYL"CMETJGKLLF-PJ $40.83 million in 2017 from $36.37 million in 2016. As a result,
EBJVIVTEKJXP; $GFGZVVREMLVEI LLTLLLEI" the Company declared a loss before tax of $133.34 million.

FLQ; ELT EBJVIELMIWLK WLKœKHLS'LLW6M)LI The Company had a CRAR of 21.70% as on 31st March’17, and
MIC;7I PB G7K GPGVLFE JXBUI WLPESLWLTB ELT JXKL GEL YL" met all other CET1 and Tier 1 regulatory capital requirements
JI VDIVT$GFGZV.L8ZKELGVPTLGEL
(PNB infused $100 million).

MI JBULDV4LVZD4E
B C6PT-7FT67MGP;MU
T GZGF7T. JI VDIWLC; M Z
 c. Punjab National Bank Investment Services Limited
(PNBISL)
JI VDIWLC; M ZFTBJI VDIEL-PLGF3PœH4"FLQ;ELTMFL*S
HR PL;ETOL4KLV>EBJVIVTEKLT. EILR:EWLLGKSWLMGHS PNB has 100% ownership in PNBISL. During the year ended
EKLT.  EIERZWLWGU;SEIH4"FLQ; ELT MFL*SHR  March’17, the Company earned fee based income of `9.03
WPGETOL4KLVEKJXP;ZL)LFLQ;ELTMFL*SHR WPGET crore with a total income of `12.14 crore. Profit before Tax for
EKLT. ETFRELDZTEKLT. KHL" FY’17 stood at `6.33 crore as against `6.12 crore for FY’16.

.I .‹EJI VDID4BEGZGF7T.)LX7LV d. DRUK PNB Bank Ltd. Bhutan

.‹EJI VDID4BEGZGF7T.FTB JI VDIEL-PLGF3PœH4"PS;FLVFTB PNB has 51% ownership in DRUK PNB Bank Ltd. Bhutan. The
Bank is currently operating with a network of 6 branches and
D4BELLvLWLTBS'LL 7I FVT7PE;ETFLÉFMTJGKQLZVEKKHL 18 ATMs. Profit of the Bank increased from `22 crore during
H4"D4BEELZL)LPL;OKPL;œEIPAGELTOU;EKSTHR GPºLI FY’16 to `25 crore during the FY’17, showing a YoY growth of
PL; ETEKLT. MTD EKGPºLIPL; FTBEKLT. HLTYL" 15.25%. Total Business of the Bank stood at `1435 crore, as
D4BEELERZELKLTDLKSEEKLT. KHL"D4BEELELML on 31.03.2017. CASA Ratio of the Bank stood at 57.38% as on
SEœKHL" 31.03.2017.

D4BEEIMEZY4KGVJLOEžLWVRJLS VJI Z
ET Gross Non Performing Loans (NPL) Ratio of the Bank decreased
to 3.30% as on 31.03.2017 from 3.96% as on 31.03.2016. The
œMT L7EKFTB œ HLT YL"SED4BE Net NPL ratio of the Bank stood at 1.99% as on 31.03.2017.
EIGVPZ VJI ZWVRJLSœKHL"SEWLKWLTC;œ The Return on Equity (ROE) as on 31.03.2017 stood at 15.99%
KHIS'LLELTÈGSLTKWU;VÈGSLTKKHL" and Earning per share was `3.92 as on 31.03.17.

C; JI VDIHL¦GMBYJ2LC;VTBMGZ JI VDI Q J2 Z


>D4BEEI e. PNB held 51% share in PNB Housing Finance Ltd
WVRLBYI FTB JI VDI EL LTK œ H4" CMET DLO>  ELT (PNBHFL) a subsidiary of the Bank. Subsequent, to the IPO of
JI VDI Q J2 ZETWLC;JIWLTFTBJGKPGS;SHLTEKœHLTYL" PNBHFL on 06.11.2016 this changed to 39.08%

J2 \LTLIY[LFILD4BE f. Regional Rural Banks

PS;FLVFTB>D4BE^LKLJLBQWLKWLKDIÈLLTGUSH4BTWLKWLKDIJLBQKL5LTB At present, five RRBs are sponsored by the Bank. These RRBs
are operating in five States, namely, Bihar, Haryana, Himachal
GDHLK>HGKLLL>GHFLQZÈOTL>JBULDWL4KNºLKÈOTLET GUZLTB FTB
Pradesh, Punjab and Uttar Pradesh covering 75 districts with a
LLvLWLTBETVT7PE;ETML'LEL;EKKHTH4B" network of 2386 branches.

32
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

¹MB \LTLIY[LFILD4BE!W6MHLTGYLTETVLF -PLGF3PEL S.N Name of Regional Rural Banks / Other Proportion of
WVRJLS Associates Ownership
œ
(%)
 FÉGDHLKY[LFILD4BE>J7VL  1 Madhya Bihar Gramin Bank, Patna 35
 MP;HGKLLLY[LFILD4BE>KLTHSE  2 Sarva Haryana Gramin Bank, Rohtak 35
 GHFLQZY[LFILD4BE>FB.I  3 Himachal Gramin Bank, Mandi 35
 JBULDY[LFILD4BE>EJXK'LZL  4 Punjab Gramin Bank, Kapurthala 35
5 Sarva UP Gramin Bank, Meerut 35
 MP;NÈY[LFILD4BE>FTK# 
The aggregate paid-up capital of these Regional Rural Banks is
CV \LTLI Y[LFIL D4BELTB EI ERZ JT.WJ JXBUI  EKLT.  H4 ET6Ç `199 crore. Central Government, State Governments and PNB
MKELK>KL5MKELKTBWL4KJI VDIVT¹FLETWVRJLSFTBCV contributed in paid-up capital of these RRBs in the ratio of
\LTLIY[LFILD4BELTB ET JT.WJJXBUIFTB LTYOLVGOL"CV\LTLIY[LFIL 50:15:35 respectively. The Bank’s contribution towards capital
D4BELTB EIJXBUIFTB D4BEELLTYOLVEKLT.  H4"FLQ;>ELT of these RRBs is `69.76 crore. The combined Networth of
RRBs as on 31st March’17 is `3479 crore.
WLKWLKDIEIMBRºL2GVPZMBJGºLEKLT. H4"
Performance of RRBs as on 31.03.2017
SE\LTLIY[LFILD4BELTBELEL;GVJLOV
KLGLEKLT. FTB
(Amt. in `crore)

\LTLIY[LFILD4BELTBELEL;GVJLOV   PL;OKPL; 31st 31st YoY


FLQ;  FLQ;  PAG Performance of RRBs March’16 March’17 Growth
%
MFTGESUFL 33492 40092 19.71 Aggregate Deposits 33492 40092 19.71
MFTGESWGY[F 19832 21792 9.88 Aggregate Advances 19832 21792 9.88

MFTGESLRZL)L 286.21 279.96 -2.18 Aggregate Net Profit 286.21 279.96 -2.18

MIDIMILLvLWLTBETWBSY;S 100% 100% Branches under CBS 100% 100%


3.28 3.13 -4.57 Profit Per Employee (` lakh) 3.28 3.13 -4.57
ÈGSEF;QLKIZL)L ZLvFTB

HLGVFTBQZVTPLZILLvLWLTBEIMB 84 127 No. of Loss Making Branches 84 127


FLHLCMMTWGEJRKLVI
(being 12 month old or more)

WLK JRK-ELKWL4KM&FLV R. Awards and Accolades

 GPºLIPL; ETOL4KLV>JI VDIELTNMETEL;GVJLOVWL4KJHZLTB During FY’17, in recognition of its performance and initiatives,
ETGZ WVTEJRK-ELKÈL*SHR GUVFTBMTER/GV&VLVRMLKH4B PNB received various awards, some of which are:

 MIWLC; F M FC; ^LKL MPL;T3SF F M FC; D4BE JRK-ELKGPUTSL 1. Best MSME Bank Award-Winner (Large Category) by
D. I+TLI
CIMSME.

 ZLTEN]FMB-'LLV>H4OKLDLO WLC;JIC;


^LKLMSE;SLMTPLN3²7SL 2. Vigilance Service Excellence Award 2016-17 by Institute
JRK-ELK of Public Enterprises (IPE) Hyderabad.

 GD7-7‹IFFIG.LP%;MÈLGZ^LKLQLKVLT.%Z-7KETGZ WLPTOV 3. BFSI Tech Maestro Awards 2016 in Application category
+TLIFTBDI J2 MWLC;7TEFTC;-7‹LTJRK-ELK for four node cluster by Bitstream Mediaworks Pvt. Ltd.

 VTLVZ JTFTB7 EL8JL;TKTLV WL8J2 CBG.L VJIMIWLC;


 ^LKL WLLK 4. National Payments Excellence Awards 2016 for Aadhaar
M\LF)LRYSLVÈLLZI C;JI M
ETGZ KL7‹I)LRYSLVN3²7SL Enabled Payments System (AEPS) by National Payments
JRK-ELK Corporation of India (NPCI).

 WLN7ZRE FVI WPL._M;  WLN7ZRE FVI ^LKL GL\LL žL 5. Outlook Money Awards 2016- Education Loan Provider
ÈOLSL NJGPUTSL
(Runners Up) by Outlook Money.

 MIWLC; F M FC; ^LKL MI MWLK JHZ PB ELKLTDLK N3SKOLG3P 6. CSR Initiatives & Business Responsibility Award-Runner-
JRK-ELKNJGPUTSL D. I+TLI
Up (Large Category) by CIMSME.

M D4BEEI)LLPIELKLTDLKILTUVL S. Future Business Plan of the Bank


FUDXS0LJEWLG'L;EG-'LKSLEIJA#)LXGFET MLJT\LFTB>GPFRÇIEKLVT Against the backdrop of robust macroeconomic stability,
'LLT. TMFETGZ GPELMEIYGSELTKLTEGZL"MKELKIMRLKNJLLTB demonetization derailed the growth momentum partially. With

33
MT>]GJM)LI\LTLLTBFTBWPMKLTBEIPAGHLTVTEIWJT\LLEIULSIH4"D4BE the Government reforms measures, however, opportunities
VT EQRVL4SIJXL;G-'LGSFTBW1/LÈOL;VGELH4"WLG-SLTBEIYRLPºLLFTB across all segments are expected to increase. The Bank did
well in a challenging situation. The asset quality improved but
MRLKHRWLH4ZTGEVZL)LÈOSLS'LLžLW6D. IQRVL4GSLTBETJFTB profitability and credit emerged as other big challenges. The
MLFVTWL H4B"D4BELTKLKELTBELTWGEGPSKLEKVTETGZ MLºL2H4 Bank has the potential to deliver more to the shareholders and
S'LLGPSKLEI\LFSLHTSRGPºLIPL; ETGZ KLVIGSDVLC;YC;H4" the strategy for FY’18 is designed to deliver that potential.

WLYLFIPL; ET GZ >žLPAGWL4KWLG-SYRLPºLLELT D LVL>ULTGvF For the next year, the focus areas and objectives would be
)LLGKSWLG-SLTBWL4KZLYSLTBFTBEFIZLVL>ELMLPAGEIYGSELTDVL  profitability with stable growth, improvement in asset quality,
reduction in risk-weighted assets, sustenance of CASA growth
KvVLWL4KY[LHELTBEIWLPESLWLTB PBELKLTDLKETDIQWGESLZFTZ momentum and acceleration in pace of digitalization to align
DVLVTETGZ G.GU7ZIEKLEIYGSFTBSTUIZLVLJ2LTEM\LTLS'LLNÎT businesses more closely around the needs of the customers.
HLTBYT"žLET GZ >D4BEW;LHKIS'LLY[LFIL\LTLZG\LSKHTBYT>UHLB For credit, the Bank will target semi-urban and rural areas
D4BEEIFH3PJXL;NJG-'LGSH4BS'LL F M FC;>²GL>vROKLWLGOFTBZ LR where the Bank has significant presence and focus will be on
WGY[FLTBJKJ2LTEMKHTBYT"FLLL3FEMB<LWLTBEIWJT\LL YRLL3FEvLSLTBELT small ticket advances in MSME, Agriculture, Retail, etc. The
focus will continue to be maintained on getting qualitative
ÈL*SEKVTJKJ2LTEMULKIKvLUL YL" accounts rather than quantitative numbers.
D4BE WJVT Y[LHELTB SE JHR‚QVT ET GZ  SEVIE DOZ KHT H4B" WGESK Technology is transforming the way Bank reaches its customers.
Y[LHE-FL7;J2LTV>Z4J7L8J>74DZT7WL4KW6FLTDLCZNJEKLLTBETFLÉFMT Increasingly, customers connect with the Bank through smart
D4BEMTUR. TH4B"H EWPMKH4GUMELZL)LN#LVTETGZ HFÈGSD phones, laptops, tablets and other mobile devices. This is an
H4B"WLBSGKEÈG¹LWLTBETG.GU7ZIEKLETFLÉFMTD4BEMFELTEF opportunity we are determined to avail. The Bank through
digitization of internal processes will bring in benefits of reduced
EKVT>WJPLOFTBEFIS'LLEFZLYSETZL)LOTYLGUMETJGKLLF-PJ cycle time, fewer exceptions and lesser costs resulting in greater
O\LSLFTBPAGHLTYI"ML'LHI>FL4UXOLJGKG-'LGSLTBFTB>G.GU7ZIEKLJIWLT M efficiency. Also, under present circumstances digitalization
FLIVLTB ELT -'LLGJSEKVT>V ¹TG.7WL4K.TGD7EL.;>C;JM; C3LGOELT offers business potentials in terms of installing POS machines,
È-SRSEKVTETMBO)L;FTBELKLTDLKI\LFSL BÈOLVEKSLH4" introducing new credit and debit cards, e-wallets, etc.

WLYT>HFGPºLIPL; ELTW6QRVL4GSLTB ETPL;ETJFTB OTvSTH4"HFLKI Looking ahead, we see FY’18 as another year of challenges,
of disciplined implementation of our Strategy to build on the
KLVIGSWVRLLGMSG¹L6PVET ML'LDTHSKGPELMWL4KN1QZL)LÈOSL momentum and make decisive progress towards better growth
EIGOLLFTB YGSGVFL;LEKVLH4"E4LZTMW'L;0P-'LLELT ÉLVFTB KvST and higher profitability. With focus on cashless economy, Bank
HR >D4EB GVKBSKMRLKEKTYLS'LLÈ3TEELKLTDLKIEIWLPESLETGZ  will constantly innovate and come up with faster solution for
STUIMTMFLLVEKTYL"WLLLH4GEGPºLIPL;  E TMLPL;HLTYLUHLB every business need.Hopefully, FY’18 will be a year where the
Bank will take a quantum leap when it comes to digitalization
G.GU7ZIEKLWL4KGK7TZET\LTLFTB FUDXSD SDVL YLWL4KCVG.GU7Z and retail and will emerge as PNB Retail Express on Digital
ZLCVLTB JKJI VDIGK7TZ %MÈTMETJFTB N)LKEKMLFVTWL YL" lines.
7I GVOTLELTBETNºLKOLG3PEL$L4KL T. Directors’ Responsibility Statement

 FLQ;>  ELT PL; ET MFLJV JK PLGL;E ZTvL EI S4LKI FTB The Directors confirm that in the preparation of the annual
GVOTLEYLJRG7EKSTH4 accounts for the year ended 31st March’17:

¾ ZTvLFLVELTELJLZVGELYLH4WL4KFH3PJXL;GPQZV>GO ¾ The applicable Accounting Standards have been followed


ELTC;H4>ETMBDBFTBNGQS-J7IEKLGOLYLH4@ along with proper explanation relating to material
departures, if any;
¾ )LLKSIGKUP;D4BEETGOLLGVO;TLLTBETWVRMLKDVLC;YC;ZTvLVIGSLTB
¾ The accounting policies, framed in accordance with the
ELGVKBSKWVRJLZVGELYLH4@ guidelines of the Reserve Bank of India, were consistently
applied;
¾ 'LLTGQS PB GPPTEJXL; GVL; S'LL WLEZV GE  Y  H4B SLGE
GPºLIPL;ETWBSFTBD4BEETELL;TEIG-'LGSS'LLFLQ; ¾ Reasonable and prudent judgment and estimates were
ELT MFL*SHR PL; HTSR D4BEET ZL)LELT MHI PB -J7JMT made so as to give a true and fair view of the state of
OLL;LULMET" affairs of the Bank at the end of the financial year and of
the profit of the Bank for the year ended 31st March’17;
¾ )LLKSFTBD4BELTBETMBQLZVJKZLYXELVXVLTBETÈLPLVLTBETWVRMLK
¾ Proper and sufficient care was taken for the maintenance
JL;*S ZTvL WG)LZTvLTB ELT NGQS PB JL;*S MLPLVI ET ML'L of adequate accounting records in accordance with the
DVLLYLH4@S'LL provisions of applicable laws governing banks in India,
and;

34
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

¾ CVZTvLTB ELT ?YLTCBYE6MV; WLLGKSGMLBSJKS4LKGELYL ¾ The accounts have been prepared on the principle of
H4" “going concern” basis.

X WL)LLK U. Acknowledgement

The Board expressed thanks to the Government of India,


WJVL DHRFX: MHLTY PB MSS MBK\LL ÈOLV EKVT S'LL CMFTB WJVL Reserve Bank of India, Securities and Exchange Board of
GPPLMDVL KvVT ET GZ GVOTLEFB.Z)LLKSMKELK>)LLKSIGKUP; India, Stock Exchanges, Bank’s customers, public and the
D4BE>)LLKSIÈGS)LXGS PBGPGVFDLT.;>-7L8E %MQTBU>D4BEETY[LHELTB> shareholders for valuable support, continued patronage and
WLFUVSLS'LLLTKLKELTBELWL)LLK0ºL2EKSLH4" confidence reposed in the Bank.

DLT.; M)LI-SKLTB JKEL;KS-7LJ2MO-LTB ^LKLGE Y DHRFX:LTYOLV The Board wishes to place on record its appreciation for the
valuable contribution made by the members of the Bank’s staff
HTSRGVOTLEFB.ZNVEIÈLBMLEKSLH4S'LL)LLPIZ\LTBELTÈL*SEKVT at all levels and look forward to their continued involvement in
FTBNVEIWVPKSMH)LLGYSLEIWLLLEKSLH4" achieving the future goals.

²STGVOTLEFB.Z For and on behalf of Board of Directors

MRVIZFTHSL Sunil Mehta


Managing Director& CEO
ÈDBGVOTLE PBMIC;WLT

35
ÈDBVJGKQQL; PBGPZTLL MANAGEMENT DISCUSSION & ANALYSIS
 WL4]LTGYEMBKQVL PBGPELM a. Industry Structure & Developments
)LLKSID4BGEBYN]LTYFTBPLGLG5ED4BE MLP;UGVE\LTLETD4EB >GVUI\LTL Indian banking industry comprises of Commercial Banks
(Public Sector Banks, Private Sector Banks and Foreign
ET D4BEWL4KGPOTLID4BE
>MHELKID4BES'LL\LTLIY[LFILD4BELLGFZ Banks), Co-operative Banks and Regional Rural Banks. To
H4B"D4BGEBYJGKQLZVEIJHRBQELTWGEGP-SASEKVTHTSR>)LLKSIGKUP; further extend the reach of banking operations, the Reserve
D4BEVT/LT7TGPºLID4BE>)LRYSLVD4BES'LLXGVPM;ZD4BGEBYELT Bank of India gave in principle approval to 10 Small Finance
ZLCMTBMÈOLVGELH4"CVFTBMTZ LRGPºLD4BE>XGVPM;ZD4E B S'LL Banks, 11 Payment Banks and 2 Universal Banking licenses.
Out of these, 7 Small Finance Banks, 2 Universal Banks and 3
)LRYSLVD4BEJHZTMTHIEL;WLKB)LEKQRETH4B"CMETWGSGK%S>WLKDIWLC; Payments banks have already started operations. Further, RBI
VT'LLTEžLLTBS'LLOI L;ELGZEGPºLJLTLLJKETG6ÇSGP)LTGOSD4BEZLCMTBMLTB also came up with the guidelines on differentiated bank licenses
ETMBDBFTBGOLLGVO;TLULKIGE " focused on wholesale lending and long-term financing.
D4BGEBYJGKOAFTBDHRSER/DOZKHLH4ÈL4]LTGYEI>UVMLBG<EI>DOZSI Much is changing in the banking landscape-with technology,
demographics, changing customer expectations, greater
Y[LHELTBEIWJT\LLWLTBETML'LFL4UXOLY[LHELTBS'LLV ÈGSLTYI EVC;GOLL competition from existing players and new entrants defining
PBÈPAGºLLTBELTJGK)LLGLSEKKHTH4"D4BEEI VJI JLT-7 MT7%PLGZ7I new turns and trends. Post Asset Quality Review (AQR), the
GK0X %XWLK
D IH4 S'LLZL)LÈOSLÈ)LLGPSHRC"; ]GJ>EFZLYS NPAs of the banks surged and the profitability was impacted.
PLZIUFLKLGLLTBETWLYFVETML'LGPFRÇIEKLETDLOS'LLELKLTDLKIZL)L However, post demonetization with the inflow of low cost
FTBMRLKETDLOZL)LÈOSLFTBMRLKHRWLH4"UFLKLGLLTBFTBPAGHRC; JKBSR deposits and improvement in trading profit the profitability
improved. Deposits surged but credit took a setback. Growth of
žLFTB GYKLP7WLC; H4"FLBYFTB EFIHLTVT MT GVPTLET ELKLTDLKFTB EFI bank credit plunged to a six-decade low of 5.1%, as businesses
WLYC;>J2Z-PJD4BEžLPAG/HOLEETGV&V-SKœJKWL started cutting down investment due to drying up of demand.
YLH4>JHZTMTHI>D4BEžLULTGJ/ZTOLTPLLT’FTUI.IJIMTOLTSIVYRVL Already, Bank credit growth that grew two to three times
D VTZYL'LL>ER/PLLT’SEIFLKHL%LTBGEGVPTLELMFEFULTKKHL" of GDP in the past has remained slow for few years as the
investment climate remained anaemic. Credit growth, Asset
)LLKSID4BGEBYÈLLZIETGZ žLPAG>WLG-SYRLPºLLS'LLJXU B IÈFRv Quality and Capital have emerged as major challenges for the
QRVL4GSLTBETJFTBN)LKIH4" Indian Banking System.
D4BELTBELTKLHSÈOLVEKVTETGZ >MKELKVTžLPMXZIELVXVLTBELTFUDXS In order to provide relief to the banks, the government took
DVLVTETNÎTMTEC;NJLGE H4B"GOPLGZLJVWL4KLLTÉLVW\LFSLMBGHSL several measures aimed at strengthening of debt recovery laws.
The Insolvency and Bankruptcy Code was passed followed
D4BELTBETGP3SIWLG-SLTBELÈGS)LXGSEKLWL4KJRVK;QVL PBÈGS)LXGSGHSEL by amendments to the Securitisation and Reconstruction of
ÈPS;V MKJ2TMI
S'LLD4BELTWL4KGPºLIMB-'LLVLTB WLK.I.IDI J2WLC;
>WG Financial Assets and Enforcement of Security Interest Act
GVFETELKLžLFTBMBLLTVETDLOWGÉLGVGFSH4B"CMETWGSGK%S> (SARFAESI) and Recovery of Debt due to Banks and Financial
/HV žLPMXZIG7‹$XV:M .IWLK7I
EI-'LLJVLEIYC; 'LI"D4BE Institutions (RDDBFI), Act. In addition, six new Debt Recovery
Tribunals (DRTs) were established. The Banking Regulator is
GVLFEžLDEL OLKLTBJKžLLLTVW\LFSL PBGOPLGZLJVMBGHSL also being authorized to invoke the Insolvency and Bankruptcy
ZLYXEKVTHTSR)LIWG²SEKKHLH4" Code against the loan defaulters.
CMET WGSGK%S>MKELKVT ?CBÇVRL ELT ZLVT EILTUVLDVLC; H4> Further, the Government plans to come out with ‘Indradhanush
MLP;UGVE\LTLETžLOLSLWLTBETD4BELTBELTJRVJ;XBUIEKLHTSRW60LJE 2.0’, another comprehensive plan for recapitalization of Public
Sector Lenders for banks to remain solvent and fully comply with
LTUVLLLT\LFS'LLP4GPEJXBUIJL;*SSLFLVOB.LTB>DTMZIIIETML'LEL global capital adequacy norms, Basel-III. Under ‘Indradhanush’
JXKISKHMTJLZVEKVTETGZ DVIHRC;H4"??CBÇVRL KLT.F4JETWBSY;S> roadmap, a target of `70000 crore till 2019 was set for infusion
MLP;UGVE\LTLETD4BELTBFTBGVPTLETGZ SE>EKLT. JT in the public sector banks.
ELZ\GVL;GKSGELYL'LL" The banking landscape is fast evolving and throwing up
challenges. However, every challenge has given rise to
D4BGEBYJGKOASTUIMTGPEGMSHLTKHLH4WL4KQRVL4GSLBOTKHLH4"]GJ> opportunities. With the demonetization wiping out 86% of
HKQRVL4SIVT WPMKLTB ELT U6FGOLH4"ÈQLZVFTB )LLKSIFRÇLELœ the Indian currency in circulation, it essentially acted as a
H7L ULVTMTGPFRÇIEKLVT)LLKSELTG.GU7ZIEKLETJ'LJKWLYTDVT momentum pushing India forward on the digitalisation path.
ETGZ WGVPL;JMTYGSÈOLVEIH4"VPBDKEISRZVLFTBFLQ; Digital transactions increased nearly 23 times in March’17
compared to November’16. Similarly, increasing competitive
FTBG.GU7ZZTVOTVFTBYRVLD LTSKIHRC; H4"CMIÈELK>ÈGS-JI; pressures and low interest rate environment are leading to
ODLPWL4KEF$LUOKETPLSLPKLFTBPAGEFFLGU;VEIWLTKWY[ thinner margins and banks are exploring ways to improve
LIH4BWL4KD4BEZLYS!WLWVRJLSELTEFEKVTETGZ WJVIJGKQLZV their operational efficiencies to bring down cost to income
\LFSLFTBMRLKETSKIETSZLLKHIH4"ÈL4]LTGYEI>UVMLBG<EI>MLFLGUE ratios. Proliferation of technology, demographics, social and
behavioral changes have led to rising customer expectations
WL4K0PHLGKEJGKPS;VLTBETÈMLKVTY[LHELTBEIWJT\LLWLTBFTBPAGEIH4> but at the same time provided opportunities for growth.
ZTGEVML'LHIGPELMETWPMKÈOLVGE H4B"D4BEWJVTJGKQLZVELT Banks are reshaping their operations and tearing down
VLJOTKHTH4B"PTV FLTDLCZD4BGEBYWL4KMLTLZGFG.LWVRÈLTYLTBEL product focused silos to more effectively reach and serve the
)LIWLKB)LEKKHTH4BS'LLN3JLSELTY[LHELTBEIWLTKETZVTET-'LLVJK customers. They are also introducing new mobile banking and
MBDBWLLGKSGP¹EKVT W'LPLWGE EI²SWL4KDHRFX:Y[LHE social media applications and shifting from pushing products
to selling relationships and providing a more integrated and
WVR)LPÈOLVEKVTELÈLMEKKHTH4B" valuable customer experience.

36
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

WGE3SKFLFZLTB FTB WLG'L;EOAG7ELTLDTHSKGOvSLH4"D. T WLLK)LXSLBQ>T  On most counts the domestic economic outlook looks better.
GEJ2LSIWLPLMS'LLWGEVL4EGKLTB ETÈ-SLPLTB ELTD LPLOTVT ETGZ D4E B LTB The big infrastructure push, the boost to affordable housing and
HTSR žLDBOEKVTFTB FOOGFZTYI"V GVPTLLTB MTMRLKEIÈG¹LWLKB)LHLTVT proposals to create more jobs will help increase credit off take
for banks. Fresh investments are likely to set the ball rolling
EIMB)LLPVLH4GUMMTWDSEQXEEKSTKHTEL8KJLTK7T EIJRV)L;YR SLV\LFSL and lead to enhanced repayment capacity of the corporates
D UL YI"?D4E B KGHSLTB ETGZ D4GB EBY ÈFRvVIGSYSNÎTDVYLH4WL4K that were defaulting. ‘Banking the unbanked’ became a primary
TMIMB)LLPVLH4 GEHM)LIET GZ WGE)LXGFEL ‚ WL4KWPMKGFZVT policy objective and is likely to provide further impetus for
EIÈG¹LELTYGSÈOLVEKTYL"]GJMJ2ZSLEL-SKWZYWZYKHVL greater role and scope for all. The success; however, is likely
MB)LLGPSH4ULTGEMIGPLTLD4E B EIKLVIGSEOAG7>JGKPS;VEIWVREZ X SL to come in varying degrees depending on individual Bank’s
WL4KWY[LIKHVTEIC1/LLGºL2JKWLLGKSHLTYL" strategic vision, adaptability to change and the will to lead.
DI WPMKWL4KvSKT b. Opportunities and Threats
GPºLIPL;FT>B D4GB EBYN]LTYGPLTLEKW;LHKIS'LLY[LFIL\LTLLTB FTB In the year FY’18, the Banking industry is likely to see intensified
SIP[ÈGSLTGYSLHLTVT EIMB)LLPVLH4>ULTWDSEJLKBJGKED4E B LTB FTB HLTSLKHL competition particularly in Semi Urban and Rural Areas which were
the stronghold of the traditional banks so far. At the same time,
'LL"NMIMF>]GJ>D4E B LTB ELTVC;MB-'LLWLTB ETML'LMBD
B DVLVTETWPMK however, opportunities will open up before the Banks to make tie
GFZTYB T WL4KCMSLZFTZELZL)LN#LLUL YL" ups with the new entities and take advantage of the synergies.
HLZLBGEIKTIKTP4GPEOAG7ELTLD KHLH4> LKTZX WLG'L;EMBEST E-J7 Although the global outlook appears to pick up slowly, the
JMTMELKL3FEH4"B W'L;0P-'LLFTB QZKHTEC;MBKQVL3FEMRLKQZKHT domestic economic indicators are distinctly positive. With
H4B GUMMTG-'LKPMXZIEKVTEIMB)LLPVLH4"DRGVLOILBQT FTB HLTVT PLZTGVPTLLTB many structural reforms underway the economy is likely to
MT>²GLWL4KY[LFILWLBSGKE\LTLLTB FTB vJSWL4KGVPTLEIFLBYD YT I"WJT\LL make steady recovery. The slated investment in infrastructure,
EIULSIH4GEFRÇL-J2IGSWLKDIWLC;È\LTJLS'LLWJT\LL²SMHUSKZSLET agriculture and rural hinterland will drive consumption and
investment demand. Inflation is expected to remain within the
)LISKKHTYIS'LLFTB EF$LUOKTB žLDLULKELTJRVUI;GPSEKMESI RBI projection and relatively easy liquidity and low interest
H4"B GVPTLQ¹WL4KDTHSKEL8JL;KT 7T ZL)LÈOSLETJRV3'LLVMTWLG-SYRLPºLL rates could revive the loan market in 2017. With the revival
JKODLPEFHLTVT EIMB)LLPVLH4" of investment cycle and improved corporate profitability, the
G.GU7ZIEKL)LLKSID4GB EBYETMF\LWJVTY[LHELTB ELTSTUIMT>DTHSKWL4K stress on asset quality is likely to ease.
EFZLYSETML'LMTPLÈOLVEKVTHTSR EW6WPMKH4"W'L;0P-'LLFTB Digitalization is yet another opportunity before Indian Banking to
EFVEOIHLTVT ETELKL>MRKG\LSWL4KGVDL;D4GB EBYMTPL BÈOLVEKVLD4E B  serve its customers faster, better and with lower costs. With the
ELDHRSD. LOLG3PHLTYL" economy going less-cash, the Bank will have huge responsibility
to provide secure and seamless banking services.
MI vB.PLKW'LPLN3JLOPLKEL;GVJLOV
c. Segment-wise or Product wise performance
D4E B ELT FR<JMT UFLKLGLLT>B žLLTB PB GVPTLMT ELKLTDLKÈL*SHLTSL
The Bank’s business broadly comes from deposits, credit and
H4"MBMLVMBYH[ L>ÈL'LGFESL\LTLET žL>vROKLžL>GPºLIMFLPTLV> investment. Some major business segments like Resource
F M FC;WLGOU4MT ER/ÈFRvELKLTDLKI\LTLLTB ELGPZTLLCMWVR)LLYFTB Mobilization, Priority Sector Lending, Retail Lending, Financial
GELULKHLH4 Inclusion, MSME, etc. are analyzed below:
i. MBMLVMBYH[ L i. Resource Mobilization
D4E B EIERZULFKLGLLB YSPL; EISRZVLFTB œEIPAGOLL;ST HR  The Bank’s Total Deposits amounted to `621704 crore as at
FLQ;ETWBSFTB EKLT. JH8Q R YC;"GP3SIPL;FTB ERZ the end of March’17, showing a growth of 12.4% over previous
WLBSGKEUFLKLGLLTB FTB EFZLYSPLZT UFLKLGLLTB PS;FLVDQS
EL year. The share of low cost deposits (Current + Savings) in total
GH-ML>GPºLIPL;FTB œ'LL" domestic deposits was 45.97% in FY’17.
74DD4GB EBYETFLÉFMTUR7L Y ERZvLSTGOVLBESE The total accounts mobilized through Tab Banking were
'LT"JI VDIJTB LVDQSvLSLLTUVLD4E B EILLvLWLTB ETFLÉFMTJTB LVZTVT 169850 as on 31.03.2017. PNB Pension Savings Account
Scheme was modified to provide overdraft facility up to
PLZTJTB LVKLTB ETGZ WLTPK.‹L¾7MRGPLWGESFZLvSEÈOLVEKVT maximum `1.00 lakh to pensioners drawing their pension
ETGZ MBLLTGSEIYC;'LI" through Bank’s branches.
JI VDIMRK\LLLTUVLETWBSY;SMRK\LLGPLTLSL BDLC;YC;H4B S'LLY[LHEWD Security features have been enhanced under PNB Suraksha
LLvLWLTB ELOL4KLGE GDVLCB7KVT7D4GB EBYMTPLETFLÉFMTQTEELGPPKL Scheme and customers can now upload/enter the detail of
WJZLT.!ÈGP7EKMESTH4"B CMLTUVLETSHSJLLSLFLVOB.LTB ELTEFEK cheques through Internet Banking Service without visiting the
GOLYLH4S'LLZLvET%X DIMGHSQLZXvLSL PBDQSvLSL branches. The eligibility criteria under the scheme has been
LKEWL4KEKLT. LNMMTWGEETMIMI!WLT.IY[LHECMMRGPLEL reduced and Current Account and Savings Account holders
ZL)LN#LVTETGZ JLLH4" with QAB of `2 lakh and CC/OD customers availing `1 crore
and above are eligible to avail this facility.
ii. žLGPGVLTUV PBGPSKL
ii. Credit Deployment and Delivery
D4E
B ET GVPZWGY[FYSPL; MT œEIPL;OKPL; PAGOU; EKST HR  Net Advances of the Bank as at the end of March’17 stood
FLQ;ETWBSFTB EKLT. KHTULTSRZVL3FEJMTFLQ; at `419493 crore, compared to `412326 crore as at end of
ETWBSJKEKLT. 'LT"FLQ;FTB MFL*SHR PL;HTSR D4E
B EL March’16, registering a growth of 1.7% over last year. Yield
WGY[FLTB JKÈGSJ2ZœKHL" on Advances of the Bank stood at 8.29% for the year ended
March’17.
Z LR N]LTY M MWLC;
 WL4K Y4K M MWLC; +TLI MT MBDGB S ÈL4]LTGYEI
N6VVGVGLTUVL 7IX J2 M
ET WBSY;SD4E B FTB ZY)LYvLST H4"B  The Bank has approximately 852 accounts under Technology
Upgradation Fund Scheme (TUFS) pertaining to Small Scale

37
GPºLIPL;ETOL4KLV>D4E
B ELT7T%M7LCZFBLLZ FWLT7I
MT Industry (SSI) and Non-SSI category. During FY’17, the Bank
EKLT. EI7IX J2 MMG$M.IÈL*SHRC; H4S'LLCMTJLLNLKESL;WLTB FTB GPSGKS received TUFS subsidy amounting `148 crore from Ministry
of Textile (MOT) and the same was disbursed to the eligible
GELYLH4" borrowers.
CMET WGSGK%S> ZY)LY  vLST œ ¹TG.7 GZB%. E4GJ7Z MG$M.I Further there are approximately 198 Accounts covered under
15% Credit Linked Capital Subsidy Scheme (CLCSS) and the
LTUVL MI ZMI M M
ETWBSY;SEPKGE Y H4BS'LLGPºLIPL; subsidy amounting to `13 crore was received from Ministry of
ETOL4KLV F M FC;FBLLZMTEKLT. EIMG$M.IÈL*SHRC; H4" MSME during FY’17.
iii. žLMFXHV iii. Loan Syndication

GP3SIPL;ETOL4KLV>D4BEVTEKLT. ETERZžLLTB ETMFXHV! During FY’17, the Bank gave approvals for syndication/
appraisal of debt aggregating `3156 crore with PNB’s share of
FX:LBEVHTSRFBUXKIOIGUMFTBJI VDIELGH-MLEKLT. 'LL"GPºLI `1300 crore. Total income booked out of this activity and other
PL;ETOL4KLVSEVIEIÈELT#^LKLMBQLGZSCMYGSGPGS'LLW6 TEV Studies conducted by Technical Cell during FY’17 stood
7IC;PIWÉVLTBMTEKLT. ERZWLOU;EIYC;" at `19 crore.
iv. vROKLžL iv. Retail Credit
vROKLWGY[FD4BEETGZ FR<GPLKHLH4"CMELNÎTvROKLJLT7J; 2LTGZLT Retail Advances have been the major thrust area for the Bank.
ELGPELMEKVLS'LLN]LTYFTBvROKLžLGH-MTOLKID LVLKHLH4" The objective has been to grow retail portfolio and increase
Retail Loan share in the Industry.
GPºLIPL; ET OL4KLV>D4BEVT WLPLM>PLHV>GL\LL>DBE>P4GºL2E>
JTBLV)LLTYI>-PL;S'LLÈGSPSI;DBEžLLTUVL BETELTKKI7TZWGY[FLTBET During FY’17, the Bank registered a YoY growth of 18%
under Core Retail advances comprising of Housing, Vehicle,
WBSY;SPL;OKPL;œEIPAGOU;EIH4"ELTKvROKLWGY[FFLQ;> Education, Mortgage, Personal, Pensioner, Gold & Reverse
ELT>EKLT. MTD EKFLQ;>ELT>EKLT.  Mortgage loan Schemes. Core Retail advances increased from
HLTY "GPºLIPL;ETOL4KLVWLPLM>PLHVWL4KGL\LL\LTLETWBSY;S `50159 crore as on 31st March’16 to `59095 crore as on 31st
¹FLœ>œWL4KœEIPAGHRC"; March’17. YoY growth during the FY’17 under Housing, Vehicle
GPºLIPL;ETOL4KLV>D4E B VTÈGSG#SELKGVFL;SLWLT!B .IZKLTB ETML'L and Education Sector was 17%, 16% and 8% respectively.
MFL4SLGELH4"D4BEVT$LUEIGKLSIOKJKMKELKIEF;QLGKLTBELT During FY’17, the Bank entered into tie up arrangements with
WLPLMžLS'LLELKžLETGPºLJLTLLETGZ  EVC;LTUVL?JI VDI reputed car manufacturers/dealers. The Bank launched a new
ÈLC. ELLR)LLKB)LGEL" scheme “PNB Pride” for financing Housing Loan and Car Loan
to Government employees at concessional rate of interest.
ML'LHI>D4BEVTNMET EF;QLGKLTB ET vROKLžLLTB ELGPºLJLTLLEKVTET Further, the Bank signed a Memorandum of Understanding
GZ HGKLLLKL5MKELKETML'LMFL4SL,LJV FWLTX
JKH-SL\LK (MOU) with the State Government of Haryana for financing
GE "D4BEVT)LLKSMBQLKGVYFGZGF7T. DI M V Z
ETEF;QLGKLTB ET Retail loans to their employees. Another MOU was signed with
vROKLžLLTBELWLEL;EGVFWL4KLSLT’JKGPºLJLTLLEKVTETGZ NMET Bharat Sanchar Nigam Ltd (BSNL) for financing Retail Loans to
ML'L)LIMFL4SL,LJV FWLTX
JKH-SL\LKGE " their employees on attractive terms and conditions.
D4BEVTvROKLžLGPSKLFL8.ZFTB)LIMRLKGE S'LLWLK JIMI vROKL The Bank also revamped the Retail credit dispensation model
WLG-S ÈMB-EKL ÈELT#
 FL8.Z ET ML'L FL4UXOL FL8.Z ELT ÈGS-'LLGJS and replaced the existing model with Retail Asset Processing
GEL" Cell (RAPC) Model.
A utility “Online Loan Eligibility Assessment and Lead Generation
D4BE EI WLGELGKE PTDMLC7 JK ?WL8VZLCV žL JLLSL WLEZV S'LL System” was provided on the Bank’s official website wherein
ELKLTDLKWG)LÈTKLÈLLZI VLFENJLTGYSLNJZ$EKLC; YC; H4 GUMFTB the customers can check the loan eligibility under housing and
Y[LHEWGVPL;MXQVLÈGP7EKWLPLM PBELKžLLTUVLWLTBETSHS car loan schemes by keying in the mandatory information.
WJVIžLJLLSLEIULBQEKMESLH4"
v. Priority Sector
v. ÈL'LGFESL\LTL
The Bank achieved National Goals under Priority Sector,
D4BEVT GVKBSKPLLT’ MT ÈL'LGFESL\LTL>²GLS'LLW6NJ\LTLLTB Z LR Agriculture and other sub-sectors (except Micro credit)
žL ELT /LT. EK
 ET WBSY;S KL7‹I Z\LTB ELT ÈL*S GEL H4" ÈLG*SLB continuously for 4 years.
GV&VLVRMLKH4B
Achievement of National Goals
KL7‹IZ\LTBEIÈLG*S
(%) (%)
VDIMIELœ Z\ FLQ;> FLQ;> FLQ;> %age to ANBC Target 31st 31st 31st
   March’15 March’16 March’17
ÈL'LGFESL\LTLžL Priority Sector
40 40.06 40.75 40.49 40 40.06 40.75 40.49
Credit
GUMFTBMT Of which:

²GL\LTL (a) Agriculture
18 18.68 18.32 18.56 18 18.68 18.32 18.56
Sector

38
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

DI
EFULTKPYLT’ELT (b) Credit to
žL 10 10.16 10.08 10.67 Weaker 10 10.16 10.08 10.67
Sections
MI
FGHZL (c) Credit to
ZL)LLG'L;LTBELT 5 5.27 5.86 6.38 Women 5 5.27 5.86 6.38
žL Beneficiaries
/LT7TWL4KMIFL6S Loan to Small
GEMLVLTBELTžL* 8 ZLYXVHIB 8.49 (7) 8.96 & Marginal 8 NA 8.49 (7) 8.96
Farmers *
MX\FN]FELTžL* Loan to Micro
7.5 ZLYXVHIB 6.50 (7) 6.39 7.5 NA 6.50 (7) 6.39
Enterprises *
*)LLKSIGKUP;D4BEETGOLLGVO;TLLVRMLKPLGL;EWL4MSWLLKJK *On annual average basis as per RBI guidelines.
ÈL'LGFESL\LTL PB NJ\LTLLTB S'LL²GLET WBSY;S>>EKLT.  S'LL The outstanding under Priority Sectors & Sub-sectors as on
FLQ; >EKLT. ETKL7‹IZ\LTBETMLJT\LFLQ;JKDELL 31st March’17 is `140239 crore and under Agriculture `65629
crore against respective National Goal of `135016 crore and
LIL;¹FL>>EKLT. S'LL>EKLT. KHI" `60758 crore.
ELTÈL'LGFESL\LTLWL4KNJ\LTLLTB EIN3²7G-'LGSGV&VLVRMLK The outstanding position of Priority Sector and Sub-sectors as
H4 on 31.03.2017 is as under:-
KLGLEKLT. FTB
(Amt. in crore)
FLVOB.    Parameter 31.03.2015 31.03.2016 31.03.2017
ÈL'LGFESL\LTLžL 126873 139233 140239 Priority Sector Credit 126873 139233 140239

GUMFTBMT Of which:

²GL\LTL 59157 62604 65629 (a) Agriculture Sector 59157 62604 65629
DI
 F M FC; (b) MSME
53273 62857 58570 53273 62857 58570
ÈL'LGFESL
(Priority)

MI
W6 (c) Others 14443 13772 16040
14443 13772 16040
EFULTKPYLT’ETGZ žL Credit to Weaker
32187 34451 39353 32187 34451 39353
Sections
FGHZLZL)LLG'L;LTBELTžL Credit to Women
16689 20029 23317 16689 20029 23317
Beneficiaries
Z LR PBMIFLBSGEMLVLTBELT Loan to Small &
ZLYXVHIB 29002 33037 NA 29002 33037
žL Marginal Farmers
MX\FN]FLTBELTžL Loan to Micro
ZLYXVHIB 22222 22835 NA 22222 22835
Enterprises
GEMLV¹TG.7EL.;D4BEVT GPºLPL; ET OL4KLVZLvGEMLV Kisan Credit Cards: The Bank issued 3.34 lakh Kisan Credit
¹TG.7EL.; ETMIMI
ULKIGE >ERZETMIMIEIMBGQSMB<LZLv Cards (KCCs) during FY’17 taking the cumulative number of
HLTYC;H4" KCCs to 57 lakh.

²GLMBGPSKLD4BEVTGPºLPL;ETOL4KLV>>EKLT. ETZ\ Agri Disbursement: During FY’17, the Bank disbursed agriculture
ETFRELDZTEKLT. ET²GLžLLTBELGPSKLGELH4" loans of `61264 crore against the target of `53600 crore.

GPºLIPL;ETOL4KLVS4LKEIYC;VC;LTUVL B New schemes formulated during FY’17

JI VDIY[LFNOLTUVLCMLTUVLET SHS>FAOLHT:'LEL.; ÉLLKE PNB Gram Uday Scheme: Under the scheme, loan upto `1
GEMLVLTBELT)LXGFMRLK!)LXGFMBK\LLETGZ ZLvSEELžLGOL lakh is being provided for soil reclamation/soil conservation to
farmers holding soil health card.
ULKHLH4"
Scheme for financing landless agriculture labourers on
WJBUI²S JËÑT JK )LXGF> )LXGFHIV ²GL FUOXKLTB ELT GPºLJLTLL ET unregistered leased land: For landless labourers to undertake
GZ  LTUVL CM LTUVL ELT )LXGFHIV +GFELTB EI ²GL YGSGPGLTB ELT agricultural activities, this scheme was formulated for financing
JXKLEKVTETGZ WJBUI²SJËÑTOLKLTBELT)LXGFETGPºLJLTLLETGZ S4LK unregistered leased lands.
GELYL"

39
FGHZLMBRºL2OLG3PMFXH UT ZUI
ELTMBJLGP;EFRºL2žLÈOLV Scheme for providing collateral free loans to Women Joint
EKVTEILTUVLFGHZLWLTBETMBRºL2OLG3PMFXH UT ZUI
ELTGDVL Liability Groups (JLGs): To provide loans upto `10 lakh
MBJLGP;EMRK\LLETZLvSEELžLÈOLVEKVL" without collateral security to women JLGs.

WGEGEMLVLTB ELTLLGFZEKVTPLZILTUVLWLTB FTB MRLKGV&VLVRMLKH4 Improvement in the schemes to cover up more farmers are
as under
● JI VDI²GL)LX-PLFILTUVLETWBSY;SžLMIFLELTZLv
● The limit enhanced under PNB Krishi Bhu-Swami Yojana
MTZLvSED LL" from `10 lakh to `20 lakh.
● ML4ZKJG&JBYMT7EI-'LLJVLETGZ ZLvSEEIžLMIFLET ● For setting up of solar pumping sets requirement of
GZ UFIVELTDBEKvVTEIWLPESLMTFRºL2GELYL" mortgage of land has been waived for loans upto `5
lakh.
● Y[LFILYLTOLF!PTKHLNM!ELT:.-7LTKTUWL4KvL] PB²GLÈG¹LET
SHSGPºLJLTLLETGZ $LUEIOKFTB/X7MIFLD LC;YC;" ● Relaxation in ROI extended for financing under Rural
Godown/Warehouse/Cold Storage and Food and Agro
● ZLvKLGLSEET ²GLžLLTB ET GZ O-SLPTUIEKLLR:E Processing.
FLJ2 GEL YL> vLSL J2LTGZLT È)LLKLTB MT /X7 OI YC; S'LL WL4K ● Documentation charges in agriculture credit waived
GVKI\LLLR:EMR0PG-'LSGE Y " upto `3 lakh, ledger folio charges were waived off and
inspection charges were streamlined.
● ÈLVFBLI J2MZ DIFL LTUVL J2MZ DIFL LTUVL
 ET WBSY;S
ZLvGEMLVLTBELTCMLTUVLETWBSY;SZLLYL" ● 11.45 lakh farmers were covered under Prime Minister
Fasal Bima Yojana (crop insurance scheme).
²GLELTD LPLOTVTETGZ WG)LVPKLVIGSLB
Innovative strategies to enhance agriculture
● GPLTL²GLGPºLLLvL B M J2DI
WL4KGPLTL²GL ● There are 19 Specialized Agriculture Finance Branches
GPºLE\L M J2MI
H4B" (SAFBs) & 16 Specialized Agriculture Finance Cells
(SAFCs).
● JXKT OTL FTB ²GL ELT D LPL OTVT ET GZ  FHL žL GLGPKLTB EL
WLLTUVGELYLWL4KEKLT. ELGPSKLGELYL"CMET ● Mega credit camps were organized to boost agriculture
across the country and `711 crore were disbursed.
WZLPL>²GLFTBGVPTLžLWL4KJGKMBJGºLGVFL;LELTD LPLOTVT
Besides, `1395 crore were disbursed under PNB Festival
ET GZ  JI VDI J2TG-7PZ DLTVL6UL ET SHS  EKLT.  EL
Bonanza to boost investment credit and asset creation in
GPSKLGELYL" agriculture.
● GPºLPL;ETOL4KLVD4BEVTGEMLVLTBELTZLvJTGEMLV ● The Bank issued 4.54 lakh Rupay Kisan cards to farmers
EL.;ULKIGE Y " during FY’17.

MX\FžL Micro Credit

● D4BEVT FTB ¹TG.7GZB%.-PB MHLSLMFXHLTB ● As at the end of March’17, the Bank had credit linked
ELTEKLT. ETžLGPSKLETFRELDZTFLQ;ETWBSSE 105134 SHGs with an outstanding of `679 crore as
against 45373 number of SHGs with outstanding of `350
>¹TG.7GZB%.-PBMHLSLMFXHLTBELTEKLT. KLGL
crore as on 31.03.2016. The Bank surpassed credit
ET žLGPSGKSGE Y "GPºLIPL; ET OL4KLVD4BE>¹TG.7
linked SHGs of `1 lakh during FY’17.
GZB%.-PBMHLSLMFXHZLvEIMB<LELTJLKEKYL"
vi. Micro, Small and Medium Enterprises (MSME)
vi.MX\F>Z LRWL4KFÉFN]F F M FC;

At the end of March’17, the credit to MSME sector stood at


FLQ;ETWBSSE> F M FC; \LTLET GZ žLEKLT. 'LL" `81592 crore. The advances to Micro & Small Enterprises
MX\F PBZ LRN]FLTB F MC;
ETGZ WGY[FEKLT. JTEL (MSE) stood at `66346 crore.
'LL"
The Bank added 119934 Micro Enterprises Accounts as on
FLQ; ET WBSSED4BEFTB PL;OKPL; œEIPAGET ML'L 31st March’17 showing YoY growth of 19.38% against the
MX\FN]FIvLSLTBEIPAGHRC; UDGEÈLVFBLIHLC;ZTPZ7L-E envisaged growth of 10% in terms of Prime Minister High Level
J2LTM; EIGMJ2LGKLLTBETWVRMLKœEIWVRFLGVSPAGHLTVIQLGH " Task Force recommendations.

GPºLIPL;ETOL4KLV>D4BEVTEKLT. ETžLJGK0ETML'L During FY’17, the Bank covered 70328 cases under the
?¹TG.7YLKB7IJ2B.7‹-7J2L8KMX\F PB Z LR N]F  MIUI7I F MC;
ET Credit Guarantee Fund Trust for Micro and Small Enterprises

40
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

SHSFLFZLTBELTEPKGELYLWL4KFLQ;ELT>>vLSLTB (CGTMSE), with the credit outlay of `1805 crore. The total outlay
FTBERZžLJGK0EKLT. 'LL" as on March’17 stood at 258341 accounts and `10227 crore.

FRÇLžLD4BEVT FRÇLET WBSY;SEKLT.  ET DU7-SKELT JLK MUDRA Loans: The Bank surpassed the budgeted level of
EKSTHR EKLT. ELGPSKLGEL" `5200 crore under MUDRA by disbursing `5440 crore.

‘Stand Up India’ Loans: ‘Stand Up India’ Scheme was launched


?-7T.WJ CBG.L  žL Y[IV J2I:. B7KÈLCUTU EI -'LLJVL ET GZ 
to promote Women & SC/ST entrepreneurs by providing credit
FGHZLWLTBWL4K MMI! M7IN]GFLTBELTD LPLOTVTETGZ ZLvMT
assistance between `10 lakh to `100 lakh for setting up Green
ZLvSEžLMRGPLÈOLVEKVTETGZ ?-74B.WJCBG.L LTUVL field Enterprises. During FY’17, 6490 Accounts with a sum
LREIYC;"GPºLIPL;ETOL4KLV>EKLT. EI-PIEASMGHS of `1340 crore were sanctioned which is the highest in the
vLSTvLTZTY ULTELKLTDLKFTBMDMTWGÉLEH4B" industry.
vii. GPºLIMFLPTLV vii. Financial Inclusion

D4BEWJVTGPºLIMFLPTLVZ\ELTJXKLEKVTETGZ EC;EOFN#LKHL The Bank has been undertaking numerous steps towards
H4"D4BEVTGPºLIPL;ETOL4KLV>GFLJTEL.;ÈOLVGE Y ULTFLC¹LT meeting its financial inclusion goals. During FY’17, the Bank
Mitras are provided with Rupay Card enabled Micro ATMs.
7I FMT KEFGVELZVT FTB M\LFH4"FLC¹LT 7I FET FLÉFMT VEO
PNB is first in the industry to start cash deposit facility through
UFLMRGPLLREKVTETGZ JI VDIELN]LTYUYSFTBJHZL-'LLVH4" Micro ATMs.
MLFLGUEMRK\LLLTUVL BGPºLIPL;ETOL4KLVÈYGSGV&VLVRMLKOIYC; Social Security Schemes: The progress during FY'17 is given
H4 as under:
● ÈLVFBLIMRK\LLDIFLLTUVLšJI F MDIPLC;› ● Pradhan Mantri Suraksha Bima Yojana [PMSBY]–for
SE>JI F MDIPLC; ET SHSWLEG-FEFA3R DIFLMRGPLMGHS accidental death insurance. As on 31.03.2017, number
CMLTUVLFTBVLFLBGESY[LHELTBEIMB<L>>HLTQREIH4" of customers enrolled under PMSBY is 6421425.
ÈLV FBLI UIPV 5LTGS DIFL LTUVL šJI FUTUTDIPLC;›  ● Pradhan Mantri Jeevan Jyoti Bima Yojana [PMJJBY]–
SEUIPVDIFLLTUVLETWBSY;S>JI FUTUTDIPLC;ET for life insurance cover. As on 31.03.2017, number of
VLFLBGESY[LHELTBEIMB<L>>HLTYC;H4" customers enrolled under PMJJBY is 1310529.
● W7ZJTBLVLTUVLš JIWLC;› JIPLC;LTUVLETSHS ● Atal Pension Yojana [APY]-The enrolments under APY
SEVLFLBEV>>SEJH‚RQY H4B" scheme as on 31.03.2017 is 236399.

.I WLN7ZRE d. Outlook

P4GPEWL4K)LLKSI UTBGMLTBETWVRFLVLTBETFRSLGDE)LLKSIW'L;0P-'LL The Indian economy appears to be well placed as per the
W1/ISKHMT ÈSISHLT KHIH4"WLYLFIPLLT’ FTB œMT WGEEIPAG projections by the Global and Indian agencies and is poised
to grow at over 7% in the coming years, fastest among all the
EKVTETGZ M)LIW'L;0P-'LLWLTBFTBMDMTSTUH4"
economies.
PMXZIEIÈG¹LSTZWL4KEFLTG.7IEIFSLTBFTBSTUGYKLP7ETQZSTMR-S The process of recovery is underway aided by a sharp decline
QZKHIH4>GUMMT )LLKSELT UR. PLB LL7T GPºLI LL7T WL4KQLZX vLSL in oil and commodity prices that allowed India to contain the
LL7T
ELTLLGFZEKVTEICULUSOIYC;WL4KEFLTG.7IGVL;SETN)LKST twin deficits (Fiscal Deficit and Current Account Deficit) and
DLULKLTB EISRZVLFTB )LLKSELT GVPTLET GZ WJT\LL²SWGEWLEL;E made India a relatively more attractive investment destination
DVLLYLH4" compared to commodity-exporting emerging markets.

]GJ>GVYFLTB WL4KD4BELTB EIODLPY[-SSRZVJLS'LLEG'LSOLTHKISRZVJL However, stressed balance sheets of corporations and banks,
called as Twin Balance Sheet problem remains the biggest
EIMF-LMDMTD. IQRVL4SIDVTHR H4"ODLPY[-SWLG-SLTBELFRÎLžL
challenge. The issue of stressed assets continues to weigh on
OTVTFTBMF-LJ4OLEKKHLH4WL4KJXBUIYS0Q¹ETJRVLKFTBGPZ&D
credit off-take and delay the revival of the capital expenditure
HLTKHLH4"HLZLBGE>QZKHTMRLKLTBWL4KGPG)L6VJHZLTBETQZSTGPELMFTB cycle. However, the growth is likely to gain momentum on the
STUIWLVTEIMB)LLPVLH4" back of ongoing reforms and various initiatives underway.
C; ULTGvFWL4KGQBSL B e. Risks & Concerns
ULTGvFÈDBVETWBSY;SD4BEVTN1QULTGvF\LTLLTBFTBWJVT %MJLTUKELT Towards Risk Management, Bank is limiting its exposure in
MIGFSGELH4WL4KJX‚UIJKULTGvFMFLLTGUSÈGSJ2Z WLK WLKWLTMI
 high risk areas and also focusing on optimizing the returns

41
JKTvLET FLÉFMT ULTGvFWL4KWLG-SLTB JKÈGSJ2ZET FÉMBSRZV by striking a balance between the risk taken and the return
DVLVT ET GZ  ÈGSJ2Z ELT C;7SF EKVT JK ÉLV GOL H4" YRLP3SLJXL; on assets through Risk Adjusted Return on Capital (RAROC)
WLG-SLTBELTWLEGL;SEKELKLTDLKFTBPAG^LKLLTKLKELTELTWGESF framework. The Bank also aims to strive towards improving its
market share to maximize shareholders’ value by augmenting
FX: ÈOLV EKST HR  PB žGLLTB EI GP3SI G-'LGS EI MROA  GVYKLVI
business through attracting quality assets coupled with strong
^LKLJXU
‚ IELMBK\LLEKSTHR WJVIDLULKGH-MTOLKIELTD LVTELÈLM monitoring of borrowers’ financial health thereby ensuring
EKVLD4BEELZ\H4" conservation of capital.
GK7TZD4BGEBYWL4K M FC; \LTLFTB WGY[FÈOLVEKVT HTSR D4BEVT -ELTGKBY The Bank developed scoring models in the areas of Retail
FL8.ZGPEGMSGE H4B"²GL\LTLFTB WGY[FÈOLVEKVT ET GZ -ELTGKBY banking and SME sector advances. Scoring model for farm
FL8.ZELT GPEGMSWL4KELL;G6PSGELYL"CVÈG¹LWLTB VT D4BEELT sector advances was also developed and implemented. These
processes helped the Bank to achieve quick and accurate
žLET3PGKSWL4KM7IEGPSKLEKVTFTBFOOEI>FX:LBEVFTB EJSL
delivery of credit, bringing uniformity in appraisal and facilitate
ZLEKWL4KNMET.T7LWL4KGPZTLLELT)LB.LKLMRGPLÈOLVEIH4"
storage of data and analysis thereof.
GPGVLFE GOLLGVO;TL D4BE VT DTMZ I/III ET WBSY;S ULTGvF )LLGKS Regulatory Guidelines: The Bank has adopted Standardized
WLG-SLTB WLK.$:X
 EI YLVL ET GZ  žL ULTGvF HTSR FLVEI²S Approach for Credit Risk, Standardized Duration Approach for
OAG7ELTL>DLULKULTGvFHTSR FLVEI²SWPGOAG7ELTLWL4KJGKQLZV Market Risk and Basic Indicator Approach for Operational Risk for
ULTGvFHTSRFXZMBETSEOAG7ELTLELTWJVLLH4" computation of Risk Weighted Assets (RWA) under Basel II/ III.
The Bank also plans to migrate to advanced approaches for
D4BEGPGVLFEWVRFLTOVETWIVDTMZI/IIIEIGOLLGVO;TLLTBWVRMLKžL
computation of RWA/Capital charge for Credit, Market and
ULTGvFPJGKQLZVULTGvFHTSRWLK.$:X !JXBUIÈ)LLKEIYLVLETGZ 
Operational Risks as per Basel II/III guidelines subject to
N6VSOAG7ELTLLTBFTBWBSKLEKVTEILTUVLDVLKHLH4" regulator’s approval.
W6ÈFRvJHZTB Others major initiatives
D4BE VT WJVT FB.Z ELL;ZLTB ET ULTGvFMFLLTGUS ELLT’ EI GVYKLVI The Bank has started monitoring risk-adjusted performance
WLKB)LEKOIH4"WBQZÈD6ELTB!FB.ZÈFRvLTBELTDTHSKWLG'L;EÈGSZL)L of its Circle Offices. ZMs/Circle Heads are advised to
WGU;SEKVT>ERZžLULTGvF)LLGKSWLG-SLTB!ERZžLULTGvFWVRJLS generate healthy economic returns, set self-targets for Total
Credit Risk Weighted Assets/Total Credit Exposure ratio and
HTSR -PB Z\GVL;GKSEKVT WL4KPL;OKPL; WLLKJKULTGvF)LLGKS
achieve consistent reduction in RWA ratio on year-on-year
WLG-S WVRJLS FTB GVKBSK EFI ZLVT EI MZLH OI UL KHI H4" ULTGvF basis. Development of framework for capital allocation at
MFLLTGUSÈGSZL)LJKWLLGKS0PMLCELC; -SKJKJXBUIWLPB7VET business unit level based on risk adjusted returns is also
»TFPE;ELGPELM)LIÈG¹LFTBH4" underway.

D4BEVT WJVI-7‹TMJKI\LLVIGSELT OLTDLKLJGK)LLGLSGELH4 WL4K-7‹TM The Bank has redefined its stress testing policy and
has linked it to mitigating actions on detection of stress.
ET JSLZYVT JKCMT EFEKVT ET GZ ULT. LH4"-7‹TMJKI\LLL4FLGME
Stress tests are undertaken at quarterly intervals and
WBSKLZJKGE ULST H4B WL4KJGKLLFMBDBGSMGFGSLTB ELT GO ULST H4B" results placed to respective committees. Bank has also
D4BEVT WJVT MFXHET ULTGvFLBQT ELT )LIMROALGELH4 WL4KYPGV;BY strengthened its Group risk framework and has extended
EFT7IET OLKT ELT D LGOLH4>W'LL;SMFXHULTGvFÈDBVMGFGS>ULT the scope of governing committee i.e., Group Risk
WD F.IWL4KMIC;WLTETVTSA3PFTBEL;KSH4"MLFXGHEULTGvFVIGSELT Management Committee which is now headed by MD &
CEO. Group risk policy has also been realigned to reflect
MLFXGHEULTGvFGVYKLVIJKD4BEETD L Y ÉLVELTÈGSGDBGDSEKVT bank’s enhanced focus on group risk monitoring. Group
ETGZ )LIMHIGELYLH4"MFXHULTGvFVIGSGJKLGF.OAG7ELTLJK risk policy is based on pyramid approach starting with
WLLGKSHLTSIH4GUMFTBULTGvFLIL;MTWLKB)LHLTSIH4WL4KÈG¹L B>LLMV risk appetite at top and progressing through Governance,
WL4KÈDBVGKJLTG7;BYETFLÉFMTÈYGSEKSIH4" Processes and Management Reporting.

J2 WLBSGKEGVBLLÈLLZIWL4KNVEIJL;*SSL f. Internal Control System and their Adequacy

i. Credit Audit and Review


i. žLZTvLJKI\LLS'LLMFI\LL
In terms of the extant LRM policy, credit audit for FY’17 was
FL4UOX L ZWLK FVIGSETMBO)L;FT>B EFULTK PB7TEWL8PKvLSLTB MGHSMF-S
undertaken for all eligible loan accounts including weak and
JLLvLSLTB FTB GPºLPL; ETGZ žLZTvLJKI\LLWLLTGUSEIYC;" takeover accounts.
D4BEVTEKLT. ETžLULTGvFPLZTžLvLSLTBEIZTvLJKI\LL The Bank conducted Credit Audit of borrowal accounts with
ELWLLTUVGELYL>ULT EPL;FTBWLKDIWLC;EI6XVSFœMTœ exposure of `210704 crore, which is 46.31% of Bank’s net

42
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

MLJT\LD4BEETGVPZFLVEžLJLT7J; 2LTGZLT LKTZX PBGPOTLIELœ standard credit portfolio–domestic & overseas as against the
H4" RBI’s requirement of at least 30% to 40% in a year.

ii. WLBSGKEZTvLJKI\LL ii. Internal Audit

ULTGvFWLLGKSWLBSGKEZTvLJKI\LLETSHS>ÉLVELTZTVOTVETJXL;J4FLVT Under risk-based internal audit, the focus was shifted from the
PLZTJKI\LLMTULTGvFEIJHQLVEKVTEIWLTKWBSGKSGELYL"ULTGvF system of full-scale transaction testing to risk identification.
WLLGKSVIGSYGSGPGLT>B ELLT!’ N3JLOLTB EIWLPAGºLLTB ÈL'LGFESLWLT>B ULBQEI Risk based policy focused on frequency, prioritizing, extent
MIFLWLT>B ULTGvFFX:LBEV!ÈLTJ2LCGZBYS'LLZTvLJKI\LLÈG¹LETOL4KLVNVELT of checking, risk-assessment/profiling of activities/functions/
products and their updating, broadening the risk classifications
W]SVEKVT>ULTGvF+TGLLTB ELGP-SLKEKVTWLGOJKETGB ÇSEKSIH4"
etc. during audit process.
WL8VMLC7ZTvLJKI\LLETWGSGKºL2>ÈLVELL;Z>WBQZZTvLJKI\LLELL;ZLTB
Besides the on-site audit, regular monitoring is being done
UT. WLT
WL4KFB.ZELL;ZLTB MIWLT
FTB -'LLGJS?WL8J2MLC7GVYKLVIE\LLT B 
through ‘Off-site Surveillance Cells’ set up at Head Office, Zonal
ETFLÉFMTGVGFSGVYKLVIEIULKHIH4"WL8J2MLC7ZTvLJKI\LLY4KMBYLFI
Audit Offices (ZAOs) and Circle Offices (COs). Off-site Audit is
ZTvLJKI\LLLLvLWLTB FTB )LIWLLTGUSEIULSIH4>GUMFTB GPG)L6VELKLTDLK PB
also carried out in Non-concurrent Audit Branches, covering
GVBLLULTGvFFLVOB.LTB FTB 0LJEULTGvFGOLLS'LLULTGvFET-SKFTB JGKPS;V
comprehensive audit items and their compliance level at these
ET WLBEZVHTSR GP-SASZTvLJKI\LLFOLTB WL4KLLvLWLTB FTB NVET WVRJLZV-SK
branches for assessment of change in risk direction and/
ELTEPKGELULSLH4"SOVRMLK>D4E B FTB PLGL;EZTvLJKI\LLLTUVLELTGVGJS>
or risk level in various Business & Control Risk Parameters.
WVRFLTGOS PBELL;GB PSGELULSLH4"
Accordingly, annual audit plan is formulated, approved and
GPG)L6VÈELKET WL8G.7WLLTGUSGE ULST H4B W'LL;SULTGvFWLLGKS implemented in the Bank.
WLBSGKE ZTvL JKI\LL WL8V MLC7 ML'L HI WL8J2MLC7
> KLU-P ZTvL Various types of Audit are conducted viz. Risk Based Internal
JKI\LL> MXQVL ÈLLZI WLC; M
 ZTvL JKI\LL> ¹TG.7 ZTvL JKI\LL> -V4J Audit (On-site as well as Off-site), Revenue Audit, Information
ZTvLJKI\LL>MTYFTB7WL8G.7>WVRJLZVZTvLJKI\LL>ELVXVIZTvLJKI\LL> System (IS) Audit, Credit Audit, Snap Audit, Segment Audit,
J2TFLZTvLJKI\LLWLGO" Compliance Audit, Legal Audit, FEMA audit, etc.
MBYLFIZTvLJKI\LLETSHSLLvLWLTB!ELL;ZLTBEIMB<L>GPºLPL;ET The number of branches/offices under concurrent audit
GZ MTD EKGPºLPL;FTBHLTYC;"MBYLFIZTvLJKI\LLET increased from 1274 in FY’16 to 1497 for FY’17. Branches/
SHSLLvLWLTB!ELL;ZLTBVTELTUFLKLGLLTBELœ>WGY[FLTB offices under concurrent audit cover 69.06% of deposits,
ELœWL4KERZELKLTDLKELœEPKGEL>ULTWLKDIWLC;ET 79.18% of advances and 72.97% of overall business as on
GOLLGVO;TLLTBETWVRJH4" 31.12.2016, which is in line with RBI guidelines.
ZTvLJKI\LLEIDTHSKYRLPºLLET GZ J2TFLZTvLJKI\LL7T&JZT7ELT GKUP; FEMA Audit templates was revised and incorporated in e-RBIA
D4BE! MIDI ET GVO;TLLTB ET WVRMLK C;WLKDIWLC; FTB MBLLTGS GEL YL" for better audit quality as per RBI/ACB directives. 60 branches
MTGPOTLILLvL BULTœMTWGEGPOTLIFRÇLELKLTDLK having FOREX Turnover of more than 75% of Banks’ FOREX
GPOTLIFRÇLFTB EKSIH4B NVELT L4FLGMEJ2TFLZTvLJKI\LLET SHSKvL Turnover have been put under quarterly FEMA Audit w.e.f.
YLH4" 30.09.2016.

MXQVL MRK\LL> CZT%7‹L8GVE D4BGEBY> ÈL4]LTGYEI ULTGvF ÈDBV WL4K MLCDK Information Security (IS) Audit is being conducted in accordance
ÉLLTvL. I YLTJLZ²LMGFGSEIGMJ2LGKLLTB
JKWLKDIWLC;ETFLY;OL;V with the RBI’s Guidance Note on Information Security, Electronic
ET VLT7ET WVRJMXQVLMRK\LL WLC; M
ZTvLJKI\LLWLLTGUSEIUL Banking, Technology Risk Management and Cyber Frauds
KHIH4" (Gopal Krishna Committee recommendations).

ZTvLJKI\LELTBWL4KWBQZZTvLJKI\LLELL;ZETWGELGKLTBETGZ ÈGL\LL Training program for Auditors and ZAO Officials are being
EL;¹F GVGFS J MT MI MMI!WLC;7I ETBÇ!UT.7IMI FTB WLC; .I ET ML'L regularly conducted at CSC/IT Centre/ZTC in co-ordination
MF6PEKETWLLTGUSGE ULKHTH4BGUMMTJ2TFLZTvLJKI\LL!WLC; MWL8G.7 with IAD thereby including subjects like FEMA Audit/IS Audit
WL4KWLKDIWLC;!C;WLKDIWLC;U4MTGPLLTBELTLLGFZGELULSLH4" & RBIA/e-RBIA.

iii. WJVTY[LHEELTULGV  ETPLC;MI


!VLLTVGVPLKL F Z
iii. Know Your Customer(KYC)/Anti Money Laundering (AML)

D4BEMFMFJKWLKDIWLC;^LKLULKIETPLC;MIWL4K F ZGOLLGVO;TLLTB The Bank strictly follows KYC and AML guidelines issued by
ELJXL;WVRJLZVEKSLH4WL4KETPZETPLC;MIETWVRJY[LHELTBELTHI RBI from time to time and only KYC compliant customers are
accepted by the Bank. Risk categorization of all the customers
D4BE^LKL-PIELKGELULSLH4"GVLFEETGOLLGVO;TLLTBETWVRMLKM)LI
into three Money Laundering risks i.e. High, Medium and Low is
Y[LHELTBELSIV>N1Q>FÉFWL4KGV&VEISIV+TGLLTBFTBMLPLVIJXPE
; 

43
ULTGvFPYI;EKLGELYLH4"ZL)LELKI-PLFIETM6O)L;FTB)LLKSIGKUP; followed meticulously in terms of RBI guidelines. RBI guidelines
D4BEETGOLLGVO;TLLTBELD4BEVTMLPLVIJXPE
; WVRJLZVGELH4" in respect of beneficial owner are followed meticulously.

EN6VS F Z *ZIETLV MB-EKL


-'LLGJSGELYLH4>ULT An upgraded AML Application (version 6.0) enables watch list
PL8QMXQI-E4VEKVTELTM\LFDVLSIH4>Y[LHEETJHQLVEIJRG7EKSI scanning, verifies customer identity and facilitates generation
H4WL4KMBOTHL-JOȲGSETZTVOTVLTBEIULBQETGZ -PQLGZSWZ7;ULKI of automated alerts for scrutiny of transactions of suspicious
EKVTEIMRGPLÈOLVEKSIH4" nature.

J2I:. -7LJ2 ELT ETPLC;MI! F Z!MI J27I FRÎLTB JK MBPTOVLIZ!GLG\LS In order to sensitize/educate the field staff on KYC/AML/CFT
EKVT ET GZ >ÈGL\LLGOLULSLH4 WL4KMFMFJKXMIWLC;MIP issues, training is imparted and workshops on UCIC and KYC/
ETPLC;MI! F Z!MI J27IWVRJLZVJKEL;LLZLWLTBEL)LIWLLTUVGEL AML/CFT compliance are also organized from time to time. In
ULSLH4"ETPLC;MIWVRJLZVELTMROA EKVTET¹FFTBV QLZX!DQSGVGÉL order to strengthen KYC compliance, new Current/Saving fund
<LLSLTBELTD4EWL8GJ2METFLÉFMT<LLTZLULSLH4" Accounts are opened through Back Offices.

iv. ÈDBVZTvLJKI\LL iv. Management Audit

D4E
B FTB WJVT ÈLLMGVEELL;ZLTB ET ZTvLJKI\LLET MBQLZVET GZ  E The Bank has in place a Risk Based Management Audit (RBMA)
system for conducting audit of its administrative offices. For this
ULTGvFWLLGKSÈDBVZTvLJKI\LL WLKDI F
ÈLLZIWLKB)LH4"CMÈLTUV
purpose, RBMA Policy was initially approved by the Board on
ET GZ >ELT DLT.; ^LKLWLKDI F VIGSELT ÈLKBG)LEWVRFLTOV
28.04.2006 and last annually reviewed on 28.03.2017.
ÈOLVGELYLWL4KGJ/ZIPLGL;EMFI\LLELTEIYC;"
The audit is based on Risk Templates and risk profiles prepared
HZTvLJKI\LLWLBSGKEJMTGVGF;SULTGvF7T&JZT7WL4KULTGvFÈLTJ2LCZ in-house to capture risk perceptions inherent in various areas of
JKWLLGKSHLTSIH4"ULTGVL;ZTVTEIÈG¹L>MBQLKÈLLZI>MBMLÉLVLTBET functioning of administrative offices including decision making
ERLZNJLTYMGHSÈLLMGVEELL;ZLTBETELFELUETGPG)L6V\LTLLTBFTB process, communication system, efficient resource utilization,
GVGHSULTGvFLKLLWLTB WL4KZ\LTB ELT ÈL*SEKVT ET FLÉFLTB ELT E4*QK means used to achieve the goals etc. The Bank is also regularly
EKSI H4" D4BE MB)LLGPS N1Q ULTGvF LKLL PLZT GQG6HS FB.ZLTB!W6 conducting snap audit of identified circles/other administrative
ÈLLMGVEELL;ZLTBEIWLEG-FEZTvLJKI\LL)LIGVGFSJMTWLLTGUS offices with potentially high risk perception to pro-actively spur
EKSLH4 SLGENVET ELFELUFTB PLBG/SMRLKZLVT HTSR EOFN#LVT ET them into taking steps for bringing in desired improvement in
GZ N6HTBWY[MG¹JMTÈLT3MLGHSGELULMET" their functioning.

GPºLIPL;ETOL4KLV>D4E
B VTNºL2MXQIFTB GO Y W6ELLT’ EIZTvLJKI\LL During FY'17 based on approved Annual Audit Plan, the Bank
conducted management audit of 38 HO Divisions, 76 Circle
ET WGSGKºL2WVRFLTGOSPLGL;EZTvLJKI\LLEL;¹FET WLLKJKÈEL
Offices, 13 Zonal Managers’ Offices, 13 Zonal Audit Offices,
È)LLYLT>B FB.ZELL;ZLT>B WBQZÈDBEELL;ZLT>B WBQZZTvLJKI\LL
6 Training Establishments, 5 Regional Rural Banks and 3
ELL;ZLT>B ÈGL\LLÈGS#LVLT>B \LTLIY[LFILD4E
B LTB WL4K LKTZX WVRLGYLTB Domestic Subsidiaries and 2 Overseas Subsidiaries besides
WL4KGPOTLIWVRLGYLTB EI)LIÈDBVZTvLJKI\LLWLLTGUSEIYC;" audit of other activities listed above.
v. WVRJLZV v. Compliance
GPLTLJMTGPGVLFEWVRJLZVMGHSWVRJLZVMBDBIM)LIGPLLTBJK The Bank has holistic approach to all compliance related
D4BEELOAG7ELTL0LJEH4S'LLD4BEJXL;WVRJLZVÈL*SEKVTHTSRÈLMKS issues, especially regulatory compliance and strive to achieve
H4"È3TE0LJLKCELC;ELTGVGFSWBSKLZJKWVRJLZVETGZ GVGFS compliance in letter and spirit. Each business unit is regularly
JMT ÈGLG\LSWL4KFX:LBGESGELULSLH4"D4BEVT WVRJLZVEL; ET trained and evaluated for compliance at regular intervals. The
FX:LBEVETGZ JGSLBWL4KÈG¹L BGPEGMSEIH4BWL4K TMTFX:LBEV Bank has developed systems and processes for evaluation of
ÈG¹LETJGKLLFELWVRJLZVEIYRLPºLLFTBMRLKETGZ GVGFSJ compliance function and the outcome of such evaluation process
MTGPZTLLGELULSLH4" is regularly analyzed to improve quality of compliance.

vi Vigilance
vi MSE;SL
Bank continued its emphasis on vigilance matters to ensure
MSE;SL ET FLFZLTB EI SRKBS JHQLV EKVT WL4K ETBÇI MSE;SL WLLTY
that vigilance cases are identified quickly and disciplinary action
MIPIMI
ETGOLLGVO;TLLVRMLKWVRLLMVL3FEEL;ELTMFJKJXKLGE 
is completed in time, in accordance with Central Vigilance
ULVTELTMRGVGQSEKVTETGZ D4BEVTMSE;SLETFLFZLTBJKWJVLÉLV
Commission (CVC) guidelines.
ETG6ÇSKvLH4"

44
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

M)LI-SKLTBJKÈDZWVRPSI;WL4KGVKBSKGVYKLVIETELKLD4BEETWLELK With vigorous follow up and continuous monitoring at all


ELTÉLVFTBKvSTHR ERZMSE;SLFLFZLTBEIMB<LP-SRSELJ2IEFHLT levels, the number of total vigilance cases have come down
substantially keeping in view the size of the Bank. As on
YC;H4"ELTMSE;SLETERZFLFZTLTL'LT" 31.03.2017 the total outstanding vigilance cases were 397.
GPºLI PL;  ET OL4KLV>  WºL2XDK>  MT  VP&DK>  SE During FY’17, Vigilance Awareness Week (VAW) was observed
D4BE EI WVRLBGYLTB MGHS M)LI ELL;ZLTB FTB MSE;SL ULYESL M*SLH w.e.f. 31st October’16 to 5th November’16 in all offices including
PI .$:X
FVLLYLS'LLCMM*SLHET OL4KLV>D4BELTB FTB UVMLLKL! subsidiaries of the Bank and during the week, various activities
VLYGKELTBETML'LML'LMFY[)LLKSETGZ GPGPYGSGPGL‚)LIWLLTGUS within the bank as well as for Public/Citizens were conducted
EIYC;" throughout India.

MXQVLELWGELKWGGVF Right to Information Act

During the period 01.04.2016 to 31.12.2016, the Bank received


 MT  EI WPG ET OL4KLV D4BE ELT 
5963 applications and provided requisite information to 4219
WLPTOVÈL*SHR GUVFTB MT WLPTOELTB ^LKLFLBYIYC; MXQVLN6HTB
applicants and 1742 applications were found exempted under
NJZ$EKLC; YC; WL4KWLPTOVWGGVFET WBSY;SJLLVHIB
the provision of the Act. As on 31.12.2016, 240 applications
JL Y "ELTWLPTOVGV-SLKL ELT were outstanding for disposal (238 applications as on
WLPTOV
HTSR DELL'LT>GU6HTB GVL;GKSMFLPGET )LISKGV-SLGKS 31.03.2016) which was subsequently disposed off within the
EKGOLYL" prescribed timeframe.
UI JGKQLZVL3FEEL;GVJLOVET MBDBFTB GPºLIEL;GVJLOV g. Discussion on Financial performance with respect to
JKQQL; operational performance

FLQ; ET WBSFTB D4BEELERZELKLTDLKEKLT.  EIERZ The Bank’s Total Business reached `1041197 crore at the end
PAGETML'LœEIPL;OKPL;PAGOU;EKSTHR JK of March’17, registering an absolute increase of `75820 crore
JHR‚QYL" and a YOY growth of 7.9%.

Q F LVP MBMLV!WL4]LTGYE MBDB FLTQ;T JK ÈFRv YGSGPGL‚> h. Material Developments in Human Resources/
Industrial Relations front including number of people
GVLTGUS0GºL2LTBEIMB<LMGHS
employed
i. FLVPMBMLVÈDBV
i. Human Resources Management
D4BEWJVT EF;QLGKLTB ELT MPL;GEFH3PJXL; PB FX:PLVWLG-SFLVSL
The Bank recognizes its employees as the most vital and
H4"FLQ; ET WBSFTB WVRLBGYLTB MGHSD4BEET EF;QLGKLTB EIERZ valuable asset. Total number of employees including those in
MB<L'LI" the subsidiaries was 73919 at the end of March’17.
MBPY;PLKEF;QLGKLTBEIMB<L Cadre Wise Staff Strength

MBPY; FLQ; FLQ; Cadre March’16 March’17


MB<L ERZ-7LJ2 MB<L ERZ-7LJ2 Number % of Number % of total
ELœ ELœ total staff staff
WGELKI 26805 37.85 29136 39.42 Officer 26805 37.85 29136 39.42
GZGJE 27978 39.51 27949 37.81 Clerks 27978 39.51 27949 37.81
WIV-'L JI7I MMGHS
16018 22.62 16834 22.77 Sub Staff (incl. PTS) 16018 22.62 16834 22.77
ERZ 70801 73919 Total 70801 73919

UVLGºL2LTUVLS'LL)LSI;LTUVL Manpower Planning & Recruitment Planning

)LGPFTBHLTVTPLZIMTPLGVPAGºLLTB>)LLPILLvLNO_ LL7VLTB!YGSGPGLTB>0PML For FY’18, the Manpower Plan was finalized well in time in a
scientific manner, properly taking care of impending retirements,
GP-SLKS'LLW6WLPESLWLTBELTÉLVFTBKvSTHR GPºLIPL;EI future branch openings/activity, business expansions and other
UVLGºL2LTUVLELTP4,LGVESKIETMTMFJKJXKLGELYL" requirements.
EF;QLGKLTBEIWLRÈLTJ2LCZ Age Profile of the Employee
FLVPMBMLVGPELMLTUVLWLTBETMLPLVIJXPE ; GVLTUV PBELL;6PV As a result of the carefully planned and executed Human
ET JGKLLF-PJ>D4BEVT YSJLBQPLLT’ FTB WLPESLWLLGKS0LJE Resource Development Plans, the Bank undertook need based

45
)LGS;L‚ EIH4B GUMET JGKLLF-PJÈ3TEE4.KFTB EF;QLGKLTB EIWL4MS extensive recruitment in the last five years which also resulted
WLRPL;FTBEFHLTYC;H4"GJ/ZTJL‚QPLLTB; FTBMBPY;PLKWL4MSWLREI in average age of employees in each cadre came down over
the years. The movement of cadre-wise average age in the last
YGSGPGLBGV&VGZG<LSH4 five years is as under:

GV&V GSG'L JK WL4MS WGELKI GZGJE WIV-'L ERZ Average age as on Officer Clerical Sub-staff All
WLR 31st March’13 49.49 44.70 42.41 45.96
31 FLQ; 2013 49.49 44.70 42.41 45.96
31st March’14 49.12 43.00 40.54 44.66
31 FLQ; 2014 49.12 43.00 40.54 44.66
31st March’15 48.22 41.08 38.79 43.13
31 FLQ; 2015 48.22 41.08 38.79 43.13
46.23 39.67 37.35 41.63 31st March’16 46.23 39.67 37.35 41.63
31 FLQ; 2016
31 FLQ; 2017 44.25 38.68 36.56 40.39 31st March’17 44.25 38.68 36.56 40.39

-7LJ2HTSRE:LLELKILTUVL B Welfare Schemes for Staff


-7LJ2E:LLGVGET WBSY;SWLVT PLZT EF;QLGKLTB ET GZ D4E B FTB GPG)L6V The Bank has various Welfare Schemes for staff covered
E:LLLTUVL BH4"B CVLTUVLWLTB EIGVYKLVIEKVTWL4KMFMFJKCVFTB MRLK under Staff Welfare Fund. A Core Working Group was set up to
monitor the schemes and make improvement in schemes from
EKVTETGZ  EELTKPGE;YB Y[JR EI-'LLJVLEIYC;H4"D4E B EIWLPESLVRMLK time to time. Meeting of the Core Working Group is being held
ELTKPGE;YB Y[JR EID4#EMFMFJKWLLTGUSEIULSIH4" from time to time as per need of the Bank.
WLK\LLVIGS Reservation Policy
D4E
B WVRMGX QSULGSLT>B WVRMGX QSUVULGSLTB WL4KW6GJ/. LPY;HTSR MKELK The Bank follows the reservation policy for SCs, STs and OBCs
^LKLMFMFJK'LLGVL;GKSWLK\LLVIGSELWVRJLZVEKSLH4" as prescribed by Government of India from time to time.
MMI! M7I!WLTDIMIEF;QLGKLTBEIMB<L Strength of SC/ST/OBC Employees

MBPY; FLQ; FLQ; CADRE March’16 March’17


MMI M7I WLTDIMI MMI M7I WLTDIMI SC ST OBC SC ST OBC
WGELKI 5477 1914 3080 6161 2158 3998 Officer 5477 1914 3080 6161 2158 3998
GZGJE 5547 1344 5573 5468 1376 6208 Clerks 5547 1344 5573 5468 1376 6208
WIV-'L JI7I M 6687 936 3318 6913 984 3739 Sub Staff (incl. 6687 936 3318 6913 984 3739
MGHS
PTS)
ERZ 17711 4194 11971 18542 4518 13945 Total 17711 4194 11971 18542 4518 13945

JOLT6VGSLB Promotions
GPºLIPL; ETOL4KLV>WGELKIMBPY;ETW6OKM)LIJOLT6VGSÈG¹LWLTB During FY’17, all promotion processes within officers’ cadre
ELT PL; EIJHZIGSFLHIW'LL;SUXVSEJXKLEKGZLYL'LL" were completed in the first quarter of the year i.e. upto June
2016. Number of Officers promoted in different cadres is as
GPG)L6VMBPYLT’FTBJOLT6VSWGELGKLTBEIMB<LGV&VLVRMLKH4 under:
 -ETZVIMTVII   Scale VI to VII : 13
 -ETZVMTVI    Scale V to VI : 35
 -ETZIVMTV   Scale IV to V : 90
 -ETZIII MTIV   Scale III to IV : 470
 -ETZIIUPIII   Scale II to III : 1348
 -ETZI UPII   Scale I to II : 1502

GPºLIPL; ET OL4KLV>GV&VGZGvSEF;QLGKLTB EI)LIPE;FTVET.KFTB During FY’17, following number of employees in workmen
cadres have also been promoted:
JOLT6VGSHRC; 
 GZGJEMTWGELKIEGV#ÈDBV-ETZI   1. Clerks to Officers in JMG Scale-I : 1067
PGK#SLQ4VZ
(Seniority Channel)
    : 1951
   QVL3FEQ4VZ
(Selectivity Channel)

 WIV-'LMTGZGJE   2. Sub staff to Clerks : 1111

46
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

FLVPMBMLVÈDBVÈLLZI Human Resource Management System


D4BEJG$ZEML8¾7J4ETUELNJLTYJI VDIJGKPLKET VLFJKEKKHL Bank is using People Soft Package by the name PNB PARIVAR
H4GUMFTBM)LIEF;QLGKLTBETMBJXL;.L7LDTMLLGFZH4B" QWLK F MET which contains exhaustive database of all the employees.
FLÉFMTPTSVS'LLWOLYIETG6ÇSEIULKHIH4"MFDISVTETML'L Salary and reimbursement are being credited centrally through
HRMS. With the passage of time, HRMS has become more
QWLK F MWGEFUDXSHLT YLH4 WL4K QWLK F MU4MT JI VDI
robust and various new features have been added in HRMS
MFLLV> WL8VZLCV GJ27FTB7 WL8V ÈFLTLV> QWLK F M FLTDLCZ TJ> like PNB Samadhan, Online Fitment on Promotion, HRMS
DL8LTF4G7‹ENJG-'LGSÈLLZI>WL8VZLCVUIDIJI È-SLPWLGOGPG)L6VVC; Mobile App, Biometric Attendance System, Online GBPA
MRGPLWLTBELTULT. LYLH4" Proposal etc.
WL4]LTGYEMBDB Industrial Relations
D4BEFTBWL4]LTGYEMBDBML4HLO;JXL;KHTWL4KPE;FTVMB L!WL8GJ2MK MLTGM LV Industrial relations in the Bank continued to be cordial with
^LKLN#L Y FRÎLTBJKS3ELZÉLVGOLULSLH4"GPG)L6VFRÎLTBJKQQL; issues raised by Workmen Union/Officers’ Association being
EKVT WL4KN6HTB MRZLVT ET GZ EOFN#LVT HTSR PL; ET OL4KLVDHRFS attended to immediately. Various meetings were held with the
WGÉLELKIMB L!EL;ESL;MB LETÈGSGVGLTBETML'LGPGPD4#ETBWLLTGUS representatives of the majority Officers’ Association/Workmen
Union during the year to discuss various issues and taking
EIULSIH4B" steps to resolve the same.
D4BE?EL;-'LZJKGPGPSL ELT FH3POTSLH4 WL4KGPGPJA#)LXGFMT
Bank values “Diversity at Workplace” and to enable employees
EF;QLGKLTBELTWJVIJXKI\LFSLSEJHRBQVTWL4KMBY#VFTBZYLSLKPAG from diverse backgrounds to reach their full potential and
EKVTETGZ M\LFDVLSLH4"D4BEVTFGHZLWLTB>GPEZLBYLTBWL4KWVRMXGQS constantly grow in the the organisation, Bank has created three
ULGS!UVULGS PY; ET EF;QLGKLTB ET GZ  SIV GPELML3FE J[ELT# EL developmental cells for Women, Differently Abled and SC/ST
GVFL;LGELH4" employees.

GPºLIPL; ETOL4KLVVC;JHZTB New Initiatives during FY’17

DL8LTFTG7‹ENJG-'LGSÈLLZI7T%VL8ZLTUIELZL)LN#LVT ET GZ >D4BE Biometric Attendance System: In order to leverage the


FTBDL8LTFTG7‹ENJG-'LGSÈLLZIELWLKB)LGELYL"PS;FLVFTB HÈLV technology, Biometric Attendance System was introduced
in the Bank. Currently it is operational in Head Office, Zonal
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Offices and Circle Offices.
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HRMS Mobile App-PNB PARIVAR: Keeping the pace with
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PM’s “Digital India” initiative, a mobile App (PNB PARIVAR)
HTSR EFLTDLCZ TJ JI VDIJGKPLK
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was launched for employees to facilitate frequently used
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features viz. Leave Register, IT Register, Salary Slip, Locate
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an Employee etc.
ÈGL\LLYGSGPGL‚ Training Activities
D4E
B ETJLM EGL-SKIÈGL\LL0P-'LLH4GUMFTB MT EMPL;1T Q-SKIÈGL\LL The Bank has a three tier training set up comprising of one
ET6ÇCMETGO:ZIFR<LZET6ÇI-7LJ2EL8ZU T  MI MMI
FTB G-'LSH4"H apex level training centre ‘Central Staff College’ (CSC) at its
ETÇB ?WGvZ)LLKSI -SKJKLIL;!PGK#!FÉFÈDBVMBPY;ETWGELGKLTB EI Headquarters in Delhi. This Centre caters to the training needs
of Top/Senior/Middle Management Grade officers on ‘All India’
ÈGL\LLWLPESLWLTB EIJXGS;EKSLH4"FRDB C;>ZvV¦WL4KQB.IY ETFH3PJXL;
basis. Three Regional Staff Colleges (RSCs) are located at
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 important and strategically located cities of Mumbai, Lucknow
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)LIEL;KSH4B and Chandigarh. In addition eight Zonal Training Centres
ULT OTHKLOXV>VC; GO:ZI>UJRK>ELTZELSL>ELTIELT.>ZRGLVL>J7VLWL4K (ZTCs) are also functioning across the country at Dehradun,
KLNKETZLFTB OTL)LKFTB G-'LSH4"B TÈGL\LLETÇB FÉ!EGV#ÈDBVMBPY; New Delhi, Jaipur, Kolkata, Kozhikode, Ludhiana, Patna and
Rourkela. These Training Centers also look after the training
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needs of Middle/Junior Management Grade officers, Clerical
)LIJXKLEKSTH4"B  and Subordinate Staff.
CMETWGSGKºL2>J2KIOLDLOELÈGL\LLETBÇGPLTLJMTWLC;7IFTBEF;QLGKLTB Further, the Training Centre at Faridabad caters exclusively to
ETÈGL\LLEIWLPESLWLTBELTJXKLEKSLH4WL4KZvV¦G-'LS?JI VDI the training needs of employees in IT and there is an autonomous
CB-7I7µX7WL8J2C6J2LTFT; LV B.74%VLTZL8UI  JI VDIWLC;WLC;7I
VLFE E Institute 'PNB Institute of Information & Technology' (PNB IIT),
located at Lucknow.
-PLºLMB-'LLVH4"
Training in outside Training Institutions: The Bank also
ÈGL\LLMB-'LLVLTBETDLÂÈGL\LLD4BEVTWJVTWGELGKLTBELT)LLKS imparted training to its officers in different Grades in specialized
WL4KGPOTLLTBFTBÈGSG#SDLÂÈGL\LLMB-'LLVLTBETFLÉFMTGPLTL\LTLLTBET areas through outside training institutions of repute both in
GPG)L6VY[T.FTBÈGL\LL)LIÈOLVGELH4" India & abroad.

47
WLBSGKE ÈGL\LL GPºLI PL;  FTB D. T J4FLVT JK )LSI; ELT ÉLV FTB Internal Training: In view of large scale recruitments in FY’17
KvST HR > NV M)LI VPGVRºL2 WGELGKLTB WL4K EL;ESL; EF;QLGKLTB ET also, ‘Induction Training Programs’ ranging from 2 to 30 weeks
GZ JHZT M*SLHET ?ÈPTLÈGL\LLEL;¹F WLLTGUSGE Y  were conducted for all newly recruited Officers and Workmen
Employees to make them branch ready before joining their
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duties in the field. Training programs were also conducted
DVLLYL"FL4UXOLEF;QLGKLTBETGZ ¹TG.7>²GL> M FC;>GPOTLIFRÇL> for the existing employees in key subject areas like Credit,
MXQVLÈL4]LTGYEI> VJI ÈDBV>ULTGvFÈDBVWLGOU4MTÈFRvGPLLTBET Agriculture, SME, Foreign Exchange, Information Technology,
ÈGL\LLEL;¹F)LIWLLTGUSGE Y " NPA Management, Risk Management etc.

ML'LHI>WLBSGKEMBELETÈGL\LLEL4LZELTD LVTHTSRMBELGPELM Besides, Faculty Development Programs (FDP) was also


EL;¹FLTB J2.IJI
EL)LIWLLTUVGELYL" organized for enhancing the training skills of in-house Faculty.

EBJVI! F.IJIÈGL\LLD4E B FTB NºLKLGELKLTUVLETSHSWL4KPGK#!LIL; In Company/MDP Training: As part of succession planning


in the Bank and to enhance managerial skills among Senior/
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Top Management Grade Officers, two in company Leadership
ÈGSG#S ÈGL\LL MB-'LLV ? MWLTWLC; Z  ET MHLTY MT OLT VTS3A P GPELM
Development Programs were conducted at 'SOIL' a reputed
EL;¹FWLLTGUSGE Y GUMFTB MHLEFHLÈDBELTB WL4KNJFHLÈDBÉLELTB training institute in which 83 AGMs & DGMs participated. CSC
VT )LLYGZL"MI MMIVT ÈDBVGPELMEL;¹F)LIWLLTGUSGE  also conducted 17 Management Development Programs in
GUMFTB PGK#WGELGKLTB ELTÈGL\LLÈOLVGELYL" which 638 senior officials were imparted training.
D4BEEIÈGL\LLVIGSÈ3TEPL;œEF;QLGKLTBELTÈGL\LLÈOLVEKVT Training Policy of the Bank envisages a training reach of 50%
EIJGKE:JVLEKSIH4"CMNÎTELTJXKLEKVTEIGOLLFTBGPºLI?PL; employees every year. Towards fulfillment of this objective,
ETOL4KLV>D4BEVTWLBSGKEÈGL\LLETFLÉFMTEF;QLGKLTBET during FY’17, the Bank imparted 297499 man days training
GZ +FGOVLTBELÈGL\LLGOLYLWL4KCMETWGSGKºL2>)LLKS to 45894 employees through in-house training. In addition,
WL4KGPOTLLTBFTBÈGSG#SDLHKIMB-'LLVLTBETFLÉFMTWGELGKLTBELT 20298 man days training has been imparted to 2505 officers at
+FGOVLTBELÈGL\LLGOLYL" reputed outside Institutes in India and abroad.

-'LLGVEÈGL\LLWLJET D4BEVT WL8VZLTETLVEL;¹FWLLTGUS On Location Training: The Bank conducted 366 On-Location
GE Y GUVFTBWGY[FJBGºL2ETEF;QLGKLTBELTGPG)L6VFLT.µX:MJK programs, in which 13842 employees have been imparted
ÈGL\LLÈOLVGELYL" training on different modules.

JI VDIXGVPD4BEELGPGL7C;ZGV;BY*ZT7J2LF;OTLS'LLOTLETDLHK PNB Univ: The Bank’s exclusive e-learning platform accessible


24X7 to all employees across the country has made a steady
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progress in terms of course material offered and usage. Total
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courses updated in PNB Univ (e-Learning portal) are 28
C;ZGV;BYJLT7Z
;
FTBW]SVERZJL#µ¹FH4B>GUVFTBGPLLTBET wherein 155 topics carry 6296 slides. Total distinctive users as
-ZLC.H4B"ELTERZGPGL7NJLTYESL;H4B WL4K on 31.03.2017 were 46175 and total Apps downloaded were
.LNVZLT.GE Y ERZ G*ZETLVH4B" 30767.

48
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

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GOVLBE

49
AUDITORS’ CERTIFICATEON CORPORATE GOVERNANCE

To the Members of Punjab National Bank


We have examined the compliance of conditions of Corporate Governance by Punjab National Bank for the year ended on March
31, 2017, as stipulated in SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI LODR Regulations’),
as applicable during the relevant year.
The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was carried out
in accordance with the Guidance Note on Certification of Corporate Governance, issued by the Institute of Chartered Accountants
of India, and was limited to procedures and implementation thereof, adopted by the Bank for ensuring the compliance of the
conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Bank.
In our opinion and to the best of our information and according to the explanations given to us and subject to following:
Optimum combination of Independent Directors is not strictly adhered to in the composition of Board of Directors in terms of
Regulation 17(1)(b) and Audit Committee in terms of Regulation 18(1)(b) of SEBI LODR Regulations 2015. In the opinion of
the management, appointment of Directors and constitution of the Board and the audit committee is governed by the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970 and Reserve Bank of India Directives.
We certify that the Bank has, in all material aspects, complied with the conditions of Corporate Governance as stipulated in the
above mentioned SEBI Regulations to the extent these do not violate the Banking Regulation Act, 1949 and Banking companies
(Acquisition and Transfer of Undertakings ) Act, 1970.
We state that no investor grievance is pending for a period exceeding one month against the Bank as per the records maintained
by the Stakeholders Relationship Committee.
We further state that such compliance is neither an assurance as to the future viability of the Bank nor the efficiency or effectiveness
with which the Management has conducted the affairs of the Bank.

FOR CHHAJED & DOSHI FOR R. DEVENDRA KUMAR & FOR HEM SANDEEP & CO.
Chartered Accountants ASSOCIATES Chartered Accountants
Firm Regn. No. 101794W Chartered Accountants Firm Regn. No.009907N
Firm Regn. No.114207W

Sudesh Punhani Neeraj Golas Manish Gupta


Partner Partner Partner
(M.NO.017222) (M.NO.074392) (M.NO.092257)

FOR SURI & CO. FOR SPMG & CO.


Chartered Accountants Chartered Accountants
Firm Regn. No.004283S Firm Regn. No.509249C

R. Mahesh Satish Chander


Partner Partner
(M.NO.024775) (M.NO.087562)
Place: New Delhi
Date: May 16, 2017

50
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

HWZHGTMMNWKLHLKMU8<
Report on Corporate Governance

51
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52
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

Report on Corporate Governance


1. Corporate Governance Philosophy
The Bank believes in enhancing investor and other stakeholders’ confidence and setting high standards of transparency,
ethical values for improving efficiency and growth of the organization. The Bank is committed to strong Corporate Governance
practices based on openness, professionalism and accountability.
Our corporate structure, business, operations and disclosure practices have been strictly aligned to the above Corporate
Governance Philosophy.
The Bank being a body corporate and a listed entity is regulated by Reserve Bank of India (RBI), The Banking Companies
(Acquisition and Transfer of Undertakings), Act, 1970 (The Act) and SEBI ( Listing Obligations and Disclosure Requirements),
Regulations, 2015 [SEBI (LODR) Regulations] to the extent these do not violate the Act and RBI guidelines.
Board of the Bank strives to optimize value for all stakeholders like shareholders, employees, customers and the society
at large.
2. Board of Directors
The Board of the Bank is constituted in accordance with the provisions of the Banking Companies (Acquisition and Transfer
of Undertakings) Act, 1970, the Nationalized Banks (Management & Miscellaneous Provisions) Scheme, 1970, and the
Banking Regulation Act, 1949.
2.1 Composition of the Board of Directors as on 31.03.2017 with date of their appointment, category, other board
positions held etc. is given below:

S. Name of Director Date of Category of Membership/ Chairmanship / No. of


No. Appointment Director Chairman Membership of Audit Shares held
ship of Sub- Committee and Share- by Director
Committees of holders’ / Investors’
Board of the Grievance Committee
Bank in other Companies

1 Sh. Sunil Mehta 16.03.2017 Non-Executive 06 1) IIML Asset Advisers Nil


Chairman Pvt. Ltd.
2 Ms. Usha Ananthasubramanian* 14.08.2015 Executive 16 Nil Nil
Managing Director & CEO
3 Sh. K. V. Brahmaji Rao 22.01.2014 Executive 14 Nil Nil
4 Dr. Ram S. Sangapure 13.03.2014 Executive 14 Nil Nil
5 Sh. Sanjiv Sharan 15.09.2016 Executive 13 Nil Nil
6 Sh. Anil Kumar Khachi 22.07.2016 Non-Executive 10 Nil Nil
(Govt. official
Director)
7 Dr. Rabi N. Mishra 26.04.2016 Non-Executive 05 Nil Nil
(RBI official
Director)
8 Sh. Mahesh Baboo Gupta 05.08.2016 Non-Executive 08 Nil Nil
(CA Director)
9 Ms. Hiroo Mirchandani 02.05.2015 Shareholder 06 1)TataTeleservices 200
Director (Maharashtra) Ltd.
2)Tata Communications
Payment Solutions Ltd.
3)Religare Health
Insurance Co. Ltd.
4)Roots Corp. Ltd.
5) DFM Foods Ltd.
10 Sh. Sudhir Nayar 19.12.2015 Shareholder 09 1) SML ISUZU Ltd. 200
Director

53
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54
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

* Shri Sunil Mehta joined as Managing Director & C.E.O. w.e.f. 05th May, 2017 in place of Ms. Usha Ananthasubramanian.
Shri Sunil Mehta was earlier Executive Director at Corporation Bank.

The Bank confirms that none of the Directors are related inter-se.

The Bank imparts familiarization programmes for its independent directors, which is posted on the website of the Bank i.e.
https://www.pnbindia.in/Regulatory.html

2.2 The following members ceased to be the Directors during the year:

S. Name of Director Category of Director Date of cessation Reason


No.
1 Sh. B. P. Kanungo Non-Executive 26.04.2016 Replaced by R.B.I.
(RBI Nominee)
2 Sh. Rajesh Kumar Aggarwal Non-Executive 14.06.2016 Replaced by D.F.S.
(GoI Nominee)
3 Sh. Dilip Kumar Saha Non–Executive 25.06.2016 Term expired
(Officer Employee Director)
4 Sh. Madnesh Kumar Mishra Non-Executive 22.07.2016 Replaced by D.F.S.
(GoI Nominee)
5 Sh. Rajinder Mohan Singh Shareholder Director 16.01.2017 Resigned
6 Sh. G. P. Khandelwal Non-Executive 23.01.2017 Term expired
(Nominated by Govt.)

2.3 Board meetings were held during the year as per details given below:

S. No. Date of the Meeting Total No. of Directors on the Board No. of Directors present in the meeting
1. 30.04.2016 10 10
2. 17/18.05.2016 10 09
3. 29.06.2016 09 09
4. 27.07.2016 09 09
5. 28.07.2016 09 09
6. 30.08.2016 10 10
7. 22.09.2016 11 10
8. 04.11.2016 11 10
9. 05.11.2016 11 10
10. 29.11.2016 11 11
11. 30.12.2016 11 10
12. 06.02.2017 09 09
13. 07.02.2017 09 08
14. 13.02.2017 09 08
15. 14.03.2017 09 09
16. 28.03.2017 10 10
2.4 Total number of Board meetings & last Annual General Meeting (AGM) attended by Directors during the Financial
Year are as under:

S. Name of Director Board Meetings held Board Meetings Attendance in


No. during their tenure attended last AGM
1 Sh. Sunil Mehta 01 01 N.A.
2 Ms. Usha Ananthasubramanian 16 16 Yes
3 Sh. K. V. Brahmaji Rao 16 14 Yes
4 Dr. Ram S. Sangapure 16 15 Yes
5 Sh. Sanjiv Sharan 10 10 N.A.
6 Sh. Rajesh Aggarwal 02 01 N.A.
7 Sh. Madnesh Kumar Mishra 01 01 No

55
8 Sh. Anil K Khachi 13 11 N.A.
9 Sh. B. P. Kanungo 00 00 N.A.
10 Dr. Rabi N. Mishra 16 16 No
11 Sh. G. P. Khandelwal 11 11 No
12 Sh. Mahesh Baboo Gupta 11 10 N.A.
13 Sh. Dilip Kumar Saha 02 02 N.A.
14 Ms. Hiroo Mirchandani 16 16 Yes
15 Sh. Rajinder Mohan Singh 11 11 Yes
16 Sh. Sudhir Nayar 16 16 Yes
N.A.: Not a director during the relevant period.
 +IWGVZETvLQI   ZLYXVHIB
 +IDIJIELVXVYLT   ZLYXVHIB
 .L8KGD VGF+L   VHIB
 +IUIJIv.TZPLZ   VHIB
 +IFHTLDLDXYR*SL   ZLYXVHIB
 +IGOZIJERFLKMLHL   ZLYXVHIB
 MR+IHIFIKQ6OLVI   HLB
 +IKLGU6OKFLTHVGMBH   HLB
 +IMRIKVLK   HLB
ZLYXVHIBMBDBGSWPGETOL4KLVGVOTLEVHIB'L"

 GP3SIPL; ET OL4KLVGVR%SGVOTLELTB ELMBG\L*SÈLTJ2LCZ 2.5 Brief Profile of Directors appointed during the
GV&VPSH4 Financial Year is given below:
Sh. Sunil Mehta
+IMRVIZFTHSL
Government of India appointed Sh. Sunil Mehta, B. Com. (Hons.),
)LLKS MKELK VT +I MRVIZ FTHSL> DI EL8F WLVM;
> P7;V -EXZ FCA – ICAI AMP from Wharton School of Management, as non-
WL8J2F4VTUFTB7MT J2MI WLC;MI WLC; FJIELT MT executive Chairman of the Bank, with effect from 16.03.2017 till
LWYZT WLOTLSEULT )LIJHZT HLT>ET GZ D4BEEL 15.02.2020 or until further orders, whichever is earlier. He has
Y4KEL;JLZEQTKF4VGVRºL2GELYLH4"N6HTBD4BGEBY>GPºLIMTPL B> over 33 years of experience in Banking, Financial Services,
DIFLPGVPTLFTBPLLT’ELWVR)LPH4"HFLKTDLT.;FTBY4KEL;JLZE Insurance and Investment. Prior to his joining our Board as
QTKF4VGVRºL2HLTVT MT JHZT PH)LLKSI-7T7D4BEET GVOTLEFB.Z non-executive Chairman, he was Independent Director on the
Board of State Bank of India.
FTB-0LSBLGVOTLE'LT"
Sh. Sanjiv Sharan
+IMBUIPLKL
Sh. Sanjiv Sharan B. Sc. CAIIB was appointed as Executive
+IMBUIPLKL>DI MMI>MI WLC;WLC;DIELTMT Director with effect from 15.09.2016 till 31.05.2019 or until
LWYZTWLOTLLTBSE>ULT)LIJHZTHLT>ETGZ EL;JLZEGVOTLEGVRºL2 further orders, whichever is earlier. He has over 33 years of
GELYLH4"NVETJLMKL7‹I²SD4BEFTBPLLT’ELWVR)LPH4" experience in Nationalized Bank.

.L8KGD VGF+L Dr. Rabi N Mishra

.L8KGD VGF+L>JI Q.I W'L;LL-L


ELTMTWYZTWLOTLLTB Dr. Rabi N Mishra, Ph.D. (Economics), was nominated as
Director with effect from 26.04.2016 till further orders. He has
SEGVOTLEETJFTBVLFLBGESGELYLH4"N6HLTBVT)LLKSIGKUP;D4BE
worked in various capacities at RBI and presently heading the
FTBGPG)L6VJOLTBJKEL;GELH4WL4KPS;FLVFTBQ46VC;ET)LLKSIGKUP; Training Institute for Senior Officers of RBI at Chennai.
D4BEETPGK#WGELGKLTBHTSRÈGL\LLMB-'LLVETÈFRvH4B"
Sh. Madnesh Kumar Mishra (ceased to be Director w.e.f.
+IFOVTLERFLKGF+L MTGVOTLEVHIBH4B
 22.07.2016)
+IFOVTLERFLKGF+L>DI7TEPÈDBVFTBJI Q.IMTWYZT Sh. Madnesh Kumar Mishra, B. Tech., Ph. D. in Management,
WLOTLLTBSEGVOTLEVLFLBGESGETYTH4"NVETJLMMKELKETGPG)L6V was nominated as Director with effect from 14.06.2016 till further
GP)LLYLTBFTBEC;BJOLTBJKEL;EKVTELPLLT’ELWVR)LPH4" orders. He has over 26 years of administrative experience in
various capacities in different Government Departments.

56
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

+IWGVZERFLKvLQI Sh. Anil Kumar Khachi

+IWGVZERFLKvLQI> F  W'L;LL-L
P F  W6SKL;7‹ITGPELM Sh. Anil Kumar Khachi, M.A. (Eco.) and M.A. (Intl. Dev. Studies)
WÉV
ELTMTWYZTWLOTLLTBSEGVOTLEVLFLBGESGEL was nominated as Director with effect from 22.07.2016 till further
orders. He has over 30 years of administrative experience in
YL'LL"NVETJLMMKELKETGPG)L6VGP)LLYLTBFTBEC;JOLTBJKEL;EKVT
various capacities in different Government Departments.
ELPLLT’ELWVR)LPH4"
Sh. Mahesh Baboo Gupta
+IFHTLDLDXYR*SL
Sh. Mahesh Baboo Gupta, B. Com. FCA, was nominated as
+IFHTLDLDXYR*SL>DIEL8F> J2MI ELTMTL Director with effect from 05.08.2016 till 25.07.2019 or until
WYZTWLOTLLTBSE>ULT)LIJHZTHLT>ETGZ GVOTLEVLFLBGESGELYL further orders, whichever is earlier. He has over 31 years
H4"NVET JLMF4MM; FDIYR*SL B.EBJVIET MB-'LLJEET ML'LML'L experience as practicing Chartered Accountant as founder of
M/s M. B. Gupta & Co.
È4G%7GMBYQL7;T. ELNB7T7ETJFTBPLLT’ELWVR)LPH4"
3. Sub-Committees of the Board
 DLT.;EINJMGFGSL‚
The Board of Directors of the Bank has constituted various
D4BEETGVOTLEFB.ZVTGVYGFSLLMVWL4KULTGvFÈD6VJK)LLKSI Sub-Committees of Directors and / or Executives to look into
GKUP; D4BE!MTDI )LLKS MKELK ET GOLL GVO;TLLTB EI LSL;VRMLK FH3PJXL; different areas of strategic importance in terms of Reserve Bank
KLVIGSLTB ET GPG)L6V \LTLLTB ELT OTvVT ET GZ  GVOTLELTB WL4K!W'LPL of India / SEBI / Government of India guidelines on Corporate
EL;JLZELTBEIGPG)L6VNJMGFGSLBYG#SEIH4" Governance and Risk Management.

 DLT.;EIZTvLJKI\LLMGFGS MIDI


3.1 Audit Committee of the Board (ACB)
The Audit Committee of the Board (ACB) has been constituted
)LLKSI GKUP; D4BE ET JGKJL MB.IWLT M MB BC/3/08.91.020/97 by the Bank in terms of Reserve Bank of India (RBI) circular
GOVLBE > WL4K )LLKSI GKUP; D4BE EI W6 FL4UXOL GOLLGVO;TLLTB No.DOS. No. BC/3/08.91.020/97 dated 20.01.97, and other
WL4KMTDI ZWLT.IWLK
GPGVFV>ET WJT\LLVRMLKD4BE^LKLDLT.; extant guidelines of RBI and as required under SEBI (LODR)
EIZTvLJKI\LLMGFGS MIDI
ELY#VGELYLH4"MGFGSETFR< Regulations 2015. The main functions of the Committee are
EL;GV&VPS_H4B as under:-

● GVO;TLOTVL PBMBY#V>MBQLZV>WLBSGKEZTvLJKI\LLEIYRLPºLL ● Providing direction and overseeing the total audit function
of the Bank including the organization, operationalisation,
GVBLLMGHSD4BEETMFY[ZTvLJKI\LLELLT’EIGVYKLVIPD4BE quality control of internal audit and inspection and follow
EIMLBGPGE!DLÂZTvLJKI\LLELLT’ PB )LLKSIGKUP; D4BEET up on the statutory/external audit of the Bank and
GVKI\LLETMBDBFTBWVRPSI;ELK;PLC;EKVL" inspections of RBI.

● GSFLHI !PLGL;E GPºLI -7T7FTB7LTB P GKJLT7LT’ ET MBDB FTB ET6ÇI ● To interact with Statutory Central Auditors in respect of
approval of quarterly/annual Financial Statements and
MLBGPGE ZTvL JKI\LELTB MT GPQLKGPFL; EKVL WL4K ZLBY J2LF; Reports and also follow up on all the issues raised in the
WL8G.7 GKJLT7; FTB N#L  Y  MF-S FLFZLTB JK WVRPSI; ELK;PLC; Long Form Audit Report.
EKVL"
● To review the internal inspection/Audit function of the
● D4BE ET WLBSGKE GVKI\LL!ZTvL JKI\LL MBDBI ELLT’  WVRPSI; Bank – the system, its quality and effectiveness in terms
ELK;PLC; ET JFTB ÈLLZI>YRLPºLL PB È)LLPLIZSLEIMFI\LL of follow up.
EKVL" ● Overseeing the Bank’s financial reporting process and
the disclosure of its financial information to ensure
● HMRGVGQSEKVT ET GZ GEGPºLIGPPKLMHI>JL;*SWL4K that the financial statements are correct, sufficient and
GPPMVIH4>D4BEEIGPºLIGKJLTG7;BYÈG¹LEIGVYKLVIWL4K credible.
CMEIGPºLIMXQVLWLTBELÈE7IEKL" ● To review with the Management, the Annual Financial
● DLT.; ET MF\L WVRFLTOVL'L; È-SRS EKVT MT JXP;> ÈDBV ET ML'L> Statements and auditors’ report thereon before
submission to the Board for approval and also about the
PLGL;EGPºLIGPPKLLTB WL4KZTvLVIGSLTB FTB JGKPS;VEIMFI\LL changes in the Accounting Policies.
EKVL"
● To review related party transactions.
● M&DJL7I;7‹LBUT%LVLTBEIMFI\LL"
● To discharge the functions in terms of the SEBI (LODR)
● MLP;UGVE \LTL ET D4ELTB ET FL4UXOL ZLYX MTDI ZWLT.IWLK
 Regulations, 2015 to the extent applicable to Public
GPGVFV>EILSL;VRMLKEL;ELGVJ7LVEKVL" Sector Banks.
The Company Secretary acts as Secretary to the Committee
E&JVIMGQPMTDI ZWLT.IWLK
GPGVFV>EIGPGVF 
 in terms of Regulation 18 (1) (e) of SEBI (LODR) Regulations,
C;
EILSL;VRMLKMGFGSETMGQPETJFTBEL;EKSTH4B" 2015.

57
EIG-'LGSETWVRMLKMGFGSEIMBKQVL Composition of the Committee as on 31.03.2017:

+IMRIKVLKMGFGSETWÉ\L 1. Sh. Sudhir Nayar - Chairman of the Committee

+IETPID[ÄLUIKLP 2. Sh. K. V. Brahmaji Rao

+IWGVZERFLKvLQI 3. Sh. Anil Kumar Khachi

.L8KGD VGF+L 4. Dr. Rabi N. Mishra

+IFHTLDLDXYR*SL 5. Sh. Mahesh Baboo Gupta

WLFBGLS Invitees:

.L8KLF MMBYLJXKT 1. Dr. Ram S. Sangapure

+IMBUIPLKL 2. Sh. Sanjiv Sharan

GPºLIPL;ETOL4KLVWLLTGUSD4#ELTBET$L4KT Details of meetings held during the Financial Year:

¹MB D4#EEISLKIv MGFGSFTB D4#EFTBNJG-'LS S.No. Date of the Total No. of No. of Directors
GVOTLELTBEIERZ GVOTLELTBEI Meeting Directors of the present in the
MB<L MB<L Committee Meeting
1. 17.05.2016 05 04 1. 17.05.2016 05 04
2. 29.06.2016 05 05 2. 29.06.2016 05 05
3. 27.07.2016 05 05 3. 27.07.2016 05 05
4. 28.07.2016 05 05 4. 28.07.2016 05 05
5. 29.08.2016 06 05 5. 29.08.2016 06 05
6. 22.09.2016 05 03 6. 22.09.2016 05 03
7. 04.11.2016 05 04 7. 04.11.2016 05 04
8. 05.11.2016 05 04 8. 05.11.2016 05 04
9. 29.11.2016 05 05 9. 29.11.2016 05 05
10. 30.12.2016 05 04 10. 30.12.2016 05 04
11. 06.02.2017 05 05 11. 06.02.2017 05 05
12. 07.02.2017 05 04 12. 07.02.2017 05 04
13. 14.03.2017 05 05 13. 14.03.2017 05 05
14. 28.03.2017 05 05 14. 28.03.2017 05 05

GPºLIPL; ET OL4KLVMO-GVOTLELTB ^LKLD4#ELTB FTB )LLYZTVT EI No. of meetings attended by Member-Directors during the
Financial Year:
MB<L
¹ GVOTLEELVLF EL;ELZETOL4KLV GESVI S. No. Name of Director Meetings Meetings
MB WLLTGUSD4#ELTBEI D4#ELTBFTB held during attended
their tenure
MB<L NJG-'LSHR
 +IMRIKVLK   1. Sh. Sudhir Nayar 12 12
 +IETPID[ÄLUIKL8P   2. Sh. K. V. Brahmaji Rao 14 11
 +IWGVZERFLKvLQI   3. Sh. Anil Kumar Khachi 12 09
 +IFOVTLERFLKGF+L   4. Sh. Madnesh Kumar Mishra 01 01
 .L8KGD VGF+L   5. Dr. Rabi N. Mishra 14 14
 +IUIJIv.TZPLZ   6. Sh. G. P. Khandelwal 02 02
 +IFHTLDLDXYR*SL   7. Sh. Mahesh Baboo Gupta 09 08
 +IKLGU6OKFLTHVGMBH   8. Sh. Rajinder Mohan Singh 05 05

 ULTGvFÈDBVMGFGS 3.2 Risk Management Committee

ULTGvF ÈD6V MGFGS WLK FMI


 ULTGvF ÈD6V JK )LLGKD4BE JL Risk Management Committee (RMC) has been constituted
as per RBI letter DBOD No. BP-520/21.04.103/2002-03
MB DBOD No. BP-520/21.04.103/2002-03GOVLBEWL4K dated 12.10.2002 on risk management and Regulation 20 of

58
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

MTDIGPGVFV ZWLT.IWLK
ET GPGVFET WVRMLKYG#S SEBI (LODR) Regulations 2015. The committee has overall
EIYC; H4"MGFGSD4BEET MF-SULTGvFET ÈD6VET GZ NºLKOLI responsibility of managing entire risk of the bank, devising
suitable risk management policy including credit, market and
H4>D4BEEIULTGvFÈD6VJL8GZMILTUVLDVLSIH4GUMFTBžL>FLE;T7 operational risks, risk integration, implementation of best risk
S'LLWL8JKTLVZGK-E>GK-ECBG7Y[TLV>NºLFULTGvFÈD6VÈTG%7MELT management practices and setting up various risk limits of the
G¹LBGPSS'LLD4BEEIGPG)L6VULTGvFMIFLWLTBELTGVL;GKSEKSIH4" bank.

EIG-'LGSETWVRMLKMBKQVL Composition as on 31.03.2017:


1. Sh. Sunil Mehta - Chairman of the Committee
 +IMRVIZFTHSL  MGFGSETWÉ\L
 MR+INLLWVBSMRD[ÄV 2. Ms. Usha Ananthasubramanian

 +IETPID[ÄLUIKLP 3. Sh. K. V. Brahmaji Rao

 .L8KLF MMBYLJXKT 4. Dr. Ram S. Sangapure


 +IMBUIPLKL 5. Sh. Sanjiv Sharan
 +IFHTLDLDXYR*SL 6. Sh. Mahesh Baboo Gupta
 MR+IHIFIKQ6OLVI 7. Ms. Hiroo Mirchandani
GPLTLWLFBGLS Special Invitees:
 +I VWLK)LXLVXF;'LULTGvFÈDBVGPLTL, 1. Sh. N. R. Bhusnurmath - Risk Management Expert
 .L8DIFRvLTJLÉLULTGvFÈDBVGPLTL, 2. Dr. B. Mukhopadhyay - Risk Management Expert

GPºLI PL; ET OL4KLV WLLTGUS D4#ELTB FTB MO-  GVOTLELTB ET No. of meetings attended by Member-Directors during the
Financial Year:
NJG-'LSHLTVTEIMB<L
¹MB GVOTLEELVLF EL;ELZET GUSVID4#ELTB S. Name of Director Meetings Meetings
No. held during attended
OL4KLVWLLTGUS FTBNJG-'LSHR their tenure
D4#ELTBEIMB<L 1. Sh. Sunil Mehta 01 01
 +IMRVIZFTHSL  
2. Ms. Usha Ananthasubramanian 04 04
 MR+INLLWVBSMRD[ÄV  
3. Sh. K. V. Brahmaji Rao 04 04
 +IETPID[ÄLUIKL8P  
4. Dr. Ram S. Sangapure 04 04
 .L8KLF MMBYLJXKT  
5. Sh. Sanjiv Sharan 02 02
 +IMBUIPLKL  
6. Sh. G. P. Khandelwal 03 02
 +IUIJIv.TZPLZ  
 MR+IHIFIKQ6OLVI   7. Ms. Hiroo Mirchandani 04 04
 +IFHTLDLDXYR*SL   8. Sh. Mahesh Baboo Gupta 01 01

-7TEHLT:.M;GKZTLVGLJEFT7I 3.3 Stakeholders’ Relationship Committee

The Committee has been constituted in terms of Regulation


MGFGSMTDIGPGVFV ZWLT.IWLK
>ETGPGVFEILSL;VRMLK
20 of SEBI (LODR) Regulations, 2015. The Committee looks
YG#S EI YC; H4" MGFGS LTKLKELTB WL4K DLB.LKELTB EI GLELSLTB EI into the mechanism of redressal of grievances of shareholders,
GVYKLVIWL4KNVELGVJ7LVS'LLW6MRK\LLLKELTBELTOTvSIH4" bondholders and other security holders.
EIG-'LGSETWVRMLKMBKQVL Composition as on 31.03.2017:
+IMRIKVLK MGFGSETWÉ\L 1. Sh. Sudhir Nayar - Chairman of the Committee
+IETPID[ÄLUIKLP 2. Sh. K. V. Brahmaji Rao
.L8KLF MMBYLJXKT 3. Dr. Ram S. Sangapure
GPºLI PL; ET OL4KLV WLLTGUS D4#ELTB FTB MO-GVOTLELTB EI NJG-'LGS No. of meetings attended by Member-Directors during the
EIMB<L Financial Year:

59
¹MB GVOTLEELVLF EL;ELZET GUSVID4#ELTBFTB S. Name of Director Meetings Meetings
No. held during attended
OL4KLVWLLTGUS NJG-'LSHR
their tenure
D4#ELTBEIMB<L
1. Sh. Sudhir Nayar 06 06
 +IMRIKVLK  
2. Sh. K. V. Brahmaji Rao 06 05
 +IETPID[ÄLUIKLP  
 .L8KLF MMBYLJXKT   3. Dr. Ram S. Sangapure 06 06

+IDZDIKGMBH>EBJVIMGQP>MTDI ZWLT.IWLK
GPGVFV>ET Shri Balbir Singh, Company Secretary, is the Compliance Officer
GPGVF 
ETWVRMKLFTBWVRJLZVLWGELKIH4B" in terms of Regulation 6 (1) of SEBI (LODR) Regulations, 2015.

GPºLIPL; ET OL4KLVLTKLKELTB!DLB.LKELTB MT ÈL*SGLELSLTB EI Status of Shareholders’/bondholders’ complaints received
during the year:
G-'LGS
PL;ETOL4KLVÈL*SGLELSLTBEIMB<L  Total no. of complaints received during 2016-17 – 15

LTKLKELTBEIMBSRG7SEGLELSLTBELGVJ7LVV No. of complaints not resolved to the satisfaction of


HLTVTEIMB<L LX6 shareholders – Nil

GOVLBESEZG&DSGLELSLTBEIMB<L LX6 No. of complaints pending as on 31.03.2017 -- Nil

 VLFLBEVMGFGS 3.4 Nomination Committee

MTDI ZWLT.IWLK
GPGVFV>ETGPGVFWL4KWLKDIWLC;JL The Nomination committee has been constituted as per
MB46&47/29.39.01/2007-08GOVLBEETWLLKJKD4BE Regulation 19 of SEBI (LODR) Regulations, 2015 and RBI
letter No. 46&47/29.39.01/2007-08 dated 01.11.2007 to
ET DLT.; ET GZ LTKLKEGVOTLELTB ET QRVLPET GZ VLFLBEVÈ-SRS determine the fulfillment of 'fit and proper' criteria in respect of
EKVTPLZTN&FIOPLKLTBETM&D6FTB??NJRºL2S'LLMFRGQS FLVELTBEL candidates submitting nominations for election as Shareholder
WVRJLZVMRGVGQSEKVTETGZ WL4KQRVLPWLLTGUSEKVTHTSRVLFLBEV Director(s) on the Board of Bank, as and when elections are
MGFGSELY#VGELYLH4" held.
Composition as on 31.03.2017:
EIG-'LGSWVRMLKMBKQVL
1. Sh. Sunil Mehta - Chairman of the Committee
 +IMRVIZFTHSLMGFGSETWÉ\L
2. Sh. Anil Kumar Khachi
 +IWGVZERFLKvLQI
3. Sh. Mahesh Baboo Gupta
 +IFHTLDLDXYR*SL
4. Sh. Sudhir Nayar
 +IMRIKVLK
No meeting of the Nomination Committee was held during
GPºLIPL;ETOL4KLVMGFGSEIELTC; D4#EWLLTGUSVHIBHRC; " 2016-17.
 JLGK+GFEMGFGS 3.5 Remuneration Committee
MGFGSMTDI ZWLT.IWLK
GPGVFV>ET WVRMLKMKELKET JL The Committee constituted as per SEBI (LODR) Regulations,
GOVLBEET^LKLGVL;GKSYRLL3FEWL4KFLLL3FEJ4KLFI7KLTBET 2015, reviews performance of the whole-time directors to
decide payment of incentive for MD & CEO and Executive
WLLKJK>D4BEETÈD6GVOTLES'LLEL;JLZEGVOTLELTBETÈLT3MLHV Directors based on the qualitative and quantitative parameters
)LRYSLVETGVL;HTSRJXL;ELGZEGVOTLELTBEIMFI\LLEKVTETGZ YG#S prescribed by Government of India vide its communication
EIYC;H4" dated 28.11.2013.

EIG-'LGSWVRMLKMBKQVL Composition as on 31.03.2017:

 +IMRVIZFTHSLMGFGSETWÉ\L 1. Sh. Sunil Mehta - Chairman of the Committee


2. Sh. Anil Kumar Khachi
 +IWGVZERFLKvLQI
3. Dr. Rabi N. Mishra
 .L8KGD VGF+L
4. Ms. Hiroo Mirchandani
 MR+IHIFIKQ6OLVI
No meeting of the Remuneration Committee was held during
GPºLIPL;ETOL4KLVMGFGSEIELTC; D4#EWLLTGUSVHIBHRC; " 2016-17.

60
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

ÈD6VMGFGS FMI
 3.6 Management Committee (MC)

KL7‹I²SD4BELTB EI ÈD6V PB GPGPÈLPLV


LTUVL! The Committee has been constituted in terms of Section 13 of
Nationalized Banks (Management and Miscellaneous Provisions)
EILKLETWVRMLKMGFGSYG#SEIYC;H4"MGFGSGV&VGZGvSFOLTB> Scheme 1970/1980. The committee considers following matters
ULT GE F.IMIC;WLT!ÈELžLWVRFLTOVMGFGS QWLTMI MI
""" which are beyond the discretionary powers of MD & CEO/Head
ETGPPTELIVWGELKLTBMTJKTH4B>JKGPQLKEKSIH4" Office Credit Approval Committee (HOCAC) III:-

E žLÈ-SLPLTBEI-PI²GS GVGWLLGKS PBY4KGVGWLLGKS


 a) Sanctioning of credit proposals (Fund based & Non-Fund
based),
v žLMFL4SL!DËÑTvLSTÈ-SLP b) Loan compromise/write-off proposals,

Y JX‚UIWL4KKLU-PvQ;ETWVRFLTOVL'L;È-SLP c) Proposal for approval of capital and revenue


expenditure,
L JGKMKLTB ELWGY[HL PB GEKL JKZTVT ET FLVOB.LTB FTB GPQZV d) Proposals relating to acquisition and hiring of premises
MBDBIÈ-SLP including deviation from norms for acquisition and hiring
of premises,
. FREOFL!WJIZOLKEKVT MT MBDBGSÈ-SLP>NVELDQLPEKVL
e) Proposals relating to filing of suits/appeals, defending
C3LGO them etc.
Q  B.KKLCG7BYMGHSMKELKI PBW6WVRFLTGOSÈGS)LXGSLTB>EBJGVLTB f)
W Proposals for Investments in Government and other
ETWBLJLLTBWL4KžLJLLTBFTBGVPTLELTETGZ È-SLP approved securities, shares and debentures of companies
including underwriting,
/ OLVMTM&DG6SÈ-SLP g) Proposals relating to Donations,
U DLT.;^LKLÈTGLSELTC;W6FLFZL h) Any other matter referred by the Board.

EIG-'LGSETWVRMLKMBKQVL Composition as on 31.3.2017

 MR+INLLWVBSMRD[ÄVMGFGSEIWÉ\LL 1. Ms. Usha Ananthasubramanian - Chairperson of the


Committee
 +IETPID[ÄLUIKLP
2. Sh. K. V. Brahmaji Rao
 .L8KLF MMBYLJXKT 3. Dr. Ram S. Sangapure
 +IMBUIPLKL 4. Sh. Sanjiv Sharan
 .L8KGD VGF+L 5. Dr. Rabi N. Mishra
 MR+IHIFIKQ6OLVI 6. Ms. Hiroo Mirchandani
PL; ET OL4KLVD4#ELTB ELWLLTUVGELYLWL4KD4#ELTB ET DIQ 18 meetings were held during the year and maximum gap
WGESFWBSKLZGOVLTBEL'LL" between two meetings was 30 days.

GPºLIPL; ET OL4KLVMO-GVOTLELTB ^LKLD4#ELTB FTB )LLYZTVT EI No. of meetings attended by Member-Directors during the
MB<L Financial Year:

S. Name of Director Meetings Meetings


¹MB GVOTLEELVLF EL;ELZET GESVID4#ELTB
No. held during attended
OL4KLVWLLTGUS FTBNJG-'LSHR their tenure
D4#ELTBEIMB<L
1. Ms. Usha Ananthasubramanian 18 18
 MR+INLLWVBSMRD[ÄV  
2. Sh. K. V. Brahmaji Rao 18 17
 +IETPID[ÄLUIKL8P  
3. Dr. Ram S. Sangapure 18 18
 .L8KLF MMBYLJXKT  
4. Sh. Sanjiv Sharan 11 11
 +IMBUIPLKL  
5. Dr. Rabi N Mishra 18 18
 .L8KGD VGF+L  
 +IUIJIv.TZPLZ   6. Sh. G. P. Khandelwal 09 04
 MR+IHIFIKQ6OLVI   7. Ms. Hiroo Mirchandani 11 09
 +IKLGU6OKFLTHVGMBH   8. Sh. Rajinder Mohan Singh 05 04
 +IMRIKVLK   9. Sh. Sudhir Nayar 04 04

61
 ÈELžLWVRFLTOVMGFGS -SK"""
 3.7 Head Office Credit Approval Committee (Level – III)

ÈELžLWVRFLTOVMGFGS-SK"""ELY#VGPºLFBLLZ FWLT J2
> The HO Credit Approval Committee Level III has been
GPºLIMTPL BGP)LLY .I J2 M
EIWGMXQVLGOVLBEEI constituted in terms of Department of Financial Services
(DFS), Ministry of Finance (MoF) notification dated 05.12.2011.
LSL;VRMLKGELYLH4"ÈELžLWVRFLTOVMGFGS-SK"""
It considers the credit proposals above `150 crores and up to
EKLT.  MT WGEWL4KEKLT.  EZ
SEWL4KEKLT.  MT `400 crores (standalone) and above `300 crores and up to
WGEWL4KEKLT.  MFXH %MJLTUK
SEETžLÈ-SLPLTBJK `800 crores (group exposure). The committee also considers
GPQLKEKVTETML'LML'L F.I PBMIC;WLTEIJXP;FTBGVGHSLGºL2LTBEI OTS/Compromise/Write off proposals to the extent of powers
MIFLSEWLT7I M!MFL4SL!D7_7LvLSLÈ-SLPLTBJK)LIGPQLKEKSIH4" earlier vested with MD & CEO.

EIG-'LGSWVRMLKMBKQVL Composition as on 31.03.2017

1. Ms. Usha Ananthasubramanian - Chairperson of the


 MR+INLLWVBSMRD[ÄVMGFGSEIWÉ\LL Committee
 +IETPID[ÄLUIKLP 2. Sh. K. V. Brahmaji Rao
 .L8KLF MMBYLJXKT 3. Dr. Ram S. Sangapure
 +IMBUIPLKL 4. Sh. Sanjiv Sharan

NºL2DLT.;MO-LTBETWGSGKºL2GV&VGZGvSELL;3FEGP)LLYLTBETFHLÈDBE Besides the above Board members, General Managers of


)LIMGFGSETMO-H4B" the following functional Divisions are also members of the
Committee:
i GPºLÈ)LLY 
i) Finance Division
ii žLÈ)LLY ii) Credit Division
iii EI²SULTGvFÈDBVÈ)LLY iii) Integrated Risk Management Division
iv WBSKL;7‹ID4BGEBYÈ)LLY iv) International Banking Division
GPºLIPL; ET OL4KLVMO-GVOTLELTB ^LKLD4#ELTB FTB )LLYZTVT EI No. of meetings attended by Member-Directors during the
MB<L Financial Year:

¹MB GVOTLEELVLF NVETEL;ELZET D4#EFTB S. Name of Director Meetings Meetings


OL4KLVHRC;D4#ETB )LLYGZL No. held during attended
their tenure
 MR+INLLWVBSMRD[ÄV  
1. Ms. Usha Ananthasubramanian 35 35
 +IETPID[ÄLUIKL8P   2. Sh. K. V. Brahmaji Rao 35 30
 .L8KLF MMBYLJXKT   3. Dr. Ram S. Sangapure 35 30
 +IMBUIPLKL   4. Sh. Sanjiv Sharan 21 19

 PMXZI FTB ÈYGS EI GVYKLVI EKVT ET GZ  DLT.; EI GPLTL 3.8 Special Committee of the Board to monitor the
progress of recovery
MGFGS
The Committee has been constituted in terms of DFS, MoF letter
MGFGSDFS, MoF letter F.No.7/112/2012-BOAGOVLBE F.No.7/112/2012-BOA dated 21.11.2012 and F.No.7/2/2015-
WL4K F-No-!! PMXZI GOVLBE  EI LSL;VRMLK YG#S Recovery dated 01.01.2016 to:
EIYC;H4"
● Review the ways and strategies to improve NPA
● LI L[PMXZIHTSR VJI ÈDBVWL4KGPG)L6V7XZLTBFTBÈ)LLPINJLTY management and effective utilization of various tools to
ELTMRLKVTHTSRSKIELTBWL4KKLVIGSLTBEIMFI\LLEKVL" expedite recovery.

● ÈX.TG6LZ D7_7T vLSLTB MGHS VJI  PMXZI FTB HRC; ÈYGS EI ● Monitor the progress of recovery in NPAs including
prudential written-off accounts.
GVYKLVI"
● Review the status of cases/RCs pending at DRTs/
● .IWLK7I!.IWLK 7IFTBZBGDSFLFZT!WLKMIET-7T7_MEIMFI\LL DRATs

62
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

● ¹TG.7 FL8VI7GKBY F4ETGV5F P WGVGFS!EFULTK <LLSLTB EL ● Review the credit monitoring mechanism and status of
-7T7_M S'LL VJI  ELT KLTEVT ET GZ  N#L  Y  EOFLTB EI irregular/weak accounts and the steps for prevention of
NPAs
MFI\LL"
Composition as on 31.03.2017:
EIG-'LGSETWVRMLKMBKQVL
1. Ms. Usha Ananthasubramanian - Chairperson of the
 MR+INLLWVBSMRD[ÄVMGFGSEIWÉ\LL Committee
 +IETPID[ÄLUIKLP 2. Sh. K. V. Brahmaji Rao
 .L8KLF MMBYLJXKT 3. Dr. Ram S. Sangapure

 +IMBUIPLKL 4. Sh. Sanjiv Sharan

 +IFHTLDLDXYR*SL 5. Sh. Mahesh Baboo Gupta

 +IMRIKVLK 6. Sh. Sudhir Nayar

GPºLI PL; ET OL4KLV WLLTGUS D4#ELTB FTB MO-  GVOTLELTB EI No. of meetings attended by Member-Directors during the
NJG-'LGSEIMB<L Financial Year:

¹MB GVOTLEELVLF EL;ELZET GUSVID4#ELTB S. Name of Director Meetings Meetings


No. held during attended
OL4KLVWLLTGUS FTBNJG-'LSHR their tenure
D4#ELTBEIMB<L
1. Ms. Usha Ananthasubramanian 12 12
 MR+INLLWVBSMRD[ÄV  
2. Sh. K. V. Brahmaji Rao 12 09
 +IETPID[ÄLUIKLP  
 .L8KLF MMBYLJXKT   3. Dr. Ram S. Sangapure 12 11
 +IMBUIPLKL   4. Sh. Sanjiv Sharan 07 07
 +IFHTLDLDXYR*SL   5. Sh. Mahesh Baboo Gupta 02 02
 +IMRIKVLK   6. Sh. Sudhir Nayar 12 11
 +IKLGU6OKFLTHVGMH   7. Sh. Rajinder Mohan Singh 09 09
-P4G1/EQXEESL;WLTBEIJHQLVEIMFI\LLETGZ MGFGS 3.9 Committee for Review of identification of Wilful
Defaulters
MGFGS )LLGKD4E ET FL-7K JGKJL GO S'LL JL GOVLBE
The Committee has been constituted in terms of RBI Master
EILSL;VRMLK-P4G1/EQXEESL;WLTBEIJHQLVETGZ MGFGS Circular dated 01.07.2014 and letter dated 07.01.2015 to
ETWLOTLLTBEIMFI\LLEKVTHTSRYG#SEIYC;" review the orders of the Committee which has identified willful
defaulters.
EIG-'LGSETWVRMLKMBKQVL
Composition as on 31.03.2017:
 MR+INLLWVBSMRD[ÄVMGFGSEIWÉ\LL 1. Ms. Usha Ananthasubramanian - Chairperson of the
 MR+IHIFIKQ6OLVI Committee
2. Ms. Hiroo Mirchandani
 +IMRIKVLK
3. Sh. Sudhir Nayar
GPºLIPL;ETOL4KLVWLLTGUSD4#ELTBFTBMO-GVOTLELTBETNJG-'LS No. of meetings attended by Member-Directors during the
HLTVTEIMB<L Financial Year:

¹ GVOTLEELVLF NVETEL;ELZET GUSVID4#ELTB FTB S. Name of Director Meetings Meetings


MB OL4KLVWLLTGUS NJG-'LGSHR No. held during attended
D4#ELTBEIMB<L their tenure

 MR+INLLWVBSMRD[ÄV   1. Ms. Usha Ananthasubramanian 04 04

 MR+IHIFIKQBOLVI   2. Ms. Hiroo Mirchandani 04 04

 +IMRIKVLK   3. Sh. Sudhir Nayar 04 04

63
 VL8VELTWL8JKTG7PNLKESL;WLTBEIPYI;EKLMFI\LLMGFGS 3.10 Non-cooperative Borrowers Classification Review Committee

MGFGS)LLGKD4EEIWGMXQVLMBDBR.No.CID.BC.54/20.16.064/ The Committee has been constituted in terms of RBI notification


no. DBR.No.CID.BC.54/20.16.064/2014-15 dated 22.12.2014
2014-15GOVLBEEILSL;VRMLKVL8VELTWL8JKTG7PNÉLLKESL;WLTB
to review the decision of ‘Non-Cooperative Borrower
EIPYI;EKLMFI\LLMGFGSETGVL;EIMFI\LLHTSRYG#SEIYC;" Classification Committee’.
EIG-'LGSETWVRMLKMBKQVL Composition as on 31.03.2017:

 MR+INLLWVBSMRD[ÄVMGFGSEIWÉ\LL 1. Ms. Usha Ananthasubramanian - Chairperson of the


Committee
 +IWGVZERFLKvLQI 2. Sh. Anil Kumar Khachi

 MR+IHIFIKQ6OLVI 3. Ms. Hiroo Mirchandani

GPºLIPL;FTB MGFGSEIGEMID4#EELWLLTUVVHIBHRWL" No meeting of the committee was held during the Financial
Year 2016-17.
 DLT.;EIGPLTLMGFGSLTvL. IFLFZLTBEIGVYKLVIHTSR 3.11 Special Committee of Board – For monitoring fraud
MGFGS )LLGKD4E EI JL MB RBI/2004.15 DBS.FGV(F) cases
No./1004/23.04.01A/2003-04GOVLBEEILSL;VRMLK The Committee has been constituted in terms of RBI letter no.
EKLT. S'LLCMMTWGE>ML'LHIKLGLELÉLVGO GDVLMLCDK RBI/2004.15 DBS.FGV(F) No./1004/23.04.01A/2003-04 dated
ÉLLTvLÉL. IETFLFZLTBEIGVYKLVIS'LLMFI\LLHTSRHGPLTLMGFGSYG#S 14.01.2004 for monitoring and reviewing all fraud cases of
Rs.1.00 crore and above, as well as cyber frauds irrespective
EIYC;H4SLGE of the amount, so as to:
● ÈLLZIYS LRG7LTB EI JHQLV WL4K N6HTB OXK EKVT ET GZ  NJL ● Identify the systemic lacunae and put in place measures
È-SRSEKVL" to plug the same.
● MIDIWLC; !JRGZMULBQEIÈYGSEIGVYKLVI>PMXZI PB -7L8J2 ● Monitor progress of CBI/Police investigation, recovery &
OLG3P" staff accountability.
● LTvL. IEIJRVKLPAGºLKLTEVTETGZ N#L Y MRLKL3FEEOFLTB ● Review the efficacy of the remedial action taken to
EIÈ)LLPLIZSLEIMFI\LL" prevent recurrence of frauds.
● KLTE'LLFSBLELT FUDXSEKVT MT MBDBGSGPQLKT Y W6NJLLTB ● Put in place other measures as may be considered
ELTÈ-SRSEKVL" relevant to strengthen the preventive mechanism.
EIG-'LGSETWVRMLKMBKQVL Composition as on 31.03.2017:
 +IMRVIZFTHSLMGFGSETWÉ\L 1. Sh. Sunil Mehta - Chairman of the Committee
 MR+INLLWVBSMRD[ÄV 2. Ms. Usha Ananthasubramanian
 +IETPID[ÄLUIKLP 3. Sh. K. V. Brahmaji Rao
 .L8KLF MMBYLJXKT 4. Dr. Ram S. Sangapure
 +IMBUIPLKL 5. Sh. Sanjiv Sharan
 +IWGVZERFLKvLQI 6. Sh. Anil Kumar Khachi
GPºLIPL;ETOL4KLVWLLTGUSD4#ELTBFTBMO-GVOTLELTBETNJG-'LS
No. of meetings attended by Member-Directors during the
HLTVTEIMB<L Financial Year:
¹MB GVOTLEELVLF EL;ELZET GUSVID4#ELTB S. Name of Director Meetings Meetings
OL4KLVWLLTGUS FTBNJG-'LSHR No. held during attended
D4#ELTBEIMB<L their tenure
 +IMRVIZFTHSL LX6 LX6 1. Sh. Sunil Mehta Nil Nil
 MR+INLLWVBSMRD[ÄV   2. Ms. Usha Ananthasubramanian 04 04
 +IETPID[ÄLUIKLP   3. Sh. K. V. Brahmaji Rao 04 03
 .L8KLF MMBYLJXKT   4. Dr. Ram S. Sangapure 04 04

64
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

 +IMBUIPLKL   5. Sh. Sanjiv Sharan 02 01


 +IWGVZERFLKvLQI   6. Sh. Anil Kumar Khachi 03 03
 +IKLGU6OKFLTHVGMH   7. Sh. Rajinder Mohan Singh 03 03
 +IFOVTLERFLKGF+L   8. Sh. Madnesh Kumar Mishra 01 01

 MXQVLÈL4]LTGYEIEL;VIGSMGFGS 3.12 I.T. Strategy Committee

MGFGS )LLGKD4E ET JGKJL_ MB RBI/2010-11/494/DBS.co.ITC. The committee has been constituted as per RBI circular no.
RBI/2010-11/494/DBS.co.ITC.BC.No.6/31.02.008/2010-
BC.No.!!GOVLBEEILSL;VRMLKMGFGS
11 dated 29.04.2011. The broad functions of the IT Strategy
YG#SEIYC;"MGFGSETFR<EL;CMÈELKH4 Committee of the Board are to:
● MXQVLÈL4]LTGYEIEL;VIGSWL4KJL8GZMIO-SLPTUELWVRFLTOV" ● Approve IT Strategy and policy document.

● MRGVGQSEKVLGEÈDBVNJRºL2EL;VIGSLTUVLÈG¹LÈ)LLPI ● Ensuring that the management has put an effective


BYMTKvKHIH4" strategic planning process in place.

● ÈFLGLSEKVLGEELKLTDLKEL;VIGSMXQVLÈL4]LTGYEIEL;VIGSET ● Ratifying that the business strategy is indeed aligned


ML'LPL-SGPEJMTM&DH4" with IT strategy.
● Ensuring that the IT Organization structure complements
● MRGVGQS EKVL GE WLC;7I MBY#V> MBKQVL 0LJLK FL8.Z WL4K the business model and its direction.
NMEIGOLLELJXKEH4"
● Ascertaining that management has implemented
● MRGVGQSEKVLGEELKLTDLKEIWLC;7IGPSKLP4:XÈDBV>ZLYX processes and practices that ensure that the IT delivers
EIYC;ÈG¹LWLTBWL4KÈ'LLWLTBETWVRMLKH4B" value to the business.

● MRGVGQSEKVLGEWLC;7IGVPTLELDU7-PIELKLT9H4" ● Ensuring IT investments represented in the IT budgets


are acceptable.
● MLFGKE Z\LTB ELT ÈL*S EKVT HTSR WLPE WLC;7I MBMLVLTB
● Monitoring the method that management uses to
ET GVÉLL;KL FTB ÈDBV ^LKL ÈRºL2 JGS EI GVYKLVI EKVL WL4K determine the IT resources needed to achieve strategic
WLN7MLTGM;BYS'LLWLC;7IMBMLVLTBETNJLTYETGZ N1Q-SKI goals and provide high-level direction for sourcing and
GOLLGVO;TLÈOLVEKVL" use of IT resources.
● D4BEET GPELMELT DVL KvVT ET GZ WLC;7IGVPTLELNGQS ● Ensuring proper balance of IT investments for sustaining
MBSRZVMRGVGQSEKVL" Bank’s growth.

● WLC;7I ULTGvFLTB PB GVBLLLTB EI WLTK MT %MJLTUKLTB ET DLKT FTB ● Becoming aware about exposure towards IT risks and
controls. And evaluating effectiveness of management’s
ULYE EKVL WL4K WLC;7I ULTGvFLTB EI ÈDBV ET GVYKLVI EL
monitoring of IT risks.
È)LLPIFX:LBEVEKVL"
● Assessing senior management’s performance in
● WLC;7I EL;VIGSLTB ET ZLYXEKL FTB N1Q ÈDBV ET ÈOL;V EL implementing IT strategies.
WLBEZVEKVL"
● Issuing high level policy guidance (e.g. related to risk,
● N1Q -SKI VIGS GOLLGVO;TL ULKI EKVL U4MT ULTGvF> GVGV funding and sourcing tasks).
W'LPLMLTGM;BYMTMBDBGSEL;
"
● Confirming whether IT or business architecture is to be
● WLC;7IG.ULCVLELKLTDLKLBQT EIJRG7EKVLSLGED4BE-SK designed, so as to derive the maximum business value
JKWLC;7IET MFTGESGVGVET GZ MBJXL; WLC;7IJGKOAMT from IT overseeing the aggregate funding of IT at a bank
WGÉLESFELKLTDLKP4:X ÈL*SGELULMET WL4KWLC;7IULTGvFLTB level and ascertaining if the management has resources
to ensure the proper management of IT risks.
ELNGQSÈDBVMRGVGQSEKVTHTSRMBMLVLTBELÈDBVEKVL"
● Reviewing IT performance measurement and contribution
● ELKLTDLKFTBWLC;7IÈOL;VNJLLTBWL4KWLC;7IETLTYOLVEIMFI\LL of IT to business goals (i.e. delivering and promised
EKVL W'LL;SGPSKLWL4KÈ-SLGPSP4:X
 value).
EIG-'LGSETWVRMLKMBKQVL Composition as on 31.03.2017:
 +IMRIKVLKMGFGSETWÉ\L 1. Sh. Sudhir Nayar - Chairman of the Committee
 MR+INLLWVBSMRD[ÄV 2. Ms. Usha Ananthasubramanian

65
 +IETPID[ÄLUIKLP 3. Sh. K. V. Brahmaji Rao

 .L8KLF MMBYLJXKT 4. Dr. Ram S. Sangapure

 +IMBUIPLKL 5. Sh. Sanjiv Sharan


6. Sh. Mahesh Baboo Gupta
 +IFHTLDLDXYR*SL
7. Sh. Sunil Mehta
 +IMRVIZFTHSL
Besides Board members, General Manager (IT) is also a
DLT.;MO-LTBETWGSGKºL2FHLÈD6E WLC;7I
)LIMGFGSETMO-H4B" member of the committee.
GPºLI PL; ET OL4KLV WLLTGUS D4#ELTB FTB MO-  GVOTLELTB ET No. of meetings attended by Member-Directors during the
NJG-'LSHLTVTEIMB<L Financial Year:

¹MB GVOTLEELVLF WLLTGUSD4#ELTB GUSVID4#ELTB S. Name of Director Meetings Meetings


No. held during attended
EIMB<L FTBNJG-'LSHR
their tenure
 +IUIJIv.TTZPLZ   1. Sh. G. P. Khandelwal 03 02
 MR+INLLWVBSMRD[ÄV   2. Ms. Usha Ananthasubramanian 04 04
 +IETPID[ÄLUIKLP   3. Sh. K. V. Brahmaji Rao 04 04
 .L8KLF MMBYLJXKT   4. Dr. Ram S. Sangapure 04 04
 +IMBUIPLKL   5. Sh. Sanjiv Sharan 02 02
 +IFHTLDLDXYR*SL   6. Sh. Mahesh Baboo Gupta 03 03
 +IMRIKVLK   7. Sh. Sudhir Nayar 01 01
 +IMRVIZFTHSL LX6 LX6 8. Sh. Sunil Mehta Nil Nil
 Y[LHEMTPLMGFGS 3.13 Customer Service Committee

MGFGS)LLGKD4BEETJLGOVLBEEILSL;VRMLKGSFLHIWLÉLLK The committee has been constituted in terms of RBI letter


dated 14.08.2004 to review customer service of the bank on
JKD4BEEIY[LHEMTPLMFI\LLHTSRYG#SEIYC;" quarterly basis.
EIG-'LGSWVRMLKMBKQVL Composition as on 31.03.2017:
 MR+INLLWVBSMRD[ÄVMGFGSEIWÉ\LL 1. Ms. Usha Ananthasubramanian - Chairperson of the
Committee
 +IETPID[ÄLUIKLP
2. Sh. K. V. Brahmaji Rao
 .L8KLF MMBYLJXKT
3. Dr. Ram S. Sangapure
 +IMBUIPLKL
4. Sh. Sanjiv Sharan
 +IWGVZERFLKvLQI 5. Sh. Anil Kumar Khachi
 +IFHTLDLDXYR*SL 6. Sh. Mahesh Baboo Gupta
 MR+IHIFIKQBOLVI 7. Ms. Hiroo Mirchandani
GPºLIPL;ETOL4KLVWLLTGUSMO-GVOTLELTB^LKLD4#ELTBFTB)LLY No. of meetings attended by Member-Directors during the
ZTVTEIMB<L Financial Year:

¹MB GVOTLEELVLF EL;ELZET GUSVID4#ELTB S. Name of Director Meetings Meetings


OL4KLVWLLTGUS FTBNJG-'LSHR No. held during attended
their tenure
D4#ELTBEIMB<L
 MR+INLLWVBSMRD[ÄV   1. Ms. Usha Ananthasubramanian 04 03
 +IETPID[ÄLUIKLP   2. Sh. K. V. Brahmaji Rao 04 04
 .L8KLF MMBYLJXKT   3. Dr. Ram S. Sangapure 04 04
 +IMBUIPLKL   4. Sh. Sanjiv Sharan 02 02
 +IWGVZERFLKvLQI   5. Sh. Anil Kumar Khachi 03 02
 +IFHTLDLDXYR*SL   6. Sh. Mahesh Baboo Gupta 03 03
 MR+IHIFIKQBOLVI   7. Ms. Hiroo Mirchandani 04 04
 +IKLUTLWY[PLZ  LX6 8. Sh. Rajesh Aggarwal 01 Nil

66
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

 +IKLGU6OKFLTHVGMBH   9. Sh. Rajinder Mohan Singh 03 01


 +IGOZIJERFLKMLHL   10. Sh. Dilip Kumar Saha 01 01

 GPUVETGZ -7IGKBYMGFGS 3.14 Steering Committee for Vision


The Committee has been constituted in terms of Section 14
KL7‹I²SD4BELTBEI ÈDBV PBGPGPÈLPLV
LTUVLEILKL
of the Nationalized Banks (Management and Miscellaneous
ET WVRMLKD4BEET ÈOL;VET ML'LGPUVO-SLPTUET WBSY;S Provisions) Scheme 1970 to review performance of the Bank
GVL;GKSZ\LTBEIMFI\LLHTSRMGFGSYG#SEIYC;H4"WBSKLZELTEF vis-à-vis goals set under Vision 2018 document. The Committee
EKVTETGZ MGFGSKLVIGSDVLVTETML'LML'LM&DG6SÈELELTWY[MK deliberates upon strategies to meet the gaps, if any, inter-alia,
EKVTETGZ FLY;OGL;SEKSIH4" guiding the concerned HO verticals to move forward.
Composition as on 31.03.2017:
EIG-'LGSETWVRMLKMBKQVL
1. Ms. Usha Ananthasubramanian - Chairperson of the
 MR+INLLWVBSMRD[ÄVMGFGSEIWÉ\LL Committee
 +IETPID[ÄLUIKLP 2. Sh. K. V. Brahmaji Rao

 .L8KLF MMBYLJXKT 3. Dr. Ram S. Sangapure

 +IMBUIPLKL 4. Sh. Sanjiv Sharan

 +IFHTLDLDXYR*SL 5. Sh. Mahesh Baboo Gupta

 +IMRIKVLK 6. Sh. Sudhir Nayar

 +IMRVIZFTHSL 7. Sh. Sunil Mehta

GPºLIPL;ETOL4KLVWLLTGUSMO-GVOTLELTB^LKLD4#ELTBFTB)LLY No. of meetings attended by Member-Directors during the


Financial Year:
ZTVTEIMB<L
¹MB GVOTLEELVLF EL;ELZET GUSVID4#ELTB S. Name of Director Meetings Meetings
OL4KLVWLLTGUS FTBNJG-'LSHR No. held during attended
their tenure
D4#ELTBEIMB<L
1. Ms. Usha Ananthasubramanian 03 03
 MR+INLLWVBSMRD[ÄV  
 +IETPID[ÄLUIKLP   2. Sh. K. V. Brahmaji Rao 03 03
 .L8KLF MMBYLJXKT   3. Dr. Ram S Sangapure 03 02
 +IMBUIPLKL   4. Sh. Sanjiv Sharan 02 02
 +IFHTLDLDXYR*SL   5. Sh. Mahesh Baboo Gupta 01 01
 +IMRIKVLK   6. Sh. Sudhir Nayar 01 01
 +IMRVIZFTHSL   7. Sh. Sunil Mehta 01 01
 +IUIJIv.TZPLZ   8. Sh. G. P. Khandelwal 02 01
 +IKLGU6OKFLTHVGMBH   9. Sh. Rajinder Mohan Singh 02 02
 MSE;SL!Y4KMSE;SLWVRLLMGVEELK;PLC; FLFZLTB ET GVJ7LV 3.15 Committee of Directors to review disposal of
EIMFI\LLHTSRGVOTLEMGFGS Vigilance/Non-vigilance Disciplinary action cases
The Committee has been constituted in terms of Department
MGFGSGPºLFBLLZ>WLG'L;EEL;GP)LLY>D4BGEBYÈ)LLYMSE;SLWVR)LLY> of Economic Affairs, Banking Division – Vigilance Section, MoF
EI JL MB 10/12/90/VIG/CVOs GOVLBE  EI LSL;VRMLK communication no. 10/12/90/VIG/CVOs dated 24.10.1990 and
S'LLGSFLHIWLLKJKMS;ESLPY4KMSE;SLWVRLLMVL3FEEL;PLHIET reviews disposal of vigilance and non-vigilance disciplinary
FLFZLTETGVJ7LVEIMFI\LLHTSRYG#SEIYC;" action cases on quarterly basis.
Composition as on 31.03.2017:
EIG-'LGSETWVRMLKMBKQVL
1. Ms. Usha Ananthasubramanian - Chairperson of the
 MR+INLLWVBSMRD[ÄVMGFGSEIWÉ\LL Committee
 +IETPID[ÄLUIKLP 2. Sh. K. V. Brahmaji Rao
 .L8KLF MMBYLJXKT 3. Dr. Ram S. Sangapure
 +IMBUIPLKL 4. Sh. Sanjiv Sharan

67
 +IWGVZERFLKvLQI 5. Sh. Anil Kumar Khachi
 .L8KGD VGF+L 6. Dr. Rabi N. Mishra
GPºLIPL;ETOL4KLVWLLTGUSD4#ELTBFTBMO-GVOTLELTBETNJG-'LS No. of meetings attended by Member-Directors during the
HLTVTEIMB<L Financial Year:

¹MB GVOTLEELVLF NVETEL;ELZET GUSVID4#ELTB S. Name of Director Meetings Meetings


No. held during attended
OL4KLVWLLTGUS FTBNJG-'LGS
their tenure
D4#ELTBEIMB<L HR
1. Ms. Usha Ananthasubramanian 04 04
 MR+INLLWVBSMRD[ÄV  
2. Sh. K. V. Brahmaji Rao 04 04
 +IETPID[ÄLUIKL8P  
3. Dr. Ram S. Sangapure 04 04
 .L8KLF MMBYLJXKT  
4. Sh. Sanjiv Sharan 02 02
 +IMBUIPLKL  
 +IKLUTLWY[PLZ   5. Sh. Rajesh Aggarwal 01 01
 +IWGVZERFLKvLQI   6. Sh. Anil Kumar Khachi 03 01
 .L8KGD VGF+L   7. Dr. Rabi N. Mishra 04 04

 GVOTLELTBEIJOLT6VGSMGFGS 3.16 Directors Promotion Committee

The Committee has been constituted in terms of Government


MGFGS)LLKSMKELKGPºLFBLLZ>WLG'L;EEL;GP)LLYETJLMBF.No.
of India (GoI), MoF, Department of Economic Affairs letter F.No.
!!!IRGOVLBEETLSL;VRMLKYG#SEIYC;H4"MGFGS 4/1/10/96-IR dated 19.11.1997. The committee considers
N1QEL;JLZEY[T.-ETZVIMT-ETZVIIFTBJOLT6VGSETGZ N&FIOPLKLTB promotions from Top Executive Grade Scale-VI to Scale-VII.
ETMBDBFTBGPQLKEKSIH4"
Composition as on 31.03.2017
EIG-'LGSETWVRMLKMBKQVL
1. Ms. Usha Ananthasubramanian - Chairperson of the
 MR+INLLWVBSMRD[ÄVMGFGSEIWÉ\LL Committee

 +IWGVZERFLKvLQI 2. Sh. Anil Kumar Khachi

 .L8KGD VGF+L 3. Dr. Rabi N. Mishra

GPºLI PL; ET OL4KLV WLLTGUS D4#ELTB FTB MO- GVOTLELTB ET No. of meetings attended by Member-Directors during the
Financial Year:
NJG-'LSHLTVTEIMB<L
¹MB GVOTLEELVLF NVETEL;ELZET GUSVID4#ELTB S. Name of Director Meetings Meetings
No. held during attended
OL4KLVWLLTGUS FTBNJG-'LGS their tenure
D4#ELTBEIMB<L HR 1. Ms. Usha Ananthasubramanian 01 01
 MR+INLLWVBSMRD[ÄV  
2. Sh. Rajesh Aggarwal 01 01
 +IKLUTLWY[PLZ  
3. Sh. B. P. Kanungo 01 01
 +IDIJIELVXVYLT  
 WJIZIÈLGELKIPMFI\LLÈLGELKIMGFGS 3.17 Appellate Authority & Reviewing Authority
Committee
MGFGS EL Y#V JI VDI WGELKI EF;QLGKLTB WVRLLMV PB WJIZ

The committee has been constituted to consider Appeal and
GPGVFVEILSL;VRMLKWJIZIÈLGELKI!MFI\LLÈLGELKIETJ Review cases as Appellate Authority/Reviewing Authority
FTBEL;EKVTHTSRGELYLH4" in terms of PNB Officer Employees’ (Discipline and Appeal)
Regulations, 1977.
EIG-'LGSETWVRMLKMGFGSEIMBKQVL
Composition as on 31.03.2017:
 MR+INLLWVBSMRD[ÄVMGFGSEIWÉ\LL 1. Ms. Usha Ananthasubramanian - Chairperson of the
Committee
 +IETPID[ÄLUIKLP
2. Sh. K. V. Brahmaji Rao
 .L8KLF MMBYLJXKT
3. Dr. Ram S. Sangapure
 +IMBUIPLKL 4. Sh. Sanjiv Sharan
 +IWGVZERFLKvLQI 5. Sh. Anil Kumar Khachi

68
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

GPSIPL;ETOL4KLVMGFGSEIELTC;D4#EWLLTGUSVHIBHRC;" No meeting of the committee was held during the Financial


Year 2016-17.
 QWLKJKDLT.;EI-7IGKBYMGFGS
3.18 Steering Committee of the Board on HR
MGFGSELY#VGPºLFBLLZ>GPºLIMTPLTBÈ)LLYETNKLJKD4BEEI The Committee has been constituted at the instance of DFS,
QWLKFLFZLTBJKWÉVETGZ v.TZPLZMGFGSEIMB-SRGSLTBEI Ministry of Finance, in terms of the recommendations of
LSL;VRMLKGELYLH4" Khandelwal Committee for studying HR issues of the Bank.

EIG-'LGSETWVRMLKMGFGSEIMBKQVL Composition as on 31.03.2017:


1. Ms. Usha Ananthasubramanian - Chairperson of the
 MR+INLLWVBSMRD[ÄVMGFGSEIWÉ\LL Committee
 +IMBUIPLKL 2. Sh. Sanjiv Sharan
 +IWGVZERFLKvLQI 3. Sh. Anil Kumar Khachi
DLÂMO- External members:

 ÈLTKLUTVETYR*SL QWLKÈLTJ2TLVZ 1. Prof. Rajen K. Gupta - HR Professional

 ÈLTHKILETYLBI QWLKÈLTJ2TLVZ 2. Prof. Harish K. Gandhi - HR Professional

GPºLI PL; ET OL4KLV WLLTGUS D4#ELTB FTB MO-  GVOTLELTB ET No. of meetings attended by Member-Directors during the
Financial Year:
NJG-'LSHLTVTEIMB<L
¹MB GVOTLEELVLF EL;ELZETOL4KLV GUSVID4#ELTB S. Name of Director Meetings Meetings
No. held during attended
WLLTGUSD4#ETB FTBNJG-'LSHR
their tenure
 MR+INLLWVBSMRD[ÄV  
1. Ms. Usha Ananthasubramanian 02 02
 +IMBUIPLKL   2. Sh. Sanjiv Sharan 01 01
 +IWGVZERFLKvLQI   3. Sh. Anil Kumar Khachi 01 00
 +IETPID[ÄLUIKLP   4. Sh. K. V. Brahmaji Rao 01 01
 +IKLUTLWY[PLZ   5. Sh. Rajesh Aggarwal 01 00

 JL8PKWL8J2W7LVI;MGFGS 3.19 Power of Attorney Committee

MGFGSD4BEETLT9WGELGKLTB!EF;QLGKLTBELTUVKZJL8PKWL8J2W7LVI; The committee sanctions and allots General Power of Attorney


to eligible Officers/employees of the Bank.
EI-PI²GSWL4KWLPB7VEKSIH4"
ETWVRMLKMBKQVL Composition as on 31.03.2017

 +IETPID[ÄLUIKLPMGFGSETWÉ\L 1. Sh. K. V. Brahmaji Rao - Chairman of the Committee

 .L8KLF MMBYLJXKT 2. Dr. Ram S. Sangapure

 +IMBUIPLKL 3. Sh. Sanjiv Sharan

 +IFHTLDLDXYR*SL 4. Sh. Mahesh Baboo Gupta

 +IMRIKVLK 5. Sh. Sudhir Nayar

GPºLI PL; ET OL4KLV WLLTGUS D4#ELTB FTB MO- GVOTLELTB EI No. of meetings attended by Member-Directors during the
NJG-'LGSEIMB<L Financial Year:

S. Name of Director Meetings Meetings


¹MB GVOTLEELVLF EL;ELZETOL4KLV GUSVID4#ELTB
No. held during attended
WLLTGUSD4#ETB FTBNJG-'LSHR their tenure
 +IETPID[ÄLUIKLP   1. Sh. K. V. Brahmaji Rao 07 06
 .L8KLF MMBYLJXKT   2. Dr. Ram S. Sangapure 07 07
 +IMBUIPLKL   3. Sh. Sanjiv Sharan 04 04
 +IGOZIJERFLKMLHL   4. Sh. Dilip Kumar Saha 01 01
 +IFHTLDLDXYR*SL   5. Sh. Mahesh Baboo Gupta 04 04
 +IMRIKVLK   6. Sh. Sudhir Nayar 07 07

69
 LTKLKE GVOTLELTB ET GVPL;QV JK GPQLK EKVT ET GZ  3.20 Committee to consider election of Shareholder
MGFGSMLP;UGVE\LTLETD4BELTB^LKLFSOLV Directors - voting by Public Sector Banks
The Committee, constituted in terms of GoI, DFS letter dated
MGFGS>)LLKSMKELKGPºLIMTPL BÈ)LLYETJLGOVLBEEI 03.04.2012, decides on the candidates for election as directors
LSL;VRMLK>D4BEETLTKLGKSEKVTPLZIC;ELC;LTBFTGVOTLELTBETQRVLP in entities in which Bank is holding a stake considering the
ETGZ N&FIOPLKLTBETÈLTJ2LCZWL4KJA#)LXGFJKGPQLKEKETGVL;ZTVT profile and background of candidates.
HTSREIYIH4" Composition as on 31.03.2017:
EIG-'LGSETWVRMLKMBKQVL 1. Ms. Usha Ananthasubramanian - Chairperson of the
Committee
 MR+INLLWVBSMRD[ÄVMGFGSEIWÉ\LL
2. Sh. K. V. Brahmaji Rao
 +IETPID[ÄLUIKLP
3. Dr. Ram S. Sangapure
 .L8KLF MMBYLJXKT
4. Sh. Sanjiv Sharan
 +IMBUIPLKL
No meeting of the committee was held during the Financial
GPºLIPL;ETOL4KLVMGFGSEIELTC;D4#EVHIBHRC;" Year 2016-17.
 LTKWBSKLMGFGS 3.21 Share Transfer Committee

MGFGSJI VDI LTK PBD4#ET


GPGVFVETGPGVF  WLC;
 The Committee has been constituted in terms of Regulation 2A
(i) of PNB (Shares and Meetings) Regulations, 2000 to monitor
EI LSL;VRMLK )LL4GSE LTKLTB ET WBSKL> .RG*ZET7 LTK ÈFLL JL! VT and approve transfers of physical shares, issuance of duplicate
ÈFLLJLULKIEKVT>LTKLTBETMBÈTLL>LTKLTBETJRV)LL4GSEIEKLC3LGO share certificates/new certificates, transmission of shares, re-
EIGVYKLVI PBWVRFLTOVHTSRYG#SEIYIH4" materialization of shares etc.
Composition as on 31.03.2017:
EIG-'LGSETWVRMLKMBKQVL
1. Ms. Usha Ananthasubramanian - Chairperson of the
 MR+INLLWVBSMRD[ÄVMGFGSEIWÉ\LL Committee
 .L8KLF MMBYLJXKT 2. Dr. Ram S. Sangapure
 +IMRIKVLK 3. Sh. Sudhir Nayar
GPºLI PL; ET OL4KLV WLLTGUS D4#ELTB FTB MO- GVOTLELTB EI No. of meetings attended by Member-Directors during the
NJG-'LGSEIMB<L Financial Year:

¹MB GVOTLEELVLF EL;ELZET GUSVID4#ELTB S. Name of Director Meetings Meetings


OL4KLVWLLTGUS FTBNJG-'LS No. held during attended
their tenure
D4#ELTBEIMB<L HR
1. Ms. Usha Ananthasubramanian 24 22
 MR+INLLWVBSMRD[ÄV  
 .L8KLF MMBYLJXKT   2. Dr. Ram S. Sangapure 24 21
 +IMRIKVLK   3. Sh. Sudhir Nayar 24 23

 GVOTLELTBELJLGK+GFE 4. Remuneration of Directors:

ÈDB GVOTLE PB FR< EL;JLZE WGELKI WL4K EL;JLZE GVOTLELTB The Managing Director and CEO and the Executive Directors
 JXL;ELGZE GVOTLELTB
 ELT )LLKS MKELK ET GVFLVRMLK PTSV ET (Four whole time directors) are being paid remuneration by
^LKL JLGK+GFE EL )LRYSLV GEL UL KHL H4" ÈDB GVOTLE PB FR< way of salary as per rules framed by the Government of India.
EL;JLZEWGELKIWL4KEL;JLZEGVOTLELTBETJLGK+GFEWL4KÈOL;V The details of remuneration paid to Managing Director & CEO
WLLGKSÈLT3MLHVET)LRYSLVEL$L4KLGV&VGZGvSH4 and Executive Directors are as under:

GPºLIPL;ETOL4KLV)LRYSLVGELYLJLGK+GFE Remuneration paid during financial year 2016-17:

¹ VLF JO )LRYSLVKLGL JI J2EL FTG.EZ S. Name Designation Emoluments PF Medical


MB FTB
WBLOLV FTB
No paid (`) contribution (`)
FTB
(`)
 MR+INLL ÈDBGVOTLE PB 27,44,322/- 2,99,070/- 1,939/- 1. Ms. Usha MD & CEO 27,44,322/- 2,99,070/- 1,939/-
WVBSMRD[ÄV FR<EL;JLZE Ananthasubramanian
WGELKI

70
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

 +IETPID[ÄLUIKLP EL;JLZE 22,92,616/- 2,49,885/- 80,191/- 2. Sh. K. V. Brahmaji Executive 22,92,616/- 2,49,885/- 80,191/-
GVOTLE Rao Director

 .L8KLF MMBYLJXKT EL;JLZE 23,54,530/- 2,49,885/- 2,17,448/- 3. Dr. Ram S. Executive 23,54,530/- 2,49,885/- 2,17,448/-
GVOTLE Sangapure Director

 +IMBUIPLKL EL;JLZE 11,78,195/- 1,15,509/- 14,496/- 4. Sh. Sanjiv Sharan Executive 11,78,195/- 1,15,509/- 14,496/-
MT GVOTLE (15.09.2016 to Director

31.03.2017)

GEMI)LIGVOTLEELT PL; ET OL4KLV-7L8EWL8*LBMULKIVHIB GELYL No stock options have been issued to any Director during the
H4"MTPLMBJEL;T WL4KVLTG7MWPGMGHSGVRGºL2EIWPGMKELKET year. Terms of appointment including service contracts and
notice period are as per Government guidelines. No severance
GOLLGVO;TLLVRMLKH4"GEMI)LIGVOTLEETGZ ELTC;WZYLR:EOTVHIB
fee is payable to any Director.
H4"
No performance linked incentive was paid to the whole-time
GPºLPL;ETOL4KLVJXL;ELGZEGVOTLELTBELTEL;\LFSLWLLGKS directors during financial year 2016-17.
ÈLT3MLHV)LRYSLVVHIBGELYL'LL"
The Bank does not pay remuneration to the Non-Executive
D4BEY4KEL;JLZEGVOTLELTB ELT DLT.; W'LPLNJMGFGSLTB EID4#ELTB FTB Directors except sitting fees fixed by Government of India, for
)LLYZTVTETGZ )LLKSMKELK^LKLGVL;GKSLR:EETWZLPLELTC;W6 attending the meetings of the Board or its sub-committees. The
fees payable is as under:-
JLGK+GFEVHIBOTSL"NºL2LR:EGV&VGZGvSH4

D4#E È3TED4#EFTB)LLYZTVTETGZTOT Meeting Sitting Fees payable per


Meeting (`)
LR:E 

Board 20,000/-
DLT.; >!
DLT.;EINJMGFGS >! Sub-Committee of Board 10,000/-

GPºLPL; ET OL4KLVY4KEL;JLZEGVOTLELTB ELT )LLYZTVT ET The total Sitting Fee paid to the Non-Executive Directors during
GZ J2IMEL)LRYSLVGV&VPS_H4 JXL;ELGZEGVOTLELTBWL4K)LLGKD4BEET the Year 2016-17 is as under: (No sitting fee is payable to whole
time directors and director representing Government of India &
ÈGSGVGGVOTLEELT)LLYZTVTETGZ GEMIÈELKEIJ2IMEL)LRYSLV
RBI):
VHIBGELULSL


¹MB GVOTLEELVLF )LRYSLVEIYC;KLGL FTB


S. Name of the Director Sitting Fee paid (Net of
No. tax) (in `)
 +IMRVIZFTHSL >!
1 Sh. Sunil Mehta 36,000/-
 +IGOZIJERFLKMLHL >!
2 Sh. Dilip Kumar Saha 54,000/-
 +IUIJIv.TZPLZ >>!
3 Sh. G. P. Khandelwal 2,97,000/-
 +IFHTLDLDXYR*SL >>! 4 Sh. Mahesh Baboo Gupta 3,87,000/-
 MR+IHIFIKQ6OLVI >>! 5 Ms. Hiroo Mirchandani 4,77,000/-
 +IKLGU6OKFLTHVGMBH >>! 6 Sh. Rajinder Mohan Singh 4,14,000/-
 +IMRIKVLK >>! 7 Sh. Sudhir Nayar 8,82,000/-

 GPPTELIVWJT\LLWLTBELWVRJLZV 5. Compliance of discretionary requirements

¹ Y4KWGVPL;WJT\LL B ELL;6PVEIG-'LGS Sr. Non Mandatory Status of


MB No. requirements implementation
A The Board - A non- Government of India
 GVOTLEFB.ZY4KEL;JLZE )LLKSMKELKVTWÉ\LETJ executive Chairman may has appointed Sh. Sunil
WÉ\LE&JVIETvQ;JKWJVT FTB+IMRVIZFTHSLELT be entitled to maintain a Mehta as Chairman of
ELL;Z ET KvKvLP ET GZ  MTGVRºL2GEL Chairman's office at the the Bank with effect from
JLLH4" H4" company's expense 16.03.2017.

71
DI LTKLKELTB ET WGELK GSFLHI!PLGL;E GPºLI JGKLLF B Shareholders’ Rights - A The quarterly / Annual
LTKLKELTB ELT GPºLIJGKLLFLTB V MMI! DI MMI ELT )LTU!T half-yearly declaration Financial Results are
of financial performance sent to NSE/BSE,
ETW;PLGL;EJGKLLFLTBS'LLYS MFLQLK JLLTB FTB ÈELGLS GET
including summary of the published in newspapers
/HFLHEIFH3PJXL; L7VLWLTB ULST H4B S'LL ÈFRv GPLTLSLWLTB significant events in last and placed on Bank’s
ELMLKLBLÈTGLSGELUL " MGHS D4E B  EI PTDMLC7 JK six-months, may be sent website including
ÈOGL;SGETULSTH4"B  UI FMT to each household of highlights. Annual reports
JXP; PLGL;EGKJLT7; ELTLTKÉLLKELTB shareholders. are also sent to the
ELT)LI)LTULULSLH4" shareholders before
AGM.

MI ZTvLJKI\LLGKJLT7;FTBMBLLTGS D4BEEIPLGL;EGPºLIGPPKLI C Modified opinion(s) in The Bank’s Annual


M&FGS MXQID CELC; WV%PLGZJ2LC;. H4" FH3PJXL; audit report - The listed Financial Statements are
entity may move towards unqualified. Significant
WMBLLTGS ZTvLJKI\LL KL ET ZTvL VIGSL8 PB ZTvLTB JK
a regime of financial Accounting Policies and
ML'L GPºLI GPPKLI EI E G7*JGLL8 WVRMXGQLTB FTB GO  statements with unmodified Notes to Accounts are
0P-'LL EI WLTK D  MESI Y  H4 ULT 0L<L3FE ȲGS audit opinion. contained in schedules,
H4" ETH4" which are explanatory in
nature.

.I WÉ\L PB FR< EL;JLZE )LLKS MKELK VT WÉ\L WL4K D Separate Posts of The Government of India
WGELKI ET JO WZY ÈDB GVOTLE PB FR< Chairperson and Chief has split the post of
Executive Officer – The Chairman and Managing
MXQID CELC; WÉ\L EL;JLZEWGELKIETJOELT
listed entity may appoint Director & CEO.
WL4K ÈDB GVOTLE PB FR< GP)LLGUSEKGOLH4"SOVRMLK> separate persons to the Accordingly, Chairman
EL;JLZE WGELKI ET JO WÉ\LWL4KÈDBGVOTLE PB post of Chairperson and and Managing Director &
JK WZY WZY 0GºL2LTB EI FR< EL;JLZE WGELKI Managing Director or Chief CEO have been posted.
GVRGºL2EKMESIH4" JO-'LLGJSGETYTH4" Executive Officer.

C; WLBSGKE ZTvLJKI\LE EI FHLÈD6E GVKI\LL PBZTvL E Reporting of internal General Manager
auditor – The internal (Inspection & Audit) who
GKJLTG7’YWLBSGKEZTvLJKI\LE JKI\LL
ULTZTvLJKI\LLMGFGS
auditor may report directly to is heading the internal
MIT ZTvL JKI\LL MGFGS ELT HTSR WLBSGKEZTvLJKI\LLEL; the audit committee. audit functions reports to
GKJLT7;EKMESTH4B" GKJLT7;ETÈFRvH4B" the Audit Committee.

 WLFM)LLEID4#ETB 6. General Body Meetings

LTKLKELTB EIGJ/ZT SIVPLLT’ ET OL4KLVHRC; PLGL;EWLFD4#ELTB WL4K The details of Annual General Meetings (AGM) and
Extraordinary General Meeting (EGM) of shareholders during
WMLLKLWLFD4#ELTBETGPPKLCMÈELKH4B the last three years are as follows:

D4#EEL GOV>GOVLBE -'LLV NÎT Type of Day, Date Venue Purpose


ÈELK PBMF Meeting & Time

STKHPIB MLTFPLK> JI VDI ELT Thirteenth Monday, PNB Auditorium, To discuss,


UI F UXV> WL8G.7LTGKF>ET6ÇI MFL*SPL;ETGZ  AGM June 30, Central Staff approve & adopt
2014 at College, 8, the Audited
DUT -7LJ2EL8ZTU> D4BEETZTvLJKIG\LS 11a.m. Underhill Road, Balance Sheet
JXPL;HV WB.KGHZKLT.> SRZVJLS'LLZL)L Civil Lines, Delhi and Profit &
GMGPZZLC;6M> PHLGVvLSTJK -110054 Loss Account
GO:ZI GPQLKGPFL;>WVRFLTOV of the Bank
for year ended
PBWJVLVL"
31.03.2014.

72
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

C;UI F YRPLK> JI VDI GV&VETGZ  EGM Thursday, PNB Auditorium, To seek


FLQ;> WL8G.7LTGKF> LTKÉLLKELTBEL March 19, Central Staff approval of the
2015 at College, 8, shareholders
DUT ET6ÇI-7LJ2 WVRFLTOVÈL*S 10.30 a.m. Underhill Road, for (i) raising of
JXPL;ª EL8ZTU>WB.KGHZEKVL 
GPLTL Civil Lines, Delhi capital by way of
KLT.>GMGPZ MBE:JETFLÉFMT -110054 FPO/QIP/ESPS or
ZLC;6M>GO:ZI J2JIWLT!%XWLC;JI! any other mode or
any combination
 C; MJI MLGEMI thereof by
W6FLÉFMTL way of Special
S3MBDBIGEMIW6 Resolution
MBLTUV^LKLD4BEEI (ii) issuing
and allotting
JXBUID LVL" 
 4,42,07,317
MTDI WLC;MI.IWLK
 equity shares
GPGVFV>EI to Govt. of India
LSL;VRMLKWGFLV on preferential
basis in terms
WLÉLLKJK)LLKSMKELK of SEBI (ICDR)
ETJ\LFTB>>> Regulations,
CG%P7ILTKLTBELGVY;F 2009.
PBWLDB7V"
QL4OHPI FBYZPLK> JI VDI ELTMFL*S Fourteenth Tuesday, PNB Auditorium, - To discuss,
AGM June 30, Central Staff approve & adopt
UI F UXV> WL8G.7LTGKF>ET6ÇI PL;ETGZ D4BEET 2015 at College, 8, the Audited
DUT -7LJ2EL8ZTU> ZTvLJKIG\LSSRZV 10a.m. Underhill Road, Balance Sheet
JXPL;ª WB.KGHZKLT.> JLS'LLZL)LPHLGV Civil Lines, Delhi and Profit &
-110054 Loss Account
GMGPZZLC;6M> vLSTJKGPQLKGPFL;> of the Bank
GO:ZI WVRFLTOV PBWJVLVL" for year ended
 ETGZ  31.03.2015.
- To declare
ZL)LLBLEI Dividend for 2014-
LLTLLLEKVL 15.
  ELTKLKE - Election of one
Shareholder
GVOTLEELQRVLP Director.
C;UI F MLTFPLK> JI VDI MTDI WLC;MI.IWLK
 EGM Monday, PNB Auditorium, To seek
GMS&DK WL8G.7LTGKF>ET6ÇI GPGVFVEI September Central Staff approval of the
DUT -7LJ2EL8ZTU> LSL;VRMLKWGFLV 28, 2015 at College, 8, shareholders
10 a.m. Underhill Road, for issuing
JXPL;ª WB.KGHZKLT.> WLÉLLKJK)LLKSMKELK Civil Lines, Delhi and allotting
GMGPZZLC;6M> ELT>>> -110054 10,90,40,543
GO:ZI CG%P7ILTKULKIEKVT equity shares
WL4KWLDB7VETGZ  to Govt. of India
on preferential
LTKLKELTBMTWVRFLTOV basis in terms
ÈL*SEKVL" of SEBI (ICDR)
Regulations,
2009.

JBÇHPI YRPLK>UXV> JI VDI ELTMFL*S Fifteenth Thursday, PNB Auditorium, - To consider &
UI F  WL8G.7LTGKF>ET6ÇI PL;ETGZ D4BEET AGM June 30, Central Staff adopt the Audited
2016 at College, 8, Balance Sheet
DUT -7LJ2EL8ZTU> ZTvLJKIG\LSSRZVJL 10a.m. Underhill Road, and Profit &
JXPL;ª WB.KGHZKLT.> PBZL)LHLGVvLSTJK Civil Lines, Delhi Loss Account
GMGPZZLC;6M> JGKQQL;>WVRFLTOV PB -110054 of the Bank
GO:ZI WJVLVL" for year ended
31.03.2016.

73
C;UI F DRPLK> JI VDI MTDI WLC;MI.IWLK
 EGM Wednesday, PNB Auditorium, To seek
WY-S> WL8G.7LTGKF>ET6ÇI GPGVFVEI August 31, Central Staff approval of the
DUT -7LJ2EL8ZTU> LSL;VRMLKWGFLV 2016 at 10 College, 8, shareholders
a.m. Underhill Road, for issuing
JXPL;ª WB.KGHZKLT.> WLÉLLKJK)LLKSMKELK Civil Lines, Delhi and allotting
GMGPZZLC;6M> ELT>>> -110054 16,43,70,768
GO:ZI CG%P7ILTKULKIEKVT equity shares
WL4KWLDB7VETGZ  to Govt. of India
LTKLKELTBMTWVRFLTOV on preferential
basis in terms
ÈL*SEKVL"
of SEBI (ICDR)
Regulations, 2009.

NºL2PLGL;EWLFD4#ELTBFTBELTC;GPLTLMBE:JÈ-SRSVHIBGE Y " No special resolutions were put through in the above said
Annual General Meetings.
.LEMTFSLGELKELÈLTY JLT-7ZD4Z7
D4BEVT TMLELTC;EL;
Postal Ballot - Bank has not conducted any business in
WLLTGUSVHIBEKLLH4GUMFTBGPºLIPL;ETOL4KLV.LE^LKLFSOLVEI which postal ballot is permitted, during the financial year and
WVRFGSOIYIHLTWL4KPS;FLVFTBELTC;ELKLTDLKJLT-7D4Z7ETFLÉFMT at present no business is proposed to be conducted through
EKLLULVLÈ-SLGPSVHIBH4B" postal ballot.
 MTDI ZWLT.IWLK
GPGVFVEIWVRMXQIV {C(10)} 7. Other Disclosures as per Schedule V {C(10)} of SEBI
ETWVRMLKW6ÈE7IEKL (LODR) Regulations 2015
 PL;ETOL4KLV TMIELTC;FH3PJXL;M&DG6SJL7I;7‹LBUT%LVVHIBHRC; 7.1 There has been no significant related party transaction
H4ULTGED4BEETGHSELTÈ)LLGPSEKT" during the year that may have had potential conflict of
interest with the Bank.
 )LLKSIGKUP;D4BE!WLC;MI WLC;ETGOLLGVO;TLLTBETWVRMKLFTBD4BE 7.2 The Related Party Transactions of the Bank as per RBI /
ETM&DJL7I;ZTVOTVEIG-'LGSWVRMLKSRZVJLET ICAI guidelines are disclosed in the Notes on Accounts
vLSLTBETVLT7_M WVRMXQI
FTBOLL; YTH4B"MBDBGSJ\LETML'L (in Schedule 18) of the Balance Sheet as on 31.03.2017.
ZTVOTVEKVTEIVIGSD4BEEIPTDMLC7https://www.pnbindia. Policy on dealing with Related Party Transactions is
in/Regulatory.htmlJKOIYIH4" available on Bank’s website at https://www.pnbindia.in/
Regulatory.html
 GPYSSIVPLLT’ ET OL4KLVJXBUIDLULKMT MBDBGSFLFZLTB ET MBDB 7.3 No penalties/strictures were imposed on the Bank by
FTBMTDI!-7L8E %MQTBULTB^LKLD4BEJKELTC;OB.!ÈGSDBVHIBZYLL SEBI/Stock Exchanges for non-compliance in respect of
YL'LL" matters related to Capital Market during the last three
years.
 D 4BEVTGPGUZF4ETGV5F0HIMZ$ZLTWKJL8GZMI-'LLGJSEIH4WL4K 7.4 The Bank has established vigil mechanism, whistle
GEMI)LI0GºL2ELTZTvLJKI\LLMGFGSFTBWLVTETGZ KLTELVHIB blower policy and no person has been denied access to
YLH4" the audit committee.

 GVPL; WLPESLWLTB ELJLZVGELYLH4 S'LLY4KWGVPL; 7.5


 W Mandatory requirements are complied with and adoption
WLPESLWLTBELY[HLNºL2J4KLFTBGOLYLH4" of non-mandatory requirements are given at para 5
above.
 ?F4G7GKZ  WVRLBYI GVL;KL ET GZ  JL8GZMI HTSR PTD GZBE H4 7.6 Web link for the policy for determining “material”
https://www.pnbindia.in/Regulatory.html subsidiary is https://www.pnbindia.in/Regulatory.html
 EFLTG.7IFX:ULTGvFS'LLEFLTG.7IH4GUBYYGSGPGL‚LX6H4" 7.7 Commodity Price Risks and Commodity hedging activities
are Nil.
 D4BEEI LKTZXWVRLBGYLBH4>VLFS
8. The Bank has three domestic subsidiaries, namely:
i) JI VDIGY:7_MGZGF7T.
i. PNB Gilts Ltd.
ii) JI VDICVPT-7FTB7MGP;MTMGZGF7T.
ii. PNB Investment Services Ltd.
iii) JI VDICBLTKTBLD[LTGEBYÈLGZ* iii. PNB Insurance Broking Pvt. Ltd.*
*E&JVIELTMFL*SEKVTETEOFN#LGZ Y H4%LTBGEE&JVIVTJHZT
*Steps are being taken for winding up of the company as the
MTHIGOVLBEELTWJVLZLCMTBMMKTB.KEKGOLH4" license has already been surrendered on 14.02.2011.

74
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

JI VDIGY:7_MGZ EMXQIDC;ELC;H4UHL‚D4BEETOLTGVOTLEE&JVI PNB Gilts Ltd. is a listed entity where two of the Directors of the
ETDLT.;ET)LIGVOTLEH4B" Bank are also Directors on the Board of that Company.

CMETWGSGKºL2>D4BEETJLMOLTWBSKL;7‹IWVRLBGYL‚H4>VLFS Further, the Bank has two international subsidiaries, namely:

i
 JBULDV4LVZD4BE WBSKL;7‹I
GZ JI VDIWLC; Z
>XET i. Punjab National Bank (International) Limited
(PNBIL), UK
ii
.‹EJI VDID4BEGZ)LX7LV
ii. Druk PNB Bank Ltd., Bhutan.
 MBQLKFLÉF
9. Means of Communication
GSFLHIGPºLIJGKLLFLTBELT-7L8E %MQTBU V MC;PDI MC;
FTBÈQLK The quarterly financial results are submitted to the Stock
ETGZ )LTULULSLH4" Exchanges (NSE & BSE) for dissemination.
GPºLIJGKLLFEL8JL;TKT7GP,LJVWL4KMXQVL B C3LGOGE6HIB OLT WBY[TUI Financial results, corporate advertisements and notices etc.
P GH6OI
 W3GE JGKQLZV PLZT MFLQLK JLLTB FR<S 7LC;&M WL8J2 are also published in any 2 (English and Hindi) of the widely
CBG.L>GH6OR-SLV7LC;&M>GDUVTM-746..;>J2LCV4BGLZ %MÈTM>CEVL8GF%M circulated newspapers viz. Times of India, Hindustan Times,
Business Standard, Financial Express, Economic Times,
7LC;&-L>VP)LLKS7LC&M>GH6OR-SLV>GDUVTM-746..; GH6OIB
>O4GVEULYKL Navbharat Times, Hindustan, Business Standard (Hindi),
WL4KUVMºLLFTBÈELGLSGE ULSTH4B" Dainik Jagran and Jansatta.
GSFLHI!PLGL;EGPºLIJGKLLFWL4KMB-'LLYSGVPTLELTB!GPZTBLELTBELTDSLT The quarterly/annual financial results and presentations
YT ÈTUTB7TLVLTB ELT D4BE EI PTDMLC7 (www.pnbindia.in) ET WGSGKºL2 made to institutional investors/analysts are also placed on the
-7L8E %MQTBU www.nseindia.com WL4K www.bseindia.com JK website of the Bank (www.pnbindia.in) besides websites of
stock exchanges www.nseindia.com and www.bseindia.com
OLL;LULSLH4"
Further, the financial results are also communicated to
CMETWZLPL>GPºLIJGKLLFLTBELTGHSLKELTBELTGÈB7 PBCZ4%7‹L8GVE the stakeholders through news releases through print and
FIG.LET FLÉFMT MFLQLKGP,G*SLTB ^LKL)LIMXGQSGELULSL electronic media.
H4" The Annual Report is also hosted on the Bank’s website besides
PLGL;EGKJLT7;D4BEEIPTDMLC7ETWGSGKºL2-7L8E %MQTBUEIPTDMLC;7LTB the websites of the stock exchanges.
JK)LIOLL;LULSLH4" 10. General Shareholders’ Information

 WLFLTKLKELTBETGZ MXQVL 10.1 Annual General Meeting of the shareholders of the
Bank:
 D4BEETLTKLKELTBEIPLGL;EWLFD4#E
The following is the schedule of the 16th Annual General
 PIBPLGL;EWLFD4#EELEL;¹FCMÈELKH4 Meeting:

GOV>GSG'LPMF DHA -JGSPLK>UXV>ELTJXPL;ªDUT Day, Date & Time : Thursday, 29th June 2017 at 10.00 a.m.
-'LLV   JI VDIWL8G.7LTGKF>ET6ÇI-7LJ2 Venue : PNB Auditorium, Central Staff College,
EL8ZTU>WB.KGHZKLT.>GMGPZZLC;6M> 8, Underhill Road, Civil Lines,
Delhi – 110 054
GO:ZI
 GPºLIE4ZT.KETGZ  M&)LLGPS
10.2 Financial Calendar (Tentative) for 2017-18

 GV&VLBGESMFL*SWPG!GSFLHIGPºLIJGKLLFLTBELWVRFLTOV Approval of financial results for the quarter/period ending -

 UXV>ELTMFL*SGSFLHI  WY-S>> Q. E. June 30, 2017 - By August 14, 2017.

 GMS&DK>ELTMFL*SGSFLHI  VP&DK>> Q. E. September 30, 2017 - By November 14, 2017

 GOM&DK>ELTMFL*SGSFLHI J2KPKI>> Q. E. December 31, 2017 - By February 14, 2018

 FLQ;>>ELTMFL*SGSFLHI!PL; ZTvLJKIG\LS <LLST Q. Year ended March 31, 2018 - Audited Accounts by
May 30, 2018
FC;>SE
10.3 Dividend details – Financial Year 2016-17
 ZL)LLBLEL$L4KLGPºLIPL;ETGZ
(i) Dividend - The Board of Directors of the Bank has not
(i) ZL)LLBLD4BEET GVOTLEFB.ZVT ET GZ ZL)LLBL recommended payment of dividend for 2016-17.
)LRYSLVEKVTEIGMJ2LGKLVHIBEIH4"

75
(ii) ZL)LLBL GPSKL VIGS  D4BE ^LKL GPSGKS EI ULVT PLZI (ii) Dividend Distribution Policy - The Bank has formulated
ZL)LLBL KLGL WL4K PT JGKG-'LGSLB GUMFTB ZL)LLBL EI LLTLLL a Dividend Distribution Policy which includes the RBI and
Government guidlines regarding quantum of Dividend to
VHIBEIULMESIETM&D6FTB)LLKSIGKUP;D4BEP)LLKSMKELK be distributed and circumstances under which Dividend
ET GOLL GVOT;LLTB ELT LLGFZ EKST HR  ZL)LLBL GPSKL KLGL DVLC; may not be declared. The Dividend Distribution Policy is
YC; H4"HZL)LLBLGPSKLVIGSD4BEEIPTDMLC7 https://www. available at Bank's website at https://www.pnbindia.in/
pnbindia.in/Regulatory.htmlJKNJZ$H4B" Regulatory.html

(i) -7L8E %MQTBULTBJKMXQIEKL 10.4 (i) Listing on Stock Exchanges:

GV&VGZG<LS-7L8E %MQTBULTBFTBD4BEETLTKMXQIDH4B The shares of the bank are listed on the following Stock
Exchanges:

-7L8E %MQTBU -7L8EELT. MXQIEKLEI Stock Exchange Stock Code Date of


WLKG&)LEGSG'L Initial Listing

V4LVZ-7L8E %MQTBUWL8J2CBG.LGZ JI VDI  National Stock Exchange of PNB 24.4.2002


V MC;
DL6ÇLERZL;EL8&*ZT%M> India Ltd. (NSE) Bandra - Kurla
Complex, Mumbai
FR&DC;
Bombay Stock Exchange Ltd. 532461 25.4.2002
DL&DT-7L8E %MQTBUGZGF7T.> DI MC;
   (BSE) P. J. Towers, Dalal Street,
JIUT7L8PM;>OZLZ-7‹I7>FR&DC; Mumbai

ii)MXQIEKLLR:ES'LLWG)LK\LLLR:EEL)LRYSLV (ii) Payment of Listing Fee and Custodian charges

  V MC;S'LLDI MC;ELTPLGL;EMXQIEKLLR:ES'LL V M.I Z The annual listing fee to NSE & BSE and annual custody
WL4KMI.I M ZELTPLGL;EWG)LK\LLLR:EW]SVWOLH4" charges to NSDL & CDSL have been paid up to date.

 Z
 TvLD6OI EI GSG'LL‚   MT  SE 10.5 Dates of Book Closure - From 23.06.2017 to 29.06.2017
OLTVLTBGOVLLGFZ
 (both days inclusive)

 GKFLT7C;PLTG7BYEIE7WL8J2GSG'LH4" Cut-off date for remote e-voting – 22.06.2017

 D4E
B ETLTKLTB ETDLULKFX: 
WL8E
B . !T EL;GVJLOV* 10.6 Market Price (`) Data/Performance of Bank’s shares*

V MC; DI MC; MBRºL2FLLL NSE BSE COMBINED


FLH N1Q 6XV FLLL N1Q 6XV FLLL FLLL Month HIGH LOW VOLUME HIGH LOW VOLUME VOLUME
WÈ4Z>        April-16 90.15 81.00 140945159 90.15 80.90 18299179 159244338
FC;        May 84.15 71.85 218565891 84.25 71.95 30050203 248616094
UXV        June 105.90 76.15 313339430 105.80 76.15 38250719 351590149
URZLC;        July 135.95 105.25 483252932 136.00 105.25 56178660 539431592
WY-S        August 128.25 116.25 251062858 127.40 122.25 33762657 284825515
GMS&DK        September 146.50 125.75 285572580 146.45 125.75 34368134 319940714
W%7XDK        October 147.55 136.65 202578139 147.55 136.65 22499405 225077544
VP&DK        November 159.30 131.65 307416742 159.35 131.60 32944289 340361031
GOM&DK        December 136.35 113.15 173689412 136.30 113.30 18416315 192105727
UVPKI>        January-17 137.65 115.25 197646531 137.80 115.20 20271518 217918049
J2KPKI        February 151.65 139.65 246350064 151.80 139.35 23124400 269474464
FLQ;        March 153.20 135.85 180803367 152.40 135.80 16634404 197437771
ERZ        TOTAL 3001223105 344799883 3346022988

*M[LTS V MC;!DI MC;PTDMLC7 (www.nseindia.com / www.bseindia.com) *Source - NSE/BSE website (www.nseindia.com / www.bseindia.com)

D4BEETLTKELFX:6XVSFS'LLWGESFS'LL The shares of the Bank were traded between a low of `71.85
V MC; WL4KDI MC; FTB ELKLTDLKEIERZFLLLEKLT.  LTKKHI and high of `159.35 during the financial year and total volume
traded at NSE & BSE was 334.60 crore shares as against the
UDGE¾ZLTG7BY-7L8EEKLT. LTKKHL" floating stock of 74.45 crore shares.

76
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

 D4BEGV¾7IEISRZVLFTB D4BEET LTKELGVJLOVY[LJ2ET 10.7 Performance of Bank’s share price in comparison
JFTBGV&VPS_OLL;LYLH4 with Bank Nifty.

D4BEETLTKEISRZVLFTBD4BEGV¾7IELY[LJ2ETJFTBGVJLOVGV&V The graphical depiction of performance of Bank’s share


vis-à-vis Bank Nifty is given below:
WVRMLKKHL

10.8 Per Share Data:


ÈGSLTKWLBE. L
JT
   (`) 2014-15 2015-16 2016-17
Face Value (`) 2/- 2/- 2/-
WBGESFX: 
! ! !
Closing as on 31st March 144.40 84.70 149.90
FLQ;EIMFLG*SJK V MC; 
   -NSE(`)
WL 
 
  Earnings (`) 16.91 (-) 20.82 6.45
ZL)LLBL!ETÈ3TECG%P7I  LX6 LX6 Dividend per Equity Share of ` 3.30 Nil Nil
LTKJK 2/- each
Dividend (%) 165.00 Nil Nil
ZL)LLBL œ
  LX6 LX6 Book Value (`) 203.24 180.61 177.03
DHIFX: 
   Dividend payout (% of Net 20.00 Nil Nil
ÈOºLZL)LLBL LRZL)LELœ
 LX6 LX6 Profit)

PS;FLVGPSIPL;ETOL4KLVD4BEEIÈGS)LXGSLTBELTGEMI)LIMF0LJLK The securities of the Bank have not been suspended for trading
any time during the current financial year.
ETGZ M-JTB.VHIBGELYL"
10.9 Share Transfer Agent (STA)
 LTKW6SKL UTB7 M7I

DI7Z J2LCV4BGLZ B. E&*X7K MGP;MTU ÈL


 GZ ULTGE MTDI FTB Beetal Financial & Computer Services (P) Ltd., a SEBI
registered Registrar and Share Transfer Agent has been
JBUI²SWL4KLTKWBSKL UTB7H4B>D4BEETLTKWBSKL UTB7ETJFTB appointed Share Transfer Agent of the Bank with effect from
MTGVRºL2GE Y H4B"M&JE;GPPKLVIQTGO Y H4B 01.01.2013. Contact details are given below:
DI7ZJ2LCV4BGLZ B.E&*X7KMGP;MTU ÈL
GZ XGV7JI VDI
Beetal Financial & Computer Services (P) Limited (Unit: PNB)
?DI7ZHLNM >SASISZ ‘Beetal House’, 3rd Floor
>FOVYIK>-'LLVILL8GJBYMT67KETJI/T 99, Madangir, Behind Local Shopping Centre
New Delhi 110062
VC;GO:ZI
Tel. No. 011-29961281/82/83, Fax: 011-29961284
7TZIVB!!>J24%M e-mail: beetal@beetalfinancial.com
C;FTZbeetal@beetalfinancial.com
10.10 Share Transfer System for shares held in physical
10.10  FXS;JFTBKvTYTLTKLTBETGZ LTKWBSKLÈLLZI form
 (i) FXS; J FTB LTKLTB ET LTKLKE LTKLTB ET W6SKL> LTKLTB ET (i) Shareholders holding shares in physical form may send
ÈTLL>WJVT JST FTB JGKPS;V> 7TZIJ2LTV!FLTDLCZV&DK
>C;FTZ requests/communications for transfer/transmission of
shares, change of address (with Telephone / Mobile
WL4KD4BEWGOTL D4BEELVLF>JSLvLSLMB<L>FLCEKELT. Numbers), E-mail address, change in Bank mandate
C3LGO
WL4KC;¹TG.7WGOTLC3LGOETMBDBFTBLTKW6SKL (i.e. Name of Bank, Address, Account No., MICR Code
UT7ELTMITNºL2JST ¹FMBFTBGO Y
JKWVRKLT etc.), e-Credit mandate etc. directly to STA at the above
EKMESTH4BCMMTM)LIMBOTLLTBS'LLZL)LELKIGHSLTBEI#IE PB address (given at S. No. 10.9) for updation of records
MFJKÈLG*SMRGVGQSHLTMETYI" and to ensure timely receipt of all communications &
beneficial interests by them.
 (ii)D4BEEILTKWBSKLMGFGSETWVRFLTOVETDLOLTKWBSKL (ii) The transfer of physical shares is affected by the
UT67 M7I
^LKLGVL;GKSMFET)LISKFXS;LTKW6SGKS STA within the stipulated time on approval by Share
EKGOTULSTH4B" Transfer Committee of the Bank.

77
.IFT7JFTBKvTYTLTKLTBETGZ LTKWBSKLÈLLZI 10.11 Share Transfer System for shares held in Demat
form.
(i) D4BEETLTKLTBELELKLTDLKWGVPL;S.IF47JMTWLC; MWLC; V
(i) The Bank’s shares are traded in Demat mode under
EX7 WLC; VC; 160A01022 ET WBSY;S GEL ULSL H4" V4LVZ ISIN code INE160A01022 on both NSE and BSE. The
GM%XGK7IUG.JLGU7KIGZ V M.I Z
S'LLM467‹ZG.JL8GU7KI National Securities Depository Ltd, (NSDL) and the
MGP;MTUGZGF7T. MI.I M Z
G.JL8GU7KIFTBD4BEETLTK.IF47 Central Depository Services Ltd. (CDSL) are the two
JFTBKvTYTH4B" depositories holding the Bank’s shares in Demat form.
(ii) LTKLKEGUVET JLMLTK.IF47JFTB H4B NVMT WVRKLTH4 GE (ii) Shareholders are requested to inform their Depository
PT WJVT JST WL4K!LD4BEWGOTL D4BEELVLF>JSL>vLSLMB Participant (DP) directly for updating the records in case
of any change in address and/or Bank mandate (Name of
FLC;EKELT.C3LGO
FTBJGKPS;VETMBDBFTBGKEL8.;WJ.T7EKVT Bank, Address, Account No, MICR Code etc.), for shares
ETGZ MITWJVTG.JLGU7KIMHLTYIELTMXGQSEKTB" held in Dematerialized form.
CZ4%7‹LGVE PLTG7BY  LTKLKELTB MT WVRKLT H4 GE PT WJVL 10.12 Electronic Voting: Shareholders are requested to
VPIVSFC;FTZWLC;.IWJVT G.JLGU7KIMH)LLYIL M7I >U4MI register their latest email ID with their Depository
)LI G-'LGS HLT> ET ML'L JBUI²S EKPL ZTB SLGE GKFLT7 C;PLTG7BY Participant or STA, as the case may be, for enabling
MRGPLETGZ M\LFHLTMET" remote e-voting facility.
10.13 PNB-Unclaimed Shares (Suspense) A/c: The details
 JI VDI  WOLPL²S LTK NQBS
 vLST  MTDI ZWLT.IWLK
 of unclaimed shares as per SEBI (LODR) Regulations,
GPGVFVETWVRMLKWOLPL²SLTKLTB EL$L4KLGV&VGZGvSH4 2015 is as under:-
J2JIWLT 
WLC;JIWLT 
ERZ FPO (2005) IPO (2002) TOTAL
¹ GPPKL LTKÉLLKELTB LTKLTBEI LTKLKELTB LTKLTBEI LTKLKELTB LTKLTBEI S. Particulars No. of No. of No. of No. of No. of No. of
MB EIMB<L ERZMB<L EIMB<L ERZMB<L EIMB<L ERZMB<L No. Share- Shares Share- Shares Share- Shares
 PL;ETÈLK&)L       holders Holders holders
W'LL;S_ 1 Opening at the 356 60630 58 33500 414 94130
ELT beginning of
the year i.e.
DELL  01.04.2016 (Rs. 2/
!È3TE
each)
 PL;ETOL4KLV      
LTKWBSKL 2 No. of shareholders 1 120 - - 1 120
ETGZ WL  approached for
transfer of shares
LTKÉLLKELTBEI during the year
MB<L
 PL;ETOL4KLV      
LTKLKELTBEI 3 No. of shareholders 1 120 - - 1 120
to whom shares
MB<LGUVET
were transferred
LTKWBSGKS during the year
GE Y 
 PL;ETWBS       4 Outstanding at the 355 60510 58 33500 413 94010
W'LL;S_ end of the year
 i.e. 31.03.2017
ELTDELL (1-3)


*ÈFLGLSGELULSLH4 GECVLTKLTB JKPLTG7BYWGELKSDSE»IUKHTYLUDSE * Certified that voting rights on these shares remains frozen till the rightful owner
EICVLTKLTBELWMZI-PLFIOLPLVHIBEKSL" claims the said shares.

FLQ;>EIG-'LGSWVRMLKLTKLGKSLS'LLGPSKL 10.14 Shareholding and Distribution Pattern as on 31st


March 2017
J47V;
(i) Shareholding Pattern
(i) LTKLGKSLJ47V;
LTKLKELTBEI+TLI LGKSCG%P7ILTKLTBEIÈGSLSSL Shareholders’ Category %age Equity shares held
)LLKSETKL7‹JGS 65.01 President of India 65.01
J2WLC;WLC;! VWLKWLC;!WLTMIDI 9.99 FIIs/NRIs/OCBs 9.99
D4BE!GPºLI MB-'LL B!DIFL 13.78 Banks/Financial Institutions/ 13.78
E&JGVLB Insurance Companies
&RQRWZJ2. 5.76 Mutual Funds 5.76
LKTZXE&JGVLB!7‹-7 0.75 Domestic Companies/Trusts 0.75

78
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

)LLKSIUVMLLKL!GVPLMIUV! QX J2 4.55 Indian Public/Resident Individuals/HUF 4.55


%ZIGKBYMO-¶L 0.16 Clearing Members 0.16
ERZ 100.00 Total 100.00

(ii) EIG-'LGSWVRMLKLTKLKELTBEIMB<L (ii) No. of shareholders as on 31.03.2017 367730

(iii) È3TECG%P7ILTKELMLBETGSEFX: 
! (iii) Nominal value of each Equity Share (`) 2/-
iv) GPSKLJ47V; iv) Distribution Pattern

LTKLKELTB ERZEI LTKLTBELMLBETGSE CG%P7ILTKLTB KLGL 


ERZEI No. of % age Shareholding of No. of Amount (`) %age to
EIMB<L ÈGSLSSL FX: 
EIMB<L ÈGSLSSL Shareholders of Total Nominal Value of (`) Equity Shares Total

  SE    363694 98.90 Upto 5000 79419778 158839556 3.73

  MT    2640 0.71 5001 to 10000 9224759 18449518 0.43

  MT    691 0.18 10001 to 20000 4915198 9830396 0.23

  MT    174 0.04 20001 to 30000 2133609 4267218 0.10

  MT    83 0.02 30001 to 40000 1492188 2984376 0.07
  MT    53 0.01 40001 to 50000 1211726 2423452 0.06
  MT    93 0.02 50001 to 100000 3224554 6449108 0.15
  PWGE    302 0.08 100001 and above 2026346446 4052692892 95.23
ERZ     Total: 367730 100.00 2127968258 4255936516 100.00

v)  EI G-'LGS WVRMLK )LL4YLTGZE WLLK JK v) Geographical spread of Shareholders as on
31.03.2017
LTKÉLLKELTBEIG-'LGS
CZ4%7‹L8GVE FXS;JFTB ERZ ELECTRONIC PHYSICAL TOTAL
LHKELVLF LTKÉLLKE ÈGSLS LTK ÈGSLS LTKÉLLKE ÈGSLS LTK ÈGSLS LTKÉLLKE ÈGSLS LTK ÈGSLS
CITY NAME HOLDER % SHARES % HOLDER % SHARES % Holder % Share %
WHFOLDLO 14496 4.04 3612891 0.17 57 0.65 31500 0.45 14553 3.96 3644391 0.17
AHMEDABAD 14496 4.04 3612891 0.17 57 0.65 31500 0.45 14553 3.96 3644391 0.17
D4BYZLTK 14642 4.08 3935779 0.19 212 2.43 182255 2.60 14854 4.04 4118034 0.19 BANGSALORE 14642 4.08 3935779 0.19 212 2.43 182255 2.60 14854 4.04 4118034 0.19
Q46VC; 13410 3.74 8612806 0.41 411 4.71 362625 5.17 13821 3.76 8975431 0.42 CHENNAI 13410 3.74 8612806 0.41 411 4.71 362625 5.17 13821 3.76 8975431 0.42
GO:ZI 31956 8.90 1395922525 65.82 776 8.90 619565 8.83 32732 8.90 1396542090 65.63 DELHI 31956 8.90 1395922525 65.82 776 8.90 619565 8.83 32732 8.90 1396542090 65.63
H4OKLDLO 8336 2.32 3575932 0.17 165 1.89 143500 2.05 8501 2.31 3719432 0.17 HYDERABAD 8336 2.32 3575932 0.17 165 1.89 143500 2.05 8501 2.31 3719432 0.17
ELTZEºLL 16994 4.73 5003485 0.24 276 3.16 247990 3.54 17270 4.70 5251475 0.25 KOLKATA 16994 4.73 5003485 0.24 276 3.16 247990 3.54 17270 4.70 5251475 0.25
FR&DC; 44220 12.32 647421519 30.53 543 6.22 440710 6.28 44763 12.17 647862229 30.45 MUMBAI 44220 12.32 647421519 30.53 543 6.22 440710 6.28 44763 12.17 647862229 30.45
VMIWLKW6 10955 3.05 3556849 0.17 224 2.57 186025 2.65 11179 3.04 3742874 0.18 NCR OTH 10955 3.05 3556849 0.17 224 2.57 186025 2.65 11179 3.04 3742874 0.18
W6 203997 56.82 49312547 2.33 6060 69.46 4799755 68.43 210057 57.12 54112302 2.54 OTHER 203997 56.82 49312547 2.33 6060 69.46 4799755 68.43 210057 57.12 54112302 2.54

ERZ 359006 100 2120954333 100 8724 100 7013925 100 367730 100 2127968258 100 TOTAL 359006 100 2120954333 100 8724 100 7013925 100 367730 100 2127968258 100

vi)  ETWVRMLKLTKLKELTB^LKLFXS;JFTBS'LL.IFT7 vi) Details of shares held by the Shareholders in Physical


& Dematerialized form as on 31.03.2017
JFTBLGKSLTKLTBELGPPKL
¹ GPPKL LTKLKELTB LTKLTBEIMB<L LTKLGKSLEL S. Particulars No. of No. of %
MB EIMB<L ÈGSLS No. Shareholders Shares Shareholding
1. FXS;JFTB 8724 7013925 0.33 1. Physical 8724 7013925 0.33
2. .IF47JFTB GUVFTB MT 359006 2120954333 99.67 2. Dematerialized 359006 2120954333 99.67
i
V M.I Z 244379 709287814 33.33 i) of which, NSDL 244379 709287814 33.33
ii
MI.I M Z 114627 1411666519 66.34 ii) CDSL 114627 1411666519 66.34
ERZ 
367730 2127968258 100.00 Total (1+2) 367730 2127968258 100.00

GPºLIPL;ETOL4KLV>D4BEVT!ÈGSCG%P7ILTKETWBGESFX: During the Financial Year, Bank allotted 16,43,70,768 Equity


ETETÈIGFFJK>>>CG%P7ILTK)LLKSMKELK Shares of `2/- each at a premium of `126.49 per Equity Share
ELT WGFLV WLLK JK WLDBG7S GET GUMET J2Z-PJ D4BE ELT  to Govt. of India on preferential basis and the amount received
>>>EIKLGLÈL*SHRC;" by the Bank on this account is `2111,99,99,980.32.

79
GPºLIPL;ETOL4KLVD4BEVTELTC;)LIUI.IWLK! .IWLK! 10.15 Bank has not issued any GDRs/ADRs/Warrants or any
PLKB7W'LPLELTC; )LIJGKPS;VIGPZTvULKIVHIB GELH4 S'LL convertible instruments during the financial year 2016-17
 ELT ELTC; UI.IWLK! .IWLK!PLKB7 L ELTC; JGKPS;VI and there are no outstanding GDRs/ADRs/Warrants or
GPZTvDELLVHIBH4" any convertible instruments as on 31.03.2017.

EFLTG.7IFX:ULTGvFLX6H4"GPOTLIGPGVFULTGvFPH4GUBY 10.16 Commodity Price Risks are Nil. As regards foreign


exchange risk and hedging activities:
MTM&DG6SYGSGPGL‚GV&VH4
● Board approved Investment Policy in line with prudential
● DLT.; VT GVPTL JL8GZMI ELT WLC;WLK F.I> GF. WL8GJ2M ^LKL
guidelines/Bank guidelines framed by Mid Office,
DVL Y ÈR.TBGLZGOLLGVO;TL!D4BEETGOLLGVO;TLETMFLVLBSK Integrated Risk Management Division (IRMD) is in place
WVRFLTGOS GEL H4 ULT GE GPG)L6V MIFLWLTB EI GJ2G%MBY ^LKL which defines potential future losses by fixing various
E7ZL8M!ZL)LMIFLTBWJVLVL .IZKPLC;U!EKTBMIPLC;U
> limits such as cut loss/take profit limits (Dealer wise/
WLTPKVLC;7!J2LKP.; WLTJVG-'LGSC3LGOET JLT7TBGLZ)LGP Currency wise), Overnight/forward open positions etc.
FTBHLTVTPLZIHLGVELTJGK)LLGLSEKSLH4"CB7‹L.TWLTJVG-'LGSET Exchange risk associated with intraday open position
ML'L_ .TZLC;7WLTJVG-'LGSMIFLGJ2G%MBY^LKLGPGVFULTGvF is also addressed by fixing Daylight Open Position limit.
DSLSLH4"FÉPSI;ELL;ZWLC;WLK F.I^LKLGPG)L6VF41LTGK7I Foreign Exchange risk arising due to mismatch of foreign
DET7_MFTBGPOTLIFRÇLVEOIÈPLHETGFMF4QETELKLN3J6V currency cash flow in different maturity buckets are
GPOTLI GPGVF ULTGvF MIFLWLTB U4MT WLC;UI Z> UI Z WL4K addressed by limits such as IGL, AGL and VaR fixed and
monitored by Mid Office, IRMD.
PI WLKEIGZGF7GJ2%-.PNVEIGVYKLVIEIULSIH4"
● M)LI FQ;TB7 WLLGKS 7‹LBUT%LV FTB WLLS!GVL;S!WLPE ÈTLL! ● All merchant (Export/Import/Inward remittance/Outward
ULPEÈTLL
WBSKD4BEFLE;T7FTB WLT7IMI.TGKPTG70M -P4JP remittance) based transactions are hedged through OTC
derivatives (swap and forward) in Interbank market.
J2LKP.;
ETFLÉFMTKG\LSGETULSTH4"
● J2MI VWLK!C;C; J2MI!WLK J2MI ET FLÉF MT MAGUS X M.I ● USD funds generated through FCNR/EEFC/RFC are
J2B.-PL)LLGPEJMTNMIFRÇLFTBNMIETJ2B.ETCB¾ZLTBETJ naturally hedged as inflow and outflow of fund takes
place in the same currency. Aforesaid deposits other
FTBKG\LSHLTSIH4"X M.IETWZLPLNJ;RºL2UFL BFRÇL-P4JSBL
than USD are converted into USD through currency
ET FLÉFMT X M.IFTB JGKPGS;SHLTSIH4 WL4K LL7T FTB ZIYC;
swap mechanism and deployed profitably after taking
-P4JZLYSELTJQLSZL)LFTBÈOGL;SEIULSIH4"
swap cost into account.
● HFLKTJLM EMROAPMRJGK)LLGLS FWLC; MH4GUMETFLÉF
● We have a robust and well defined MIS through which
MT O4GVEYGSGPGLTB ET È3TEGOVM)LI-SKJKN1QÈDBV
daily activities are placed before Top Management
ET MF\L KvVT MT JXP; OTvL ULSL H4" CMT FÉPSI; ELL;Z> at all levels every day. The same has been defined in
WLC;WLK F.I ^LKL DVLC; YC; DLT.; WVRFLTGOS GVPTL JL8GZMI FTB Board approved Investment Policy framed by Mid Office,
JGK)LLGLSGELYLH4" IRMD.
CG%P7IM&DG6SFRÎLTETMBDBFTBJLLQLKELJSL 10.17 Address for Correspondence in respect of equity
 E&JVIMGQP related issues:
 JBULDV4LVZD4BE The Company Secretary
 LTKGP)LLY>GPºLÈ)LLY Punjab National Bank
 >MBMOFLY;>VC;GO:ZI Share Department, Finance Division
 OXK)LLLMB 5, Sansad Marg, New Delhi 110001
Tel. No. 011- 23708257
 J24%M
Fax : 011-23766079,
 C;FTZ hosd@pnb.co.in e-mail : hosd@pnb.co.in
WL8VZLC;V GLELS GVPLKL ÈLLZI LTKLKELTB EI 10.18 Online grievance redressal system: The Bank has
JX/SL/!GLELSLTBETGVJ7LVHTSRJLLQLKMGHSMFWPGEF made available an online query/grievance/complaint
redressal system for reducing the time period involved in
EKVTETGZ D4BEVTWL8VZLC;VJX/SL/!GLELS!GLELSGVPLKL
correspondence in resolving the shareholders’ queries/

80
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

ÈLLZINJZ$EKLC;H4"VC;ÈLLZIETWBSY;SLTKÉLLKEHFLKI grievances. Under the new system the shareholder may


PTDMLC;7 www.pnbindia.in JK NJZ$ EKL  Y  JLT7;Z ET log in their query/complaint through the portal provided
in our website www.pnbindia.in under Investorinfo>
FLÉFMT Investorinfo>others>OnlineShareholderqueri
others> OnlineShareholderqueries/requests/grievances.
es/requests/grievances ET WBSY;S WJVI JX/SL/!GLELS The shareholder will be able to view status of the
OU;EKMESTH4B"LTKLKEOU;EKVTEIGSG'LMTZTEKNMET reference from the date of lodging till its resolution.
GVJ7LVEIGSG'LSEGLELSEIG-'LGSELTOTvMESTH4B"
For Punjab National Bank
²STJBULDV4LVZD4BE

-'LLVVC;GO:ZI MRVIZFTHSL
Place: New Delhi (Sunil Mehta)
GOVLBE ÈDBGVOTLE PBFR<EL;JLZEWGELKI Date: 16/05/2017 Managing Director & CEO

LLTLLL Declaration
MTDI ZWLT.IWLK
GPGVFVET (As per Schedule V (D) of the SEBI
WVRMXQIV .I
ETWVRMLK (LODR) Regulations, 2015)

D4BE VT M)LI DLT.; MO-LTB S'LL PGK# ÈDBV PY; ET WGELGKLTB ET The Bank has laid down a Code of Conduct for all the Board
Members and Senior Management Personnel of the Bank,
GZ WLQLKMBGHSLS4LKEIH4 GUMT D4BEEIPTDMLC7 https://www.
which is posted on the website of the Bank i.e. https://www.
pnbindia.in/model-code-of-conduct.htmlJKOLL;LYLH4" pnbindia.in/model-code-of-conduct.html

DLT.;ETM)LIMO-LTBS'LLPGK#ÈDBVVTv. 
ETML'LWLQLK The Board Members and Senior Management have affirmed
compliance to the Code of Conduct in accordance with Clause
MBGHSLETWVRJLZVEIJRG7EIH4" 26 (3).
²STJBULDV4LVZD4BE For Punjab National Bank

-'LLVVC;GO:ZI MRVIZFTHSL
Place: New Delhi (Sunil Mehta)
GOVLBE ÈDBGVOTLE PBFR<EL;JLZEWGELKI Date: 16/05/2017 Managing Director & CEO

81
ELKLTDLKNºLKOLG3PGKJLT7; Business Responsibility Report
vB. EBJVIETGPLFTBMLFL6MXQVL Section A: General Information about the Company

 EBJVIEIEL8JL;TKT7 ZLYXVHIB 1. Corporate Identity Not Applicable


Number (CIN) of the
JHQLVMB<L MIWLC; V

Company
 EBJVIELVLF JBULDV4LVZD4BE 2. Name of the Company Punjab National Bank
 JBUI²SJSL JBULDV4LVZD4BE> 3. Registered address Punjab National Bank,
ÈLV ELL;Z>  )LIvL UI ELFL Head Office, 7 Bhikhaiji Cama
Place, New Delhi-110607
*ZTM>VC;GO:ZI
 PTDMLC7 www.pnbindia.in 4. Website www.pnbindia.in
 C;FTZWLC;.I eicsmead@pnb.co.in, 5. E-mail id eicsmead@pnb.co.in,
md@pnb.co.in md@pnb.co.in
 GPºLIPL;GKJLT7;  6. Financial Year reported 2016-17

 BJVIGUV\LTL LLTB
MT MBDH4 WL4]LTGYEYGSGPGLTB ET 7.
 E Sector(s) that the Company is engaged in (industrial
ELT.ETWVRMLK
 activity code-wise)

¹F EL;\LTL Sr. Sectors


MB No.
1 D4BGEBYMTPL B 1 Banking Services
2 MKELKIELKLTDLK 2 Government Business
3 FQ;TB7D4BGEBY 3 Merchant Banking
4 UTBMIELKLTDLKDIFL>&XQRWZJ2B.>VÈDBVWLGO 4 Agency Business- Insurance, Mutual Funds, Wealth
Management etc.

 SIVÈFRvN3JLO!MTPL B DSL B GU6HTB EBJVIGVGF;SEKSIH4! 8. List three key products/services that the Company
NJZ$EKLSIH4 SRZVJLETWVRMLK
 manufactures/provides (as in balance sheet)

 D4BEETN3JLOLTBWL4KMTPLWLTBELTGV&VGZGvSSIVLILLT’ETWBSY;S The Bank’s products & services can be categorized


PYI;²SGELULMESLH4 under the following three heads:

  U FLKLGLLTB FTB QLZX UFLKLGLLB> DQS UFLKLGLLB> MLPG 1. Deposits include Current Deposits, Savings
UFLKLGLLBS'LLWLPSI;UFLKLGLLBLLGFZH4B" Deposits, Term Deposits and Recurring Deposits.
  žL PBWGY[FFTBLLGFZH4B 2. Loans and Advances include
  E v  ROKL žL WLPLM žL> PLHV žL> P4GºL2E žL a. Retail loans: Housing Loan, Conveyance loan,
WLGO Personal loan etc.
  v ²  GLžLGEMLV¹TG.7EL.;>JI VDIY[LFNOLTUVL b. Agriculture Loans: Kisan Credit Card, PNB Gram
WLGO Uday Scheme etc.
  Y  F M FC;žLÈLVFBLIFRÇLLTUVL>-74B.WJCBG.L c. MSME Loans: Pradhan Mantri Mudra Yojana,
LTUVL>ÈLVFBLIKLTUYLKMAUVEL;¹F JI FC;UIJI
> Stand up India loan, Prime Minister Employment
Generation Programme (PMEGP) etc.
WLGO
d. Corporate Loans: Working Capital loans, Project/
  L E  L8JL;TKT7žLEL;LIZJXBUIžL>JGKLTUVL!MLPGžL Term loans etc.
WLGO
3 Other Products :
  W6N3JLO
a. Mutual Fund
  E &XQRWZJ2B.
b. Depository Services
  v G.JL8GU7KIMTPL B
c. Merchant Banking
  Y FQ;TB7D4BGEBY
d. Wealth Management Services
  L VÈDBVMTPL B

82
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

  . WL8VZLCV7‹TG.BY e. Online Trading


  Q ¹TG.7!.TGD7EL.;ELKLTDLK f. Credit/Debit Card Business

  / DIFLMTPL B g. Insurance Services

  U J24%7GKBYMTPL B h. Factoring Services

 ERZ-'LLVLTB EIMB<LUHL‚ EBJVI^LKLELKLTDLKIYGSGPGL‚ 9. Total number of locations where business activity is
MBQLGZSEIULKHIH4B undertaken by the Company

 EWBSKL;7‹I-'LLVLTB EIMB<L ÈFRvETGPPKLÈOLVEKT


B  a. Number of International Locations (Provide
details of major 5)
   LLvLWLTB  HLBYELBY>  ORDC;> S'LL  WLTDIXFRBDC;
>  Bank has its Overseas presence in 9 countries by
WVRLBGYLTB ZBOV PB )LX7LV
> MLTGM 7 EULE-SLV
> way of 4 branches (2 Hong Kong, 1 Dubai and 1
MBRºL2 N]F VTJLZ
 S'LL  ÈGSGVG ELL;ZLTB GM.VI OBU-Mumbai), 2 Subsidiaries (London and Bhutan),
WL8-7‹TGZL> LB LLC;QIV> LELDLB9ZLOTL WL4K ORDC;X C;
 ET 1 Associate (Kazakhstan), 1 Joint Venture (Nepal)
and 4 Representative Offices (Sydney-Australia,
FLÉFMTD4BEEIKL7‹LTBFTBP4GPENJG-'LGSH4"
Shanghai-China, Dhaka-Bangladesh & Dubai-UAE).
 vKL7‹I-'LLVLTBEIMB<L
b. Number of National Locations
  FLQ;JKJI VDIETWBQZELL;Z UT.WLT
>
PNB has 13 Zonal Offices (ZOs), 76 Circle Offices, 6938
FB.ZELL;Z>LLvL BS'LL 7I FH4B"
Branches and 10681 ATMs as on March 31st 2017.
 E
 BJVI^LKLMTGPSDLULK-'LLVI!KL5I!KL7‹I!WBSKL;7‹I 10 Markets served by the Company – Local/State/
National/International
 D 4BEPAHOLLvLVT7PE; ET ML'LKL7‹I PB WBSKL;7‹IDLULKLTB FTB
MTPL BNJZ$EKLKHLH4" Both National and International markets with large branch
network.
vB.DIEBJVIETGPºLIGPPKL Section B: Financial Details of the Company
 QRESLJX‚UI WLC; VWLK
 EKLT.  1 Paid up Capital (INR) `425.59 crore

 ERZELKLTDLK WLC; VWLK


 EKLT.  2 Total Business (INR) `1041197 crore

 ERZEKJQLSZL)L WLC; VWLK


 EKLT.  3 Total Profit after Taxes (INR) `1325 crore

  K JQLS ZL)L ET ÈGSLS ET J FTB GVYGFS MLFLGUE 4.
E Total Spending on Corporate Social Responsibility
NºLKOLG3P MI MWLK
JKGELYLERZ0 œ
 (CSR) as percentage of profit after tax (%)

  WÈ4Z  MT  FLQ;  EI WPG ET OL4KLV> FR< During the period from 1st April 2016 to 31st March 2017,
MI MWLKYGSGPGLTBJKGELYLERZ0ZLvH4 a sum of `272.30 lakh has been incurred on Core CSR
GUMELGPPKLGV&VLVRMLKH4 initiatives with details as under:

VLF DU7 GELYL0 Name Budget Amount incurred


ZLvFTB
MT (` lakh) (`lakh)
(01.04.16 to

31.03.2017)
ZLvFTB

ÈEL!WBELJKMI MWLK 1200.00 272.30 CSR at HO 1200.00 272.30


& ZOs

HL8EIWELOFI 220.35 136.90 Hockey Academy 220.35 136.90

WLK MC;7IWLC; 2516.10 1714.00 RSETIs 2516.10 1714.00

J27IMI! J2 ZMI 1046.00 882.00 FTC/ FLC 1046.00 882.00


ZL.ZI - 35.57 Ladli - 35.57
ERZ 4982.45 3040.77 Total 4982.45 3040.77

83
 NVYGSGPGLTBEIMXQIGUVJKNJ;R%SFTBNG:ZGvS0 5. List of activities in which expenditure in 4 above has
GE Y H4B been incurred:-

 GUVÈFRvMI MWLKYGSGPGLTBJK0GE Y H4B>PTGV&VLVRMLK List of Core activities (CSR) in which expenditure has
H4B been incurred is as below:

 EGQGE3MLULBQGLGPK a. Medical Check Up Camps


b. Tree Plantations
 vPA\LLKLTJL
c. Blood Donation Camps
 Y KºL2OLVGLGPK
d. Distribution of Artificial Limbs
 L ²GLFWBYLTBELGPSKL
e. Installation of Solar Lights
 ¥ML4KZLC7_MEI-'LLJVL
f. Installation of Digital Registration Machines at Hospital
 Q HL8G-J7ZFTBG.GU7ZJBUIEKLFLIVLTBEI-'LLJVL
g. Construction of Bus Shelter
 / DMWL+ELGVFL;L
h. Experimental Learning material through Government
 U MKELKI-EXZLTBETFLÉFMTÈLLTGYEGL\LLMLFY[I Schools
W6MI MWLKYGSGPGLBCMÈELKH4B Other CSR activities are as below:

E D4BE²LELTB>FGHZLWLTB PY[LFILRPLWLTB ELT 0PMLGEÈGL\LL a. The Bank is making an effort to upgrade knowledge
ÈOLVEKNVET,LVPEL4LZELN6VVEKVTHTSRGVKBSKÈLMKS and skills of farmers, women and rural youth through
H4" imparting vocational training.

v D4BEVTMI MWLKYGSGPGLTBET EGH-MTETJFTBJI VDIHL8EI b. The Bank continued its efforts to promote sports and
nurturing young talents as a part of CSR activities through
WELOFIETFLÉFMTvTZLTBELTD LPLOTVTWL4KRPLÈGS)LLWLTBEL
PNB Hockey Academy.
JLTLLEKVTETWJVTÈLMLTBELTULKIKvLH4"
Section C: Other Details
vB.MIW6GPPKL
1. Does the Company have any Subsidiary Company/
 %LEBJVIEIELTC;WVRLBYIEBJVI!EBJGVLBH4= Companies?
W
 WVRLBGYL‚ a. Subsidiaries
 E LKTZXWVRLBGYL‚ a. Domestic Subsidiaries

¹MB MB-'LLELVLF -PLGF3PEL Sr. Name of the Entity Proportion of


WVRJLS œ
No. ownership %

 JI VDIGY:7_MGZGF7T. 74.07 1 PNB Gilts Ltd. 74.07

 JI VDIC6PT-7FTB7MGP;MTUGZGF7T. 100 2 PNB Investment Services Ltd. 100

 JI VDICBLTKTBMD[LTGEBYÈLCPT7GZGF7T.# 81 3 PNB Insurance Broking Pvt. Ltd.# 81

#JI VDICBLTKTBMD[LTGEBYÈLCPT7GZGF7T.GVG¹H4"D[LTGEBYZLCMTBMMKTB.KGELULQREL # PNB Insurance Broking Pvt. Ltd is non functional. The broking license has been
H4S'LLEBJVIETMFLJVHTSREOFN#L ULKHTH4B" surrendered and steps are being taken for winding up of the company.

 vWBSKL;7‹IWVRLBGYL‚ b. International Subsidiaries

¹ MB-'LLELVLF GVYFVELKL7‹ -PLGF3PEL Sr. Name of the Entity Country of Proportion of
MB WVRJLS œ
No. incorporation ownership %

1. JBULDV4LVZD4BE XVLC7T.GEBY.F 100 1 Punjab National Bank United Kingdom 100


CB7KVTLVZ
GZGF7T. (International) Ltd.

2. .‹EJI VDID4BEGZGF7T. )LX7LV 51 2 Druk PNB Bank Ltd Bhutan 51

84
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

WL
 MLTGM 7_M D4BEEIœLNMMTWGEGH-MTOLKI
b. Associates: (Bank having 20% or more stake)

 E LKTZX MLTGM 7_M a. Domestic Associates

¹ \LTLIY[LFILD4BELTB!W6 MLTGM 7_M -PLGF3PEL Sr. Name of Regional Rural Banks / Proportion of
MB ELVLF WVRJLS œ
No. Other Associates Ownership (%)
1 FÉGDHLKY[LFILD4BE>J7VL 35 1 Madhya Bihar Gramin Bank, Patna 35
2 MP;HGKLLLY[LFILD4BE>KLTHSE 35 2 Sarva Haryana Gramin Bank, Rohtak 35
3 GHFLQZY[LFILD4BE>FB.I 35 3 Himachal Gramin Bank, Mandi 35
4 JBULDY[LFILD4BE>EJXK'LZL 35 4 Punjab Gramin Bank, Kapurthala 35
5 MP;XJIY[LFILD4BE>FTK# 35 5 Sarva UP Gramin Bank, Meerut 35
6 GÈBGMJZ JI VDI MT7 F4VTUFTB7 E&JVI 21.38 6 Principal PNB Asset Management Co. 21.38
ÈLCPT7GZGF7T. Pvt. Ltd.
7 GÈBGMJZ7‹-7IE&JVIÈLCPT7GZGF7T. 30 7 Principal Trustee Co. Pvt. Ltd. 30
8 JI VDIHLNGMBYJ2LCVTBMGZGF7T. 39.08
8 PNB Housing Finance Ltd. 39.08

 vWBSKL;7‹I MLTGM 7_M b. International Associates

¹ MB-'LL! MLTGM 7_M GVYFVELKL7‹ -PLGF3PEL Sr. Name of Entity/ Country of Proportion of
MB ELVLF WVRJLS œ
No. Associates incorporation Ownership (%)
1 UT MMI MDIJI VDI EULE-SLV 49 1 JSC SB PNB, Kazakhstan 49
EULE-SLV Kazakhstan

 Y WBSKL;7‹IMBRºL2N]F c. Joint Venture: International

¹ MB-'LL! MLTGM 7_M GVYFVELKL7‹ -PLGF3PEL Sr. Name of Entity/ Country of Proportion of
MB ELVLF WVRJLS œ
No. Associates incorporation Ownership (%)
1 PKT-7D4BEGZGF7T. VTJLZ 20 1 Everest Bank Ltd. Nepal 20

 %L FXZ EBJVI EI ELKLTDLK NºLKOLG3P JHZLTB FTB WVRLBYI 2. Do the Subsidiary Company/Companies participate in
EBJVI!EBJGVLBMH)LLGYSLEKSIH4B=GOHL‚SLT TMIWVRLBYI the BR Initiatives of the parent company? If yes, then
EBJVI GVLTB
EIMB<LOTB" indicate the number of such subsidiary company(s)

 VHIB No

 %L ELTC; W6 MB-'LL!MB-'LL B W'LL;S WLJXGS;ESL;> GPSKE 3. Do any other entity/entities (e.g. suppliers,
C3LGO
GUMET!GUVETML'LEBJVIELKLTDLKEKSIHLT>EBJVI distributors etc.) that the Company does business
EIELKLTDLKNºLKOLG3PJHZLTB FTB MH)LLGYSLEKSIH4B=GO with, participate in the BR initiatives of the Company?
HL‚ SLT TMIMB-'LL!MB-'LLWLTB ELÈGSLSDSL B šœMT EF> If yes, then indicate the percentage of such entity/
œMTœ>œMTWGE› entities? [Less than 30%, 30-60%, More than 60%]

 VHIB No

vB..IELKLTDLKNºLKOLG3PMXQVL Section D: BR Information

 ELKLTDLKNºLKOLG3PETGZ NºLKOLIGVOTLE!GVOTLELTBEL 1 Details of Director/Directors responsible for BR


GPPKL
a. Details of the Director/Directors responsible for
E E
 LKLTDLKNºLKOLG3PVIGS!VIGSLTBETELL;6PVHTSRNºLKOLI
implementation of the BR policy/policies
GVOTLE!GVOTLELTBETGPPKL
¹MB $L4KL GPPKL Sr. No. Particulars Details
1 .IWLC; VMB 06861202 1 DIN No. 06861202
2 VLF +IETPID[ÄLUIKLP 2 Name Shri K.V. Brahmaji Rao
3 JOVLF EL;JLZEGVOTLE 3 Designation Executive Director

85
v ELKLTDLKN3SKOLG3PÈFRvELGPPKL b. Details of the BR Head

¹MB $L4KL GPPKL Sr No. Particulars Details

1 .IWLC; VMB ZLYXVHIB 1 DIN Number Not Applicable

2 VLF +IPIJIU4V 2 Name Shri V.P Jain


3 JOVLF FHLÈDBE> 3 Designation General Manager,
EL;VIGSÈDBV PBWLG'L;E Strategic Management and
Economic Advisory Division
JKLFL;È)LLY
4 7TGZJ2LTVVB 011-26183901 4 Telephone number 011-26183901

5 C;FTZWLC;.I vpjain@pnb.co.in 5 e-mail id vpjain@pnb.co.in

 GMLBSPLK VPIUIETWVRMLK


DIWLKVIGS!VIGSL‚ NºLK 2. Principle-wise (as per NVGs) BR Policy/policies
HL‚!VHIBFTBOTB
 (Reply in Y/N)

¹ ÈV Sr. Questions

Customer Relations
Engagement & CSR
No
LTKLKEMBZ9VSL

MB

Business Ethics
N3JLON3SKOLG3P

Responsibility

Human Rights
ELKLTDLKV4GSESL

EF;QLKIE:LL

Public Policy
MLP;UGVEVIGS

Environment
Wellbeing of

Stakeholder
Employees
PMI MWLK
FLVPLGELK

Y[LHEMBDB

Product
MI MWLK
JL;PKL

CSR
JI JI JI JI JI JI JI JI JI P1 P2 P3 P4 P5 P6 P7 P8 P9

1 %LWLJET JLMET 1 Do you have policy/ Y Y Y Y Y Y Y Y Y


HLB HLB HLB HLB HLB HLB HLB HLB HLB policies for....?
GZ VIGS!VIGSL8BH4=
2 2 Has the policy Y Y Y Y Y Y Y Y Y
%L VIGS EL GVL;KL
being formulated in
MBDBGS GHSLKELTB ET HLB HLB HLB HLB HLB HLB HLB HLB HLB consultation with the
JKLFL;MTGELYLH4= relevant stakeholders?
3 %L VIGS GEMI KL7‹I! 3 Does the policy Y Y Y Y Y Y Y Y Y
conform to any
WBSKL;7‹IFLVEETWVRJ
HLB HLB HLB HLB HLB HLB HLB HLB HLB national /international
H4=GOHLB>SLTPL;VEKTB= standards? If yes,
L$OLTBFTB
specify?(50 words)
4 %L VIGS DLT.; ^LKL 4 Has the policy been Y Y Y Y Y Y Y Y Y
WVRFLTGOSEIYC; H4=GO approved by the Board?
Is yes, has it been
HLBSLT%LT F.I!-PLFI! HLB HLB HLB HLB HLB HLB HLB HLB HLB signed by MD/owner/
MIC;WLT!MBYS DLT.; GVOTLE CEO/appropriate
^LKLH-SL\LGKSH4= Board Director?
5 %L EBJVI FTB VIGS ET 5 Does the company have Y Y Y Y Y Y Y Y Y
a specified committee
ELL;6PVEIOTvKTvHTSR
of the Board/ Director/
DLT.; EI GPLTL MGFGS! HLB HLB HLB HLB HLB HLB HLB HLB HLB Official to oversee the
GVOTLE!WGELKIH4B= implementation of the
policy?
6 VIGSELTWL8VZLCVOTvVT 6 Indicate the link for the
ETGZ GZBEDSL B= policy to be viewed
online?
 %L VIGS ET DLKT FTB M)LI 7 Has the policy been Y Y Y Y Y Y Y Y Y
ÈLMBGYE WLBSGKE P DLÂ formally communicated
HLB HLB HLB HLB HLB HLB HLB HLB HLB to all relevant
GHSLKELTBELTWL4JQLGKEJ internal and external
MTMXGQSGELYLH4= stakeholders?
 %L VIGS!VIGSLTB ELT ZLYX 8 Does the company Y Y Y Y Y Y Y Y Y
EKVT HTSR EBJVI FTB ELTC; HLB have in-house
HLB HLB HLB HLB HLB HLB HLB HLB
WLBSGKEMBKQVLNJZ$H4= structure to implement
the policy/policies?

86
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

 %LVIGS!VIGSLTBMTMBDBGS 9 Does the Company Y Y Y Y Y Y Y Y Y


GHSLKELTBEIMF-LWLTBET have a grievance
redressal mechanism
MFLLVHTSREBJVIFTBVIGS! related to the policy/
VIGSLTB ET MBDB FTB ELTC; HLB HLB HLB HLB HLB HLB HLB HLB HLB policies to address
GLELSGVPLKLSBLH4= stakeholders’
grievances related to
the policy/policies?
 %LGEMIWLBSGKEW'LPL 10 Has the company N N N N N N N N N
DLÂ UTBMI^LKLCMVIGS carried out independent
audit/evaluation of
ET EL;QLZV EI -PSBLVHIB VHIB VHIB VHIB VHIB VHIB VHIB VHIB VHIB the working of this
ZTvLJKI\LL!FX:LBEV EKLL policy by an internal or
ULSLH4= external agency?

 GO¹FMBETGEMIGMLBSELNºLK?VHIB H4>SLT²JL 2a.


E  If answer to S.No. 1 against any principle, is ‘No’,
0L<LEKTBGE TML%LTBH4= GPE:JSEWBGESEKTB
please explain why: (Tick up to 2 options)

¹ ÈV JI JI JI JI JI JI JI JI JI Sr. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
No.
MB
 EBJVIGMLBSLTBELTMF 1 The company has
not understood the
VHIBJLC;H4"
Principles
 EBJVI TMI WP-'LL FTB 2 The company is not
VHIB H4 UHLB GVL;GKS at a stage where it
GMLBSLTB JK VIGSLTB ELT finds itself in a position
to formulate and
GVGJS S'LL ZLYX EK implement the policies
MET" on specified principles
 EBJVIETJLMCMEL;ET 3 The company does
GZ GPºLIW'LPLUVLGºL2 ZLYXVHIB not have financial or NOT APPLICABLE
manpower resources
MBMLVNJZ$VHIBH4" available for the task
 WYZTFHIVLTBETWBOK 4 It is planned to be done
TMLEKVTEILTUVLH4 within next 6 months

 WYZT EPL; ET WBOK 5 It is planned to be done


TMLEKVTEILTUVLH4 within the next 1 year

 ELTC; W6 ELKL 6 Any other reason


²JL-J7EKTB
(please specify)

 ELKLTDLKNºLKOLG3PMTMBDBGSWG)LLLMV 3. Governance related to BR

● PHWLPAGºLDSL BGUMFTBGVOTLEFB.Z>DLT.;EIMGFGS ● Indicate the frequency with which the Board of


W'LPLMIC;WLTEBJVIETELKLTDLKNºLKOLG3PETGVJLOV Directors, Committee of the Board or CEO to
ELFX:LBEVEKST H4B"FLHET )LISK>MT FLHFTB> assess the BR performance of the Company. Within
ÈGSPL;> EPL;MTWGEWPGJK= 3 months, 3-6 months, Annually, More than 1 year.

  D 4BEETELKLTDLKNºLKOLG3PGVJLOVETFX:LBEVHTSRGVOTLE  T he Board of Directors meets annually to assess the


FB.ZEIPLGL;ED4#EHLTSIH4" BR performance of the company.

● %LEBJVIDIWLKW'LPLG-'LKSL M-7TVTGDGZ7I
GKJLT7; ● D
 oes the Company publish a BR or a Sustainability
ELÈELLVEKSIH4=CMTOTvVTETGZ HLC;JKGZBE%L Report? What is the hyperlink for viewing this?
How frequently it is published?
H4=CMETJ[ELLVEIWLPAGºL%LH4=
  D 4BEPLGL;EWLLKJKDIWLKGKJLT7;ÈELGLSEKSLH4"CMTD4BE The BR report is published annually and is placed on
the website of the Bank and the hyperlink for viewing
EIPTDMLC7JKGOLULSLH4GUMTOTvVTETGZ HLC;JKGZBE
this is https://www.pnbindia.in
https://www.pnbindia.inH4"

87
vB.C;GMLBSPLKÈOL;V Section E: Principle-wise performance

GMLBSELKLTDLKELTV4GSESL>JLKOGL;SL PBUPLDOTHIETML'L Principle 1: Businesses should conduct and govern


-PBELTMBQLGZS PBGVBGLSEKVLQLGH " themselves with Ethics, Transparency and Accountability
1. Does the policy relating to ethics, bribery and
 % LV4GSESL>GKPSP)L[7LQLKMT MBDBGSVIGSETPZEBJVI
corruption cover only the company? Yes/ No. Does
ELT EPK EKSI H4= HL‚!VHIB" %L H MFXH!MBRºL2 N]FLTB!
it extend to the Group/Joint Ventures/Suppliers/
WLJXGS;ESL;WLTB!MBGPOLELKLTB! VUIWLT!W6ELT)LIEPKEKSIH4= Contractors/NGOs /Others?
 D 4BEFTB EWLQLKMBGHSLH4ULTV4GSESL>GKPSvLTKIWL4K)L[7LQLK The Bank has a code of conduct which covers ethics,
ELT EPKEKSIH4 WL4K TMT FLY;OL;EGMLBSLTB ELT GVL;GKSEKVT bribery and corruption which attempts to set forth the
ELÈLMEKSIH4>GUVJKD4BEMBQLGZSHLTYLWL4KWJVTGPGP guiding principles on which the Bank shall operate
and conduct its daily business with its multitudinous
GHSÉLLKELTB>MKELKWL4KGVLFE UTBGMLTB>FIG.LP-PBMTM&D stakeholders, government and regulatory agencies,
W6GEMIETML'LWJVTO4GVEELKLTDLKELTMBQLGZSEKTYL" media and anyone else with whom it is connected.
 D 4BEMF-SGVOTLELTB S'LLELTKÈDBVET M)LIMO-LTB MT WJT\LL The Bank expects all Directors and members of the Core
EKSLH4GEPTWJVTY[LHELTB>EF;QLGKLTBPW6GHSLKELTBETGHS> Management to exercise good judgment; to ensure the
interest, safety and welfare of customers, employees
MRK\LL PB E:LLELT MRGVGQSEKVT ET GZ W1/LGVL;ZTBYT
and other stakeholders and to maintain a cooperative,
WL4KELKLTDLKIMBY#VFTBMHLTYI>ERLZ>MELKL3FE>MLFBU-JXL; efficient, positive, harmonious and productive work
WL4KN3JLOEEL;JGKPTLDVL KvTBYT" environment in the business organization.
 GJ/ZTGPºLIPL;FTBGHSLKELTBMTGESVIGLELSTBÈL*SHRC’ 2. How many stakeholder complaints have been received
S'LLGESVTÈGSLSELÈDBV^LKLMBSLTLUVEMFLLVGEL in the past financial year and what percentage was
satisfactorily resolved by the management? If so,
YL=GO TMLH4SLTZY)LYL$OLTBFTBCMELGPPKLOTB"
provide details thereof, in about 50 words or so.
 GPºLI PL;  ET OL4KLV GHSLKELTB MT ERZ  GLELSTB During financial year 2016-17 we have received 15
ÈL*SHRC;BS'LLM)LIEL œ
MBSLTLUVEJMTMFLLVGEL complaints from stakeholders and all (100%) were
YL" resolved satisfactorily.

GMLBSELKLTDLKELT TMT N3JLOWL4KMTPL B ÈOLVEKVIQLGH  Principle 2: Businesses should provide goods and services
ULT MRKG\LSHLTB S'LLWJVT M&JXL; UIPVQ¹ET OL4KLVG-'LKSLFTB that are safe and contribute to sustainability throughout
MHLEHLTB" their life cycle

 JVT TMTN3JLOLTBPMTPLWLTBEIMXQIDVL BGUVEIJKTvL a.


E W List up to 3 of your products or services whose
FTB MFLU L JL;PKL MT MBDBGS FRÎT> ULTGvF S'LL!W'LPL design has incorporated social or environmental
concerns, risks and/or opportunities.
WPMKLLGFZHLTB"
 D 4BEWJVILLvLWLTB> 7I F>CB7KVT7 PB.LTK-7TJD4BGEBYETGP-SAS The Bank provides sustainable banking products through
its extensive network of branches, ATMs, internet and
VT7PE;ETFLÉFMT-'LLID4BGEBYN3JLOPMTPL ‚ÈOLVEKSLH4"
door step banking. Some of our products and services
HFLKTER/N3JLOWL4KMTPL BCMÈELKH4B are:
 ● G.GU7ZN3JLO  ● D
 igital products:
  D 4BE VT VEOI KGHS MFLU ELT D LPL OTVT ET GZ  CB7KVT7 The Bank has introduced several products which
D4BGEBY>FLTDLCZD4BGEBY> 7I F>ML4K¦UL;MBQLGZSDLLTFTG7‹E promote a cashless society viz. internet banking,
7I FU4MTEC;N3JLOLTBELWLKB)LGELH4" mobile banking, ATMs, solar powered biometric
ATMs.
  )LIF)LLKSIKL7‹I)LRYSLVGVYF VJIMIWLC;
^LKLGPEGMS BHIM is another Mobile App developed by National
EW6FLTDLCZ TJH4ULT EI²S)LRYSLVCB7KJ2TM XJIWLC;
 Payments Corporation of India (NPCI), based on
JKWLLGKSH4 WL4KD4BECMFTB MG¹JMT MH)LLGYSLEK the Unified Payment Interface (UPI) in which we are
KHLH4" actively participating.
  JI VDIVTWJVT.TGD7EL.;LKELTBETGZ Y[IVGJVMRGPL PNB has launched Green Pin facility for its debit card
WLK&)LEIH4WL4KJI FUT.IPLC;vLSLTBELT/LT. EK.TGD7EL.; holders and has stopped physical pin printing in debit
card except in PMJDY accounts.
FTB)LL4GSEGJVFRÇLDBOEKGOLH4"

88
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

 ● GPºLIMFLPTLVJHZ  ● F inancial Inclusion Initiatives:


  GPºLI MTPL B GP)LLY> GPºL FBLLZ> )LLKS MKELK ^LKL DFS, MOF, GOI has declared PNB as first among
JI FUT.IPLC;vLSLTBETFLÉFMTUR7LC;YC;VKLGLLTBETMBO)L; all banks in deposit moblised through PMJDY
accounts and second in overall implementation
FTB M)LID4BELTB ET DIQJI VDIELT LIL;-'LWL4KJI FUT.IPLC;
of PMJDY. Some of the new initiatives of the
ET MFY[ ELL;6PVFTB G^SI-'LLVJK LLTGLSGELYLH4"
Bank in Financial Inclusion have been providing
DIMI-'LLVJKJI VDIFT7ZLCJ2DIFLLTUVL B>CB7KVT7D4BGEBY PNB MetLife policies at BC location, Atal Pension
ETFLÉFMTW7ZJTBLVLTUVL>M)LIDIMI-'LLVJKFLC¹LT Yojana through internet banking, Micro ATMs
7I FNJZ$EKLVLWL4KDIMI-'LLVJKWLLKMIG.BYM\LF deployed at all BC location and Aadhaar seeding
EKVLGPºLIMFLPTLVET\LTLFTBD4BEEIER/VC;JHZH4B" enabled at BC location.

 ● ²LEÈGL\LLETBÇ  ● F armers' Training Centers:


  D 4BEVTGEMLVÈGL\LLETBÇ-'LLGJSGE H4B>GU6HTBGEMLVLTB The Bank has established 11 Farmers Training
ET vTSLTB FTB FAOL JKI\LL MRGPL RºL2 FLTDLCZ P4V ET ML'L Centres which have been equipped with the Mobile
MRMG5USGELYLH4WL4KGEMLVLTBETGZ MXQVLÈOPIG.LT Van having Soil testing facilities at the farmers’ fields
and LED for audio visual display of informative video
G%ZJETWL8G.LTGPURWZÈOL;VHTSRCVFTB ZC;.IZYL Y 
clips to the farmers. The Bank is also running Rural
H4B"D4BEY[LFIL-PKLTUYLKÈGL\LLMB-'LLV WLK MC;7IWLC;
)LI
Self Employment Training Institutes (RSETIs) which
MBQLGZSEKKHLH4>ULT Y[LFILZLTYLTB PB NVET JGKPLKLTB ELT are engaged in providing training to rural people and
-PKLTUYLK N]F!VL4EGKLB EKVT ET GZ  EL4LZ N6VV HTSR their families for skill upgradation to undertake self-
ÈGL\LLÈOLVEKVTFTBMBZ9VH4B" employment ventures/Jobs.
v  TMTÈ3TEN3JLOETGZ N3JLOEIÈGSCELC; P4EG:JE
 b. For each such product, provide the following details
JKMBMLV NUL;>UZ>E1QLFLZC3LGO
NJLTYETMBDB in respect of resource use (energy, water, raw
FTBGV&VGZGvSGPPKLÈOLVEKTB material etc.) per unit of product (optional):
i. Reduction during sourcing/production/
 i.  &JXL;P4:XQ4VFTBMLTGM;BY!N3JLOV!GPSKLETOL4KLVYS
M distribution achieved since the previous year
PL;MTWLC;EFI= throughout the value chain?
 ii. NJ)LLTºL2LWLTB ^LKLMBMLV NUL;>UZ
NJLTYET OL4KLV ii. Reduction during usage by consumers (energy,
water) has been achieved since the previous
YSPL;MTWLC;EFI=
year?
 ZLYXVHIB" Not Applicable.

Y % LEBJVIFTB -'LLI-LLTSLTB JGKPHVMGHS


ET GZ ELTC; c. Does the company have procedures in place for
sustainable sourcing (including transportation)? If
EL;ÈLLZIH4=GOHL‚SLTWLJETWLOLVLTBELGESVLÈGSLS
yes, what percentage of your inputs was sourced
-'LLC; J MT -LLTS GEL YL= ZY)LY  L$OLTB FTB CMEL sustainably? Also, provide details thereof, in about
GPPKL)LIOIGU " 50 words or so.

 D E
B4  TMT GPºLIN3JLOWL4KMTPL BGPEGMS PBÈOLVEKVTELÈLM The Bank strives to develop and offer financial products
and services that, directly or indirectly, lead to long-term
EKSLH4 ULT È3\LW'LPLWÈ3\LJMT OI L;ELGZEJL;PKLI
environmental benefit and social development. The
GHSS'LLMLFLGUEGPELMELELKLDVSTH4"B D4E B WJVTWGELBL Bank procures most of its products from locally based
N3JLOLTB ELT-'LLVIWLLKPLZTWLJXGS;ESL;WLTB MTvKIOSLH4WL4KMX\F suppliers and also actively supports the Micro and Small
PBZ LRN]FLTB F MC;
ELMG¹JMTMF'L;VEKSLH4" Enterprises (MSE).

L % LEBJVIVT WJVT EL; -'LZET WLMJLMET -'LLVI PB d. Has the company taken any steps to procure goods
/LT7TN3JLOELTBPMFROLLTBMTP-SRWLTB PBMTPLWLTBEIvKIOHTSR and services from local & small producers, including
communities surrounding their place of work? If yes,
EOFN#L H4B=GOHL‚SLT-'LLVI PB/LT7TPTB.KLTBEI\LFSL what steps have been taken to improve their capacity
WL4KLT9SLELTD LVTHTSR%LEOFN#L Y H4B= and capability of local and small vendors?
 D 4BGEBYN3JLOLTBEIȲGS)LL4GSEMBMLVÈLVVHLTEKMTPLT6FRvI The nature of banking products is service oriented and not
H4WL4KD4BEWLYTÈMBMLVETGZ FLZEIvKIOVHIBEKSLH4" material resource intensive, and the Bank does not procure
goods for further processing. The Bank encourages
D4BE F M FC;NLKESL;WLTBELTWJVTWLOLVMX\FN]FLTBMTÈL*S
the MSME borrowers to source their inputs from micro

89
EKVTHTSRÈLT3MLGHSEKSLH4"D4BE-PBMHLSLMFXHLTBWL4KFGHZL enterprises. The Bank provides loans at subsidized rate
N]FLTBELTGKLSIOKJKžLÈOLVEKSLH4" to Self Help Groups and Women enterprises.

¥ %L EBJVI FTB N3JLOLTB PB WJGL7 EI KIMLCG%ZBY EI e. Does the company have a mechanism to recycle
ELTC; 0P-'LL H4= GO HL‚> SLT N3JLOLTB S'LL WJGL7 EI products and waste? If yes what is the percentage of
KIMLCG%ZBYELÈGSLS JA'LEJMT<œ>œ>>œ recycling of products and waste (separately as <5%,
ETJFTB
%LH4=ZY)LYL$OLTBFTBCMELGPPKL)LI 5-10%, >10%). Also, provide details thereof, in about
OIGU " 50 words or so.
Being a service oriented organization, recycling of
  TPLT6FRvIMBY#VHLTVTETVLSTD4BEETN3JLOLTBETGZ N3JLOLTBEI
M products is not applicable for bank’s products. The Bank
KIMLCG%ZBYZLYX VHIB H4"D4BEEI EC;WJGL7VIGSH4 WL4K has an e-waste policy and purchases office materials like
D4BE'LLMB)LPWGESFKIMLC;EZEIYC;P-SRWLTBMTDVIELYU> Paper, stationery products, toilet paper, refuse sacks,
-7TLVKIN3JLO>7L8ZT7JTJK>DLTKI>ELBQ>G.$DTWL4K*ZLG-7EU4MI glass, cans and plastics made from recycled materials to
ELL;ZMLFY[IHIvKIOSLH4" the maximum extent possible.

GMLBSELKLTDLKELTMF-SEF;QLGKLTBETE:LLELTÈLT3MLGHS Principle 3: Businesses should promote the wellbeing of


EKVLQLGH " all employees

 ²JLEF;QLGKLTBEIERZMB<LDSL B"  Please indicate the total number of employees.
The total number of employees as on 31st March 2017 is
 FLQ; JKEF;QLGKLTB EIERZMB<L WVRLBGYLTB MGHS
 73919 (including subsidiaries) which include 4933 Part-
H4GUMFTBWBLELGZEMJ2LC;EF;QLKILLGFZH4B" time sweepers.
 ²JL W-'LLI!MBGPOL!WLEG-FE WLLK JK KvT Y    lease indicate the total number of employees hired
P
on temporary/contractual/casual basis.
EF;QLGKLTBEIERZMB<LDSL B"
One employee on contractual basis
 MBGPOLWLLKJK EEF;QLKI"   lease indicate the number of permanent women
P
employees.
 ²JL-'LLIFGHZLEF;QLGKLTBEIMB<LDSL B"
The number of full time women employees as on 31st
 FLQ;JKFGHZLEF;QLGKLTBEIMB<LH4" March 2017 is 14615.
 ²JL LLKIGKE J MT W\LF EF;QLGKLTB EI MB<L   lease indicate the number of permanent employees
P
DSL B" with disabilities?
 FLQ; JKLLKIGKEJMT W\LF-'LLIEF;QLGKLTB EI The number of permanent employees with disabilities as
on 31st Mar’17 is 1003.
MB<LH4"
  o you have an employee association that is
D
 %LWLJELELTC; EF;QLKIMB LH4 GUMT ÈDBV^LKLFL6SL recognized by management?
ÈL*SH4=   ll India PNB Employees Federation and All India PNB
A
 WL8ZCBG.LJI VDI &*ZLTIUJ24.KTLVWL4KWL8ZCBG.LJI VDI Officers’ Association.
WL8GJ2MM; MLTGM LV"   hat percentages of your permanent employees are
W
 FL6SL ÈL*S EF;QLKI MB L ET MO-LTB FTB WLJET -'LLI members of this recognized employee association?
EF;QLGKLTBELÈGSLS%LH4= 86% of permanent employees are members of the above
 ZY)LYœ-'LLIEF;QLKINJGKGZGvSMB LLTBETMO-H4B" unions and associations.
  lease indicate the Number of complaints relating to
P
 ²JLYSGPºLIPL; ET WBSSEÈL*SHRC; PB ZBGDSKHI child labour, forced labour, involuntary labour, sexual
DLZFUOXKI>DBRWLFUOXKI>WV4G1/E+F>L4VN3JI. VMT harassment in the last financial year and pending, as
MBDBGSGLELSLTBEIMB<LDSL B" on the end of the financial year.
¹ +TLI GP3SIPL; GP3SIPL; Sr. Category No of No of
No. Complaints Complaints
MB ETOL4KLVOLK EIMFLG*SJK
filed during pending as at
EIYC;GLELSLTB ZBGDSGLELSLTB FY’17 end of FY’17
EIMB<L EIMB<L
1 DLZFUOXKI!DBRWLFUOXKI LX6 LX6 1 Child labour/forced labour/ NIL NIL
!WV4G1/E+F involuntary labour
2 L4VN3JI. V 5 2 2 Sexual harassment 5 2
3 )LTO)LLPJXL; LX6 LX6 3 Discriminatory NIL NIL
KLTUYLK employment

90
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

 WLJETGV&VGZGvSEF;QLGKLTBETGESVTÈGSLSELTYSPL;   hat percentage of your under mentioned employees


W
MRK\LL PBEL4LZN6VVÈGL\LLÈOLVGELYL= were given safety & skill up-gradation training in the
last year?
 E-'LLIEF;QLKI  œ
a. Permanent Employees : 65.5
 v-'LLIFGHZLEF;QLKI  œ b. Permanent Women Employees : 66.5
 YWLEG-FE!W-'LLI!MBGPOLEF;QLKI  LX6 c. Casual/Temporary/Contractual Employees: NIL
 LW\LFEF;QLKI  œ d. Employees with Disabilities : 89.5
GMLBSELKLTDLKELT M)LIGHSLKELTB>GPLTLEKPBGQS>EFULTK Principle 4: Businesses should respect the interests of, and
PBMIFLBSGHSLKELTBETGHSLTBELÉLVKvVLQLGH WL4KNVETÈGS be responsive towards all stakeholders, especially those
who are disadvantaged, vulnerable and marginalized.
N3SKOLIHLTVLQLGH "
 % LEBJVIVT WJVT WLBSGKEWL4KDLÂGHSLKELTB EIF4GJBY   as the company mapped its internal and external
H
stakeholders?
EIH4=
Yes, The Bank has identified its key stakeholders, internal
 HL‚>D4E
B VTWJVTÈFRvWLBSGKE PBDLÂGHSLKELTB EIJHQLVEIH4 and external and they include shareholders, customers,
WL4KCVFTB LTKLKE>Y[LHE>D4E
B EF;QLKIS'LLMFLULLGFZH4"B CVJK bank employees and society. They are further segregated
WGEÉLVOTVT ETGZ N6HTB WLYTGPG)L6VNJPYLT’ FTB DLB7LYLH4" into various subsets for enhanced focus.

 %L EBJVI VT NJ;RºL2 FTB MT PBGQS> EFULTK PB MIFLBS   ut of the above, has the company identified
O
the disadvantaged, vulnerable & marginalized
GHSÉLLKELTBEIJHQLVEIH4= stakeholders?
 )LLKSMKELKWL4KWLKDIWLC; VT GPºLIMFLPTLV>ÈL'LGFESL\LTL Government of India and RBI has prescribed guidelines
ELT žL OTVT> EFULTK PYLT’ ELT žL OTVT WLGO JK GOLLGVO;TL on Financial Inclusion, Priority Sector Lending, Lending
GVÉLL;GKS GE  H4B WL4K D4BE VT CV GOLLGVO;TLLTB ET WVRMLK PBGQS> to Weaker Sections etc. and the bank has identified the
disadvantaged, vulnerable & marginalized stakeholders
EFULTKWL4KMIFL6SGHSLKELTBEIJHQLVEIH4" as per those guidelines.
 D 4BE??EL;-'LZJKGPGPSL ELM&FLVEKSLH4 WL4KGPGP The bank values “Diversity at Workplace” and to enable
JA#)LXGFETEF;QLGKLTB^LKLWJVIJXKI\LFSLÈL*SEKVT PBMBY#V employees from diverse backgrounds to reach their full
FTBGVKBSKD VTEIGOLLFTBN6HTBM\LFDVLSLH4"D4BEVTFGHZLWLTB> potential and constantly grow in the organisation, bank
has created three developmental cells for Women,
GO0LBYLTB PB MMI! M7IEF;QLGKLTB ET GZ SIVGPELMÈELT#
Differently-abled and SC/ST employees.
DVL H4B"
 %LPBGQS@EFULTK PB MIFL6SGHSLKELTB EIMBZ9VSLHTSR   re there any special initiatives taken by the company
A
to engage with the disadvantaged, vulnerable and
EBJVI^LKLELTC;GPLTLEOFN#L Y H4B=GOHL‚>SLTZY)LY marginalized stakeholders. If so, provide details
L$OLTBFTBCMELGP-SASGPPKLOTB" thereof, in about 50 words or so.
“Giving back to the Society” is the prime motive behind our
 ?MFLUELTZL47LVL HFLKIMI MWLKYGSGPGLTB ELFR<NÎTH4"
CSR activities. The Bank undertakes various initiatives
D4E
B VTPBGQS>EFULTK PBMIFL6SGHSLKELTB ETGZ GPG)L6VJHZ for the disadvantaged, vulnerable and marginalized
EIH4"B Z LR!MIFLBS²LELT>B MX\FN]FLT>B -PBMHLSLMFXHLT>B EFULTK stakeholders. Loans are given at subsidized rates to
PY;WL4KFGHZLN]GFLTB ELTGKLSIOKLTB JKžLGOLULSLH4"D4E B  Small/Marginal Farmers, Micro enterprises, Self Help
Groups, Weaker sections and Women entrepreneurs.
GPG)L6V6LM!ETÇB )LIMBQLGZSEKKHLH4 U4MT GEJI VDI²LE The Bank is also running various Trust/Centers as:
E:LL6LM>JI VDILSL$OIY[LFILGPELM6LM>GPºLIML\LKSL PNB Farmer Welfare Trust, PNB Centenary Rural
ETÇB WLGO"T 6LMPBGQSMFROLLTB FTB ULYESLN3J6VEKVT S'LL Development Trust, Financial Literacy Centers etc. These
NVETEL4LZN6VVETFLÉFMTDTKLTUYLKIPYKIDIMTNDKVT PB trusts help the underprivileged communities to overcome
unemployment and poverty and shape their own future
WJVL)LGPDVLVTFTB NVEIMHLSLEKSTH4"B through awareness creation and upskill them.
GMLBSELKLTDLK^LKLFLVPLGELKLTBELTÈLT3MLHV PBM&FLVGOL Principle 5: Businesses should respect and promote
ULVLQLGH " human rights

 %LFLVPLGELKLTBJKEBJVIEIVIGSETPZEBJVIELTEPK   oes the policy of the company on human rights
D
EKSI H4 W'LPL H MFXH!MBR%S N]FLTB!WLJXGS;ESL;WLTB! cover only the company or extend to the Group/Joint
Ventures/Suppliers/Contractors/NGOs/Others?
MBGPOLELKLTB!Y4KMKELKIMBY#VLTB!W6ELT)LIEPKEKSIH4=

91
 D 4BE +F ELVXVLTB WL4K EF;QLKI ET WGELKLTB ET WVRJLZV MGHS The Bank includes pertinent clauses related to human
GP¹TSLWLTBETML'LWJVTWVRDBLTBFTBFLVPLGELKMTMBDBGSNGQS rights in its agreements with vendors, including their
adherence to labor laws and employee rights.
LKL BLLGFZEKSLH4"
 Y SGP3SIPL; FTB GHSLKELTB EIGESVIGLELSTB ÈL*SHRC;B   ow many stakeholder complaints have been
H
WL4KÈDBV^LKLGESVTÈGSLSELMBSLTLUVEMFLLVGEL received in the past financial year and what percent
was satisfactorily resolved by the management?
YL=
During Financial Year 2016-17 we have received 15
 GP3SIPL;ETOL4KLVHFTBGHSLKELTBMTGLELSTBÈL*S complaints from stakeholders and all (100%) were
HRC;BWL4KM)LIEL œ
MBSLTLUVEMFLLVGELYLH4" resolved satisfactorily.

GMLBSELKLTDLKELTJL;PKLELÉLVKvVT>MBK\LLEKVT PB Principle 6: Business should respect, protect, and make


CMTDHLZEKVTETÈLMEKVTQLGH " efforts to restore the environment

 % LGMLBSMTMBDBGSVIGSETPZEBJVIELTEPKEKSI   oes the policy related to Principle 6 cover only the
D
H4 W'LPLHMFXH!MBRºL2N]FLTB!WLJXGS;ESL;WLTB!MBGPOLELKLTB! company or extends to the Group/Joint Ventures/
Suppliers/Contractors/NGOs/others.
Y4KMKELKIMBY#VLTB!W6ELT)LIEPKEKSIH4=
 D 4BEHGKSÈ'LLWLTBELTÈLT3MLGHSEKSLH4WL4KCMETGZ D4BEEI The Bank encourages green practices and has a
Green initiative policy for the same. Under the policy,
EHGKSJHZVIGSH4"D4BECMVIGSET SHSHKT JL4T ZYLVT>
the bank encourage plantation of green plants, using
KIMLCE:. ELYU EL NJLTY EKVT> C;.L8%XFTB7_M EL NJLTY re-cycled papers, e-documents and prescribing use of
EKVTWL4KMI J2 ZU4MTJL;PKLETWVREXZZLC7D:DLTBELHI only environment friendly light bulbs such as CFLs. The
NJLTYEKVTELTÈLT3MLGHSEKSLH4"D4BEEIVIGSETWVRMLKCMET Bank’s policy incorporates environmental and social risks
žLGVL;LTBFTB)LIJL;PKLPMLFLGUEULTGvFLLGFZH4B" in its lending decisions.

 % L UZPLR JGKPS;V> 9ZLTDZ PLGF;BY WLGO U4MT P4GPE   oes the company have strategies/ initiatives to
D
JL;PKLIFRÎLTBJKÉLVOTVTETGZ EBJVIEIELTC;VIGS! address global environmental issues such as climate
change, global warming, etc? Y/N. If yes, please give
JHZH4=HL‚!VHIB"GOHL‚>SLT PTDJTUWLGOELHLC;JKGZBE hyperlink for webpage etc.
NJZ$EKL B"
The Bank does imbibe green sustainable products,
 D 4BE G7EL¦ HGKS N3JLOLTB> ÈG¹LWLTB> VIGSLTB PB È'LLWLTB ELT processes, policies and practices.
WJVLSLH4"
  T he Bank does not extend finance to environmentally
  D4BEJL;PKLEIOAG7MTvSKVLEN]LTYLTBELTGPºLÈOLVVHIB hazardous industries. Preference is given to
EKSLH4"JL;PKLETWVREXZHGKSJGKLTUVLWLTBELTÈL'LGFESL environment friendly green projects.
OIULSIH4"
  GPGVFL;LCELCLTB ET GZ >D4BE TMT ÈOXLELTB ET JL;PKLFTB   F or manufacturing units, the Bank insists upon
installation of effluent treatment projects for processing
GV-SLGKSHLTVTMTJXP;NVETÈMB-EKLETGZ N3ÈPLHNJQLK
of such pollutants before release into the environment
JGKLTUVLWLTB EI -'LLJVL JK ULTK OTSL H4 WL4K H MRGVGQS and ensures that the borrower also obtains NOC from
EKSLH4GEžLIET6ÇI!KL5ÈOXLLGVBLLDLT.;MT VWLTMI Central/State Pollution Control Board.
)LIÈL*SEKTB"
  MI MWLKJHZLTBETWBSY;SPA\LLKLTJLGLGPKWLLTGUSGE UL   U
 nder CSR initiatives tree plantations camps are
being organized, rain water harvesting is being
KHTH4B>FL4UXOL)LPVFTBPLL;UZMBQVGELULKHLH4WL4K done in existing building and new constructions are
M)LIV GVFL;LJL;PKLET WVREXZH4B"D4BEJPV¦UL; ELT environment friendly. Bank is promoting wind energy
D LPLOT KHLH4 WL4KY[LFIL\LTLLTB FTB ML4K¦UL; ELT ZLTEGÈ and popularizing solar energy in rural areas.
DVLKHLH4"
  D4BEP4EG:JEMTPLGPSKLQ4VZLTBEINJZ$SLELTD LKHL   B
 ank is enhancing availability of alternative service
delivery channels and promoting its use by its
H4 WL4K WJVT Y[LHELTB S'LL EF;QLGKLTB ^LKL CMET NJLTY ELT
customers and staff leading to paper saving.
ÈLT3MLGHSEKKHLH4GUMMTELYUEIDQSHLTSIH4"
  ^LKELWL4KYR. YLBPFTB D4BEET V W3LRGVE)LPVÈFLGLS   T he Bank’s new State of Art building at Dwarka and
Gurgaon are certified Green Building having 5 Star
HGKS JGKMK H4B GU6HTB  GMSLKL ?YAH  KTG7BY ÈL*S H4" CVEI GRIHA Rating having maximum design efficiency and
G.ULCV \LFSL WGESF H4 WL4K CVFTB WLRGVESF MRGPL B most modern amenities. It will also have amenities for
H4B" CVFTB GPEZLBYLTB ET GZ  MRGPL B )LI FL4UXO HLTBYI" CMMT

92
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

MLFL6O\LSLFTBPAGHLTVTETML'LML'LMFWL4KC;BVEI the disabled. It will lead to saving in time and fuel


DQS)LIHLTYI" besides adding to the general efficiency.

 % L EBJVI MB)LLGPS JL;PKLI ULTGvFLTB EI JHQLV P   oes the company identify and assess potential
D
WLEZVEKSIH4=HL‚!VHIB environmental risks? Y/N

 D 4BE JL;PKLI GQBSLWLTB ELT OXK EKVT MT MBDBGS GPG)L6V JHZLTB The bank participates in various initiatives to address
FTB MH)LLGYSLEKSLH4"D4BEMSE;SLJXP;E TMT ELKLTDLKLTB MT DQSL environmental concerns. Bank consciously avoids
business that could have negative impact on ecosystems
H4 GUVEL JLGKG-'LGSEI SBL PB MFLU JK VELKL3FE È)LLP HLT and society and mitigate environmental and social risks
MESLH4"D4BEJL;PKLI PBMLFLGUEGVFLTBETWVRJLZV^LKL through compliance with environmental and social
JL;PKLIWL4KMLFLGUEULTGvFELTEFEKSLH4" regulations.

 D 4BE-P1/¦UL; HTSR GPºLELT D LPLOTSLH4 WL4KWJVT JGKQLZV The Bank promotes finance for clean energy and
FTBJL;PKLETWVREXZJGSLTBELT)LIJ[LT3MLGHSEKSLH4" also promotes environment friendly methods in its
operations.
 % L-P1/GPELMSBLETMBDBFTBEBJVIEIELTC;JGKLTUVL
H4=GO TMLH4SLTZY)LYL$OLTBFTBCMELGPPKLNJZ$   oes the company have any project related to Clean
D
Development Mechanism? If so, provide details
EKL B" ML'L HI> GO HL‚> SLT %L ELTC; JL;PKL WVRJLZV thereof, in about 50 words or so. Also, if yes, whether
GKJLT7;OLGvZEIYC;H4= any environmental compliance report is filed?
 DEB4 CB7KVT7D4GB EBY>FLTDLCZD4GB EBY> 7I F>XJIWLC;WLGOU4MIGPG)L6V The Bank promotes paperless banking through various
G.GU7ZJHZLTB ETFLÉFMTELYUKGHSD4GB EBYELTÈLT3MLGHSEKSL digital initiatives like internet banking, mobile banking,
H4"JGKLTUVLWLTB ELGPºLJLTLLEKST MFW\L¦UL; M[LST LTB ET SHS ATMs, UPI etc. While financing projects, preference
is given to projects under renewable energy sources.
WLVTPLZIJGKLTUVLWLTB ELTÈL'LGFESLOIULSIH4"ML'LHI>MBY#VET Also within organization, the use of e-documents is
)LISK)LIC;O-SLPTULTB ETNJLTYELTÈLT3MLGHSGELULSLH4" encouraged.

 %LEBJVIVT-P1/ÈL4]LTGYEI>¦UL;O\LSL>W\L¦UL;WLGO   as the company undertaken any other initiatives


H
ETMBDBFTBELTC;W6JHZEIH4=HLB!VHIB"GOHLBSLT²JL on – clean technology, energy efficiency, renewable
PTDJTUWLGOELHLCJKGZBENJZ$EKL B" energy, etc. Y/N. If yes, please give hyperlink for web
page etc.

 D 4BEML4K¦UL;JGKLTUVLWLTB>DLLTFLMS'LLUZPJPVNUL;Z LR The Bank finances many renewable energy products


JGKLTUVLWLTBU4MIEC;W\LNUL;JGKLTUVLWLTBELGPºLJLTLLEKSL such as Solar Power projects, Biomass and Small Hydro
and Wind Power projects. Another scheme that the bank
H4"J27L8JML4K¦UL;JGKLTUVLWLTBETGPºLJLTLLEILTUVLD4BE has launched is the Scheme for financing of Roof Top
^LKLWLKB)LEIYC; TMIHI EW6LTUVLH4" Solar Power Projects.
  LOTSTMFHMRGVGQSGELULSLH4GEGUVJGKLTUVLWLTB
ž At the time of lending, it is ensured that the projects
ETGZ GPºLGOLULKHLH4>PTJL;PKLELTVREMLVVHIBJHRBQLSI for which the finance is being given does not harm the
H4B" environment.

 JL;PKLJKORÈ)LLPELT EFEKVT ET GZ G.GU7ZÈ'LLWLTB ELT To reduce the impact on the environment, digital practices
WJVLLULSLH4 WL4K7‹LBUT%LVG-ZJET FRÇLMT DQVT ET GZ  are adopted and customers are also encouraged to
Y[LHELTBELTC;-7T7FTB7>C;PTZEFGE7WL4K 7I FMBOTLEIÈLG*S adopt e-statement subscriptions, e-welcome kits and
EIÈ'LLELTWJVLVTETGZ ÈLT3MLGHSGELULSLH4" ATM messages to avoid printing of transaction slips.

 %L GKJLT7; GE  UL KHT GP3SI PL; HTSR EBJVI ^LKL N3J6V   re the emissions/waste generated by the Company
A
N3MU;V!WJGL7 MIJIMIDI! MJIMIDI ^LKL WVRFS MIFLWLTB within the permissible limits given by CPCB/SPCB
ET)LISKH4B= for the financial year being reported?

  E MTPL MBY#V HLTVT ET VLST D4BE GEMI )LI GPLL%S vSKVLE Being a service organization the bank does not generate
ÈOXLEELN3MU;VVHIBEKSLH4" any toxic hazardous pollutants.

 MIJIMIDI! MJIMIDI MT ÈL*S TMT ELKL DSLWLT!ELVXVI   umber of show cause/ legal notices received from
N
VLTG7MLTB EI MB<L ULT GPºLI PL; EI MFLG*S JK ZBGDS CPCB/SPCB which are pending (i.e. not resolved to
W'LL;SGUVELMBSLTLUVENºLKVHIBGOLULMEL
KHT= satisfaction) as at end of Financial Year.

 LX6 Nil

93
GMLBSELKLTDLKUDZLTE PBGPGVLFEVIGSELTÈ)LLGPS Principle 7: Businesses, when engaged in influencing
EKVT FTB MBZ9V HLTB> SLT TML GU&FTOLK BY MT GEL ULVL public and regulatory policy, should do so in a responsible
manner
QLGH "
 %LWLJEIEBJVIGEMI7‹T.PQ4BDK MLTGM LVEIMO-  Is your company a member of any trade and chamber
or association? If Yes, Name only those major ones
H4=GOHL‚SLTETPZNVFR<MB-'LLWLTBETVLFDSL BGUVET
that your business deals with:
ML'LWLJELELKLTDLKMBDBKvSLH4"
The Bank is a member of:
 D4BEGV&VELMO-H4
a. Indian Banks Association (IBA)
 E)LLKSID4BEMB L WLC;DI
b. Indian Institute of Banking & Finance (IIBF)
 v)LLKSID4BGEBY PBGP3SMB-'LLV WLC;WLC;DI J2
c. Institute of Banking Personnel Selection (IBPS)
 Y D4BGEBYEF;QLKIQVMB-'LLV WLC;DIJI M
d. National Institute of Bank Management (NIBM)

 L KL7‹ID4BEÈDBMB-'LLV VWLC;DI F


e. Centre for Advanced Financial Research and Learning
(CAFRAL)
 ¥N6VSGP3SILLT PBWÉVET6Ç MI J2WLK Z

f. Federation of Indian Chambers of Commerce and


 Q )LLKSIPLGL5 PBN]LTYFB.ZFHLMB L GJ2%EI
Industry (FICCI)

 / WBSKL;7‹IPLGL5Q4BDM; WLC;MIMI


g. International Chamber of Commerce (ICC)
h. The Associated Chambers of Commerce and Industry
 U )LLKSIPLGL5 PBN]LTY MLTGM 7T.Q4BDM; MLTQTF
of India (ASSOCHAM)
  )LLKSIN]LTYJGKMB L MIWLC;WLC;
i. Confederation of Indian Industry (CII)
 ¸L )LLKSIKL7‹I)LRYSLVGVYF VJIMIWLC;
j. National Payments Corporation of India (NPCI)

 7 OI%ZIGKBYEL8JL;TKTLVWL8J2CBG.LGZGF7T. MIMIWLC; Z


k.The Clearing Corporation of India Ltd (CCIL)

 %LWLJVTE)LINJKLTºL2 MLTGM LVLTBETFLÉFMTUVGHSET   ave you advocated/lobbied through above
H
GPELMW'LPLMRLKET GZ J4KPI!ZL8GDBYEIH4=HLB!VHIB@ associations for the advancement or improvement
GOHLBSLT²JL0LJE\LTLLTB .‹LJDL8%MWG)LLLMVWL4K of public good? Yes/No; if yes specify the broad
areas (drop box: Governance and Administration,
ÈLLMV>WLG'L;EMRLK>MFLPTLIGPELMVIGSLB>¦UL;MRK\LL> Economic Reforms, Inclusive Development Policies,
UZ>vL]MRK\LL>MSSELKLTDLKVIGSLB>W6
ELN:ZTv Energy security, Water, Food Security, Sustainable
EKTB" Business Principles, Others).

 D E
B4 GPG)L6VMBY#VLTB ETFLÉFMTW'L;0P-'LLS'LLD4GB EBYMTMBDGB S The Bank puts forth suggestions related to economy and
banking through various Associations. The Whole time
MRLPWLYTD LSLH4"JXL;ELGZEGVOTLEWL4KLIL;ÈDBVGVLFE
Directors and Top Management are a part of various
PVIGSGVFL;SL^LKLDVL Y GPG)L6VEL; OZLTB ELGH-MLH4"B CM working groups set up by regulator and policy maker.
ÈELK>VIGSLBDVLSTMFGPG)L6VWLG'L;E PBGPºLIFRÎLTB ETMBD B  Thus, the bank inputs regarding various economic and
FTB D4E
B ^LKLGO Y MRLPLTB JK)LIGPQLKGELULSLH4" financial issues are considered while making policies.

GMLBS  ELKLTDLK ELT MFLPTLI PAG S'LL MLG&E GPELM FTB Principle 8: Businesses should support inclusive growth
and equitable development
MHLSLEKVIQLGH "
 %LEBJVIFTBGMLBSMTMBDBGSVIGSETWVRMKLFTBGPGL7  D  oes the company have specified programmes/
initiatives/projects in pursuit of the policy related to
EL;¹F!JHZ!JGKLTUVL BH4B=GOHLBSLTCVETGPPKLOTB" Principle 8? If yes details thereof.

 D 4BEVT MFLPTLIPAGS'LLMLG&EGPELMFTB MHLSLEKVT ET The Bank undertakes various initiatives/projects to


support inclusive growth and equitable development:
GZ GPG)L6VJHZ!JGKLTUVL BWLKB)LEIH4B"
 E
JI VDIY[LFNOLTUVLCMLTUVLETSHS>ML8CZHT:'L a. PNB Gram Uday Scheme: Under the scheme, loan
upto `1 lakh is being provided for soil reclamation/ soil
EL.; LKEGEMLVLTB ELT )LXGFMRLK!FAOLMBK\LLET GZ 
conservation to farmers holding soil health card.
ZLvSEELžLGOLULKHLH4"
 v
WJBUI²SJËÑL)LXGFJK)LXGFHIV²GLFUOXKLTBETGPºLJLTLL b.Scheme for financing landless agriculture labourers
EILTUVL" on unregistered leased land.

94
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

 Y
FGHZLUT ZUIELT ZLvSEELMBJLGP;EFRºL2 c. Scheme for providing collateral free loans to
žLÈOLVEKVTEILTUVL" Women JLGs upto `10 lakh.

 L
JI VDIGPELMD4BEVT EI²SY[LFILGPELMETGZ  d. PNB Vikas: Bank has adopted 169 villages for
Integrated Rural Development.
YLBPLTBELTWBYIELKGELH4"
e. The Bank is pro-actively participating in various
 ¥
D4BEFRÇL>-74B.WJCBG.L>ÈLVFBLIKLTUYLKMAUVEL;¹F
schemes of the Government of India like MUDRA,
JI FC;UIJI
>MX\F PBZ LRN]FLTBETGZ žLMHDJXBUI Stand Up India, Prime Minister Employment
MG$M.ILTUVL MI ZMI M M
>vLOI PBY[LFN]LTYWLLTY Generation Programme (PMEGP), Credit Link Capital
ETPIWLC;MI
>P-L PB UX7\LTLET GZ ÈL4]LTGYEIN6VV Subsidy Scheme (CLCSS) for Micro and Small
GVG LTUVL 7IX J2 M
> vL] ÈMB-EKL N]LTYLTB ET GZ  Enterprises, Khadi and Village Industry Commission
(KVIC), Technology Upgradation Fund Scheme for
MG$M.ILTUVLWLGOU4MI)LLKSMKELKEIGPG)L6VLTUVLWLTB Textile and Jute Sector (TUFS), Subsidy Scheme for
FTBWY[MG¹JMT)LLYIOLKIEKKHLH4" Food Processing Industries etc.
 % LEL;¹FLTB!JGKLTUVLWLTBELTWLBSGKE7IF!GVUIJ2LNB.TLV!   re the programmes/projects undertaken through
A
DLÂ-PBMTPIMB-'LLWLTB!MKELKILBQT!GEMIW6MBY#VET in-house team/own foundation/external NGO/
FLÉFMTWLLTGUSGELULSLH4= government structures/any other organization?

  ZYWZYÈ)LLYLTB ET FLÉFMT GPºLIMFLPTLVS'LLGVYGFS


W The programs/projects under Financial Inclusion and
MLFLGUENºLKOLG3PETWBSY;SEL;¹F!JGKLTUVL BMBQLGZSEI Corporate Social Responsibility are undertaken through
separate Divisions. The Bank has an internal team and
ULSI H4B" CM EL;¹F ELT MJ2Z DVLVT ET GZ  D4BE EI E partnerships with NGO and Government institutes for
WLBSGKE 7IF H4 WL4K VUIWLT PB MKELKI MB-'LLVLTB ET ML'L making the program successful.
)LLYIOLKIH4"
PNB Prerna is an association of the wives of the senior
 JI VDIÈTKLLD4E
B ETPGK#WGELGKLTB EIJG3VLTB S'LLD4E B EIPGK# officials of the bank as well as senior lady officials of the
FGHZLWGELGKLTB EIMB-'LLH4 ULT D4E B EIMI MWLKYGSGPGLTB ET bank which are performing a vital role in undertaking/
WLLTUV!ÈOL;V!MBP;VFTB FH3PJXL;)LXGFELGV)LLKHIH4"B  showcasing/promoting the Bank’s CSR activities.

 %LWLJVT WJVIJHZET È)LLPLTB ELELTC; FX:LBEVGEL   ave you done any impact assessment of your
H
initiative?
H4=
The Bank undertakes periodic reviews of various projects
 D 4BE WJVT ^LKL MBQLGZS EI UL KHI GPG)L6V JGKLTUVLWLTB EI that it is undertaking. The Bank regularly assesses its
WLPGEMFI\LLEKSLH4"D4BEGPG)L6VMKELKILTUVLWLTBETSHS position and performance under various Government
WJVIG-'LGS PBÈOL;VELGVGFSJMTFX:LBEVEKSLH4" schemes.

 MLFROLGEGPELMJGKLTUVLWLTB FTB WLJEIEBJVIELÈ3\L   hat is your company’s direct contribution to
W
LTYOLV%LH4WLC; VWLKFTBKLGLS'LLMBQLGZSEIULKHI community development projects-Amount in INR
JGKLTUVLWLTBELGPPKLOTB= and the details of the projects undertaken?

 D 4BEWJVIGPG)L6VJGKLTUVLWLTB ET FLÉFMT MLFROLGEGPELM The Bank’s contribution to community development


program has been through its various projects.
EL;¹FFTBLTYOLVEKKHLH4"
  P
 NB LADLI Scheme to promote and popularize
  MKELKI GP]LZLTB FTB PIB E\LL SE WÉV EKVT PLZI education among poor and needy girls studying in
YKID WL4K UKSFBO Z. GELTB ET DIQ GL\LL ELT D LPL OTVT Govt School upto 12th standard. 4402 girls have
PB ZLTEGÈ DVLVT ET GZ  JI VDI ZL.ZI LTUVL"  been benefited with `97.75 Lakh.
Z. GELTBELTZLvELZL)LÈOLVGELULQRELH4"
  P
 NB Kisan Balak Shiksha Protsahan Yojana for
  /LT7TGEMLVLTB>)LXGFHIV!²GL+GFELTBELTETBÇFTBKvSTHR MFLU promoting education among the weaker sections of
ET EFULTK PYLT’ FTB GL\LL ELT D LPL OTVT ET GZ  JI VDI the society with focus on small farmers, landless/
GEMLV DLZE GL\LL ÈLT3MLHV LTUVL"  /LLLTB ELT agricultural labourers. 586 students provided relief of
ZLvEIKLHSÈOLVEIYC;H4" `17.49 Lakh.

  ÈLVFBLIUIEL-P1/)LLKSWG)LLVMKELKIDLGZEL!   S


 wachha Bharat Campaign of Prime Minister
- Construction of Toilets in Govt. girl /Co-Ed
MHGL\LLGP]LZLTBFTBLL4QLZLTBELGVFL;LÈLVFBLIUIET Schools: To promote Swachha Bharat Campaign of
-P1/)LLKSWG)LLVELTD LPLOTVTETGZ D4BEVTGQGªS!WBYI²S Prime Minister, Bank has constructed 11 toilets for

95
YLBPLTB ET MKELKI -EXZLTB FTB DLGZELWLTB ET GZ   LL4QLZLTB girls in Government schools in identified/adopted
GPºLIPL; FTB
ELGVFL;LEKLLH4"W)LISEZLvEI villages. Total 89 toilets amounting to `92 Lakh have
been constructed so far.
KLGLMTERZLL4QLZLTBELGVFL;LEKLLULQRELH4"
 %LWLJVT HMRGVGQSEKVT ET GZ EOFN#L H4B GE   ave you taken steps to ensure that this community
H
CMMLFROLGEGPELMJHZELT MFROL^LKLMJ2ZSLJXP;E development initiative is successfully adopted by
WJVLLUL =²JLZY)LYL$OLTBFTBCMTMFL B" the community? Please explain in 50 words, or so.

 -'LLVIMKELK> VUIWLT>JBQLSIKLUMB-'LLVLT>B MFROLLTB WL4KW6 Community development initiatives such as PNB Vikas
-'LLVI MB-'LLVLTB U4MT M)LI GHSLKELTB ET ML'L GFZEK JI VDI are taken up together with all stakeholders such as
GPELM U4MI MLFROLGE GPELM JHZLTB JK ELF GEL ULSL H4" local government, NGOs, Panchayati Raj Institutions,
Communities and other local institutions. The Bank
-'LLVI UKSLTB PB WLPESLWLTB ET WVRMLK MRGPL B NJZ$
engages with local agencies so as to offer facilities as
EKLVT ET GZ D4E B -'LLVI UTGB MLTB ET ML'LGFZEKEL; EKSL
per the local needs and requirements. The bank also
H4"-'LLVIUVM‚<LEIWLPESLWLTB ETWVRMLKWGE-PIEL; collaborates with local panchayats/Self Help Groups
S'LLMLFBU-JXL; N3JLOS4LKEKVT ET GZ D4E B -'LLVIJBQLSLT!B for better acceptability and dovetailing products as
-PBMHLSLMFXHLTB ET ML'L)LIMHLTYEKSLH4"-'LLVIMBY#VLTB per requirements of the local populace. The alliances
ETML'LY#ULT. HMRGVGQSEKVTFTB MHLSLEKSTH4B GED4E B  TMT with local organizations ensure that the bank supports
EL;¹FLTB ELMF'L;VEKSLH4 GUVET MJ2ZHLTVT WL4KOI L;ELGZE program that are most likely to succeed and facilitate
MELKL3FEJGKPS;VFTB MHLTYIKHVTEIMB)LLPVL BMDMTWGEH4"B long term positive changes.

GMLBSELKLTDLKELTWJVTY[LHELTBPNJ)LLT%SLWLTBETML'LGU&FTOLK Principle 9: Businesses should engage with and provide value


BYMTUR. VLQLGH S'LLNVELTFX:NJZ$EKLVLQLGH " to their customers and consumers in a responsible manner

 GPºLIPL; EIMFLG*SJKGESVT ÈGSLSY[LHEGLELSTB!   hat percentage of customer complaints/consumer


W
NJ)LLTºL2LFLFZTZBGDSKHT= cases are pending as on the end of financial year.

  RZ  GLELSLTB W'LL;S GOVLBE  JK ZBGDS


E Out of total number of 35474 complaints (i.e.217
KHI  GLELSLTB S'LL GPºLI PL;  ET OL4KLV ÈL*S complaints outstanding as on 1.4.2016 and 35257
HRC; GLELSLTB ELLTY
FTB MT SE complaints received during the financial year 2016-17),
GLELSLTBELMFLLVEKGOLYL'LL"SEZBGDS 35159 complaints were redressed as on 31st March 2017.
GLELSLTBEIMB<L'LIGUVEL)LIDLOFTBMFLLVEKGOL The number of complaints pending as on 31.03.2017
was 315 which have since been resolved.
YLH4"
 %L EBJVI N3JLO ET ZTDZ JK -'LLVI ELVXVLTB ET WVRMLK   oes the company display product information on
D
WGVPL; MXQVL ET WGSGKºL2 N3JLO EL W6 GPPKL )LI the product label, over and above what is mandated
as per local laws? Yes/No/N.A. /Remarks(additional
ÈOGL;S EKSI H4= HL‚!VHIB!ZLYX VHIB!G7*JGLLB WGSGKºL2
information)
MXQVL

 GPºLIN3JLOLTBETGPPKLD4BEEIPTDMLC7JKÈOGL;SGE ULST The details of the financial products are displayed on the
website; awareness is also spread through pamphlets and
H4B WL4KJ4&JZT7LTB PB D[LTLKLTB ET FLÉFMT CVET DLKT FTB ULYESL
brochures. The advertising of the products is also done
J24ZLC; ULSI H4" CZ4%7‹L8GVE S'LL GÈB7 FIG.L FTB )LI N3JLOLTB ET in electronic and print media. Bank also has its presence
GP,LJV GO  ULST H4B" J2TMDRE WL4K G7_P7K U4MT GPG)L6V MLTLZ on various social media platforms such as Facebook
FIG.LFBQLTBJK)LID4BEVTWJVINJG-'LGSOU;EIH4>UHL‚D4BE and Twitter which effectively displays the features of the
^LKLNJZ$EKL ULKHT N3JLOLTB PMTPLWLTB EIGPLTLSLWLTB ELT products and services offered by the Bank
È)LLPIJMTÈOGL;SGELULSLH4"
 Is there any case filed by any stakeholder against
 %L YS  PLLT’ ET OL4KLV GEMI )LI GHSLKE ^LKL EBJVI the company regarding unfair trade practices,
ET GPWVRGQS0LJLKJGSLTB>Y4KGU&FTOLKLVLGP,LJV irresponsible advertising and/or anti-competitive
S'LL!W'LPLÈGS-JL;KLTI0PHLKET MBDBFTB OLKGEL behaviour during the last five years and pending
YLELTC;FLFZLGPºLIPL;ETWBSJKZBGDSKHL=GO TML as at the end of financial year. If so, provide details
H4SLTZY)LYL$OLTBFTBCMELGPPKLOTB" thereof, in about 50 words or so

 ELTC;VHIB" Nil

96
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

 %L WLJEI EBJVI VT ELTC; )LI NJ)LLT%SL MP;T\LL!NJ)LLT%SL   id your company carry out any consumer survey/
D
MBSRG7ÈPAGºLGPZTLLGELH4= consumer satisfaction trends?

 D 4BEGPG)L6VMBJE;GDBORWLTBJKZTVOTVEKVTPLZTY[LHELTBEIMBSRG7 The Bank on a continuous basis measures the satisfaction


levels of customers transacting across various touch points.
ET -SK EL MSS WLLK JK WLEZV EKSL H4" D4BE ET JLM The Bank has an Online Grievance Redressal Management
WL8VZLCVGLELSGVPLKLÈDBVEL;¹F>Y[LHEMTPLMGFGS> Program, Customer Service Committee, state of the art
YR. YLBPPVLT .LFTB W3LRGVEMBJE; ETBÇH4B"M)LILLvLWLTB PB Contact centers in Gurgaon and Noida. Customer Service
FB.ZELL;ZLTB FTB FL4UXOLY[LHEMTPLEIYRLPºLLEIULBQEKVT Committees have been set up in all the branches and Circle
offices to look into the quality of customer service rendered
WL4KY[LHEMTPLFTB MRLKHTSR GFZVT PLZIÈGSG¹LWLTB!MRLPLTB EI and to critically examine the feedback/suggestions for
MFI\LLEKVTETGZ Y[LHEMTPLMGFGSLBDVLC;YC;H4B" improvement in customer service.
 D 4BE ?E-7FK -JIE  VLFE FLGME JGLEL ÈELGLS EKSL H4 The Bank publishes a monthly magazine titled
GUMFTB Y[LHELTB ^LKLOU; EKLC; YC; QRGVBOLGLELSLTB ET ML'LML'L “Customer Speak” in which selected complaints filed
by customers and action taken and resolution provided
CVJKEIYC;ELK;PLC;WL4KGLELSESL;WLTBELTNJZ$EKL Y  to the complainants is also provided.
MFLLVGO ULSTH4B"

97
HWZHGTNMGMHVFO4TLPMH4Q
HLKMU 8<2016-17
HQ‹MJHQQLM
Corporate SocialStatement
Financial Responsibility
Report 2016-17

98
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

ÈDBGVOTLE PBFR<EL;JLZEWGELKIELMBOTL MANAGING DIRECTOR & CEO MESSAGE

D4BEEIMI MWLKGKJLT7; È-SRSEKST HR FRT WJLKÈM6VSLHLT KHIH4" It gives me immense pleasure to present the CSR Report of
CMGKJLT7;ETFLÉFMTD4BEPL;ETOL4KLVGVYGFSMLFLGUENºLKOLG3P the Bank. Through this report, the Bank underlines the major
initiatives taken up in the area of Corporate Social Responsibility
ET\LTLFTBEIYC;ÈFRvJHZLTBELTKTvLBGESEKSLH4" during the year.
JBULDV4LVZD4EB FTB GVYGFSMLFLGUENºLKOLG3PHFLKTFX:LTB FTB GVGHSH4 At Punjab National Bank, Corporate Social Responsibility is
WL4KHOLL;SLH4GEHFGEMJ[ELKWJVTZ\LTB WL4KÈGSDSLWLTB EIÈLG*S embedded in our values and depicts how we conduct business,
ETGZ 0LJLKEKSTH4>B N3JLOLTB WL4KMTPLWLTB ELGPELMEKSTH4B WL4KWJVI develop products and services and deliver our services for
attainment of our goals and commitments. Since more than two
MTPL BÈOLVEKSTH4"B QXGB ED4E B EIOLTGSHLC;MTWGELL<LL BY[LFILWL4K
thirds of the Bank’s branches are located in Rural and Semi
W;LHKICZLELTB FTB G-'LSH4>B D4E
B Y[LFILWL4KW;LHKI\LTLLTB EIMLFLGUE Urban areas the Bank understands its responsibility in pursuing
VIGSLTB ELWVRMKLEKVTEIWJVIGU&FTOLKIELTMFSLH4%LTGB ECV\LTLLTB social policies as in Rural and Semi Urban areas the CSR
FTB MI MWLKMLFL6O4GVED4GB EBYJGKQLZVLTB ELFR<)LLYH4" remains the core of normal day to day banking operations.

D4BEVTMI MWLKLTUVLWLTBETFLÉFMTPBGQSZLTYLTBETMLFLGUEE:LL The Bank endeavored to materialize social welfare of the


ELTMB)LPDVLVTELÈLMGELH4"Y[LFIL!W;LHKI)LLKSEIYKIDWL4K underprivileged through CSR schemes such as PNB Ladli,
UKSFBOZ. GELTBFTBGL\LLELTZLTEGÈDVLVTETGZ JI VDIZL.ZI> popularizing education among poor and needy girls of rural/
semi urban India, PNB Kisan Balak Shiksha Protsahan
MFLUETEFULTKPYLT’GPLTLJMT/LT7TGEMLVLTB>)LXGFHIV!²GLFUOXKLTB Yojana, promoting education among the weaker sections
FTBGL\LLELTD LPLOTVTETGZ JI VDIGEMLVDLZEGL\LLÈLT3MLHV of the society especially small farmers, landless/agriculture
LTUVLWL4KN]GFSLEL4LZGPELMETFLÉFMTFGHZLMLGºL2EKLELT labourers, and Mahila Kaushal Vikas Yojana, boosting women
D LPLOTVTETGZ FGHZLEL4LZGPELMLTUVL TMIHILTUVL BH4B" empowerment through entrepreneurial skill development.

D4BE GPLTL J MT Z LR PB MX\F N]GFLTB> FGHZLWLTB WL4K Y[LFIL The Bank has been proactively catering to the needs
and aspirations of the society at large, small and micro
RPLWLTB MGHSMFY[ MFLUEIUKSLTB WL4KWLELB\LLWLTB ELT JXKLEKVT
entrepreneurs, women and rural youth in particular. Towards
ET GZ MG¹JMT EL;KSH4"GEMLVLTB EIWLUIGPELFTB MRLK improving the livelihood of farmers, the Bank has set up 12
ZLVTETGZ >D4BEVTOTL)LKFTBGEMLVÈGL\LLETBÇLTB J27IMI
 Farmers’ Training Centers (FTCs) across the country which
EI -'LLJVL EI H4 ULT GE DLULK MBQLGZS WL4K ,LV WLLGKS ²GL are facilitating adoption of market-driven and knowledge based
OAG7ELTLELTWJVLVTFTBMHLSLOTKHTH4B"D4BEELNÎT J27IMIELT approach in farming. Bank’s aim is to transform FTCs into
OTLET²GLMFROLETGZ LGºL2LLZI,LVWL4KVPLQLKETBÇLTB FTB vibrant knowledge and innovation centers for the agrarian
community of the country. Bank has 57 Rural Self Employment
DOZVLH4"D4BEETJLMEL4LZWL4KN]FLIZSLGPELMETGZ 
Training Institutes (RSETIs) for skill and entrepreneurship
Y[LFIL-PB KLTUYLKÈGL\LLMB-'LLV WLK MC;7IWLC;
WL4KGPºLI development and 108 Financial Literacy Centres (FLCs) for
MFLPTL PB MLFL6D4BGEBYWPÉLLKLLÈMLKEIMRGPLET GZ  facilitation of financial inclusion and dissemination of general
GPºLIML\LKSLETBÇ J2 ZMI
H4B" banking concepts.

99
D4BE^LKLWJVIVIGSELTÉLVFTBKvSTHR >GVYGFSMLFLGUENºLKOLG3P Keeping its policy in view, Corporate Social Responsibility
EL;¹FLTB ELT NVZLTYLTB ELW3BSÉLVKvVT ET GZ S4LKGELYL programmes of the Bank have been designed to take utmost
care of the people who are at lower end of the social structure
H4 ULT OTLET MLFLGUELBQT ET GVQZT -SKJKH4B"JI VDIÈTKLLET of the country. Through PNB Prerna, the Bank involves the
FLÉFMT>D4BEVTUKSFBOLTBELTNVET^LKJKMTPL BOTVTETGZ WJVT spouses of its top executives in delivering services to the needy
LIL;WGÉLELGKLTBEIJG3VLTBELTLLGFZGELH4" at their doorsteps.

NJKLTºL2ETWZLPL>D4BEVTPA\LLKLTJLWG)LLVQZL H4B>¦UL;ETMBK\LL Apart from the above, the Bank has undertaken tree plantation
ETGZ GPG)L6VEOFN#L H4BWL4KJL;PKLELTMRKG\LSKvVTWL4KMFA drives, taken various steps for conservation of energy and
EKVTETGZ WJVIJHZETJFTBML4K¦UL;ETNJLTYELTÈLT3MLGHS encouragement of usage of solar energy as part of its initiatives
EKKHLH4" to protect and enrich the environment.

WBSFTBF4BHWLPLMVOTVLQLHXBYLGEWJVTMLFLGUEOLG3PLTBEIJXGS; In the end I would like to assure that the Bank’s efforts towards
ET GZ D4BEET ÈLMHFTLLEISKHULKIKHTYTB"D4BEMFLUET PBGQS fulfillment of its social obligations will continue as ever. The
ZLTYLTB SE JHRBQVT WL4K NVET UIPV FTB DOZLP ZLVT EI GOLL FTB ELF Bank will continue to work towards reaching out to have-nots
section of the society and make difference in their lives.
EKVLULKIKvTYL"

MRVIZFTHSL
(Sunil Mehta)
ÈDBGVOTLE PBFR<EL;JLZEWGELKI Managing Director & CEO

100
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

JBULD V4LVZ D4BE EL GVYGFS MLFLGUE Punjab National Bank’s Corporate Social
Responsibility Approach
NºLKOLG3POAG7ELTL
1. Corporate Social Responsibility is socially responsible
 GVYGFS MLFLGUE NºLKOLG3P D4BE EL MLFLGUE J MT and enlightened attitude of the Bank. Our CSR policy
NºLKOLIS'LLÈDROAG7ELTLH4"HFLKIMI MWLKVIGSMFLU is to ensure effective and sustained CSR programme to
ETML'LD4BEETMLFLGUEMBDBLTBELT0LJEJMTMROA EKVT strengthen social ties of the Bank with the community at
ET GZ  E È)LLPI PB MSS MI MWLK EL;¹F MRGVGQS large.
EKSIH4"
2. The CSR is an integral part of the overall PNB corporate
 MI MWLKJI VDIEIMFY[GVYGFSELKLTDLKKLVIGSELWG)L6V Business Strategy. To integrate the concepts of CSR
WBYH4"ELKLTDLKKLVIGSET ML'LMI MWLKWPLKLLWLTB ELT with Business Strategy, the Bank makes the following
EI²SEKVTHTSRD4BEEIGV&VGZGvSÈGSDSL BH4B commitments:
 GVKBSKSL 2.1 Sustainability
 JI VDI TMT JGKPS;VLTB ELN3ÈTKEDVVLQLHSLH4 ULT PS;FLVWL4K PNB intends to be a catalyst for change that benefits
)LLPIJI IETGZ ZL)LELKIHLTYB "T GVKBSKSLJI VDIEIYGSGPGLTB present and future generations. Sustainability is an
EL EWG)L6VWBYH4ULTHFLKTÈFRvELKLTDLKFTB WL4KHFLKIM)LI integral part of PNB's activities – in our core business
YGSGPGLTB FTB 0L*SH4"CMÈELK>HFWJVTMF-SGHSLKELT>B MFLU and beyond. Thus, we believe in being responsible to all
PBJL;PKLETJ[GSNºLKOLIHLTVT FTB GPPLMEKSTH4"B our stakeholders, society and the environment.
 GVYGFS-PBMTPL 2.2 Corporate Volunteering
 —MFLU ELT ZL47LVL™ HFLKI MI MWLK YGSGPGLTB EL FR< “Giving back to the society” is the prime motive behind
NÎTH4"HFWJVT EF;QLGKLTB ELT MI MWLKET DLKT FTB HI our CSR activities. The message that we give to our staff
MBOTLOTSTH4BGEWLUHFULTER/)LIEKSTH4B>PH)LGPEI regarding CSR is that whatever we do today will have
JIG LTBELTWPÈ)LLGPSEKTYL"CMÈELKHF-7LJ2MO-LTB an impact on future generations. Thus, we undertake
EIJXKI)LLYIOLKIWL4K-'LLVIUVMB<LEIMH)LLGYSLETML'L CSR activities with full participation of staff members and
WJVIMI MWLKYGSGPGLTBELMBQLZVEKSTH4B" participation of local populace.
 MLFLGUEGVPTL 2.3 Social Investments
 MLFLGUE J MT GU&FTOLK MBY#V HLTVT ET VLST D4BE JI VDI Being a socially responsible organization, we contribute
²LE E:LL 6LM> JI VDI LSL$OI Y[LFIL GPELM 6LM> to society through the PNB Farmers Welfare Trust,
JI VDIÈTKLL>²LEÈGL\LLETBÇLTB>GPºLIML\LKSL PB žL PNB Centenary Rural Development Trust, PNB Prerna,
JKLFL; ETBÇLTB>Y[LFIL-PKLTUYLKPÈGL\LLMB-'LLVLTB WL4K TMI Farmers’ Training Centres, Financial Literacy & Credit
HIW6JHZLTB ET FLÉFMT MFLUFTB WJVLLTYOLVOT KHL Counseling Centres, Rural Self Employment & Training
Institutes and other such initiatives. We help the
H4"HFDTKLTUYLKIWL4KYKIDIMT NDKVT S'LLGL\LL PB EL4LZ
underprivileged communities to overcome unemployment
GPELMEL;¹FLTBETFLÉFMTWJVT)LGPELTWLELKOTVTFTB and poverty and shape their own future through education
PBGQSMFROLLTB EIMHLSLEKST H4B" TMIM)LIJHZLTB ELT HF and skill development programmes. All these initiatives
WJVLMLFLGUEGVPTLFLVSTH4B" are counted by us as social investment.
 -PL-' 2.4 Health
 HFCMOAG7ELTLELOA  MF'L;VEKST H4B GEMFLU PB KL7‹ We strongly endorse the view that healthy mind and
ETMFY[GPELMETGZ  E-P-'LJGKPTLFTB-P-'LFVWL4K healthy body in a healthy environment is essential for
-P-'LSVGVSLBSWLPEH4B"WSHFNV\LTLLTBFTBGVPTLEKST overall growth of society and the nation. Thus, we invest in
H4BULTCMÈELKETMBP;VFTBMHLSLEKSTH4B"PL; areas that facilitate such enhancements. During the year
ETOL4KLV>D4BEVTEF;QLGKLTBEIMG¹)LLYIOLKIETML'L 2016-17, the Bank has undertaken 667 CSR activities
MI MWLK YGSGPGLTB EL MBQLZV GEL" TMI YGSGPGLTB FTB with the active involvement of staff. This includes 38
CMPL;WLLTGUSGE Y GVLR:EGQGE3MLULBQGLGPK free medical checkup camps,49 Blood Donation Camps
S'LLKºL2OLVGLGPKLLGFZH4B" organized during the year.
 HGKSJHZTB 2.5 Green Initiatives
 HFVT GDUZI>JLVI>ELYUWLGOU4MT MBMLVLTB ET MBK\LLET We have implemented some quick win “Green practices”
GZ  ER/ LI L[ J2ZOLE —HGKS È'LL B™ ZLYX EI H4B" HF to conserve resources like electricity, water, paper,
etc. We are making efforts for rainwater harvesting in
FL4UXOL)LPVLTBFTBPLL;UZMBQVHTSRÈLMKSH4BWL4KJL;PKL
existing buildings and encourage environment friendly
ET WVREXZVPGVFL;LELT ÈLT3MLGHSEKST H4B"HFY[LFIL\LTLLTB new constructions. We are promoting wind energy and
FTB JPV¦UL; ELT D LPLOT KHT H4B WL4KML4K¦UL; ET NJLTY popularizing solar energy usage in rural areas. 614
ELT ZLTEGÈDVLKHT H4B"PL; ET OL4KLVWLLTGUSGE Y  saplings were planted in 32 Tree Plantation Camps
PA\LLKLTJLGLGPKLTBFTBPA\LZYL Y " organized during the year.

101
 MHLTY 2.6 Collaboration
 -'LLVI UKSLTB WL4K WLPESLWLTB ET WVRMLK MRGPL B NJZ$ The bank engages with local agencies so as to offer
EKLVT ET GZ D4E B -'LLVI UTGB MLTB ET ML'LGFZEKELFEKSL facilities as per the local needs and requirements.
We are working closely with local people as Business
H4"DTHSKJHRQ B DVLVTETGZ HFELKLTDLKÈGSGVGLTB WL4KELKLTDLK
Correspondents and Business Facilatators for improved
MHLTGYLTB ET JFTB -'LLVIZLTYLTB ET ML'LGFZEKELFEKKHT reach. The Bank also collaborates with local Panchayats
H4"B D4EB -'LLVIJBQLSLT!B -PBMHLSLMFXHLTB ETML'LGFZEKDTHSK /Self Help groups for facilitating better acceptability
-PIEL;SLPLZTWL4K-'LLVIUVMB<LEIWLPESLWLTB ETWVRJ and dovetailing products as per requirements of local
N3JLOLTB HTSR MHLTYEKSLH4"-'LLVIMBY#VLTB ETML'LHFLKTY#DBV populace. Our alliances with local organizations help
HMRGVGQSEKVT FTB MHLSLEKST H4B GEHF TMT EL;¹FLTB EL ensure that we are supporting programs that are
MF'L;VEKTB GUVETMJ2ZHLTVT WL4KOI L;ELGZEMELKL3FEJGKPS;V most likely to succeed and facilitate long term positive
ZLVTFTB MHLEHLTVT EIMB)LLPVL BMDMTWGEH4"B change.

 vTZLTBELMBP;V 2.7 Promotion of Sports


 MI MWLK YGSGPG ET E GH-MT ET J FTB D4BE VT RPL The Bank continued in its efforts to promote sports and
nurturing young talents as a part of CSR activity. The
ÈGS)LLWLTBELTÈLT3MLHVWL4KvTZLTBETMBP;VEIGOLLFTBWJVT
Bank has set up Hockey Academy in Sept. 2002 for
ÈLMLTB ELT ULKI KvL H4" D4BE VT  PL; ET WLR PY; junior hockey players in the age group of 14 to 18 years
ET UXGVK HL8EI GvZLG. LTB ET GZ  GMSBDK  FTB HL8EI with sanctioned strength of 25 players. Subsequently, in
WELOFIEI-'LLJVLEIH4GUMFTB-PI²SGvZLG. LTBEIMB<L April, 2004, the Bank also formed its senior hockey team.
H4"SOVBOKWÈ4ZFTBD4BEVTWJVIMIGVKHL8EI7IF The senior players are employees of the Bank.
EL)LIY#VGELH4"MIGVKGvZL. ID4BEETEF;QLKIH4B" Bank provides all logistic support and infrastructure to
 D4BE GvZLG. LTB ELT NJ-EK P WPMBKQVL MT MBDBGS MF-S the players and they are groomed as hockey players.
MHLSLÈOLVEKSLH4 WL4KN6HTB N3²7HL8EIGvZLG. LTB ET Whereas junior hockey team players are provided
JFTBS4LKGELULSLH4"UXGVKHL8EI7IFETGvZLG. LTBELT with free lodging, boarding, stipend, playing kit, coach,
FR¾SWLPLM>DLTG.;BY>PUIJ2L>vTZGE7>ÈGL\LE> -7‹LT 7J2; astro turf ground etc. Senior hockey team players are
provided with playing kit, diet allowance, coach, dietician,
F4OLVWLGONJZ$EKL ULST H4B WL4KMIGVKHL8EI7IFET
physiotherapist’s services, astro turf ground, insurance
GvZLG. LTBELTvTZGE7>WLHLK)LºLL>ÈGL\LE>WLHLKGPLTL,> etc.
GJ2GULT'LTKTGJ-7 EI MTPL B> -7‹LT 7J2; F4OLV> DIFL WLGO EI
MRGPL BÈOLVEIULSIH4B" During the year the senior hockey team of the bank won
two prestigious tournaments-27th Lal Bahadur Shastri
 PL; ET OL4KLV D4BE EI MIGVK HL8EI 7IF PTB ZLZ DHLORK Hockey Tournament, New Delhi and 33rd Surjit Hockey
LL-LIHL8EI7XVL;FTB7>VC;GO:ZIPPTBMRKUISHL8EI7XVL;FTB7> Tournament, Jalandhar and had been Runner up in 12th All
ULZBK U4MT OLT ÈGSG#S 7XVL;FTB7 FTB GPUTSL S'LL PTB WL8Z India Guru Tegh Bahadur Gold Cup Hockey Tournament,
CBG.LYRSTYDHLORKYLT:.EJHL8EI7XVL;FTB7>FRBDC; PPTB Mumbai, 53rd Nehru Senior Hockey Tournament (Men),
VTHMIGVKHL8EI7XVL;FTB7 JRL
>VC;GO:ZIWL4KPTBWL8Z New Delhi and 51st All India Bombay Gold Cup Hockey
CBG.LDL8&DT YLT:.EJHL8EI7XVL;FTB7>FRBDC; FTB NJGPUTSLKHI" Tournament, Mumbai. PNB Senior Hockey team also
JI VDIEIMIGVKHL8EI7IFÈGSG#SPTBWL8ZCBG.LDT7V reached to the semifinal of prestigious 121st All India
EJ HL8EI 7XVL;FTB7> ELTZELSL ET MTFIJ2LCVZ SE )LI JHRBQI" Beighton Cup Hockey Tournament, Kolkata. PNB Junior
hockey team has also won Senior Ashok Vajpai Gold
JI VDIEIUXGVKHL8EI7IF)LICMWPGETOL4KLVMIGVK Cup Hockey Tournament Pilibhit (UP) and Lala Hazarilal
WLLTEPLUJTC;YLT:.EJHL8EI7XVL;FTB7>JIZI)LIS XJI
WL4K Cup, Etawah (UP)during the period.
ZLZLHULKIZLZEJ>C7LPL XJI
EIGPUTSLDVI"

ULZBK JBULD
FTBPTBMRKUISHL8EI Senior Hockey Team on winning 33rd
7XVL;FTB7>EIGPUTSLMIGVKHL8EI7IF Surjeet Hockey Tournament,2016 at
Jalandhar (Punjab)

102
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

 W6MI MWLKJHZTB 2.8 Other CSR Initiatives


 D4BE ET PGK# WGELGKLTB EI JG3VLTB S'LL D4BE EI PGK# PNB Prerna, an association of the wives of the senior
FGHZL WGELGKLTB EL MBY#V ?JI VDI ÈTKLL  D4BE EI officials of the Bank as well as senior lady officials of the
Bank is performing a vital role in undertaking/ showcasing/
MI MWLK YGSGPGLTB ET MBQLZV!ÈOL;V!ÈLT3MLHV FTB FH3PJXL;
promoting the Bank’s CSR activities. The prime objective
)LXGFELWOLEKKHLH4"D4BEEIGVYGFSMLFLGUENºLKOLG3P of the association is to support the Corporate Social
JHZLTBFTBMHLTYEKVLCMMBY#VELÈFRvNÎTH4" Responsibility initiatives of the Bank.

JI VDIÈTKLLEINJLÉ\L+IFSI
+IZ\FIETS'LL+IFSIKGLEL Smt. Srilakshmi K and Smt.
MBYLJXKTÈELLOIJGP]LZ> Rashika Sangapure, Vice
Presidents of PNB Prerna
J2KIOLDLOETUKSFBO/LLLTBELT distributing winter uniforms to
LISELZIVXGVJ2LF;ELGPSKL needy students of Prakshdeep
EKSTHR School, Faridabad.

PL;ETOL4KLVMI MWLKYGSGPGLTBEIFR<GPLTLSL B
Highlights of CSR Activities during the year

+IFSINLLWVBSMRD[FV>D4BE Smt.Usha
EIJXP;ÈDBGVOTLE PBFR< Ananthasubramanian,
EL;JLZEWGELKI>KL7‹JGS)LPV Ex-MD & CEO of the bank
presenting a cheque to
FTBFLVVIKL7‹JGS+IÈLDFRvUI;
Hon’ble President, Shri
ELTER#KLTYN6FXZVETGZ FOO Pranab Mukerjee at Rashtrpati
-PJQTEÈOLVEKSTHR "CM Bhawan as a helping hand
WPMKJKEL;JLZEGVOTLE+I towards eradication of leprosy.
ETPID[ÄLUIKLP>.L8WLK M Shri K.V.Brahmaji Rao,
Dr.R.S.Sangapure and Shri
MBYLJXKTWL4K+IMBUIPLKL)LI Sanjiv Sharan, Executive
NJG-'LS'LT" Directors were also present.

+IFSINLLWVBSMRD[FV>JXP;
Smt.Usha
ÈDBGVOTLE PBFR<EL;JLZE
Ananthasubramanian, Ex-MD
WGÉLELKI>UJRKFB.ZEI & CEO inspecting polygreen
LLvLEKLMLK^LKLGPºLJLTGLS house financed by Branch-
JLTZIY[IVHLNMELGVKI\LLEKST Karansar of Jaipur Circle.Seen
HR "ML'LFTB+IFSIE:JVLYR*SL> in the picture are Smt.Kalpana
Gupta, Zonal Manager Jaipur
WBQZÈD6EUJRKWL4K+IF;TL & Shri Dharmesh Kumar
ERFLKKLPS>FB.ZÈFRv" Rawat, Circle Head.

103
+IFSINLLWVBSMRD[FV>
JXP;ÈDBGVOTLEWL4KFR<
Smt. Usha
EL;JLZEWGELKI>VTÈÉLLV Ananthasubramanian,
ELL;ZFTBPTBYLSBL Ex-MD & CEO hoisted
GOPMETWPMKJKKL7‹I the National Flag on 68th
ÉPUJ2HKLL"CMWPMKJK Republic Day at Head
Office. Under CSR, school
MI MWLKYGSGPGLTBETWBSY;S bags distributed to the
MTB77TKTMLMLTLZPTZJ2TKET6Ç students of St. Teresa
ET/LLLTBELT-EXZD4YGPSGKS Social Welfare Centre.
GE Y "ML'LFTBEL;JLZE Sh.K.V. Brahmaji Rao,
Dr. Ram S. Sangapure
GVOTLE+IETPID[ÄLUIKLP> and Shri Sanjiv Sharan,
.L8WLK MMBYLJXKTWL4K+I Executive Directors also
MBUIPLKL)LIGOvLC;OTKHTH4B" seen in the picture.

+IFSINLLWVBSMRD[FV>
D4BEEIJXP;ÈDBGVOTLEWL4K Tree Plantation during
FR<EL;JLZEWGELKI^LKL Foundation Stone Laying
Program of Farmer
Y[LFGJ:PC;>FTHMLLL YRUKLS
 Training Centre at
FTBGEMLVÈGL\LLETBÇET)LPV Village-Pillvai, Mehsana
ETGLZL6LMETOL4KLVPA\LLKLTJL (Gujarat) by Smt.Usha
GELYL"CMWPMKJK Ananthasubramanian,
Ex-MD & CEO of the
.L8KLETLYR*SL>S3ELZIV
Bank. Dr Raklesh Gupta,
FHLÈDBEÈELJI M ZDI)LI then General Manager HO
GQLFTBGOvLC;OTKHTH4B" PSLB also seen in picture.

.L8WLK MMBYLJXKT>
EL;JLZEGVOTLEGEMLV Dr.R.S. Sangapure,
ÈGL\LLETBÇ J27IMI
> Executive Director planting
a sapling at Farmers
GPGOLL FJI
FTBJL4LKLTJL
Training Centre
EKSTHR " (FTC ), Vidisha (MP)

104
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

Smt. Usha
Ananthasubramanian,
+IFSINLLWVBSMRD[FV>D4BE Ex-MD & CEO of the bank
EIJXP;ÈDBGVOTLE PBFR< and Smt. Roshan Warjri,
EL;JLZEWGELKI PB+IFSI Hon'ble Minister Incharge
Home, Government
KLTLVPLKUKIFLVVILÈ)LLKI of Meghalaya laying
YAHFBLI>FT LLZMKELKC;-7 foundation stone for
vLMIGH:M>GUZL FT LLZ
 construction of Rural Self
FTBY[LFIL-PBKLTUYLKÈGL\LL Employment Training
Institutes (RSETIs) at
MB-'LLVLTB WLKMT7IU
ETGVFL;L East Khasi Hills District
ETGZ GLZL6LMEKSTHR " (Meghalaya).

Smt. Usha
+IFSINLLWVBSMRD[FV>D4BE Ananthasubramanian,
EIJXP;ÈDBGVOTLE PBFR< Ex-MD & CEO of the
EL;JLZEWGELKI>FLJ2ZBY Bank planting a sapling
FT LLZFTBY[LFIL-PBKLTUYLK on the foundation stone
laying program of Rural
ÈGL\LLMB-'LLV WLKMT7I
ET
Self Employment Training
GVFL;LETGZ GLZL6LMET Institute (RSETI) at
OL4KLVJL4LKLTJLEKSTHR " Maflang, Meghalaya

JI VDIETGEMLVÈGL\LL Smt.Usha
EL8ZTU>VIFKLVLFTBWLLTGUS Ananthsubramanian, Ex-
EMFLKLTHFTBE&*X7K MD & CEO of the Bank
distributed the Education
ÈGL\LLLG'L;LTBS'LLFGHZL
Kits, Sports items,
N]GFLTBELTGL\LLGE7>vTZ scholarship cheques and
P-SR B>/LLPAGºLQTES'LL appreciation certificates to
ÈLBMLÈFLLJLGPSGKSEKSI the computer trainees and
HRC;+IFSINLLWVBSMRD[ÄV women entrepreneurs at
a function held at PNB's
D4BEEIJXP;ÈDBGVOTLE PB Farmers Training College,
FR<EL;JLZEWGELKI"CM Neemrana. Dr.Ram
WPMKJK.L8KLF MMBYLJXKT> S. Sangapure,ED,
EL;JLZEGVOTLE>.L8KLETL Dr.Rakesh Gupta,GM and
Smt. Kalpana Gupta, ZM
YR*SL>FHLÈDBEWL4K Jaipur were also present
+IFSIEZJVLYR*SL>WBQZ on the occasion.
ÈDBEUJRK)LINJG-'LS'LT"

105
+IFSINLLWVBSMRD[ÄV>
D4BEEIJXP;ÈDBGVOTLE
Smt. Usha
PBFR<EL;JLZEWGÉLELKI Ananthasubramanian,
MI MWLKYGSGPGLTBETSHS Ex-MD & CEO of the bank
+IGPVLEFBGOKGO:ZIFTB distributing school bags
DTMHLKLD1QLTBELTJ VTEI with reading material to
destitute children at Sri
MLFY[IETML'L-EXZD4Y Vinayak temple at Delhi
GPSGKSEKSTHR " under CSR activities.

DIWVROLV B. Donation
PL;ETOL4KLV>D4BEVTML-LDZLTBETÉPUGOPMELTLWL4KGH6OXER# During the year, the Bank has taken initiative for donations to
GVPLKLMB LELT OLVOTVT EIJHZEIH4"D4BEVT U&FXEFIKET Armed Forces Flag Day Fund and Hind Khust Nivaran Sangh.
The Bank has also contributed to the PM Relief Fund on
DL JIG. SLTB EIMHLSL'L; D4BEET EF;QLGKLTB ET EGOVEIPTSV
account of help to flood victims of Jammu and Kashmir by way
E7L4SIETFLÉFMTÈLVFBLIKLHSELTLFTB)LILTYOLVGOLH4" of deduction of one day’s salary of employees of the Bank.
MI MWLKYGSGPGLB
CSR INITIATIVES
GVYGFSMLFLGUENºLKOLG3P MI MWLKYGSGPG
 Corporate Social Responsibility (CSR activity):
D4BEWJVTGV&V7‹-7!ETBÇLTBETFLÉFMTGVYGFSMLFLGUENºLKOLG3P Bank is promoting welfare in Rural/semi Urban Areas as a part
ETGH-MTETJFTBY[LFIL!W;LHKI\LTLLTBFTBE:LLELKIELLT’ELT of Corporate Social Responsibility through its Trust/Centres as
D LPLOTKHLH4@ under;
 JI VDIGEMLVE:LL7‹-7 A. PNB Farmer Welfare Trust,
DI JI VDILSL$OIY[LFILGPELM7‹-7 B. PNB Centenary Rural Development Trust,
MI GPºLIML\LKSLET6Ç C. Financial Literacy Centre.
NºL2 NÎTLTB ELT ÈL*S EKVT HTSR GV&VGZGvS LTUVL B EL; EK KHI Following schemes are in place for the pursuit of said
H4B objective:-
 JI VDIGPELMY[LFWBYIEKLLTUVL 1. PNB VIKAS- Village Adoption Scheme:
GVYGFS MLFLGUE NºLKOLG3P JHZ ET GH-MT ET J FTB> D4BE VT As part of the Corporate Social Responsibility initiatives, the
—JI VDIGPELM™VLFEY[LFWBYIEKLEIE:LLELKILTUVLEL Bank has launched a Welfare Scheme of adoption of villages
named as “PNB VIKAS”.
LR)LLKB)LGELH4"
WBYI²SYL‚PLTBELMFY[JMTGPELMEKVLCMLTUVLELNÎTH4> The objective of the Scheme is to develop the adopted villages
in an holistic manner, which includes Human, Economic & other
GUMFTB W6GHSLKELTB Y[LFILMKELKIÈLGEKLLTB>-'LLVIGVELLTB
Infrastructure Development, for example sanitation, drinking
WLGO
 ET ML'L FLVPI> WLG'L;E WL4K W6 FXZ)LXS MRGPLWLTB ET water supply, education, electricity, health etc in co-ordination
GPELM LLGFZ H4B> NOLHKLL'L; -P1/SL> JT UZ WLJXGS;> GL\LL> with the other stake holders (villagers, the Govt. authorities,
GDUZI> -PL-' C3LGO" LTUVL ET SHS D4BE VT GPG)L6V FB.ZLTB FTB local bodies etc). Under this Scheme, bank has adopted 169
YL‚PLTB WY[LIGUZLTB FTB S'LLY4KWY[LIGUZLTB FTB 
ELT villages (78 in lead districts and 91 in non lead districts) in
WBYI²SGELH4" different Circles.
 JI VDIZL. ZI 2. PNB Ladli:
Y[LFIL!W;LHKI\LTLLTBEIZ. GELTBETDIQGL\LLELTZLTEGÈDVLVTEI Scheme for popularization of education among girls of Rural
LTUVL"JI VDIZL. ZILTUVLELLR)LLKB)LGOVLBEELTVIFKLVL /Semi urban areas. PNB Ladli scheme was launched by the

106
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

KLU-'LLV
FTBJI VDI J2.$:X7IETML'LMBRºL2JMTJI VDIÈTKLLEI Chairperson of PNB Prerna jointly with PNBFWT at Neemrana
WÉ\LL^LKLGELYL'LL"CMETJQLS_MF-SWBYI²SYL‚PLTBETFLÉF (Raj.) on 17.07.2014. Thereafter, the scheme was launched
MT WY-SFLHFTB CMLTUVLELLR)LLKB)LWGvZ)LLKSIWLLK on Pan India basis in the month of August, 2014 through all
adopted villages. Under the scheme we are providing education
JKGELYL"LTUVLETSHSHFÈ3TEGQG6HSYL‚PLTBEIUKSFBO
inputs of Rs. 2500/- to 10 needy girl students of each identified
/LLLWLTBELT!ELL4\LGLEMHLTYÈOLVEKKHTBH4B"GPºLIPL; village. No. of beneficiaries under the scheme is 1603 during FY
ETOL4KLVCMLTUVLETSHSZL)LLG'L;LTBEIMB<LH4" 2016-17.

 JI VDIWLLLGEKL 3. PNB Asha Kiran:


CMLTUVLELLR)LLKB)LY[LFIL\LTLLTB EIFGHZLWLTB ETMLGºL2EKLETGPELM Scheme has been launched to accelerate the pace of women
EIYGSELTSTUEKVTETGZ GELYLH4>UHL‚Y[LFILFGHZLWLTB ELT empowerment in rural areas wherein 1000 rural women are
identified & nurtured till their economic empowerment.
GQG6HSGELUL YL PBNVETWLG'L;EMLGºL2EKLSEJLTGLSGELUL YL"
JI VDIWLLLGEKLEIFR<GPLTLSL B Salient features of PNB Asha Kiran:

 GVLR:E-PL-'UL‚QGLGPK - Free health Check up Camps.


 GPºLIML\LKSLFLY;OL;V - Financial Literacy Guidance.
 ÈLVFBLIUVVLTUVLETML'LMF-SFGHZLÈGS)LLGYLTBELT - Linking all women participants with Prime Minister’s Jan
Dhan Yojana.
ULT. VL
- Promoting formation of women SHG/JLG
 FGHZL M QUI!UT ZUIETY#VELTD LPLOTVL
- Training for Self Employment.
 -PKLTUYLKETGZ ÈGL\LLOTVL
- Financial assistance by providing loans.
 žLÈOLVEKGPºLIMHLSLEKVL
- Market linkage for their produce.
 NVETN3JLOHTSRDLULKMTMBLTUV-'LLGJSEKVL
4. Swachchh Vidyalaya Campaign:
 -P1/GP]LZWG)LLV
Scheme to provide financial assistance for construction of
JI VDIGPELMET WBYI²SYL‚PLTB ET MKELKIGP]LZLTB FTB LL4QLZLTB toilets in government schools of adopted villages of PNB
ETGVFL;LHTSRGPºLIMHLSLÈOLVEKVTEILTUVLELTFBUXKIOTOI VIKAS has been approved. It focuses on co-educational and
YC; H4"HMHGL\LLWL4KZ. GELTB ET MKELKIGP]LZLTB JKÉLV girls’ govt. schools wherein we provide:-
ETG6ÇSEKSIH4UHL‚HFÈOLVEKSTH4B Separate toilet facility for girl student within an estimated
M)LIGQG6HSYL‚PLTB FTB ZLv!LL4QLZET WVRFLGVS0 expenditure of Rs.1.20 lacs/Toilet in all 169 identified villages.
ET)LISK/LLLWLTBETGZ WZYLL4QLZEIMRGPL" - A library with regular newspaper & educative magazines
 !EIZLYSET )LISKGVGFSWvDLK PB GL\LLÈO upto cost of Rs. 15000/-
JGLELWLTBRºL2JR-SELZ" - A sport kits upto cost of Rs.10000/-.
 !EIZLYSET)LISKvTZEXOELMLFLV" - So far 89 toilets have been constructed across the
 WDSEOTL)LKFTBLL4QLZLTBELGVFL;LHLTQRELH4" country.
 JI VDINULZL 5. PNB UJALA:
WBYI²SYL‚PLTB FTB !EIZLYSET )LISKML4K¦UL; MLTZK Scheme launched on 28.01.15 for providing 4 Solar Street
-7‹I7ZLC7MWL4KJI VDIZL. ZILTUVLETSHSJHZTMTHIWBYI²S Lights up to cost of Rs. 80000/- in the adopted villages and
È3TE/LLLELTEIZLYSEI EML4KZLZ7TVNJZ$EKLVT a Solar Lantern to each girl student costing Rs. 500/- already
HTSRCMLTUVLELWLKB)LGOVLBEELTGELYL"CMLTUVL adopted under PNB LADLI Scheme. Under the scheme 518
Solar Lights have been installed in 143 villages and 1559 Solar
ET SHSSEYL‚PLTB FTB ML4K¦UL; -7‹I7ZLC7_M Lanterns given to girl students up to 31.03.2017.
ZYLC;YC;WL4K/LLLWLTBELTML4KZLZ7TVGO Y "
6. PNB Farmers’ Welfare Trust:
 JI VDI²LEE:LL6LM
¾ Punjab National Bank Farmers’ Welfare Trust (PNBFWT)
¾ GEMLVLTB>FGHZLWLTB WL4KY[LFILRPLWLTB EI\LFSLGVFL;LWL4K was established on 22nd September, 2000 on the basis
E:LL HTSR GVYGFS MLFLGUE NºLKOLG3P ET J FTB  of permission accorded by the Board of Directors of
GMS&DK>  ELT JBULD V4LVZ D4BE ²LE E:LL 6LM the Bank as a part of social corporate responsibility for
JI VDI J2.$:X7I
 EI -'LLJVL JI VDI ET GVOTLE FB.Z capacity building and welfare of the farmers, women and
^LKLÈOLVEIYC;WVRFGSETWLLKJKEIYC;" rural youth.
¾ JI VDI²LEE:LL6LM JI VDI J2.$:X7I
KL5LTB FTB JI VDI ¾ PNB Farmers’ Welfare Trust (PNBFWT) is running
²LEÈGL\LLET6ÇLTB JI VDI J27IMI
ELMBQLZVEKKHLH4 UHL‚ 11 PNBFTCs in 9 states where holistic approach of
GEMLVLTB ETJGKPLKETMFY[GPELMETGZ EL;GELULKHLH4" development of farmers familly is being done.
¾ JI VDI J2.$:X7IET J27IMIGEMLVLTB>FGHZLWLTBWL4KY[LFIL ¾ FTCs of the PNBFWT provide free of cost training/
RPLWLTB ELT GVLR:E ÈGL\LL!WLPLMI ÈGL\LL ÈOLV EKST residential training to farmers, women and rural youth.

107
H4B" J27IMI GEMLVLTB HTSR YL‚PLTB MT ÈGL\LL ET6Ç SE FR¾S FTCs also arrange free transportation to farmers from
JGKPHVEI)LI0P-'LLEKST H4B" J27IMI²GLS'LLMBDBGS villages to the training center. FTCs provide training
YGSGPGLTB>EB*X7KJL#µ¹FLTB>E7LC;>GMZLC; PB E LC; WLGO on agriculture & allied activities, computer courses,
cutting, tailoring & embroidery etc. Regular On Location
JKÈGL\LLÈOLVEKST H4B" J27IMIWGELGKLTB ^LKLYL‚PLTB ET
Programmes and Kisan Goshties are held at the door-
GVKBSKOL4KLTB^LKLGEMLVLTBEIOHZIUJKGVGFSJMT-'LLGVE steps of the farmers by the FTC officials by frequent visits
EL;¹FWL4KGEMLVYLTG#LTBWLLTGUSEIULSIH4B" to the villages.
¾ NJ;RºL2ET WGSGKºL2> J27IMIWJVT HL‚ S'LLW6-'LLVLTB JK ¾ Out of the above, FTCs are also organizing Human
FLVP-PL-'UL‚QGLGPKWL4KJLR-PL-'UL‚QGLGPKEL)LI Health Check Up Camps and Animal Health Check Up
WLLTUVEKKHTBH4B" Camps at FTCs and other places.

¾ È3TE J27IMIVTGPELML3FEYGSGPGL‚QZLVTHTSR EYL‚P ¾ FTC have adopted one village each for undertaking
ELT WBYI²S GEL H4 UHL‚ MLP;UGVE MRGPLWLTB EL GVFL;L> developmental activities, wherein developmental works
like, construction of public conveniences, class-rooms
-EXZLTB ET GZ  E\LL B> Y[LF JR-SELZ> WL4LLZ> vTZ ET for schools, village library, dispensary, playgrounds,
F4OLVLTB>JBvT>PL7KEXZKU4MT GPELML3FEELLT’ ELT MBQLGZS providing fans, water coolers etc. to schools are being
GELULSLH4" undertaken.
¾  ET OL4KLV FLQ;  SE> J27IMI ^LKL  ¾ During 2016-17 upto March, 2017, FTCs have trained
ÈGL\LL EL;¹FLTB EI MHLSL MT  FGHZLWLTB MGHS 172701 persons including 37671 women with the help
0GºL2LTB ELT ÈGL\LLGOLYL"CMWPGET OL4KLV of 4484 training programmes. FTCs have also organised
J27IMI^LKLFLVP-PL-'UL‚QGLGPK>JLR-PL-' 115 Human Health Check Up Camps, 171 Animal
UL‚Q GLGPK WL4K ²GL GPPGP]LZLTB!EL8ZTULTB!FTZLTB!MKELKI Health Check Up Camps and also arranged 141 visits to
Agriculture Universities/Colleges/Fairs/Govt. Farms etc.
J2LFLT’WLGOETOL4KLTBEI0P-'LL)LIEIYC;" during this period.
 J I VDILSL$OIY[LFILGPELM6LM 7. PNB Centenary Rural Development Trust (PNB
JI VDIMIWLK.I7I
 CRDT):
Y[LFILGPELMFBLLZ>)LLKSMKELKET GOLLGVO;TLLTB ET WVRMLKD4BE As per the Ministry of Rural Development, Govt. of India
VTJI VDIY[LFIL-PBKLTUYLKÈGL\LLMB-'LLVLTB WLK MC;7IWLC;
 guidelines Bank is operating 55 PNB Rural Self Employment
S'LL  JI VDI ^LKL LR GE  Y  WLK MC;7IWLC; EL OTL )LK FTB Training Institutes (RSETIs) and 2 PNB initiated RSETIs across
JGKQLZVHLTKHLH4GUMFTBY[LFILGPELMEL;¹FFBLLZETWVRMLK the country wherein free vocational training are provided as
FR¾S0LPMLGEÈGL\LLÈOLVGELULSLH4"MBDBGSKL5MKELK per Ministry of Rural Development Programmes. The land is
alloted by the concerned State Government free of cost/ on
^LKLWLK M7IWLC;)LPVETGVFL;LETGZ UFIVFR¾S!JËÑTETWLÉLLK lease basis for construction of RSETI building.
JKWLPBG7SEIYC;H4"
During the F.Y. 2016-17, upto March, 2017, 40212 persons
GP3SIPL;ETOL4KLV>FLQ;SE>0GºL2LTBELT have been trained in these centers out of which 9750 belongs
CVETBÇLTB FTB ÈGLG\LSGELYLH4 GUVFTB MT DIJI ZJGKPLK to BPL families and 21388 were women.
S'LLFGHZL B'LI"
Our RSETIs are focusing to increase the rate of settlement of
HFLKTWLK MC;7IWLC;MFLPTLIGPELMETGZ JL;*SžLMRGVGQSEKET participants by ensuring adequate credit for inclusive growth.
ÈGS)LLGYLTBETGVJ7LKTEIOKFTBPAGEKVTHTSRÉLVETBGÇSEKKHTH4B"
8. Financial Literacy Centres (FLCs)
 GPºLIML\LKSLETBÇ J2 ZMI

Bank is operating 108 Financial Literacy Counseling centres


D4BEGPºLIML\LKSLJKLFL; ET6ÇLTB ELMBQLZVEKKHLH4 UHLB wherein structured financial Literacy is being spread.
MBKGQSGPºLIML\LKSLD KHIH4"
These centres are providing face to face counselling on
TET6ÇD4BGEBYW'LL;S_UFLKLGLLB>VLTG»ZWELNB7_MvLTZVL>GVPLKES'LL financial issues related to banking viz. deposits, opening of
NJQLKL3FEžLJKLFL; WLGOMT MBDBGSGPºLIMF-LWLTB JKJKLFL; No frill Accounts, preventive and curative credit conselling etc.
M&FRvÈOLVEKKHTH4B"PL;ETOL4KLVFLQ;SE J2 ZMI During the year 2016-17 upto March, 2017, 329469 number of
FTBJX/SL/EIYC;S'LL J2 ZMI^LKLWLLTGUSMTGFVLKLTB enquiries were made in the FLCs and 816534 persons attended
FTBZLTYLLGFZHR " the 14458 seminars conducted by FLCs.

 JI VDIGEMLVDLZEGL\LLÈLT3MLHVLTUVL 9. PNB KISAN BALAK SHIKSHA PROTSAHAN


YOJANA:
MFLUETEFULTKPYLT’FTBGL\LLELTD LPLOTVLCMLTUVLELNÎTH4" Purpose is to promote education among Weaker Sections of the
²GLNLKESL;/LT7TGEMLVLTB>MIFLBSGEMLVLTB>GEKLTOLKGEMLVLTB>FL4GvE Society. The agriculture borrowers comprising of small farmers,
marginal farmers, tenant farmers, oral lessees and agriculture
JËÑTOLKLTBS'LL²GLFUOXKLTBELTLLGFZEKSLH4BULTžLvLSLTBELTGVGFS labour are eligible provided their loan account is running regular.
JMTQZLVTFTBM\LFH4"!EI EFRSGPºLIMHLSLPLGL;E Lump sum financial assistance of Rs. 2500/- is payable on
WLLKJKOTH4"]GJ>E6L/LLLTBELT!EIWGSGKºL2PLGL;E annual basis. However, Girl students get an additional annual

108
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

MHLSLGFZSIH4"GPºLIPL; ET OL4KLVERZ/LLLTB ELT assistance of Rs. 1,000/-. A total of 566 students have been
MHLSLOIYC;H4" given assistance during the financial year 2016-17.

JRK-ELK AWARDS:
MI MWLK YGSGPGLTB EL WLLTUV EKVT S'LL OTL )LK FTB LTUVLD For undertaking the CSR activities and executing the same in
SKIETMTCMTG¹LG6PSEKVTETGZ >JI VDIVTMI MWLKWL4KGDUVTM planned way across the country, PNB has won the "Best Bank
GK-JL8G6MGDGZ7IWPL.; D. TD4BE
HTSRMP;+T#D4BEMIWLC; F M FC;D4BGEBY for CSR and Business Responsibility Award (Large Bank)-
G%MZTBMWPL.;ETGZ NJGPUTSLKHL" Runner Up by CIMSME-Banking Excellence Awards 2016".
WLYTEIKLH ROAD AHEAD:
M)LIGHSLKELTBETÈGSGU&FTOLKIHIHFLKTGPQLKLTBS'LLELLT’ELTWLELK Our sense of responsibility towards all stakeholders shapes
OTSIH4"HHFLKTELKLTDLKETHK\LTLFTBS'LLD4BEETM)LI-SKLTBJKHFLKI both our thoughts and our actions. It is firmly anchored in our
value chain, in each and every sector of business and across
FX:+ABvZLELT OA SLMT DLBT HR H4"WS4P>HFVT QLZX PL; ET OL4KLV all levels of the Bank. As such, we plan to have a wider and
OTL)LKFTB MI MWLKYGSGPGLTB EI E0LJEWL4KYHKIJHRBQEI deeper reach of CSR activities across the country during the
LTUVLDVLC;H4" current year.

GVYGFSMLFLGUEOLG3PG¹LEZLJLTBETEPKTUJKÉLVETBGÇSEKVTEI Need was felt to focus the coverage of Corporate Social


Responsibility Activities which are already undertaken by the
WLPESLFHMXMEIYC;ULTGED4BE^LKLJHZTHIGE Y H4B"SOVRMLK> Bank. Accordingly, the activities undertaken by the Bank for
MFLU ET -'LLI MLFLGUE WLG'L;E GPELM ET GZ  D4BE ^LKL EI YC; the sustainable socio economic development of the society
YGSGPGLBULTFLVPUIPVETN3'LLVWL4KMRLKETGZ FH3PJXL;LTYOLV which contribute significantly for upliftment and betterment
OTSIH4U4MT?JI VDIHL8EIWELOFI ELMBQLZVEKVL>?JI VDIGPELM of human life such as running of ‘PNB Hockey Academy’,
LTUVL ETWBSY;SYLBPLTBELTWJVLVL>?JI VDIEALEE:LL6LM ELT adaptation of villages under ‘PNB Vikas Scheme’, maintaining
of ‘PNB Farmers’ Welfare Trust’ and administrating ‘RSETIs’
DVL KvVLS'LLGPºLIML\LKSLETBÇLTB J2 ZMI
MGHS?WLK MC;7IWLC;
including ‘Financial Literacy Centres (FLCs)’ shall be making
ELÈLLMVEKVLGVYGFSMLFLGUENºLKOLG3PETSHSWJVIYGSGPGLTB concentrated efforts towards its activities under Corporate
EIGOLLFTBM LVÈLMEKTYI" Social Responsibility.

HFD. TJ4FLVTJKMFLUETGZ N1Q-SKEIOASLS'LLZL)LETML'L We shall be ensuring full achievement of numerical and


financial budgets with a high level of visibility and benefit to the
MB<L3FEWL4KGPºLIDU7EIJXL;NJZG$MRGVGQSEKTBYT"
society at large.

109
ELTDTMZIIDTMZIIIETWBSY;S--S&)LJ[E7IEKL
ELTDTMZIIETWBSY;S-S&)L -J[E7IEKL
)LLKSIGKUP;D4BEETGOLLGVOT;LLVRMLKELTMFL*SPL;ETGZ DTMZIIJ[2TFPE;ETWBSY;S-S&)LJ[E7IEKLD4BEEIPTDMLC;7JKDTMZ
IIJ[2TFPE;ETWBSY;S-S&)LJ[E7IEKLFTBJ[OGLSGELYLH4"GP-SAS$L4KTETGZ EAJLHFLKIPTDMLC;7 www.pnbindia.in > Investor info
> Financials > Current Financial year 2016-17.OT<LTB"
CM<L.FTBGV&VGZG<LSJ[E7IEKLMG&FGZSH4
¹M SLGZELTB GPPKL
1. SLGZELDF - 1 J[LTYEIM&)LLPVL
2. SLGZELDF -2 JXBUIMBKQVL
3. SLGZELDF - 3 JXBUIJL;*SSLYRLL3FEFLLL3FEJ[E7IEKL
4. SLGZELDF - 4 žLULTG<LFMLFL6J[E7IEKLYRLL3FEFLLL3FEJ[E7IEKL
5. SLGZELDF - 5 žLULTG<LFFLVEOAG7ELTLETWÉIVJLT7;*L2LTGZLTHTSRJ[E7IEKLYRLL3FEFLLL3FE
J[E7IEKL
6. SLGZELDF - 6 žLULTG<LFFLVEOAG7ELTLETGZ J[E7IEKLYRLL3FEFLLL3FEJ[E7IEKL
7. SLGZELDF - 7 J[GS)LXGSEKLFLVEOAG7ELTL
8. SLGZELDF - 8 7‹TG.BYDREFTBDLULKULTG<LF
9. SLGZELDF - 9 JGKQLZVYSULTG<LF
10. SLGZELDF - 10 D4BGEBYDREFTB$LUOKULTG<LF IRRBB

ELTDTMZIIIETWBSY;S-S&)L-J[E7IEKL
)LLKSIGKUP;D4BEETGOLLGVOT;LLVRMLKELTMFL*SPL;ETGZ DTMZIII J[2TFPE;ETWBSY;S-S&)LJ[E7IEKLD4BEEIPTDMLC;7JKDTMZ
IIIJ[2TFPE;ETWBSY;S-S&)LJ[E7IEKLFTBJ[OG;LSGELYLH4"GP-SAS$L4KTETGZ EAJLHFLKIPTDMLC;7:www.pnbindia.in> Investor
info > Financials > Current Financial year 2016-17. OT<LTB"
CM<L.FTBGV&VGZG<LSJ[E7IEKLMG&FGZSH4
¹M SLGZELTB GPPKL
YRLL3FE&FLLL3FEJ[E7IEKL
1. SLGZELDF - 1 J[LTYEIM&)LLPVL
2. SLGZELDF - 2 JXBUIJL;*SSL
3. SLGZELDF - 3 žLULTG<LFMLFL6J[E7IEKL
4. SLGZELDF - 4 žLULTG<LFFLVEOAG7ELTLETWÉLIVJLT7;J2LTGZLTHTSRJ[E7IEKL
5. SLGZELDF - 5 žLULTG<LFEFEKVLFLVEOAG7ELTLHTSRJ[E7IEKL
6. SLGZELDF - 6 J[GS)LXGSEKL E-JLTUM_;FLVEOAG7ELTLETGZ J[E7IEKL
7. SLGZELDF - 7 7‹TG.BYDREFTBDLULKULTG<LF
8. SLGZELDF - 8 JGKQLZVYSULTG<LF
9. SLGZELDF - 9 D4BGEBYDREFTB$LUOKULTG<LF IRRBB

10. SLGZELDF - 10 J[GSJ\LELK¹TG.7ULTG<LFMTM&DG6S %MJLTUKETGZ MLFL6J[E7IEKL


11. SLGZELDF - 11 JXBUIEIMKBQVL
12. SLGZELDF - 12 JXBUIEIMKBQVLGFZLVM&D6ÉLIWJT\LLTB QKL

SLGZELDF - 12 JXBUIEIMKBQVLGFZLVM&D6ÉLIWJT\LLTB QKL

SLGZELDF - 12 DTMZIIIMLFL6J[E7IEKL74&JZT7ELNKL EL8ZFELTULT.EK


SLGZEL.I J2 )LLY!
)LLYULT)LIZLYXHLT
QKL
13. SLGZELDF - 13 GPGVLFEJXBUIGZ<LSLTBEIFR<GPLTLSLTB
14. SLGZELDF - 14 GPGVLFEJXBUIGZ<LSLTBEIJXL;LST’ PBGVD6ÉLV
15 SLGZELDF - 16 CG%P7IUD4BGEBYDREG-'LGSETGZ J[E7IEKL
16. SLGZELDF - 17 ELNBG7BY MT-7_MDVLFQZGVGÉLWVRJLS %-JLTUKEIMBG\L*SSRZVL
17. SLGZELDF - 18 QZGVGÉLWVRJLSMLFL6J[E7IEKL74&JZT7
18. QZGVGÉLEPKTUWVRJLS

110
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

PILLAR 3 DISCLOSURES UNDER BASEL II & BASEL III - 31.03.2017


Pillar 3 Disclosures under Basel II – 31.03.2017

Pillar 3 Disclosures under Basel II Framework for the Year ended March 31, 2017 as per guidelines of RBI have been disclosed
separately on Bank’s website under ”Pillar 3 Disclosures under Basel II Framework”. For details, please visit our website: www.
pnbindia.in > Investor info > Financials > Current Financial year 2016-17.
The section contains following disclosures:-

Sl. No. Tables Particulars


1. Table DF - 1 Scope of Application
2. Table DF - 2 Capital Structure
3. Table DF - 3 Capital Adequacy – Qualitative & Quantitative Disclosures
4. Table DF - 4 Credit Risk: General Disclosures – Qualitative & Quantitative Disclosure
5. Table DF - 5 Credit Risk: Disclosures for Portfolios Subject to the Standardized Approach – Qualitative &
Quantitative Disclosures
6. Table DF - 6 Credit Risk Mitigation: Disclosure for Standardised Approaches – Qualitative & Quantitative Disclosures
7. Table DF - 7 Securitisation: Standard Approach
8. Table DF - 8 Market Risk in Trading Book
9. Table DF - 9 Operational Risk
10. Table DF - 10 Interest Rate Risk in the Banking Book (IRRBB)
Pillar 3 Disclosures under Basel III – 31.03.2017
Pillar 3 Disclosures under Basel III Framework for the Year ended March 31, 2017 as per guidelines of RBI have been disclosed
separately on Bank’s website under ”Pillar 3 Disclosures under Basel III Framework”. For details, please visit our website: www.
pnbindia.in > Investor info > Financials > Current Financial year 2016-17.
The section contains following disclosures:-

Sl. No. Tables Particulars


Qualitative and Quantitative disclosures
1. Table DF - 1 Scope of Application
2. Table DF - 2 Capital Adequacy
3. Table DF - 3 Credit Risk: General Disclosures
4. Table DF - 4 Credit Risk: Disclosures for Portfolios Subject to the Standardized Approach
5. Table DF - 5 Credit Risk Mitigation: Disclosures for Standardized Approaches
6. Table DF - 6 Securitisation Exposures: Disclosure for Standardised Approach
7. Table DF - 7 Market Risk in Trading Book
8. Table DF - 8 Operational Risk
9. Table DF - 9 Interest Rate Risk in the Banking Book (IRRBB)
10. Table DF - 10 General Disclosure for Exposures Related to Counterparty Credit Risk
11. Table DF - 11 Composition of Capital
12. Table DF - 12 Composition of Capital – Reconciliation Requirements (Step 1)
Table DF - 12 Composition of Capital – Reconciliation Requirements (Step 2)
Table DF - 12 Extract of Basel III common disclosure template (with added column)
– Table DF 11 (Part I/Part II) which ever applicable (Step 3)
13. Table DF - 13 Main features of Regulatory Capital Instruments
14. Table DF - 14 Full Terms and Conditions of Regulatory Capital Instruments.
15 Table DF - 16 Equities – Disclosures for Banking Book Positions.
16. Table DF - 17 Summary comparison of accounting assets vs leverage ratio exposure measure 31.03.2017
17. Table DF - 18 Leverage ratio common disclosure template
18. Liquidity Coverage Ratio.

111
HQ‹MJHQQLM
HQ‹MJHQQLM
Financial
FinancialStatement
Statement

112
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

*LBUL$LV4LVZ$L4BE&LLQ;>EIG-'LG3LWVRMLK3LRZV*LL
PUNJAB NATIONAL BANK - BALANCE SHEET AS ON 31st MARCH, 2017

`ELT/LT. GO¶LLY¶LLH4

(`000 omitted)
*LX‚UIWL4KOT¶L3LL B WVRMXQI ELT ELT
CAPITAL & LIABILITIES Schedule As on 31.03.17 As on 31.03.16

*LX‚UI 1 4255937 3927195


Capital
ÈLKG\L3LGVGÉLWL4KWGÉLLTL 2 414213881 379174196
Reserves & Surplus
U&LLKLGL¶LLB 3 6217040164 5530511281
Deposits
NÉLLK 4 407633354 597552434
Borrowings
W6¶LOT¶L3LL BWL4KÈLPÉLLV 5 160162148 162739448
Other Liabilities and Provisions

ULT. TOTAL 7203305484 6673904554

WLG-3L¶LL8
ASSETS
VEOIWL4K)LLK3LI¶LGKuLP;$L4BEET*LLMU&LLLTL 6 252099957 264790678
Cash & Balances with Reserve Bank of India
$L4BELTBET*LLMU&LLLTLWL4K&LL8Y3L'LLW:*LMXQVL*LKÈL*¶LÉLV 7 631216513 491440222
Balances with Banks & Money at call & short notice
GVPTL 8 1867254395 1578458925
Investments
WGY[&L 9 4194931496 4123258000
Advances
WQZWLG-3L¶LL8 10 62732484 52227288
Fixed Assets
W6¶LWLG-3L¶LL8 11 195070639 163729441
Other Assets

ULT. TOTAL 7203305484 6673904554

WLEG-&LEOT¶L3LL B 12 3328313334 3357959224


Contingent Liabilities
NYLHIG$LZ 257791254 232211889
Bills for Collection

È&LR<LZT<LLBEVVIG3L¶LLB 17
Significant Accounting Policies
ZT<LLG7**LGL¶LL‚ 18
Notes on Accounts
MT3LEEIWVRMXGQ¶LL‚ZT<LLTBELWG)L£WBYH4B"
The Schedules 1 to 18 form an integral part of the
Accounts.

 7IET$LLZ&LRER6OV METU4V JIETLFL;


 T K BALAMUKUNDAN S K JAIN P K SHARMA
 NJ&LHLÈ$L6ÉLE NJ&LHLÈ$L6ÉLE &LHLÈ$L6ÉLE
 DY. GENERAL MANAGER DY. GENERAL MANAGER GENERAL MANAGER

113
 MBUIPLKL .L8KLF MMBYLJXKT ETPIKLD[ÄLUIKLP
SANJIV SHARAN DR. RAM S SANGAPURE K VEERA BRAHMAJI RAO
 EL¶L;*LLZEGVOTLE EL¶L;*LLZEGVOTLE EL¶L;*LLZEGVOTLE
EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR

 MRVIZFTHSL MRVIZFTHSL
SUNIL MEHTA SUNIL MEHTA
 ÈDBGVOTLE PBFR<EL;JLZEWGELKI WÉ\L
MANAGING DIRECTOR & C.E.O. CHAIRMAN

 WGVZERFLKvLQI .L8KGD VGF+L FHTLDLDXYR*SL


ANIL KUMAR KHACHI Dr. RABI N. MISHRA MAHESH BABOO GUPTA
 GVOTLE GVOTLE GVOTLE
DIRECTOR DIRECTOR DIRECTOR
 HIFIKQBOLVI MRÉLIKVLK
HIROO MIRCHANDANI SUDHIR NAYAR
 GVOTLE GVOTLE
DIRECTOR DIRECTOR
C;PVGSG'LELTHFLKIGKJLT7;ETWVRMLK
As per our Report of even date
 EAST/LUT. B.OLTLI ²3LTWLKOTPT6ÇER&LLK B. MLTGM 7_M ²STHTFMBOIJ B.E&JVI
For Chhajed & Doshi For R Devendra Kumar & Associates For Hem Sandeep & Co.
 MVOIZT<LLELK *L2WLK V.$:¶LX MVOIZT<LLELK *L2WLK V.$:¶LX MVOIZT<LLELK J2WLK V V
Chartered Accountants - FRN 101794W Chartered Accountants - FRN 114207W Chartered Accountants - FRN 009907N

 MROTLJRVHLVI
 VIKUYLTZLM
 FVILYR*SL

 ML·LTOLK ML·LTOLK ML·LTOLK


(Sudesh Punhani) (Neeraj Golas) (Manish Gupta)
Partner Partner Partner
 MO-¶LMB MO-¶LMB MO-¶LMB
M No. 017222 M No. 074392 M No. 092257

 ²3LTMXKI B.E&JVI ²3LT MJI FUI B.E&JVI


 For Suri & Co. For SPMG & Co.
 MVOIZT<LLELK *L2WLK V M MVOIZT<LLELK *L2WLK VMI
 Chartered Accountants - FRN 004283S Chartered Accountants - FRN 509249C

 WLKFHTL
 MSILQ6OK

 MLTOLK MLTOLK
(R. Mahesh) (Satish Chander)
Partner Partner
 MO-¶LMB MO-¶LMB
M No.024775 M No.087562

GOVLBE!!
Date : 16/05/2017

-'LLVVC;GO:ZI
Place : New Delhi

114
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

*LBUL$LV4LVZ$L4BEEL&LLQ;>ELTM&LL*3LPL;ELZL)LPHLGVZT<LL
PROFIT AND LOSS ACCOUNT OF PUNJAB NATIONAL BANK FOR THE YEAR ENDED
31st MARCH, 2017

`ELT/LT. GO¶LLY¶LLH4

(`000 omitted)
 
WVRMXQI ELTM&LL*3LPL; ELTM&LL*3LPL;
Schedule Year Ended Year Ended
31.03.17 31.03.16
I. WL¶L
INCOME
W„U3L$¶LLU 13 472759924 474243499
Interest earned
W6¶LWL¶L 14 89513723 60000517
Other Income

ULT. 562273647 534244016


TOTAL
II. 0¶L¶L
EXPENDITURE
<L Q;GE¶LLY¶LL$¶LLU 15 322828208 321125720
Interest expended
*LGKQLZV0¶L¶L 16 93793837 99724543
Operating expenses
ÈLPÉLLVWL4KWLEG-&LE<L Q; 132403584 153137713
Provisions and Contingencies

ULT. 549025629 573987976


TOTAL
III. ZL)L
PROFIT
WPGÉLETGZ LRZL)L HLGV
 13248018 -39743960
Net Profit/(Loss) for the year
ULT. ZL)LPHLGV<L L3LT&LTBLTL 0 0
Add: Balance in Profit & Loss A/c
GPGV¶LLTUVETGZ N*LZ$ÉLZL)L 13248018 -39743960
Profit Available for Appropriation
IV. GPGV¶LLTUV
APPROPRIATIONS
GV&VGZG<L3LELTWB3LKL
Transfer to :
MLBGPGÉLEÈLKG\L3LGVGÉL¶LL8 3312004 0
Statutory Reserves
*LX‚UIÈLKG\L3LGVGÉL¶LL8 5137039 1117341
Capital Reserves
KLU-P PBW6¶LÈLKG\L3LGVGÉL¶LL8 2098975 -40803267
Revenue & Other Reserves
È-3LLGP3LZL)LLBL 0 0
Proposed Dividend
WB3LGK&LZL)LLBL 0 0
Interim Dividend
PL;ETGZ È-3LLGP3LZL)LLBL*LKEK 0 0
Tax on Dividend proposed for the year 2015-16
ÈLPÉLLVMTZL)LLBL*LKEKETGZ WB3LGK3LLTL 0 -58034
Balance Transferred from provision for Tax on Dividend
WL¶LEKWGÉLGV¶L&LETWVRMLKGPLTLÈLKG\L3LGVGÉL 2700000 0
Special reserve as per Income Tax Act
GVPTLÈLKG\L3L 0 0
Investment Reserve
ZL)LPHLGV<LL3LT&LTBLTL 0 0
Balance in Profit & Loss Account
ULT. 13248018 -39743960
TOTAL

115
*LBUL$LV4LVZ$L4BEEL&LLQ;>ELTM&LL*3LPL;ELZL)LPHLGVZT<LL
PROFIT AND LOSS ACCOUNT OF PUNJAB NATIONAL BANK FOR THE YEAR ENDED
31st MARCH, 2017

`ELT/LT. GO¶LLY¶LLH4

(`000 omitted)
 
WVRMXQI ELTM&LL*3LPL; ELTM&LL*3LPL;
Schedule Year Ended Year Ended
31.03.17 31.03.16
ÈG3LLT¶LKWU;V*L¶LLTB&LTB &LXZ!3LVR²3L
6.45 -20.82
Earning per Share (`) (Basic/Diluted)
(Nominal Value ` 2 per share)

È&LR<LZT<LLBEVVIG3L¶LL‚ 17
Significant Accounting Policies
<LL3LLTBMTMB$LBGÉL3LG7**LGL¶LL‚ 18
Notes on Accounts

 7IET$LLZ&LRER6OV METU4V JIETLFL;


 T K BALAMUKUNDAN S K JAIN P K SHARMA
 NJ&LHLÈ$L6ÉLE NJ&LHLÈ$L6ÉLE &LHLÈ$L6ÉLE
 DY. GENERAL MANAGER DY. GENERAL MANAGER GENERAL MANAGER
 MBUIPLKL .L8KLF MMBYLJXKT ETPIKLD[ÄLUIKLP
SANJIV SHARAN DR. RAM S SANGAPURE K VEERA BRAHMAJI RAO
 EL¶L;*LLZEGVOTLE EL¶L;*LLZEGVOTLE EL¶L;*LLZEGVOTLE
EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR

 MRVIZFTHSL MRVIZFTHSL
SUNIL MEHTA SUNIL MEHTA
 ÈDBGVOTLE PBFR<EL;JLZEWGELKI WÉ\L
MANAGING DIRECTOR & C.E.O. CHAIRMAN

 WGVZERFLKvLQI .L8KGD VGF+L FHTLDLDXYR*SL


ANIL KUMAR KHACHI Dr. RABI N. MISHRA MAHESH BABOO GUPTA
 GVOTLE GVOTLE GVOTLE
DIRECTOR DIRECTOR DIRECTOR
 HIFIKQBOLVI MRÉLIKVLK
HIROO MIRCHANDANI SUDHIR NAYAR
 GVOTLE GVOTLE
DIRECTOR DIRECTOR
C;PVGSG'LELTHFLKIGKJLT7;ETWVRMLK
As per our Report of even date
 EAST/LUT. B.OLTLI ²3LTWLKOTPT6ÇER&LLK B. MLTGM 7_M ²STHTFMBOIJ B.E&JVI
For Chhajed & Doshi For R Devendra Kumar & Associates For Hem Sandeep & Co.
 MVOIZT<LLELK *L2WLK V.$:¶LX MVOIZT<LLELK *L2WLK V.$:¶LX MVOIZT<LLELK J2WLK V V
Chartered Accountants - FRN 101794W Chartered Accountants - FRN 114207W Chartered Accountants - FRN 009907N

116
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

 MROTLJRVHLVI
 VIKUYLTZLM
 FVILYR*SL

 ML·LTOLK ML·LTOLK ML·LTOLK


(Sudesh Punhani) (Neeraj Golas) (Manish Gupta)
Partner Partner Partner
 MO-¶LMB MO-¶LMB MO-¶LMB
M No. 017222 M No. 074392 M No. 092257

 ²3LTMXKI B.E&JVI ²3LT MJI FUI B.E&JVI


 For Suri & Co. For SPMG & Co.
 MVOIZT<LLELK *L2WLK V M MVOIZT<LLELK *L2WLK VMI
 Chartered Accountants - FRN 004283S Chartered Accountants - FRN 509249C

 WLKFHTL
 MSILQ6OK

 MLTOLK MLTOLK
(R. Mahesh) (Satish Chander)
Partner Partner
 MO-¶LMB MO-¶LMB
M No.024775 M No.087562

GOVLBE!!
Date : 16/05/2017
-'LLVVC;GO:ZI
Place : New Delhi

117
WVRMXQI*LX‚UI
SCHEDULE 1 - CAPITAL
`ELT/LT. GO¶LLY¶LLH4/ `000 omitted)
ELT ELT
As on 31.03.17 As on 31.03.16
ÈLGÉL²3L*LX‚UI
Authorised
È3¶LTE`/-E T>>>>CG%P7ILT¶LK 30000000 30000000
15,00,00,00,000 Equity Shares of ` 2 each
ULKI3L'LLWG)LOºL
Issued & Subscribed
È3¶LTE`!ET>>>>CG%P7ILT¶LK G*L/ZTPL;È3¶LTE`!ET>>>> 4255937 3927195
CG%P7ILT¶LK

212,79,68,258 (Previous year 196,35,97,490) Equity Shares of `2 each


ÈOºL
Paid Up
>>> GJ/ZTPL;È3TE!ET>>>CG%P7ILTK
 CVFTB! 4255937 3927195
ÈGSCG%P7ILTKETETBÇIMKELK^LKLLGKS>>>>CG%P7ILTKLLGFZH4B

212,79,68,258 (Previous year 196,35,97,490) Equity Shares of `2 each (includes


equity shares of 1,38,34,59,223 `2 each held by Central Government )
ULT. 4255937 3927195
TOTAL

WVRMXQIÈLKG\L3LGVGÉL¶LL‚WL4KWGÉLLTL
SCHEDULE 2 - RESERVES & SURPLUS
`ELT/LT. GO¶LLY¶LLH4/ `000 omitted)
ELT ELT
As on 31.03.17 As on 31.03.16
I. MLBGPGEÈLKG\LSGVGL‚
Statutory Reserves
ÈLKG&)LELTL 96670507 96670507
Opening Balance
PL;ETOL4KLVPAG 3312005 0
Addition during the year

99982512 96670507
II. JXBUIYSÈLKG\LSGVGL‚
Capital Reserves
E
 *LRV&LX;:¶LVÈLKG\L3LGVGÉL¶LL‚
a) Revaluation Reserve
ÈLKG&)LELTL 28447781 13875501
Opening Balance
PL;ETOL4KLVPAG 9642471 14778569
Addition during the year
PL;ETOL4KLVE7L43LI 584941 206289
Deduction during the year
MB*LGºLET*LRV&LX;:¶LV)LLY*LK&LX:¶LÀLMETELKL

(being depreciation on revalued portion of property)


W6¶LÈLKG\L3LGVGÉL¶LLTB&LTBWB3LGK3L 0 0
Transfer to Other Reserves
37505311 28447781
<L
 W6¶L
b) Others
ÈLKG&)LELTL 13386581 12269241
Opening Balance
PL;ETOL4KLVPAG 5137038 1117340
Addition during the year
18523619 13386581

118
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

`ELT/LT. GO¶LLY¶LLH4/ `000 omitted)


ELT ELT
As on 31.03.17 As on 31.03.16
III. LT¶LKÈIG&L¶L&L
Share Premium
ÈLKG&)LELTL 87129172 70027254
Opening Balance
PL;ETOL4KLVPAG 20791259 17101918
Addition during the year
PL;ETOL4KLVE7L43LI 0 0
Deduction during the year
107920431 87129172
IV. KLU-P3L'LLW6¶LÈLKG\L3LGVGÉL¶LLB
Revenue and other Reserves
E
 GVPTLÈLKG\L3LGVGÉL
a) Investment Reserve
ÈLKG&)LELTL 3705193 3705193
Opening Balance
ULT. TZL)LPHLGVGPGV¶LLTUV<LL3LTMTWB3LGK3L 0 0
Add :Transfer from P&L Appropriation A/c
L7L BZL)LPHLGVGPGV¶LLTUV<LL3LTELTWB3LGK3L 0 0
Less: Transfer to P&L Appropriation A/c
3705193 3705193
<L
 GPGV&L¶L L7$L ÈLKG\L3LGVGÉL
b) Exchange Fluctuation Reserve
ÈLKG&)LELTL 642113 542271
Opening Balance
ULT. TBPL;ETOL4KLVPAG 279478 99842
Add :Addition during the year
L7L BPL;ETOL4KLVE7L43LI LR
0 0
Less: Deduction during the year (Net)
921591 642113
Y
 WL¶LEKWGÉLGV¶L&LEIÉLLKL 
 viii
ETW63LY;3LGPLTLÈLKG\L3L
GVGÉL
c) Special Reserve under Sec.36(1) (viii) of Income Tax Act, 1961
ÈLKG&)LELTL 11936600 11936600
Opening Balance
W6¶LÈLKG\L3LGVGÉL¶LLTBMTWB3LGK3L 0 0
Transferred from Other Reserves
PL;ETOL4KLVPAG 2700000 0
Addition during the year
L) W6¶LÈLKG\L3LGVGÉL 14636600 11936600
d) Other Reserve
ÈLKG&)LELTL 137256249 178059523
Opening Balance
PL;ETOL4KLVPAG 2098975 0
Addition during the year
L7L BPL;ETOL4KLVWLHKL 8336600 40803267
Less: Withdrawal during the year
ULT. TB*LRV&LX;:¶LVÈLKG\L3LGVGÉL¶LLTBMTWB3LGK3L 0 0
Add: Transfer from Revaluation Reserves
L7L BGV<LL3LLTBETGZ )LRY3LLV 0 7
Less: Payment for blocked accounts
131018624 137256249
V. ZL)LHLGV<LL3LT&LTBLTL 0 0
Balance in Profit & Loss Account
I,II,III,IV,VELULT. /Total of I, II, III, IV,V 414213881 379174196

119
WVRMXQIU&LLKLGL¶LL‚
SCHEDULE 3 - DEPOSITS
`ELT/LT. GO¶LLY¶LLH4/ `000 omitted)
ELT ELT
As on 31.03.17 As on 31.03.16
I. &LL‚YU&LLKLGL¶LL‚
Demand Deposits
(i) $L4BELTBMT 17349781 36366491
(i) From Banks
(ii) W6¶LMT 441183294 325203374
(ii) From Others
458533075 361569865

II. $LQ3L$L4BEU&LLKLGL¶LL‚ 2141625493 1694263513


Savings Bank Deposits

III. &LI¶LLOIU&LLKLGL¶LL‚
Term Deposits
W (i) $L4BELTBMT 643551247 651814837
A. (i) From Banks
(ii) W6¶LMT 2973330349 2822863066
(ii) From Others
3616881596 3474677903
I , IIPIII ELULT. /Total I, II & III 6217040164 5530511281

B. WL (i))LLK3L&LTBG-'L3LLL<LLWLTBEIU&LLKLGL¶LLB 5655727079 4938546917


B. (i) Deposits of branches in India
(ii) )LLK3LMT$LLHKG-'L3LLL<LLWLTBEIU&LLKLGL¶LL‚ 561313085 591964364
(ii) Deposits of branches outside India
WLi Pii ELULT. /TOTAL B (i) & (ii) 6217040164 5530511281

WVRMXQINLK
SCHEDULE 4 - BORROWINGS
`ELT/LT. GO¶LLY¶LLH4/ `000 omitted)
ELT ELT
As on 31.03.17 As on 31.03.16
I. )LLK3L&LTBNÉLLK
Borrowings in India
(i) (i))LLK3LI¶LGKUP;$L4BEMT 0 161750000
(i) Reserve Bank of India
(ii) (ii) W6¶L$L4BELTBMT 3849185 24327138
(ii) Other Banks
(iii) (iii)W6¶LMB-'LLWLTBWL4K UTBGM¶LLTBMT 17539645 54284880
(iii) Other Institutions and Agencies
(iv) (iv)WÈG3L)LX3LÈG3LOT¶L$LL.
(iv) Unsecured Redeemable Bonds
a) E 7I¶LKI$LL. $LTG&L¶LLOIžLGZ<L3LTB
57705000 35205000
a) Tier-I Bonds (Perpetual Debt Instruments)
b) <L W*LK7I¶LKII$LL. 61100000 66100000
b) Upper Tier-II Bonds
c)   Y 7I¶LKII *LX‚UIETGZ YL4LžL 50000000 64998000
c) Subordinate debts for Tier II Capital
d)   L OI LL;PGC6J[2L-7‹%QKDL8. 28000000 196805000 28000000 194303000
d) Long term infrastructure bonds
II. )LLK3LMT$LLHKNÉLLK 189439524 162887416
Borrowings outside India
I>IIELULT. /Total of I, II 407633354 597552434
N*L¶LR;%SI PBII&LTBLLG&LZÈG3L)LX3LNÉLLK
0 178915913
Secured Borrowings included in I & II above

120
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

WVRMXQIW6¶LOT¶L3LL BWL4KÈLPÉLLV
SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS
`ELT/LT. GO¶LLY¶LLH4/ `000 omitted)
ELT ELT
As on 31.03.17 As on 31.03.16
I. OT¶LG$LZ 25540463 24257226
Bills Payable
II. WB3LEL¶LL;Z¶LM&LL¶LLTUV LR
 27863 79613
Inter-Office adjustments(net)
III. N*LGQ3L$¶LLU 12292060 16072257
Interest accrued
IV. -'LGY3LEKOT¶L3LL LR
0 0
Deferred Tax Liability (Net)
V. W6¶L ÈLPÉLLVLTBMGH3L
122301762 122330352
Others (including Provisions)
I>II>III>IV>VELULT. /Total of I, II, III, IV, V 160162148 162739448

WVRMXQIVEOIWL4K)LLK3LI¶LGKuLP;$L4BEET*LLMLTL
SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA
`ELT/LT. GO¶LLY¶LLH4/ `000 omitted)
ELT ELT
As on 31.03.17 As on 31.03.16
I. HL'L&LTBVEOI GPOTLI&LRÇLEKTBMIVLT7LTBMGH3L
20984803 22238461
Cash in hand (including foreign currency
notes)
II. )LLK3LI¶LGKuLP;$L4BEET*LLMLTL
Balance with Reserve Bank of India
QLZX<LL3LT&LTB 231115154 242552217
In Current Account
W6¶L<LL3LLTB&LTB 0 0
In other Account
I, IIELULT. /Total of I, II 252099957 264790678

WVRMXQI$L4BELTBET*LLMLTL3L'LL&LL‚YWL4KW:*LMXQVL*LKÈL*¶LÉLV
SCHEDULE 7- BALANCES WITH BANKS & MONEY AT CALL & SHORT NOTICE
`ELT/LT. GO¶LLY¶LLH4/ `000 omitted)
ELT ELT
As on 31.03.17 As on 31.03.16
I. )LLK3L&LTB
In India
(i) $L4BELTBET*LLMLTL
(i) Balances with Banks
 E
QLZX<LL3LLTB&LTB 6499917 22938001
a) In Current Accounts
 <L
W6¶LU&LL<LL3LLTB&LTB 97120140 82369390
b) In Other Deposit Accounts
103620057 105307391
(ii)&LL‚YWL4KW:*LMXQVL*LKÈL*¶LÉLV
(ii) Money at Call and Short Notice
 E
$L4BELTBET*LLM 0 0
a) with Banks
 <L
W6¶LMB-'LLWLTBET*LLM 220000000 220000000 20000000 20000000
b) with Other Institutions
ULT.  323620057 125307391
TOTAL

121
`ELT/LT. GO¶LLY¶LLH4/ `000 omitted)
ELT ELT
As on 31.03.17 As on 31.03.16
II. )LLK3LMT$LLHK
Outside India
(i) $L4BELTBET*LLMLTL
(i) Balances with Banks
 E
QLZX<LL3LLTB&LTB 11955070 8569635
a) In Current Accounts
 <L
W6¶LU&LL<LL3LLTB&LTB 295641386 352873196
b) In Other Deposit Accounts
(ii) &LL‚YWL4KW:*LMXQVL*LKÈL*¶LÉLV 0 4690000
(ii) Money at Call & Short Notice
ULT. 307596456 366132831
TOTAL
IWL4KIIELM&LY[ULT. /GRAND TOTAL of I, II 631216513 491440222

WVRMXQIGVPTL
SCHEDULE 8 - INVESTMENTS
`ELT/LT. GO¶LLY¶LLH4/ `000 omitted)

ELT ELT
As on 31.03.17 As on 31.03.16
I. )LLK3L&LTBGVPTLMEZ 1825913632 1535050431
Investments in India : Gross
L7L B&LX:¶LÀLMETGZ ÈLPÉLLV 14126142 9606405
Less: Provision for Depreciation
)LLK3L&LTBLRGVPTL 1811787490 1525444026
Net Investment in India
(i) MKELKIÈG3L)LXG3L¶LLB 1461827636 1249505557
(i) Government Securities
(ii) W6¶LWVR&LLTGO3LÈG3L)LXG3L¶LLB 1883020 1883020
(ii) Other Approved Securities
(iii) LT¶LK 53578677 45333251
(iii) Shares
(iv) G.DTBQKWL4K$LL. 247195844 188658858
(iv) Debentures and Bonds
(v) WVRLBGY¶LL‚WL4K!W'LPLMB¶LR%SN]&L ÈL¶LLTGU3LMB-'LLWLTBMGH3L
7532699 7532699
(v) Subsidiaries and/or joint ventures (including sponsored institutions)
(vi) W6¶L 39769614 32530641
(vi) Others
GPG)L£&¶LXQRWZ¾2B.LTBPPLGLG5¶LE*LLLTBWLGO&LTB

Various Mutual Funds & Commercial Papers etc.


IELULT. /TOTAL of I 1811787490 1525444026
II. )LLK3LMT$LLHKGVPTLMEZ 55466905 53014899
Investments Outside India : Gross
L7L B&LX:¶LÀLMETGZ ÈLPÉLLV 0 0
Less: Provision for depreciation
)LLK3LMT$LLHKLRGVPTL 55466905 53014899
Net Investments outside India
(i) -'LLVI¶LÈLGÉLEKLLTBMGH3LMKELKIÈG3L)LXG3L¶LL‚ 14973914 15454761
(i) Govt. securities including local authorities
(ii) GPOTLG-'L3LWVRLBGY¶LL‚WL4K!W'LPLMB¶LR%SN]&L 15516110 15516110
(ii) Subsidiary and / or Joint ventures abroad
(iii) W6¶L 24976881 22044028
(iii) Others
IIELULT. /TOTAL of II 55466905 53014899
I>II ELM&LY[ULT. /GRAND TOTAL of I, II 1867254395 1578458925

122
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

WVRMXQIWGY[&L
SCHEDULE 9 - ADVANCES
`ELT/LT. GO¶LLY¶LLH4/ `000 omitted)
ELT ELT
As on 31.03.17 As on 31.03.16
W (i) <LKIOTWL4K)LRVL¶LTY¶LTG$LZ 295556725 300905923
A (i) Bills purchased and discounted
(ii) VEONÉLLK>WLTPK.‹L¾7WL4K&LL‚Y*LKOT¶LžL 2493598870 2338102826
(ii) Cash Credits, Overdrafts & Loans
repayable on demand
(iii) &LI¶LLOIžL 1405775901 1484249251
(iii) Term Loans
ULT. 4194931496 4123258000
Total
WL (i) &LX3L;WLG-3L¶LLTB^LKLÈG3L)LX3L CM&LTB$LHIžLLTB*LKGO Y¶LTWGY[&LLLG&LZH4B
3607407220 3731505914
B (i) Secured by tangible assets (Includes advances against Book Debts)
(ii) $L4BE!MKELKEIYLBKG7¶LLTB^LKLMBKG\L3L 108915173 101007144
(ii) Covered by Bank/Government
guarantees
(iii) WÈG3L)LX3L 478609103 290744942
(iii) Unsecured
ULT. 4194931496 4123258000
Total
C(I) )LLK3L&LTBWGY[&L
C (I) Advances in India
(i) ÈL'LG&LE3LL\LTL 1331280529 1393954904
(i) Priority Sector
(ii) MLP;UGVE\LTL 199391059 189099143
(ii) Public Sector
(iii) $L4BE 16965 3138
(iii) Banks
(iv) W6¶L 2164233273 2010939517
(iv) Others
ULT.  3694921826 3593996702
Total

C(II) )LLK3LMT$LLHKWGY[&L
C (II) Advances outside India
(i) (i) $L4BELTBMTÈL*¶L 281380953 321113463
(i) Due from Banks
(ii) (ii) W6¶LMTÈL*¶L
(ii) Due from Others
(a) E
 <LKIOTWL4K)LRVL¶LTY¶LTG$LZ 5319639 5310147
(a) Bills Purchased & Discounted
(b)  <L
 ML&LXGHEžL 24266223 10107862
(b) Syndicated Loan
(c)  Y
 W6¶L 189042855 192729826
(c) Others
ULT. 500009670 529261298
Total
M&LY[ULT.  " PB""ELULT.
4194931496 4123258000
GRAND TOTAL ( Total of I & II )

123
WVRMXQIWQZWLG-3L¶LL‚
SCHEDULE 10 - FIXED ASSETS
`ELT/LT. GO¶LLY¶LLH4/ `000 omitted)
ELT ELT
As on 31.03.17 As on 31.03.16
W &LX3L;WLG-3L¶LL‚
A TANGIBLE ASSETS
I. JGKMK
Premises
G*L/ZTPL;EI&LLQ;EIZLY3L!&LX:¶LLBEV*LK 45097669 28620221
At cost / valuation as on 31st March of the preceding year
WPGÉLETOL4KLVPAG 1216189 1698879
Addition during the period
ULT. TPL;ETOL4KLVJRVFX;:LBEV 9642471 14778569
Add: Revaluation during the year
55956329 45097669
PL;ETOL4KLVE7L43LI 0 0
Deduction during the year
WPGETOL4KLVMFLLTUV 563526 0
Adjustment During the Period
55392803 45097669
W$L3LE&LX:¶LÀLM 5071965 4371867
Depreciation to date
*LRV&LX;:¶LVKLGL*LK&LX:¶LÀLMMGH3L
50320838 40725802
(Including on revalued amount )

II. W6¶LWQZWLG-3L¶LL‚ ¾2VI;QKWL4KG¾2%-QKMGH3L

Other Fixed Assets (Including Furniture & Fixtures)


G*L/ZTPL;EI&LLQ;EIZLY3L*LK 36915068 34903685
At cost as on 31st March of the preceding year
PL;ETOL4KLVPAG 5025505 4814124
Addition during the year
41940573 39717809
PL;ETOL4KLVE7L43LI 1117657 2802740
Deduction during the year
40822916 36915069
W$L3LE&LX:¶LÀLM 29138093 26352729
Depreciation to date
11684823 10562340
III *L7_7TPLZIWLG-3L¶LL‚
Leased Assets
G*L/ZTPL;EI&LLQ;EIZLY3L*LK 252386 252386
At cost as on 31st March of the preceding year
252386 252386
PL;ETOL4KLVPAG!M&LL¶LLTUV 0 0
Addition/adjustment during the year
PL;ETOL4KLVE7L43LI 0 0
Deduction during the year
252386 252386
W$L3LE*LGKLLTÉLV!*L7_7TELM&LL¶LLTUV 252386 252386
Amortisation / lease adjustment to date
0 0

I,II,IIIELULT. /Total of I, II, III 62005661 51288142

WL W&LX3L;WLG-3L¶LL‚
B INTANGIBLE ASSETS
E&*¶LX7KML8¾7PT¶LK
Computer Software
G*L/ZTPL;EI&LLQ;EIZLY3L*LK 3663449 3252893
At cost as on 31st March of the preceding year
WPGÉLETOL4KLVPAG 142959 410971
Addition during the period
3806408 3663864

124
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

`ELT/LT. GO¶LLY¶LLH4/ `000 omitted)


ELT ELT
As on 31.03.17 As on 31.03.16
WPGÉLETOL4KLVE7L43LI 0 415
Deduction during the period
3806408 3663449
W$L3LE*LGKLLTGÉL3L 3079585 2724303
Amortised to date
ULT. 726823 939146
Total
M&LY[ULT.  WWL
/GRAND TOTAL (A+B) 62732484 52227288

WVRMXQIW6¶LWLG-3L¶LL‚
SCHEDULE 11 - OTHER ASSETS
`ELT/LT. GO¶LLY¶LLH4/ `000 omitted)
ELT ELT
As on 31.03.17 As on 31.03.16

I. N*LGQ3L$¶LLU 44662889 45989390


Interest accrued
II. GO¶LLY¶LLWGY[&LEK!°LT3L*LKEL7LY¶LLEK 7539712 15362610
Tax paid in advance / tax deducted at source
III. ZT<LVML&LY[IWL4K-7L&*L 99365 93337
Stationery and stamps
IV. OLPLTBETGV*L7LV&LTBÈL*3LY4K$L4BEYWLG-3L¶LLB 1120259 277626
Non-banking assets acquired in satisfaction of claims
V. WL-'LGY3LEKWLG-3L¶LL‚ LR
61010344 46174739
Deferred tax asset (net)
VI. W6¶L 80638070 55831739
Others
I,II,III,IV,V ,VIELULT.  195070639 163729441
Total of I, II, III, IV, V, VI

WVRMXQIWLEG-&LEOT¶L3LL B
SCHEDULE 12 - CONTINGENT LIABILITIES
`ELT/LT. GO¶LLY¶LLH4/ `000 omitted)
ELT ELT
As on 31.03.17 As on 31.03.16
I (i) (i) $L4BELTBETGP TMTOLPTGU6HTBžLET*L&LTBVHIB&LLVLY¶LLH4 2406801 2310441
(i) Claims against the Bank not acknowledged as debts
(ii) (ii) W*LIZLTB>MBO)LLT’WLGOETWÉLIVGPPLGO3LWL¶LEKP$¶LLUEK&LL‚YTB 0 11557896
(ii) Disputed income tax and interest tax demands under appeals,
references etc.
II. WLBGLE*LMTWOLGE¶LTY¶LTGVPTLLTBETGZ OT¶L3LL B 115 115
Liability for partly paid investments
III. $LEL¶LLPL¶LOLGPGV&L¶LMBGPOLWLTBETELKLOT¶L3LL B 2494863829 2556585121
Liability on account of outstanding forward exchange contracts
IV. Y[LHELTBEIWLTKMTOIY¶LIYLKBG7¶LL‚
Guarantees given on behalf of constituents:
E
)LLK3L&LTB 381888703 324802331
(a) In India
<L
)LLK3LMT$LLHK 139205925 136191530
(b) Outside India
V. -PI²G3L¶LLB>*LAsLBEVWL4KW6¶LOLG¶L3P 296648106 319518652
Acceptances, endorsements and other obligations
VI. W6¶L&LOTBGUVETGZ $L4BEWLEG-&LE*LMTGuL&&LTOLKH4 13299855 6993138
Other items for which the Bank is contingently liable
I,II,III,IV,V,VI ELULT. 3328313334 3357959224
Total of I, II, III, IV, V, VI

125
WVRMXQIW„U3L$¶LLU
SCHEDULE 13 - INTEREST EARNED
`ELT/LT. GO¶LLY¶LLH4/ `000 omitted)
ELT ELT
As on 31.03.17 As on 31.03.16
I. WGY[&LLTB!G$LZLTB*LK$¶LLU!$L7_7L 329588223 344455374
Interest/discount on advances/bills
II. GVPTLLTBMTWL¶L 125771706 120336525
Income on Investments
III. )LLK3LI¶LGKuLP;$L4BEET*LLMU&LLLTLWL4KW6¶L 13542009 7305026
WB3L$L4BEGVGÉL¶LLTB*LK$¶LLU
Interest on balances with Reserve Bank of India and other Inter-Bank funds
IV. W6¶L 3857986 2146574
Others
I,II,III,IVELULT. /Total of I, II, III, IV 472759924 474243499

WVRMXQIW6¶LWL¶L
SCHEDULE 14 - OTHER INCOME
`ELT/LT. GO¶LLY¶LLH4/ `000 omitted)
ELT ELT
As on 31.03.17 As on 31.03.16
I. E &LILV>GPGV&L¶LWL4KOZLZI 32278581 27873534
Commission, Exchange and Brokerage
II. GVPTLLTBEIG$L¹IMTZL)L 28506091 12137777
Profit on sale of Investments
L7L BGVPTLLTBEIG$L¹IMTHLGV 1962860 2144962
Less: Loss on sale of Investments
26543231 9992815
III. GVPTLLTBET*LRV&LX;:¶LVMTZL)L 0 0
Profit on revaluation of Investments
L7L BGVPTLLTBET*LRV&LX;:¶LV!*LGKLLTÉLVMTHLGV 0 0
Less: Loss on revaluation of Investments/ Amortisation
0 0
IV. )LXG&L>)LPVWL4KW6¶LWLG-3L¶LLTBEIG$L¹IMTZL)L 55086 31507
Profit on sale of land, buildings and other assets
L7L B)LXG&L>)LPVWL4KW6¶LWLG-3L¶LLTBEIG$L¹IMTHLGV 1328 6502
Less: Loss on sale of land, buildings and other assets
53758 25005
V GPOTLI&LRÇLGPGV&L¶LZTVOTVMTZL)L 14646947 15195893
Profit on exchange transactions
L7L BGPOTLI&LRÇLGPGV&L¶LZTVOTVMTHLGV 8818828 10926983
Less: Loss on exchange transactions
5828119 4268910
VI. )LLK3L&LTB3L'LLGPOTL&LTBWVRLBGY¶LLTB!E&*LGV¶LLTBWL4K!W'LPLMB¶LR%SN]&LLTBMTZL)LLBLET 958509 1159689
*L&LTBW„U3LWL¶L
Income earned by way of dividends etc.from subsidiaries / companies and /
or joint ventures in India & abroad.
VII. GPGPÉLWL¶L 23851525 16680564
Miscellaneous Income
I, II, III, IV, V , VI, 3L'LLVII ELULT. /Total of I, II, III, IV, V, VI & VII 89513723 60000517

126
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

WVRMXQI<LQ;GE¶LLY¶LL$¶LLU
SCHEDULE 15 - INTEREST EXPENDED
`ELT/LT. GO¶LLY¶LLH4/ `000 omitted)
ELT ELT
As on 31.03.17 As on 31.03.16
I. U&LLKLGL¶LLTB*LK$¶LLU 299336656 298025714
Interest on Deposits
II. )LLK3LI¶LGKuLP;$L4BEET!WB3L$L4BENÉLLKLTB*LK$¶LLU 2415350 2502097
Interest on Reserve Bank of India/inter-bank borrowings
III. W6¶L 21076202 20597909
Others
I, II, III ELULT. /Total of I, II, III 322828208 321125720

WVRMXQI*LGKQLZV0¶L¶L
SCHEDULE 16 - OPERATING EXPENSES
`ELT/LT. GO¶LLY¶LLH4/ `000 omitted)
ELT ELT
As on 31.03.17 As on 31.03.16
I. E&L;QLGK¶LLTBELT)LRY3LLVWL4KNVETGZ ÈLPÉLLV 54207188 64259453
Payments to and Provisions for employees
II. GEKL¶LL>EKWL4KG$LUZI 6922235 6258066
Rent, Taxes and Lighting
III. &LRÇL PBZT<LVML&LY[I 958918 845261
Printing and Stationery
IV. GP,L*LVWL4KÈQLK 553613 548490
Advertisement and Publicity
V. $L4BEEIMB*LGºL*LK&LX:¶LÀLM!*LGKLLTÉLV 4835308 4163580
Depreciation/Amortisation on Bank's property
L7L B*LRV&LX;:¶LVÈLKG\L3LGVGÉLMTM&LL¶LLTGU3L 584941 206289
Less: Adjusted with Revaluation Reserve
4250367 3957291
VI. GVOTLELTBEIJ 2IM>)LºLTWL4K<L Q; 14633 14170
Directors' fees, allowances and expenses
VII. ZT<LL*LKI\LELTBEIJ 2IMWL4K<L Q; 673015 688166
Auditors' fees and expenses
VIII. GPGÉLÈ)LLK 643284 612675
Law Charges
IX. .LE>3LLK>7TZIJ2LTVWLGO 1754023 1426920
Postage, Telegrams, Telephones, etc.
X. &LK&&L3LWL4KK<LK<LLP 2340978 2189965
Repairs and Maintenance
XI. $LI&LL 5685672 5138774
Insurance
XII. W6¶L0¶L¶L 15789911 13785312
Other expenditure
IMTXIIELULT. /Total of I to XII 93793837 99724543

127
JBULDV4LVZD4BE PUNJAB NATIONAL BANK
WVRMXQI EZ
 SCHEDULE 17 (SOLO) – 31.03.2017

ZTvLGPGÉLM&D6ÉLIÈFRvVIGSLB SIGNIFICANT ACCOUNTING POLICIES

 ZTvTS4LKEKVTELWLÉLLK 1. BASIS OF PREPARATION:

 GPºLIGPPKLJLJK&JKLYSZLYSETWLÉLLKJKS4LKGETYTH4B The financial statements have been prepared on


historical cost basis and conform, in all material aspects,
S'LLMF-SFH3PJXL;OAG7LTBMT)LLKSFTBMLFL6S-PI²SZTvLBEV to Generally Accepted Accounting Principles (GAAP) in
GML6SLTB UI JI
ETWVRJH4B>GUVFTBZLYXMLBGPGÉLEÈLPÉLLVLTB India unless otherwise stated encompassing applicable
FTBUDSEW6'LLNG:ZGvSVGELUL >)LLKSIGKUP;D4BE^LKL statutory provisions, regulatory norms prescribed by
Reserve Bank of India (RBI), circulars and guidelines
GVÉLL;GKSGPGVLFEFLVO.MFMFJK)LLKSIGKUP;D4BE^LKL
issued by the Reserve Bank of India (‘RBI’) from
ULKIJGKJLLTB PGOLLGVO;TLLTB>D4BEELKIGPGVFWGÉLGVF> time to time, Banking Regulation Act 1949, Accounting
)LLKSIMVOIZTvLELKMB-'LLV^LKLULKIZTvLBEVFLVO.S'LL Standards (AS) and pronouncements issued by The
,LJVP)LLKSFTBD4BGEBYN]LTYFTBFL4UXOLÈ'LL B)LILLGFZH4B" Institute of Chartered Accountants of India (ICAI) and
prevailing practices in Banking industry in India.
 GPOTLIELL;ZLTBETMBDBÉLFTB>GPOTLIELL;ZLTBMTMBDBGÉLSMLBGPGÉLE In respect of foreign offices, statutory provisions and
ÈLPÉLLVLTB WL4K FL4UXOL GMLBSLTB 'LL GPGVGO;7 ELT /LT. EK> EI practices prevailing in respective foreign countries are
WVRJLZVLEIULSIH4" complied with except as specified elsewhere.

 GPºLIGPPKGLLTB ELT UDSEW6'LLNG:ZGvSVGELULT> The financial statements have been prepared on going
concern basis with accrual concept and in accordance
GVGFSZTvLVIGSLTB WL4KÈ'LLWLTB EIWVRJLZVLET ML'LFL4UXOL with the accounting policies and practices consistently
GPELMFLVNJLU;VWPÉLLKLLETWLÉLLKJKGZLYLH4" followed unless otherwise stated

 WVRFLVLTBELÈLTY 2. Use of Estimates

 GPºLI GPPKGLLTB ELT S4LK EKVT ET GZ  ÈD6ÉLV ELT GKJLTG7;BY The preparation of financial statements requires the
management to make estimates and assumptions
WPGÉLET GZ WLG-SLTB POTSLWLTB WLEG-FEOTSLWLTB MGHS
 considered in the reported amounts of assets and
NMG-'LGSEIGPºLIGPPKGLLTBFTBMXGQSKLGLLTBS'LLMXGQSWL liabilities (including contingent liabilities) as on date of
P 0 EI KLGLLTB FTB WVRFLVLTB WL4K FL6SLWLTB JK GPQLK EKVL the financial statements and the reported income and
WJTG\LSH4"ÈD6ÉLVELFLVVLH4 GEGPºLIGPPKGLLTB ELT S4LK expenses for the reporting period. Management believes
that the estimates used in the preparation of the financial
EKVTFTBÈRºL2WVRFLVGPPTEJXL;WL4KWL4GQ3JXL;H4" statements are prudent and reasonable.
 )LLPIJGKLLFCVWVRFLVLTBMTG)L6VHLTMESTH4B" Future results could differ from these estimates.

  VRFLVLTBWL4KPL-SGPEJGKLLFLTBETDIQWBSKELTNMWPGÉLET
W Difference between the actual results and estimates
JGKLLFLTBFTBGOvLL!ELL;G6PSGELULSLH4" is recognized in the period in which the results are
known / materialized.
  VRFLGVSZTvLBEVFTB ELTC; MBMLÉLVUDSEW6'LLNG:ZGvS
W Any revision to the accounting estimates is recognised
VHIB GELUL >PS;FLVP)LLPIWPGÉLLTB ET È3LGLSÈ)LLPLTB FTB prospectively in the current and future periods unless
OAG7YLTQKHLTSTH4B" otherwise stated.

 KLU-PFL6SL 3. REVENUE RECOGNITION

 W
 L!0 J4KLFTBMBOG)L;SFOLTBMTG)L6V
ELTMLFL6SNJQ 3.1 Income & expenditure (other than items referred to in
paragraph 3.5) are generally accounted for on accrual
WLÉLLKJKZTvLBGESGELULSLH4" basis.
 W
 GY[FLTB ELT GFZLEK Y4K WVU;E WLG-SLTB VJI
> WL WL4K
3.2 Income from Non- Performing Assets (NPAs),
GVPTLULTPMXZIMTÈL*SGE ULSTHLTB>)LLKSIGKUP;D4BE!GPOTLI comprising of advances, and investments, is
ELL;ZLTB ET FLFZT FTB MBDBGÉLSOTLLTB ET GPGVFELT GUMT CMET recognised upon realisation, as per the prudential
JQLSMFTGESJMTGPGVLFEÈLGÉLELKIMBOG)L;SGELUL YL
 norms prescribed by the RBI/ respective country
^LKLGVÉLL;GKSGPPTEJXL;FLVOB.LTBETWVRMLKH4" regulators in the case of foreign offices (hereafter
collectively referred to as Regulatory Authorities).
 W
 VU;E WGY[F vLSLTB EI PMXGZL8B PMXZI ELK;PLC; ET FLT.!
3.3 Recoveries in NPA accounts (irrespective of the mode /
G-'LGS!-7TUEIJKPLHGET DY4K
GVG&6ZGvSÈL'LGFESL¹FFTB status / stage of recovery actions) are appropriated in the
GPGVLTGUSEIULSIH4 following order of priority : -

128
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

E
 P MXZI HTSR NJGQS 0!J2R7EK vQ; JHZT NBQSI OTLTB FTB a) Expenditure/out of pocket expenses incurred for
GKEL.;GETYT
recovery (earlier recorded in memorandum dues);
b) Principal irregularities i.e. NPA outstanding in the
v
 ÈFRvWGVGFSSLTBW'LL;S_vLSTFTBDELL
account.
Y
 $LUWGVGFSSLWLTB!NJGQS$LUETÈGS c) Towards the interest irregularities/accrued interest.
  VJI  EI GD¹I> )LLKSI GKUP; D4BE WL4K J4KL  ET WBSY;S 3.4 The sale of NPA is accounted as per guidelines
ÈE7IEKL ET GZ  GVÉLL;GKS GOLLGVO;TLLTB ET WVRMLK ZTvLBGES prescribed by RBI and as disclosed under Para
GELULSLH4" 5.4.

 FILV> MKELKIELKLTDLKJKEFILVELT/LT. EK
!WL4KWGSOT 3.5 Commission (excluding on Government Business),
 E
interest on overdue bills, exchange, locker rent, income
GDZLTBJK$LU>GPGVF>ZL8EKGEKL >FQ;TB7D4BGEBYZTVOTVLTBMTÈL*S
from merchant banking transactions and Income
WLWL4KZL)LLBLWL7‹TG.BYET JFTB VLGFSJL.TGKPTG705 L on Rupee Derivatives designated as “Trading” are
JKWLPMXZIJKWL4KDIFLOLPLTBELTGVJ7LVJKZTvLBGESGEL accounted for on realization and insurance claims are
ULSLH4" accounted for on settlement.

 X7J2LCZvLSLTBETFLFZTFTBMBDBGÉLSELVXVIWL4KW6vQ;TZL)L 3.6 In case of suit filed accounts, related legal and other
 M
HLGVvLST MT È)LLGKSGET ULST H4B WL4KCMEIPMXZIHLTVT JK expenses incurred are charged to Profit & Loss
Account and on recovery the same are accounted for
CMSKHETNÎTLTBETGZ YLVLEIULSIH4"
as such.
 W
 LEK ET GKJ2B.LTB JK $LU ET J FTB ÈL*S WL ELT MBDBGÉLS 3.7 Income from interest on refund of income tax is accounted
ÈLGÉLELGKLTB^LKLJLGKSWLOTLETPL;FTBKTBvLGEBSGELULSLH4" for in the year the order is passed by the concerned
authority.
 W
 L8JKTG7BYZIUJKZIYC;WLG-SLTBETGZ PAGZLYSMGHSZIU
EL)LRYSLVZI5 LWPGÉLET NJKWLC;MI WLC; ^LKLULKI M 3.8 Lease payments including cost escalation for assets
ZIUTM
ETWVRMLKZL)LHLGVvLSTFTBGZLULSLH4" taken on operating lease are recognised in the Profit and
Loss Account over the lease term in accordance with the
 . TGD7!¹TG.7EL.LT’ JKGKPL.; *PLCB7ET GZ ÈLPÉLLVÈ3TE+TLI AS 19 (Leases) issued by ICAI.
FTBMBGQSDELL*PLCB7LTBJKWLÉLLGKSH4" 3.9 Provision for Reward Points on Debit/Credit cards is
 JGKJ%PHLTQREIGFLOIUFLKLGLLTBEL)LRYSLVVHRWLHLTS'LL made based on the accumulated outstanding points in
each category.
NVELOLPLVGELYLHLTSLTNVJKDQSvLSTEIOKMT$LU
ZYLLULSLH4" 3.10 Interest on unpaid and unclaimed matured term deposits
is accounted for at savings bank rate.
ZL)LLBL ÈL*S EKVT EL WGÉLELK UD WL4K UD M&)LP HLT ZL)LLBL
3.11 Dividend is accounted for as and when the right to receive
EIÈLG*SHLTYI"
the dividend is established.
 GVPTL 4. INVESTMENTS
 ÈGS)LXGSLTBFTBZTVOTV??GVJ7LVGSG'L ELTOU;GELULSLH4" 4.1 The transactions in Securities are recorded on
“Settlement Date”.
 GVPTLLTB ELT D4BGEBYGPGVFVWGÉLGVF>EISIMKIWVRMXQI
ETJ2LF; FTB'LLGVGO;7/H+TGLLTBFTBPYI;²SGELYLH4" 4.2 Investments are classified into six categories as stipulated
in form A of the third schedule to the Banking Regulation
 )LLKSIGKUP;D4BEETFLY;GVO;TLLTBETWVRJGVPTLLTBELT??JGKJ%PSL Act, 1949.
SEKvTY >??GD¹IHTSRNJZ$ÉL S'LL??0LJLKHTSRKvTY 
4.3 Investments have been categorized into "Held to
+TGLLTBFTBPYI;²SGELULSLH4" Maturity", "Available for Sale" and "Held for Trading" in

 D4BE ^LKL JGKJ%PSL SE KvT ULVT EI FBLL MT WGU;S terms of RBI guidelines as under:
ÈGS)LXGSLTB ELT ?JGKJ%PSLSEKvIYC; +TLIFTB KvLYL (a) Securities acquired by the Bank with an intention
H4" to hold till maturity are classified under "Held to
Maturity".
DI
 DE
B4  ^LKL W:JLPGÉL ET FX: ! $LU OK ÈPAGºLLTB EL ZL)L
(b) The securities acquired by the Bank with an
N#LSTHR 0LJLKHTSR KvTULVTEIFBLLMTWGU;SÈGS)LXGSLTB ELT
intention to trade by taking advantages of short-
??0LJLKHTSR KvTY GVPTLLTB FTB PYI;²SGELYLH4" term price/ interest rate movements are classified
under “Held for Trading”.

129
MI
 U
 LTÈGS)LXGSLBNJ;RºL2OLTVLTB+TGLLTBFTBVHIBWLSIBN6HTB??GD¹I (c) The securities, which do not fall within the above
HTSRNJZ$ÉL +TLIETWÉLIVPYI;²SGELYLH4" two categories, are classified under "Available for
Sale"
 W
 VRLBGYLTB>MBRºL2NJ¹FLTBWL4KMHLTYIMB-'LLBWLTBFTBGVPTLELT
4.4 Investments in subsidiaries, joint ventures and
Q7I FETJFTBPYI;²SGELYLH4"
associates are classified as HTM.
  E+TLIMTOXMKI+TLIFTBÈGS)LXGSLTBETWBSKL>WBSKLEIGSG'L
4.5 Transfer of securities from one category to another is
ELT WGÉLY[HLZLYS!DHIFX:!DLULKFX:>ULT )LIEFHLT> carried out at the lower of acquisition cost/ book value/
JKGELYLH4"GO TMTWBSKLJKELTC;FX:ÀLMHLTSLTNMET market value on the date of transfer. The depreciation, if
GZ JXKLÈLPÉLLVGELYLH4" any, on such transfer is fully provided for.
 HLZLBGE M J2+TLIELT Q7I F+TLIMTÈGS)LXGSLTBELWBSKL However, transfer of securities from HTM category
DREP4:XJKGELULSLH4"WBSKLETJQLSTÈGS)LXGSLBSRKBS to AFS category is carried out on book value. After
JRVF;X:LBGESHLTSIH4WL4KJGKLLF-PJFX:ÀLM>GOELTC;H4> transfer, these securities are immediately revalued
ÈOLVGELULSLH4" and resultant depreciation, if any, is provided.
  EGVPTLWJVIvKIOOLKIET MFHI Q7I F> Q J27IL An investment is classified as HTM, HFT or AFS at the
J2 METJFTBPYI;²SGELULSLH4WL4KGPG)L6V+TGLLTBET time of its purchase and subsequent shifting amongst
DIQS3MBDBÉLIGLG¾7BYGPGVLFEGOLLGVO;TLLTBETWVRJGELULSL categories is done in conformity with regulatory
H4" guidelines.

 GEMIGVPTLEIWGÉLY[HLZLYSGVÉLL;GKSEKVTFTB 4.6 In determining acquisition cost of an investment

E
 M$MG¹*LVJKÈL*SOZLZI!EFILVÈGS)LXGSLTBEIZLYSMT a. Brokerage / commission received on subscription
EL7IYIH4" is deducted from the cost of securities.

v
 ÈGS)LXGSLTBETWGÉLY[HLETM&D6ÉLFTBMBOºLOZLZI>EFILV> b. Brokerage, commission, Securities Transaction
ÈGS)LXGSZTVOTVEK M7I7I
C3LGOKLU-P0LTBETJ Tax (STT) etc. paid in connection with acquisition
of securities are treated as revenue expenses
FTBFLVIYIH4WL4KCMTWGY[FWL4KZLYSMTDLHKKvLYL
upfront and excluded from cost.
H4"
c. Interest accrued up to the date of acquisition/sale of
Y
 ÈGS)LXGSLTB ET WGÉLY[HL!GD¹IEISLKIvSEWGU;S$LU
securities i.e. broken — period interest is excluded
W'LL;S_ /X7WPGÉLET GZ $LUWGÉLY[HLZLYS!GD¹IET from the acquisition cost/sale consideration and
GPQLKMTDLHKKvLYLH4WL4KCMEIYLVLWGU;S$LLU the same is accounted in interest accrued but not
FTBEIYC;H4VGEOTvLSTFTB" due account.
L
 GVPTLLTB EIM)LI+TGLLTB ET GZ ZLYSELGVÉLL;KLWL4MS d. Cost is determined on the weighted average
ZLYSJGSETWLÉLKJKGELYLH4" cost method for all categories of investments.
 )LLKSIGKUP;D4BE! J2WLC; F F.I ETGOLLGVO;TLLVRMLK>GVPTL 4.7 Investments are valued as per RBI/ FIMMDA guidelines,
ELFX:VGV&VGZGvSWLÉLLKJKGELULSLH4 on the following basis:
 JGKJ%PSLSEKvTY  Held to Maturity
i
 ??JGKJ%PSLSEKvT YT +TLIET WÉLIVGVPTLLTB ELT i) Investments under "Held to Maturity "category are carried
WU;VZLYSJKGZLULSLH4" at acquisition cost.
Wherever the book value is higher than the face value/
 UHL‚EHIBWBGESFX:!ÈGSOLVFX:MTDHIFX:WGEHLT
redemption value, the premium is amortized over the
SLTÈIGFFELTJGKJ%PSLEILTLWPGETGZ -7‹7T ZLC;V remaining period to maturity on straight line basis. Such
ETWLÉLLKJKJGKLLTGSGELULSLH4"E7L4SIETJ??GVPTLLTB amortisation of premium is reflected in Interest
JKWL LIL; ET WBSY;SWGU;S$LUFTB JGKZG\LS TMT Earned under the head “ Income on investments” as
ÈIGFFELJGKLLTVMFLLTGUSGELULSLH4" a deduction.
ii
 WVRLBGYLTB!MBRºL2N]FLTB!MHLTGYLTBFTBW-'LLIGVPTLMTG)L6V ii) Investments in subsidiaries/joint ventures/associates
È3TE0GºL2YSGVPTLLTBEIȲGSFTBGETYTGVPTLELFX:V are valued at carrying cost less diminution, other than
KvKvLPFTBMTÀLMH7LEKWU;VZLYSJKGELULSLH4" temporary in nature for each investment individually.

iii
 ÈLLTGUS\LTLIY[LFILD4BELTB FTB GVPTLLTB ELFX:LBEVKvLP iii) Investments in sponsored regional rural banks are valued
at carrying cost.
ZLYSJKGELULSLH4"

130
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

iv
 N]FJXBUIFTB GVPTLLTB ELFX:LBEVKvLPZLYSJKGEL iv) Investment in Venture Capital is valued at carrying
ULSLH4" cost.

v
 Q7I F+TLIFTBKvTY CG%P7ILTKELFX:LBEVKvLP v) Equity shares held in HTM category are valued at carrying
ZLYSJKGELULSLH4" cost.

GD¹IHTSRNJZ$ÉLWL4K0LJLKHTSRKvTYT Available for Sale and Held for Trading

E
MKELKIÈGS)LXGSLB a) Govt. Securities

I.ET6ÇIMKELKEIÈGS)LXGSLB GJ2%M. CBEF FVI FLGE;7 . I. Central Govt. Securities At market prices/YTM as
published by Fixed Income
.TGKPTG70M MLTGM LV WL8J2
Money Market and Derivatives
CBG.L J2WLC; F F.I
 Association of India (FIMMDA)
^LKL 'LL ÈELGLS DLULK FX:LTB!
JGKJ%PSLJK
II.KL5MKELKLTBEIÈGS)LXGSLB J2WLC; F F.I !)LLKSIGKUP; D4E B  II. State Govt. Securities On appropriate yield to maturity
basis as per FIMMDA/RBI
ET FLY; GVO;T LLTB ET WVRMLK NJRºL2
guidelines.
JGKJ%PSLÈLG*SWLÉLLKJK
v
ETBÇI!KL5MKELKLTB^LKLYLKB7ILROL J2WLC; F F.I ! )LLKSI GKUP; b) Securities guaranteed by On appropriate yield to maturity
ÈGS)LXGSLB> MLP;UGVE \LTL ETD4BE FLY; GVO;TLLTB ET WVRMLK NJRºL2 Central / State Government, basis as per FIMMDA/RBI
PSU Bonds (not in the nature guidelines
NJ¹FLTBETDL. WGY[FLTBEIȲGSJGKJ%PSLÈLG*SWLÉLLKJK
of advances)
ETVHIB

Y 7‹TUKIGDZ KvLPZLYSJK c) Treasury Bills At carrying cost


L CG%P7ILTK GO ELT7 GEL YL HLT SLT DLULK d) Equity shares At market price, if quoted,
otherwise at break up value of
FX: JK W6'LL VPIVSF SRZVJL the Shares as per latest Balance
ULT E PL; MT JRKLVL V HLT
 ET Sheet (not more than one year
WVRMLKLTKLTB ET D[TEWJFX:JK> old), otherwise at Re.1 per
W6'LLÈGSEBJVI! company
. WGÉLFLVLTK GO ELT7 GEL YL HLT SLT DLULK e) Preference shares At market price, if quoted or on
FX:JKW6'LL)LLKSIGKUP; D4BE! appropriate yield to maturity
basis not exceeding redemption
J2WLC; F F.I  FLY;GVO;TLLTB ET value as per RBI/FIMMDA
WVRMLK NJRºL2 JGKJ%PSL JK GEBSR guidelines.
ÈGSOLVFX:MTWGÉLEVHIB
Q DBÉLJL WL4K G.DTBQK WGY[FLTB EIGO ELT7 GEL YL HLT SLT DLULK f) Bonds and debentures (not in At market price, if quoted, or
ȲGSETVHIB
FX: JK W6'LL )LLKSI GKUP; D4E B  the nature of advances) on appropriate yield to maturity
basis as per RBI/FIMMDA
! J2WLC; F F.I  FLY;GVO;T LLTB ET guidelines.
WVRMLK>NJRºL2JGKJ%PSLÈGSJ2ZJK
/ &XQRWZJ2.LTBETXGV7 GO ELT7 GEL YL HLT SLT -7L8E g) Units of mutual funds As per stock exchange quotation,
%MQTBUET)LLPETWVRMLKWL4KGO if quoted; at repurchase price/
NAV, if unquoted
ELT7 V GEL YL HLT SLT JRVv;KIO
FX:! V PIJK
U PLGLG5EJTJK KvLPZLYSJK h) Commercial Paper At carrying cost
 UFLÈFLLJL KvLPZLYSJK i) Certificate of Deposits At carrying cost
¸L WLKMIWLC; ZEIÈGS)LXGSKMIOTB WLKMIWLC; Z ^LKL EI YC; j) Security receipts of ARCIL At net asset value of the asset as
declared by ARCIL
LLTLLL ET WVRMLK WLG-S ET LR
WLG-SFX:JK
7 N]FJX‚UIGVGÉLL‚ N]FJX‚UIGVGÉLLTB^LKLEIYC; LLTLLL k) Venture Capital Funds At net asset value (NAV)
ET WVRMLK WLG-S ET LR WLG-S declared by the VCF
FX:JK
# W6GVPTL KvLPZLYSFTBMTÀLM L7LEK l) Other Investments At carrying cost less diminution
in value

 GD¹IHTSRNJZ$ÉLS'LL0LJLKHTSRKvTY PY;FTBNJ;RºL2FX:LBEV The above valuation in category of Available for Sale and
È3TEG-¹JETGZ WZYWZYGSFLHIWLÉLLKJKGELULSLH4 Held for Trading is done scrip wise on quarterly basis
S'LLÈ3TEPYI;EKLETGZ FX:ÀLM!PAGULT. IULSIH4"GO and depreciation/appreciation is aggregated for each

131
LRFX:ÀLMH4SLTÈ3TEPYI;EKLETGZ ÈLPÉLLVGELULSLH4 classification. Net depreciation for each classification, if
UDGELRPAGVHIBOLL;IULSI"FX:ÀLMETGZ ÈLPÉLLVJK any, is provided for while net appreciation is ignored. On
0GºL2YSÈGS)LXGSELDHIFX:DLULKHTSRGQBGHSEKVTETJQLS provision for depreciation, the book value of the individual
WJGKPGS;SKHSIH4" security remains unchanged after marking to market.

 )LLKSIGKUP; D4BEET VJIWLC; PYI;EKLET GPPTEIFLVOB.LTB ET 4.8 Investments are subject to appropriate provisioning/
WVRJ GVPTLLTB JK NJRºL2 ÈLPÉLLVIEKL S'LL WL WFL6IEKL de-recognition of income, in line with the prudential
ZLYXGETULSTH4B"WGY[FLTBETJFTBWVU;EÈGS)LXGSLTBETMBDBÉL norms of Reserve Bank of India for NPI classification.
The depreciation/provision in respect of non-performing
FTB FX:ÀLM! ÈLPÉLLV W6 WU;E ÈGS)LXGSLTB ET MBDBÉL FTB PAG
securities is not set off against the appreciation in respect
ET MF\LMFBUV M47WL8J2
VHIB GELYLH4"WGÉLFLVILTK of the other performing securities. For NPI in preference
G.DTBQKLTB WL4K DLB.LTB FTB VJIWLC; ET GZ  NJKLTºL2 FX:LBEV ET share, debentures and bonds, in addition to valuation as
WGSGKºL2WLYT ÈLPÉLLV VJI FLVELTB ET WVRMLKMD-7T6..; WL4K above, further provision is made on Sub-standard and
MBOTHL-JOWLG-SETJFTBGELYLH4" Doubtful assets as per NPA provisioning norms.

  EC;ELC; ^LKLÈL*SEIYC; ¹TG.7MRGPÉLLGOD4BEEIDHIFTB If any credit facility availed by an entity is NPA in the
VJI H4 SLT NMIC;ELC; ^LKLULKIÈGS)LXGSLTB FTB ELTC; )LIGVPTL books of the Bank, investment in any of the securities
issued by the same entity would also be treated as NPI
CMET GPJKIS )LI VJIWLC; ET J FTB FLVL UL YL" GJ2K )LI
and vice versa. However, in respect of NPI preference
VJIWLC;WGÉLFLVILTKLTBETMBDBÉLFTBUHLBZL)LLBLEL)LRYSLVVHIB share where the dividend is not paid, the corresponding
GELULSLPHLB¹TG.7MRGPÉLLELT VJI VHIBFLVLUL YL" credit facility is not treated as NPA.
 GEMI)LI+TLIETGVPTLLTBEIGD¹IMTHR ZL)L!HLGVELTZL)L 4.9 Profit or loss on sale of investments in any category is
PHLGVvLST FTB ZT ULLULSLH4 GEBSR ?JGKJ%PSLHTSR KvT YT  taken to Profit and Loss account but, in case of profit on
+TLIET GVPTLLTB EIGD¹IMT HR ZL)LET FLFZT FTB NMET DKLDK sale of investments in "Held to Maturity" category, an
equivalent amount (net of taxes and amount required
EIKLGL MLGPGÉLEGKUP;ELT-'LLLVLBSGKSGVPZEKWL4KWJTG\LS to be transferred to Statutory Reserve) is appropriated to
KLGL
?JXBUIÈLKG\LSGVGÉL vLSTFTBGPGVLTGUSEIULSIH4" "Capital Reserve Account"
 P LJM vKIO 0P-'LL ET W6SY;S JRVvKIOI ! JRV DTQI YI 4.10 Securities repurchased/resold under buy back
ÈGS)LXGSLTBELTNVEIFXZZLYSJKGHMLDFTBGZLULSLH4" arrangement are accounted for at original cost.

 GKJLT PGKPM; GKJLT ET WBSY;SDTQIPvKIOIYC; ÈGS)LXGSLTB ELT 4.11 The securities sold and purchased under Repo/Reverse
MFTGESZ4BG.BYPNÉLLKI7‹LBUT%LBMETSL4KJKKvLULSLH4"HLZLBGE Repo are accounted as Collateralized lending and borrowing
transactions. However, securities are transferred as in the
MLFL6WLN7KLC;7GD¹I!vKIO7‹LUT%LVETFLFZTFTBÈGS)LXGSLTB
case of normal outright sale/purchase transactions and
ELTWBSGKSGELULSLH4S'LLÈGS)LXGSLTBET TMTOL4KELÈLTYGKJLT! such movement of securities is reflected using the Repo/
GKPM; GKJLT PELNB7‹LÈGPG7LTB FTB ÈOGL;SHLTSLH4"NºL2ÈGPG7LTB Reverse Repo Accounts and Contra entries. The above
JGKJ%PSLGSG'LJKGKPM; HLT ULSIH4"ZLYSPKLU-PELT $LU entries are reversed on the date of maturity. Costs and
0!WLFLVLULSLH4U4ML)LIFLFZLHLT"GKJLTvLSTFTBD4ZTBMELT revenues are accounted as interest expenditure/income,
WVRMXQI NÉLLKI
S'LLGKPM;GKJLTvLSTFTBD4ZTBMELTWVRMXQI as the case may be. Balance in Repo Account is classified
D4BEETJLMD4ZTBMS'LLFVI 7EL8ZPLLT7;VLTG7M
ETWBSY;S under schedule 4 (Borrowings) and balance in Reverse
Repo Account is classified under Schedule7 (Balance with
KvLULSLH4"HWLKDIWLC; ET ML'L Z J2JK)LIZLYX HLTSL
Banks and Money at Call & Short Notice).The same is also
H4" applicable to LAF with RBI.
 0LJLKW'LPLÈGSK\LLETÈLTUVMT0R3J6V .TGKPTG70M
ZTVOTV 4.12 The derivatives transactions are undertaken for trading
GETYTH4B"0LJLGKEZTVOTVDLULKFX:JKH4")LLKSIGKUP; or hedging purposes. Trading transactions are marked
D4BEET GVO;TLLVRMLKWOZLDOZIEIGPG)L6V+TGLLTB ELGV&VPS_ to market. As per RBI guidelines, different categories of
FX:VGELYLH4 swaps are valued as under: -

ÈGSK\LLWOZLDOZI H4U-PLJ
Hedge Swaps

 $LUOKWOZLDOZIULT$LUPLHEWLG-SW'LPLOTSLEIÈGSK\LL Interest rate swaps which hedge interest bearing asset


EKSIH4>ELTNJQWLÉLLKJKZTvLBGESGELULSLH4> GEMIWLG-S or liability are accounted for on accrual basis except
the swaps designated with an asset or liability that are
W'LPLOTSLETML'LWG)LGHSWOZLDOZIELT/LT. EK
ULTGPºLI
carried at market value or lower of cost in the financial
GPPKLIFTBDLULKFX:W'LPLEFEIFSJKGZLULSLH4"
statement.

132
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

  OZLDOZIEIMFLG*SJKZL)LPHLGVLTBEIWOZLDOZIET
W Gain or losses on the termination of swaps are recognized
6XVSKDELLMBGPOLYSUIPVW'LPLWLG-S!OTSLEILTLWPGÉL over the shorter of the remaining contractual life of the
JK ULT)LIEFHLT
FLVLULSLH4" swap or the remaining life of the asset/ liabilities.

0LJLGKEWOZLDOZI 7‹TG.BY-PLJ
 Trading Swaps

Trading swap transactions are marked to market with


 0LJLGKEWOZLDOZIELZTVOTVGPºLIGPPKGLLTB FTB GKEL.;
changes recorded in the financial statements.
GE Y JGKPS;VLTB MGHSDLULKFX:EISRZVLFTB GQBGHSGEL
ULSLH4" Exchange Traded Derivatives entered into for trading
purposes are valued at prevailing market rates based
 0LJLGKENÎTLTBETGZ ÈGP7GE Y GPGVF0LJLK.TKIPTG70M on rates given by the Exchange and the resultant
%MQTBU ^LKL OI YC; OKLTB ET WLÉLLK JK ÈQGZS $LU OK JK gains and losses are recognized in the Profit and Loss
FX:LBGESGELULSLH4 WL4KÈL*SZL)LLTB PB HLGVLTB ELT ZL)LP Account.
HLGVvLSTFTBGZLULSLH4"
4.13 Foreign currency options
 GPOTLIFRÇLGPE:J
Foreign currency options written by the bank with a back-
  6D4BEETML'LD4E7XD4EEL67‹T%7ETJFTBD4BE^LKLGEL
W to-back contract with another bank are not marked to
YLGPOTLIFRÇLGPE:JDLULKFX:JKVHIBH4>%LTBGECMFTBDLULK market since there is no market risk.
ULTGvFVHIBH4"
Premium received is held as a liability and transferred to
 ÈL*SÈIGFFELT OTSLET JFTB KvLYLH4 WL4KJGKJ%PSL! the Profit and Loss Account on maturity/cancellation.
GVK-SIEKLJKZL)LPHLGVvLSTFTBW6SGKSGELYLH4" 5. LOANS / ADVANCES AND PROVISIONS THEREON:
 žL!WGY[FWL4KCMETGZ ÈLPÉLLV 5.1 Advances are classified as performing and non-
 W
 GY[FLTBELPYI;EKLWU;EWL4KWVU;EWLG-SLTBETJFTBGEL performing assets; provisions are made in accordance
with prudential norms prescribed by RBI.
ULSLH4WL4KNVETGZ )LLKSIGKUP;D4BE^LKLGVÉLL;GKSGPPTEJXL;
FLVOB.LTBETWVRMLKÈLPÉLLVGELULSLH4" 5.1 (a) Advances are classified : Standard, Sub Standard,
Doubtful and Loss assets borrower wise.

WGY[FLTBELTNÉLLKESL;PLK-7TK6..;>MD-7TK6..;>MBOTHL-JTO
PBHLGVWLG-SETJFTBPYI;²SGELULSLH4" 5.1 (b) Advances are stated net of specific loan loss
provisions, provision for diminution in fair value of
 DI
WGY[FGPGL7_žLHLGVÈLPÉLLVLTB>JRVY;G#SWGY[FLTBEI restructured advances.
NGQSFX:FTBEFIETGZ ÈLPÉLLVETGVPZELTEHLULSLH4" 5.2 In respect of foreign offices, the classification of loans
and advances and provisions for NPAs are made as
 GPOTLIELL;ZLTBETMBDBÉLFTBžLLTB PBWGY[FLTBELPYI;EKLWL4K per the local regulations or as per the norms of RBI,
VJI ETGZ ÈLPÉLLV-'LLVIGPGVFLTBL)LLGKD4BEETFLVELTB whichever is more stringent.
ULT)LIWGÉLELGºL2LLZIHLT>ETWVRMLKGELYLH4"
Loans and advances held at the overseas branches
  LTPKMIULLvLWLTB FTB HR žL PB WGY[FLTB ULT PMXZIET GKEL.;
W that are identified as impaired as per host country
regulations for reasons other than record of recovery,
ET WZLPLW6ELKLLTB ET GZ HLT-7EB7‹IGPGVFLTB ET WVRMLK
but which are standard as per the extant RBI
\LGSETJFTBGQG6¿SH4B>GEBSRGUMT)LLKSIGKUP;D4BEETFL4UXOL guidelines, are classified as NPAs to the extent of
GOLLGVO;TLLTB ET WVRMLK-746.H.; H4B>HLT-7EB7‹IFTB FL4UXOLDELL amount outstanding in the host country.
KLGLELT VJI ETJFTBPYI;²SGELULSLH4" 5.3 Financial Assets sold are recognized as under:
 DTQIYC;GPºLIWLG-SLTB EIGV&VGZGvSJFTB FLVLYLH4 (a) For Sale of financial assets sold to SCs/RCs
 E MMI!WLKMIELTDTQIYC;GPºLIWLG-SLTBEIGD¹IHTSR (i) If the sale to SCs/RCs is at a price below the Net
(i) GO MMI!WLKMIELTGD¹IGVPZDHIFX: VDIPI
MT Book Value (NBV), (i.e. Book Value less provisions
held), the shortfall should be debited to the Profit
VIQTEIEIFSJKEIYC;H4SLTNMPL;EFIETZL)LP
& Loss account of that year. Bank can also use
HLGVvLSTMT.TGD7EKVLQLGH "D4BE VJI EIGD¹IJK
countercyclical / floating provisions for meeting the
W'LL;S_UDGD¹IGVPZDHIFX:MTEFEIFSJKEIYC; shortfall on sale of NPAs i.e when the sale is at a
HLTSLTJLC;YC;EFIHTSRÈGSQ¹I!¾ZLTG7BYÈLPÉLLV)LIEK price below the NBV.
MESLH4"

133
  GJ2K)LIWLG-SLTB EIGD¹IETGZ W'LL;S_ ETJQLS However, for assets sold on or after 26.02.2014
WL4KSE VJI EIJXP; GD¹IHTSR ÈLT3MLHVWVRJGO and upto 31.03.2016, as incentive for early sale of
GD¹IFX:GVPZDHIFX:MTEFH4SLTD4E B OLTPLLT’ EIWPGÉLET NPAs, bank can spread over any shortfall, if the
GZ GEMIEFIELTJGK0L*SEKMESLH4"GJ2K)LI> sale value is lower than the NBV, over a period of
MTSEDTQIYC;WLG-SLTB JKLLT7J; 2LZELTGSFLHIMT two years. However, assets sold from 01.04.2016 to
ETPZQLKGSFLGHLTB EIWPG>GUMFTB GD¹IEIYC;EIWPGÉL
31.03.2017, shortfall is to be amortized over a period
FTB JGKLLTGÉLSGELUL "CMEFIELT JGK0L*SEKVT EIH
MRGPÉLLD4E B ETPLGL;EGPPKGLLTB FTB vLSLTB MTMBDGB ÉLSG7*JGLLTB FTB of only four quarters from the quarter, in which the
WLPEÈE7IEKLETGPLLÉLIVHLTYI" sale took place.

(ii) GOGD¹IGVPZDHIFX:EIWJT\LLN1QSFFX:JKEI (ii) If the sale is for a value higher than the NBV, Bank
can reverse the excess provision on sale of NPAs to
YC; H4>SLT D4BECMPL; CMET ZL)LPHLGVvLSLTB FTB ÈL*S
its profit and loss account in the year, the amounts
KLGLFTBMT VJI EIGD¹ILWGSGKºL2ÈLPÉLLVPLJMZT
are received. However, Bank can reverse excess
MESLH4"S'LLGJ>D4BEWGSGKºL2ÈLPÉLLV UDGD¹IGVPZ provision (when the sale is for a value higher than
DHIFX:EIWJT\LLN1QFX:JKEIYC;H4
 VJI EI the NBV) arising out of sale of NPAs, only when the
GD¹IMTS)LIGVELZIULMESIH4>ETPZUDÈL*SVEOI cash received (by way of initial consideration and/
ÈLKG&)LEÈGSJ2ZWL4K!W'LPL MWLK!JI7IMIEI/X7ET or redemption of SRs/PTCs) is higher than the NBV
FLɶLF MT WLG-SLTB EI VEOI EI WJT\LL N1Q H4" WLYT of the asset. Further, reversal of excess provision
WGSGKºL2 ÈLPÉLLV EL GVKMV WLG-S ET VDIPI JK ÈL*S will be limited to the extent to which cash received
WGSGKºL2VEOIETÈ)LLPSEMIGFSHLTYI" exceeds the NBV of the asset.

 vW6D4BE! VDI J2MI! J2WLC;C3LGOELTGD¹IEIYC;GPºLIT (b) For Sale of financial assets sold to Other Banks/NBFCs/
WLG-SLTBEIGD¹IHTSR FIs etc.

(i) GVPZDHIFX: VDIPI


MT EFEIFSJKGD¹IEKVT (i) In case the sale is at a price below the Net Book
Value (NBV) i.e. Book Value less provision held, the
ETFLFZTFTBW'LL;S_DHIFX:MTEFÈLPÉLLVEKVTJKEFI
shortfall should be debited to the Profit & Loss A/c of
ELTNMPL;ZL)LPHLGVvLSLTBMT.TGD7EKVLQLGH "
that year.
(ii) GVPZDHIFX: VDIPI
EIWJT\LLN1QFX:JKGD¹I (ii) In case the sale is for a value higher than the Net
ET FLFZT FTB W'LL;S_ DHI FX: MT EF ÈLPÉLLV EKVT JK> Book Value (NBV) i.e. Book Value less provision
WGSGKºL2ÈLPÉLLVPLJMVHIBGELUL YLGEBSRW6 VJI  held, the excess provision shall not be reversed but
EIGD¹IvLSLTBWL4KEFI!HLGVJL ULVTJKNMELNJLTY will be utilized to meet the shortfall/loss on account
GELUL YL" of sale of other NPAs.

 D 4BE EJRVY;G#SvLSLNMT FLVSLH4 UHLB D4BEVT NÉLLKESL;WLTB The Bank considers a restructured account as one where
EI GPºLI EG#VLC;LTB MT MBDBGÉLS WLG'L;E WL4K GPGÉLE the Bank, for economic or legal reasons relating to the
borrower’s financial difficulty, grants to the borrower
ELKLLTB HTSR NÉLLKESL; ELT GKLS GOL H4 GUM JK D4BE W6'LL concessions that the Bank would not otherwise consider.
GPQLKVHIB EKSLH4"JRVY;#VFTB MLFL6SLWGY[FLTB!ÈGS)LXGSLTB EI Restructuring would normally involve modification of terms
LSLT’ FTB MBLLTÉLV LLGFZ HLTYL GUMFTB W6 ET WZLPL JRV)L;RYSLV of the advance / securities, which would generally include,
WPGÉL!JRV)L;RYSLV KLGL!GESLTB EI KLGL $LU EI OK FTB JGKPS;V among others, alteration of repayment period / repayable
LLGFZHLTYL" ÈGS-JÉLL;3FEELKLLTB ET WZLPLW6ELKLLTB MT
" amount / the amount of installments / rate of interest (due
to reasons other than competitive reasons). Restructured
JRVY;G#S vLST D4BE ^LKL ETPZ JRVY;#V J4ETU ET WVRFLTOV WL4K
accounts are classified as such by the Bank only upon
ELL;6PV ET JQLS HI CM SKH PYI;²S GEL ULSL H4" E approval and implementation of the restructuring package.
JRVY;G#SvLST ET NGQSFX:FTB EFIET GZ WLPEÈLPÉLLV Necessary provision for diminution in the fair value of a
GELYLH4" restructured account is made.

 W
 GY[FLTBEL-PJDOZTULVT!NVEIGE-SLTBEIMB<LFTBJGKPS;V 5.4 For restructured/rescheduled advances, provisions
GE ULVTEIG-'LGSFTB)LLKSIGKUP;D4BEETFLY;GVO;TLLTBETWVRMLK are made in accordance with guidelines issued by
RBI.
ÈLPÉLLVGELULSLH4"
In respect of non-performing loans and advances
 JRVY;#VET GPLLÉLIVWL4KGVJLLGOSžLLTB WL4KWGY[FvLSLTB ET accounts subjected to restructuring, the account is
MBDBÉLFTB vLSLETPZPYI;²SWPGÉLW'LL;S_ $LULFXZÉLVET upgraded to standard only after the specified period
)LRYSLV EI JHZI GE-S EI GSG'L JQLS E PL; EI WPGÉL i.e. a period of one year after the date when first

134
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

ULT )LIDLOHLT>WPGÉLET OL4KLVvLST ET MBSLTLUVEÈOL;VET payment of interest or of principal, whichever is later,
GPLLÉLIVWLVT ET ELKLHI-746..; ET GZ WJY[T.GELULSL falls due, subject to satisfactory performance of the
H4" account during the period.

  VJI JKPYI;²SÈLPÉLLVLTB ETWGSGKºL2>MLFL6ÈLPÉLLV)LI)LLKSI 5.5 In addition to the specific provision on NPAs, general
GKUP;D4E
B ETFL4UOX LGOLLGVO;T LLTB ETWVRMLK-7T.B .;WLG-SLTB ETGZ  provisions are also made for standard assets as per
GELYLH4"T ÈLPÉLLVSRZVJLEIWVRMQ X IFTB ??W6OTSL B extant RBI Guidelines. These provisions are reflected
in Schedule 5 of the Balance Sheet under the head
PÈLPÉLLVW6 LIL;EETWBSY;SÈOGL;SGELULSLH4WL4KVT7 “Other Liabilities & Provisions – Others” and are not
VJI HLTVT JKGPQLKVHIBGELULSLH4" considered for arriving at the Net NPAs.
 )LLKSIGKUP;D4BEETGOLLGVO;TLLTBETWVRMLKY4KGVJLGOSWGY[FLTB 5.6 In accordance with RBI guidelines, accelerated
ETGZ GE Y 3PLGKSÈLPÉLLVGUMTD4BE^LKLJXP;FTB M F  provision is made on non-performing advances which
were not earlier reported by the Bank as Special
+TLIETWBSY;SM467‹ZGKJLTGU7KIWL8J2CBJ2LF;TLVWL8VZLU;¹TG.7 Mention Account under “SMA-2” category to Central
MIWLKWLC; ZMI
ELTGPLTLPGL;SvLSTFTBGKJLT7;VHIBGELULSL Repository of Information on Large Credits (CRILC).
'LL"3PGKSÈLPÉLLVY4KGVJLMGOSWGY[FLTB ET GZ )LIGELYL Accelerated provision is also made on non-performing
H4 ULT GFGZVLNMMT ¦JKET MEZ %MJLTUK C;
 advances which are erstwhile SMA-2 accounts with
Aggregate Exposure (AE) ` 1,000 million or above and
WL4KMBRºL2NÉLLKESL;WLTBEIJ2LTKF UT Z J2
ETML'LS3ELZIV
Joint Lenders’ Forum (JLF) is not formed or they fail to
M F vLSLTB ET JFTB YG#SVHIB GE Y H4B LGVÉLL;GKS agree upon a common Corrective Action Plan (CAP)
LTUVL MI JI
JKPTMHFSHLTVTFTBWMJ2ZHLTYTH4B" within the stipulated time frame.

 JPX ; PLLT’ FTB D7_7T vLSTžLLTB ETGPPMXZEIYC;KLGLWL4KÈLPÉLLVLTB Amounts recovered against debts written-off in earlier
years and provisions no longer considered necessary
ELTNÉLLKESL;EIPS;FLVG-'LGSETJGKÈT\LTFTB GPQLKEKVLWLPE
in the context of the current status of the borrower are
VHIBMFLYLH4WL4KCMTZL)LHLGVvLSTB FTB GZLULSLH4" recognised in the profit and loss account.
 EB7‹I %MLJLTUKETGZ ÈLPÉLLV 5.7 Provision for Country Exposure:
 W
 LG-SPYI;EKLG-'LGSET WVRMLKGE Y GPGL7ÈLPÉLLVLTB ET In addition to the specific provisions held according
WGSGKºL2GEMIOTLET %MJLTUKLTB WJVTOTLETWZLPLW6
ET to the asset classification status, provisions are also
made for individual country exposures (other than
GZ )LIÈLPÉLLVGELYLH4"OTLLTBELTMLSULTGvF+TGLLTBW'LL;S_ the home country). Countries are categorized into
GVK'L;E>EF>FÉF>N1Q>DHRSN1Q>ÈGSDBGÉLSWL4KWL8J2¹TG.7 seven risk categories, namely, insignificant, low,
FTB PYI;²SGELYLH4WL4KÈLPÉLLV)LLKSIGKUP;D4E B ETFL4UXOL moderately Low, moderate, moderately high, high &
very high and provisioning made as per extant RBI
GOLLGVO;TLLTBETWVRMLKGELYLH4"È3TEOTLETFLFZTFTB GO guidelines. If the country exposure (net) of the Bank
D4E
B ELOTL %MJLTUK GVPZ
ERZGPºLJLTGLSWLG-SLTB EIœ in respect of each country does not exceed 1% of
MTWGÉLEVHIBH4SLT TMTEB7‹I %MJLTUKFTBELTC; ÈLPÉLLVVHIBGEL the total funded assets, no provision is maintained on
such country exposures. The provision is reflected in
ULSLH4"ÈLPÉLLVSRZVJLEIWVRMXQIFTB ??W6_ OTSL B PB
Schedule 5 of the Balance Sheet under the “Other
ÈLPÉLLVW6 ETWBSY;SÈOGL;SGELULSLH4" liabilities & Provisions – Others”.
 )LLKSI EL8JLTKT7 EI WVRLBGYLTB ELT -7TJ .LNV ET %-JLTUK ELT 5.8 An additional provision of 2% ( in addition to country risk
-74B..;WLG-SDVLVTETGPœEL EWGSGKºL2ÈLPÉLL6L M)LI provision that is applicable to all overseas exposures)
WLTPKMIU %-JLTUKLTBJKZLYXEB7‹IULTGvFETWGSGKºL2
ELTLBQT against standard assets representing all exposures to
FTB E&*Z4G%M7I HLTVT MT N3J6V WGSGKºL2 ULTGvF ELT EPK EKVT step down subsidiaries of Indian Corporates has been
made to cover the additional risk arising from complexity
ET GZ >)LLKSIE&JVIELT GPG)L6V5XGKG.%LBMFTB WZYWZY
in the structure, location of different intermediary entities
CB7KGFG.KI B7LC;7T:MET-'LLVJKDVLLYLH4"CMÈELK>D4E in different jurisdictions exposing the Indian Company,
WGÉLEKLUV4GSEPKTYRZT7KIULTGvF_ ET GZ  %JLTUHLT UL YL" and hence the Bank, to a greater political and regulatory
WLKDIWLC;JGKRBI!!DBR.IBD.BC No.! risk. (As per RBI Cir.No. RBI/2015.16/279 DBR.IBD.BC
!dated
ETWVRMLK
" No. 68/23.37.001/2015-16 dated 31.12.2015).

 WQZWLG-SL‚ 6. FIXED ASSETS

 GUVJGKMKLTB ELJRVF;X:VHLT QRELH4 N6HTB /LT. EKW6WQZ 6.1 Fixed assets are stated at historical cost less accumulated
WLG-SLTBELTNVEIJK&JKLYSZLYSEFMBGQSFX:ÀLM!JGKLLTÉLV> depreciation/amortisation, wherever applicable,
UHLBEHIZLYXHLT>JKGOvLLULSLH4"JRVF;X:VJKHRC;PAGELT except those premises, which have been revalued. The
appreciation on revaluation is credited to revaluation

135
JRVF;X:VÈLKG\LSGVGÉLFTBUFLGELULSLH4WL4KNMJKFX:ÀLM reserve and incremental depreciation attributable to the
ETGZ GE Y ÈLPÉLLVELTNMFTBMTEFEKGOLULSLH4" revalued amount is deducted therefrom.

 M
 L8¾7PTKELTJXBUI²SEKWFXS;WL8G-SLTBETML'LULT. GOLYL 6.2 Software is capitalized and clubbed under Intangible
H4" assets.

 KIOOLKI EI ZLYS MGHS M)LI vQ;T U4MT MLC7 S4LKI> 6.3 Cost includes cost of purchase and all expenditure
 v
MB-'LLJVLZLYS>JBUIEKLET MFSEWLG-SJKvQ; EI such as site preparation, installation costs and
YI0PMLGEJ2IMZLYSFTB LLGFZH4"WLG-SLTB JKvQ; professional fees incurred on the asset till the
GE Y JGKPSI; vQ;T ETPZS)LIJXBUI²SGE ULST H4B UD time of capitalization. Subsequent expenditure/s
incurred on the assets are capitalised only when it
TMIWLG-SLTBLNVEIEL;\LFSLMT)LGPETZL)LFTBPAG
increases the future benefits from such assets or
HLTSIH4"
their functioning capability.
 FX:ÀLM
6.4 DEPRECIATION
E WLG-SLTB UHLBEIFSWZYVEIULMESIHLTPHL‚)LXGF A. Depreciation on assets (including land where
MGHS
 E&*X7KLTB ELT /LT. EK UHLB CMEI YLVL )LLKSI value is not separable) is provided on straight-line
GKUP;D4BE^LKLGVÉLL;GKSOKJKMIÉLIKTvLJGSJKGEL method based on estimated life of the asset, except
ULSLH4>ELT /LT. EK>JKFX:ÀLMET GZT ÈLPÉLLVWLG-S in respect of computers where it is calculated on
EIÈ3LGLSWLRETWLÉLLKJKMIÉLIKTvLJGSETWVRMLK the straight-line method, at the rates prescribed by
GELULSLH4" RBI.

v TMIWLG-SLTBJKFX:ÀLMGV&VGZGvSOKLTBJKÈOLVGEL B. Depreciation on assets has been provided at the


YLH4 rates furnished below:-

GPPKL FX:ÀLMEIOK Particulars Rate of Depreciation


DTGFLOI J7_7T JK ZI YC; )LXGF UHLB J7_7T EI LX6 Land acquired on perpetual lease where no Nil
lease period is mentioned
WPGÉLELN:ZTvVHIBH4
J7_7T JKZIYC; )LXGFUHL‚ J7_7T EIWPGÉLEL J7_7TÑEIWPGÉLJK Land acquired on lease where lease period is Over lease period
mentioned
N:ZTvH4
)LPV Building

• »IHLT:.WL4KJ7_7TPLZI)LXGFJKGVGF;S> œ • Constructed on free hold land and on 2.50%


leased land, where lease period is above
UHLB J7_7T EIWPGÉLPL; MT WGÉLE 40 years
H4
• J7_7TPLZI)LXGFJKGVGF;SUHL‚J7_7TEI J7_7TÑEIWPGÉLJK • Constructed on leased land where lease Over lease period
period is below 40 years.
WPGÉLPL;MTEFH4
JXP;PSI; 6X D4BEWLJ2 CBG.L S'LL VTORBY.I D4BE œ Built-up Assets taken over from erstwhile 4.00%
New Bank of India & Nedungadi Bank Ltd
GZMTWGU;SGVGF;SWLG-SL8B
J2VI;QKWL4KGJ2%MQM;-7IZP-SR B œ Furniture and fixtures- Steel articles 5.00%

J2VI;QKWL4KGJ2%MQM;ZE. IEIP-SR B œ Furniture and fixtures-wooden articles 10.00%

YÎT œ Mattresses 20.00%

FLTDLCZJ2LTVNJEKL œ Mobile Phone Instruments 33.33%


FLIVKI>GDUZIEIWL4KGPGPÉLP-SR B œ Machinery, electrical and miscellaneous 15.00%
articles
FLT7KELKTB PBMLC;EZTB œ Motor cars and cycles 15.00%
EB*X7K> 7I F WL4K MBDBGÉLS P-SR B Z4J 7L8J> œ Computers, ATMs and related items, laptop, 33.33%
i pad
WLC;J4.
E&*X7K G*ZETLVML8¾7PTKWFXS;WLG-SL‚ Computer Application Software – Intangible
Assets
JT!SE KLU-PFTBÈ)LLGKS - Up to Rs. 5,000 Charged to Revenue
W6 œ - Others 20.00%

136
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

Y D4BEETWJVT-PGL_F3PETJGKMKLTBMTCSKWLG-SLTBFTBHR V  C. Depreciation on fresh additions to assets other than


JGKPÉL;VLTBETFLFZTFTBFX:ÀLMELÈLPÉLLVNVETÈLTYFTB bank's own premises is provided from the month in which
WLVTETFLMMTWL4KPL;ETOL4KLVDTQI!GVJ7LC;YC;WLG-SLTB the assets are put to use and in the case of assets sold/
disposed off during the year, up to the month preceding
ETFLFZTFTBÈLPÉLLVNMFLHMTJXP;FLMSEGELULSL
the month in which it is sold/ disposed off.
H4GUMFLMFTBWLG-SDTQI!GVJ7LC;YC;H4"
D. The depreciation on bank's own premises existing
L D4BEET WBSFTB FL4UXOD4BEET WJVT -PLLGF3PETB JGKMKLTB at the close of the year is charged for full year.
JKFX:ÀLMJXKTPL;ETGZTÈ)LLGKSGELYLH4"GVFL;L The construction cost is depreciated only when
ZLYSELTS)LIFX:ÀLMGELULSLH4UD)LPVM)LIÈELK the building is complete in all respects. Where the
MTJXKLHLTULSLHT"UHLB)LXGFWL4K)LPVEIZLYSELWZY cost of land and building cannot be separately
MTJSLVHIBZYLLULMESLH4>PHLBFX:ÀLMOKJK)LPV ascertained, depreciation is provided on the
JKZLYXMFY[ZLYSJKÈOLVEIULSIH4" composite cost, at the rate applicable to buildings.

E. In respect of leasehold premises, the lease


. J7_7LÉLLGKSJGKMKLTBETMBDBÉLFTB>J7_7LÈIGFFGOELTC;H4>
premium, if any, is amortised over the period
J7_7T EIMBJXL; WPGÉLJKJGKLLTGÉLSH4 WL4KJ7_7LGEKLL of lease and the lease rent is charged in the
MBDBGÉLSPLLT’FTBÈ)LLGKSGELULSLH4" respective year(s).
 WLG-SLTBEIWJMLFL6SL 7. IMPAIRMENT OF ASSETS
 W
 LG-SLTBEIZLYS\LFSLFTBWLBSGKE!DLÂS'LTBETWLÉLLKJKELTC; The carrying costs of assets are reviewed at each Balance
WJMLFL6SLGOvLC;J. SIH4SLTÈ3TESRZVJLGSG'LELTMFIG\LS Sheet date if there is any indication of impairment based
GELULSLH4" on internal/external factors.

  EWJMLFL6HLGVS)LIFLVIULSIH4UHLBEHI EWLG-SEI An impairment loss is recognized wherever the carrying


KvLPZLYSCMEIPMXZIKLGLMT5LOLHLTSIH4"PMXZILT9KLGL cost of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the assets net
WLG-SEIGVPZGD¹IEIFSWL4KNJLTGYSLFX:MT5LOLHLTSI
selling price and value in use. In assessing value in use,
H4"NJLTGYSLFX:_ETGVÉLL;KLFTB>WVRFLGVS)LLPIVEOIÈPLHEK
the estimated future cash flows are discounted to their
JXP;/X7OKFTBÈRºL2NMETPS;FLVFX:ELT L7LLULSLH4ULTNM
present value using a pre-tax discount rate that reflects
MFÉLVETPS;FLVDLULKFX:WL4KWLG-SETPYI;²SULTGvFLTB current market assessments of the time value of money
ELTOLL;SLH4" and risks specific to the asset.
  JMLFL6SLETJQLS>GOELTC;H4>FX:ÀLMMTJXL;WLG-SJK
W
After impairment, if any, depreciation is provided on the
CMETLTLNJLTYIUIPVETMBMLTGÉLSKvLPZLYSJKÈOLVGEL revised carrying cost of the asset over its remaining
ULSLH4" useful life.
 JXP;FTBHRC;WJMLFL6SLHLGVJGKG-'LGSLTBMTJGKPS;VETWLÉLLKJK A previously recognized impairment loss is increased or
D IL L7SIH4" reversed depending on changes in circumstances.
 HLZLBGE>ÈGSYFVLGKPM;ZETJQLS\LFSLFX:NMFX:MT¦JK However, the carrying value after reversal is not increased
VHIBD SIH4GUMTGOELTC;WJMLFL6SLVHIBHRC;H4SLTMLFL6SL beyond the carrying value that would have prevailed by
FX:ÀLMÈ)LLGKSEKETGELULVLH4" charging usual depreciation if there was no impairment.
 EF;QLKIJ2LOT 8. EMPLOYMENT BENEFITS
● )LGPGVGÉL ● PROVIDENT FUND:

 )LGPGVGÉL EMRJGK)LLGLSWBLOLVLTUVLH4 %LTBGED4BEJXP; Provident fund is a defined contribution scheme as the


GVÉLL;GKSOKLTB JKGVGQSWBLOLVEL)LRYSLVEKSLH4"D4BEEL Bank pays fixed contribution at pre-determined rates. The
OLG3P TMTGVGQSWBLOLVSEMIGFSH4"TWBLOLVZL)LPHLGV obligation of the Bank is limited to such fixed contribution.
vLSTFTBQLU;GE ULSTH4B" The contribution are charged to Profit & Loss A/c.

● NJOLV ● GRATUITY:
Gratuity liability is a defined benefit obligation and is
 N JOLV OTSL E MRJGK)LLGLS ZL)L OLG3P H4 WL4K DIFLBGES
provided for on the basis of an actuarial valuation. The
FX:LBEVET WLÉLLKJKGOLULSLH4"HLTUVLD4BE^LKLGPºL scheme is funded by the bank and is managed by a
JLTGLSH4WL4K EWZY7‹-7^LKLQZLC;ULSIH4" separate trust.

137
● JTBLV ● PENSION:

 JTBLVOTSL EMRJGK)LLGLSZL)LOLG3PH4WL4KDIFLBGEEFX:LBEV Pension liability is a defined benefit obligation and is


provided for on the basis of an actuarial valuation. The
ETWLÉLLKJKOIULSIH4"HLTUVLD4BE^LKLGPºLJLTGLSH4WL4K scheme is funded by the bank and is managed by a
EWZY7‹-7^LKLQZLC;ULSIH4" separate trust.
 D 4BEVT EVC; JTBLVLTUVL VJI M
ELJGKQLZVGELH4 The Bank operates a New Pension Scheme (NPS) for
HNVM)LIWGÉLELKI!EF;QLKIGU6HLTVTETDLOD4BE all officers/ employees joining the Bank on or after
01.04.2010. As per the scheme, the covered employees
5PLC;VGELHLT>ETGZ H4"LTUVLETWVRMLK>JLLEF;QLKIWJVI contribute 10% of their basic pay plus dearness
DTGMEPTSV*ZM.I ELœELLTYOLV>D4BEMTF4GQBYLTYOLV allowance to the scheme together with a matching
MGHS_ OTST H4"M&DG6ÉLSEF;QLKIELJXL;_KGU-7‹TLVÈLLZIZG&DS contribution from the Bank. Pending completion of
H4NVELLTYOLVKvLYLH4"CVPLGL;ELTYOLVELTD4BEJHQLV registration procedures of the employees concerned,
these contributions are retained. The Bank
EKSLH4S'LLM&DG6ÉLSPL;ETGZ NMJK$LU>0ETSL4KJK
recognizes such annual contributions as an expense
OTSLH4"-'LLIGK7LKFTB7vLSLMB<L JIWLK V
KMIOÈL*SHLTVT in the year to which they relate. Upon receipt of the
JKMFTGESLTYOLVKLGLELT VJI M7‹-7FTB WBSGKSEKGOL Permanent Retirement Account Number (PRAN), the
ULSLH4" consolidated contribution amounts are transferred to
the NPS Trust.
● \LGSJXGS;WVRJG-'LGSLB
● COMPENSATED ABSENCES:
 N JGQS\LGSJXGS; WVRJG-'LGSLB U4MT WGU;S/RGËÑL‚ WL4KDIFLKIEI Accumulating compensated absences such as Privilege
/RGËÑL‚ WÈRºL2 WLEG-FE /RGËÑLTB MGHS
 DIFLBGEE FX:LBEV Leave (PL) and Sick Leave (including unavailed casual
WLÉLLKJKOIULSIH4B" leave) are provided for based on actuarial valuation.

● W6EF;QLKIZL)L ● OTHER EMPLOYEE BENEFITS:


Other Employee Benefits such as Leave Fare Concession
  6EF;QLKIZL)LU4MT /RËÑIGEKLLGKLS>GM:PKURDZIWPL.;>
W
(LFC), Silver Jubilee Award, etc. are provided for based
FTG.EZJ2LOTC3LGODIFLBGEEFX:LBEVETWLÉLLKJKGO ULSTH4B" on actuarial valuation.
  HLBSEGPOTLG-'LSLLvLWLTBWL4KELL;ZLTBELMBDBÉLH4ÈGSGVRGºL2
U In respect of overseas branches and offices, the benefits
JKY EF;QLGKLTB ELT GO Y ZL)LLTB ET WZLPLW6M)LIZL)L in respect of employees other than those on deputation
NVOTLLTBFTBZLYXELVXVLTBETWVRMLKFX:LBLGESWL4KZTvLBGESGE  are valued and accounted for as per laws prevailing in
the respective countries.
Y H4B"
9. TRANSLATION OF FOREIGN CURRENCY
 GPOTLIFRÇLMTMBDBGÉLSZTVOTVWL4KLTLLTBELJGKPS;V
TRANSACTIONS & BALANCES:
GPOTLI GPGVF FTB LLGFZ ZTVOTV M  ??GPOTLI GPGVF OKLTB FTB Transactions involving foreign exchange are accounted
JGKPS;VELÈ)LLP ETWVRMLKZTvLBGESGE ULSTH4B" for in accordance with AS 11, “The Effect of Changes in
Foreign Exchange Rates”.
 JXP;PSI; ZBOV LLvLWLTB ET WGY[FLTB ELT /LT. EK> GUVEL )LLKS FTB
WBSKLEIGSG'LELTZLYXGPGVFOKLTBETWLÉLLKJKJGKPS;VGEL 9.1 Except advances of erstwhile London branches which
are accounted for at the exchange rate prevailing on
ULSLH4>)LLKSIGPOTLIFRÇL0LJLKIMB L J2T.LC;
ETFLY;GVO;TLV the date of parking in India, all other monetary assets
ET WVRMLKSRZVJLGSG'LJKGPGVFOKLTB ET WLÉLLKJKFL4GÇE and liabilities, guarantees, acceptances, endorsements
WLG-SLTB S'LL OTSLWLTB> YLKBG7LTB> -PI²GSLTB> JA#LBEVLTB P W6 and other obligations are initially recorded at a notional
OLG3PLTBELTÈLKBG)LEJMTEG:JSOKJKOU;GELULSLH4WL4K rate and translated in Indian Rupee equivalent at the
exchange rates prevailing as on the Balance Sheet date
MFSR:)LLKSIJTFTBJGKPGS;SGELULSLH4"
as per Foreign Exchange Dealers' Association of India
 W
 QZWLG-SLTB GUMT GSHLGMEOKJKZT ULLULSLH4>MT CSK (FEDAI) guidelines.
Y4KFL4GÇEFOLTBELTZTVOTVEIGSG'LELTÈ)LLPIGPGVFOKLTBJK 9.2 Non-monetary items other than fixed assets which are
JGKPGS;SGELULSLH4" carried at historical cost are translated at exchange rate
prevailing on the date of transaction.
 D ELL PLOL GPGVF -JL87 P WY[TGLS MBGPOLWLTB ELT )LLKSI
GPOTLIFRÇL0LJLKIMB LET-JL87!WY[TGLSOKJKSRZVJLGSG'LJK 9.3 Outstanding Forward exchange spot and forward
contracts are translated as on the Balance Sheet date at
WGÉLMXGQSGPGVFOKLTBJKJGKPGS;SGELULSLH4WL4KJ2Z-PJ
the rates notified by FEDAI and the resultant gain/loss on
FX:LBEVJKHR ZL)L!HLGVELTZL)LPHLGVvLSTFTBGOvLLULSL translation is taken to Profit & Loss Account.
H4"

138
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

GPOTLIGPGVF-JL87!J2LP;.EB7‹T%7!.I:M FQ;TB7PCB7KD4BE
>ULTGE Foreign exchange spot/forward contracts/deals (Merchant
7‹TG.BYPFQ;B7H4UET GZ ÈLTYVHIB GE ULST H4B S'LLSRZVJLEI and Inter-bank) which are not intended for trading/Merchant
Hedge and are outstanding on the Balance Sheet date, are
GSG'LJKDELLHLTST H4B>GPGVFZL)LJKJRVF;X:LBEVÈ)LLPELT H7LVT
reverse re-valued at the closing FEDAI spot/forward rate in
ETGZ ZTvLD6OIJKJ2IOLC; J2C;.I WLC;
-JL87!J2LP;.;OKMTGKPM; order to remove revaluation effect on exchange profit. The
JRVFX:BGESHLTSTH4"CMSKHETJ2LP;.GPGVFEKLKEILRWLSJK premium or discount arising at the inception of such a forward
ÈIGFFL/X7N3J6VHLTSIH4ULT$LU0ETSL4KJKJGKLLTGÉLSH4L exchange contract is amortised as interest expense or income
EKLKETNJKWLEISKHH4" over the life of the contract.

 L S'LL 0 EI FOTB ZTVOTV EI SLKIv ELT ÈQGZS GPOTLI 9.4 Income and expenditure items are accounted for at the
 W
exchange rate prevailing on the date of transaction.
GPGVFOKJKJGKPGS;SEIULSIH4B"
Exchange differences arising on the settlement of
 F L4GÇEFOLTBETGVJ7LVJKNVMTG)L6VOKLTBJKN3J6VGPGVFWBSK monetary items at rates different from those at which
GUMJKPTLRWLSFTBOU;GE Y 'LT>NMWPGÉLETGZ PTN3J6V they were initially recorded are recognised as income
WLL0ETJFTBFLVTULSTH4B" or as expense in the period in which they arise.

 )LLPIFRÇL0LJLKFTB vRZIG-'LGSET GPGVFOKLTB FTB JGKPS;VET Gains/Losses on account of changes in exchange


rates of open position in currency futures trades are
ELKLvLSTFTBZL)L!HLGVO4GVEWLÉLLKJKGPGVFMFLLLTÉLVYAHLTB settled with the exchange clearing house on daily
ETML'LGVJ7L ULSTH4BWL4K TMTZL)L!HLGVELTZL)LPHLGVvLST basis and such gains/losses are recognised in the
FTBGZLULSLH4" Profit and Loss Account.

 GPOTLG-'LSLLvL B!WJS7ID4BGEBYCELCLB 9.5 Offices outside India / Offshore Banking Units:

i. GPOTL G-'LS LLvLWLTB WL4K WJS7I D4BGEBY XGV7LTB ET i. Operations of foreign branches and off shore
JGKQLZVLTBELT??Y4KMFLEGZSGPOTLIJGKQLZVLTB FTBPYI;²S banking unit are classified as "Non-integral foreign
GELYLH4WL4KGPOTLFTBÈGSGVGÉLELL;ZLTBETJGKQLZVLTB operations" and operations of representative
ELT ??MFLEGZSGPOTLIJGKQLZVLTB ET JFTB PYI;²S offices abroad are classified as "integral foreign
GELYLH4" operations"

ii. MFLEGZSGPOTLJGKQLZVLTBETGPOTLIFRÇLZTVOTVLTBELTWL4K ii. Foreign currency transactions of integral foreign


Y4KMFLEGZSGPOTLIJGKQLZVLTB ELT ZTvLBEVFLVE operations and non-integral foreign operations are
FTBGO Y GVÉLL;KLETWVRMLKGHMLDFTBGZLULSLH4" accounted for as prescribed by AS-11.

iii. Y4KMFLEGZSJGKQLZVLTBJKGPGVF L7D ETZL)L!HLGV iii. Exchange Fluctuation resulting into Profit / loss
ELTGPGVF L7D ÈLKG\LSGVGÉLFTBUFL!VLFTGELULSL of non-integral operations is credited /debited to
H4" Exchange Fluctuation Reserve.

 WLJKEK 10. TAXES ON INCOME


Income tax expense is the aggregate amount of current tax
 WLEK0D4BE^LKLGE Y PS;FLVEKS'LL.TJ2.;EK0
and deferred tax expense incurred by the Bank. The current
EIERZKLGLHLTSLH4"WLEK %7>S'LL ELNBG7BY-74B..; tax expense and deferred tax expense are determined in
ETÈLPÉLLVLTBETWVRMLKHIPS;FLVEK0S'LL.TJ2.;EK0 accordance with the provisions of the Income Tax Act, 1961
EIYLVLHLTSIH4"GPOTLFTBG-'LSELL;ZLTBJK)LRYSLVGE Y  and as per Accounting Standard 22 - Accounting for Taxes on
EKLTBELTLLGFZEKVTETDLOWLJKEKETGZ  ELNBG7BYEI Income respectively after taking into account taxes paid at the
ULSIH4ULTGEM&DG6ÉLS5XGKG.%LVETEKGVFLTBJKWLÉLLGKS foreign offices, which are based on the tax laws of respective
HLTSTH4B" jurisdictions.
Deferred Tax adjustments comprises of changes in
 P L; ET OL4KLV .TJ2.; EK WLG-S L OTSLWLTB FTB JGKPS;VLT EL the deferred tax assets or liabilities during the year.
MFLLTUVWL4KWLYTZTUL YC;HLGVHLTSLH4".TJ2.;EKWLG-SP Deferred tax assets and liabilities are recognised by
OTSL>PS;FLVPL;ETGZ  ELNBG7BYWLWL4KEKLT9WLET considering the impact of timing differences between
taxable income and accounting income for the current
DIQETMFWBSKLZETÈ)LLPELTÉLVFTBKvSTHR JHQLVEI year, and carry forward losses. Deferred tax assets
ULSIH4".TJ2.;EKWLG-SPOTSLEIYLVLEKEIOKS'LLEK and liabilities are measured using tax rates and tax
GVFLTBELÈLTY>ULTGESRZVJLGSG'LFTB V G%7.LPL-SGPE laws that have been enacted or substantively enacted
at the balance sheet date. The impact of changes
V G%7PGELYLHLT>GELULSLH4".TJ2.;EKWLG-SPOTSL in deferred tax assets and liabilities is recognised in

139
FTBJGKPS;VELÈ)LLPZL)LPHLGVvLSLTBFTBGOvLC;OTSLH4".TJ2.; the profit and loss account. Deferred tax assets are
EKWLG-SELTJHQLVLULSLH4S'LLÈ3TEGKJLTG7;BYGSG'LJKJRV recognised and re-assessed at each reporting date,
based upon management’s judgment as to whether
MT--.GELULSLH4>ULTÈD6ÉLVEIUUFTB7JKWLÉLLGKSHLTSIH4 their realisation is considered as reasonably/virtually
U4MTGENVEIGKZLC;UTLVÈFLLS!PQ;RWZIGVGQSHLT" certain.

 ÈGSLTKJKWL 11. Earnings per Share:


The Bank reports basic and diluted earnings per share in
 D 4BEEIÈGSLTKWLÉLLK)LXSWLGKJLT7;WLC;MI WLC;^LKLULKI?ÈGS accordance with AS 20 -‘Earnings per Share’ issued by
LTKJKWL WL4K METWVRMLKHLTSIH4"DTGMEWLÈGS the ICAI. Basic Earnings per Share are computed by
LTKEIYLVLPL;ETGZ GPLTLEKC;G%P7ILTKÉLLKELTBELT74%M dividing the Net Profit after Tax for the year attributable
ET DLOLRZL)LELT PL; ET DELLC;G%P7ILTKEIWL4MSV to equity shareholders by the weighted average number
of equity shares outstanding for the year.
MB<LMT)LLYEKETÈL*SEIULSIH4"
 ÈLPÉLLV>WLEG-FEOTSLTBS'LLWLEG-FEWLG-SL‚ 12. Provisions, Contingent Liabilities and Contingent Assets:
● In conformity with AS 29, “Provisions, Contingent
●  M  ET WVRMLK ?QL7;. ELNB7TB. MB-'LLV ^LKL ULKI
Liabilities and Contingent Assets”, issued by the
ÈLPÉLLV>WLEG-FEOTSLTBS'LLWLEG-FEWLG-SL‚>D4BE Institute of Chartered Accountants of India, the
CVETÈLPÉLLVEIJ¿QLVETPZS)LIEKSLH4UDJXP; L7VL Bank recognises provisions only when it has a
ETJGKLLF-PJPS;FLVOLG3PHLTS'LLGUMETJGKLLFS present obligation as a result of a past event, and
MBMLÉLVLTBELM&)LLGPSWLN7¾ZLTHLTULTOLG3PELTGVJ7LVT would result in a probable outflow of resources
embodying economic benefits will be required to
ETGZ WLG'L;EZL)LETGZ WLPEHLTS'LLUDOLG3P
settle the obligation, and when a reliable estimate
EIGPPMVIKLGLWVRFLGVSEIULMESIHLT" of the amount of the obligation can be made.
● GPSIGPPKLIFTBWLEG-FEOTSLWLTBEIJ¿QLVVHIBHLTSI ● Contingent Assets are not recognised in the
H4" financial statements.

 DRGZV7‹LBUT%LV 13. Bullion Transactions:

 D 4BEDRGZVELWLLSEKSLH4GUMFTBY[LHELTBELTDTQVTETGZ  The Bank imports bullion including precious metal


EEKLKJKWLÉLLGKSDHRFX:FT7ZDLKLLGFZH4"WLLSD4E bars on a consignment basis for selling to its
customers. The imports are typically on a back-to-back
7X D4EJKGPLTLJMT WLÉLLGKSH4 S'LLY[LHEELT NMELFX: basis and are priced to the customer based on price
M*ZLK^LKLWBGESFX:JKOTVLHLTSLH4"CVDRGZV7‹LBUT%LVLTB quoted by the supplier. The Bank earns a fee on
FTBD4BELR:EWGU;SEKSLH4"LR:EELTEFILVWLETWBSY;S such bullion transactions. The fee is classified under
PYI;²SGELULSLH4"D4BEYLT:.ELTUFLPNMJKžLOTSLH4 commission income. The Bank also accepts deposits
and lends gold, which is treated as deposits/advances
GUMT $LU0!WLEISKH0LU)LRYSLVFLFZT ET WLÉLLKJK as the case may be with the interest paid / received
%ZLMIJ2LC;.UFLKLGL!NÉLLKEISKHJTLELGELULSLH4" classified as interest expense/income.
 vB.PLKGKJLTG7;BY 14. Segment Reporting

 D 4BE>WLKDIWLC;GOLLGVO;TLLTBETWVRMLKS'LLWLC;MI WLC;^LKLULKI The Bank recognizes the Business segment as the


ELNBG7BY-74B..; EIWVRJLZVLFTB GDUVTMvB.LTB EIJHQLV Primary reporting segment and Geographical segment
as the Secondary reporting segment, in accordance with
ÈL'LGFEGKJLTG7;BYvB.S'LL)LL4YLTGZEvB.ELTMTETB.KIGKJLTG7;BYvB. the RBI guidelines and in compliance with the Accounting
ETJFTBEKSLH4" Standard 17 issued by ICAI.

140
2016-17
QMHM<FHLKMU8<
ANNUAL REPORT

WVRMXQI EZ
 SCHEDULE 18 (SOLO)
<LL3LLTBMTMBDBGSG7**LGL¶LLB NOTES TO ACCOUNTS (31.03.2017)
 *LX‚UI ` EKLT. FTB
1. Capital (` in Crore)

¹  GPPKL 31.03.2017 31.03.2016 Sl. Particulars 31.03.2017 31.03.2016


MB No
i. ML&LL6¶LCG%P7I7I¶LK*LXU
B IWVR*LL3L 7.87 7.87 i. Common equity Tier 1 Capital ratio 7.87 7.87
(%)*
%
*
ii 7I¶LK*LXBUIWVR*LL3L %
* 8.91 8.41 ii. Tier 1 Capital ratio (%)* 8.91 8.41
iii 7I¶LK*LXBUIWVR*LL3L %
* 2.75 2.87 iii. Tier 2 Capital ratio (%)* 2.75 2.87
iv. ERZ*LXBUIWVR*LL3L MIWLK WLK
 %
* 11.66 11.28 iv. Total Capital ratio (CRAR) (%)* 11.66 11.28
v. $L4BE&LTB)LLK3LMKELKEILT¶LKÉLLGK3LL 65.01% 62.08% v. Percentage of the shareholding of the 65.01% 62.08%
ELÈG3LL3L Government of India in the Bank
vi. UR7LC;YC;CG%P7I*LXBUIEIKLGL 2112.00** 21.81 vi. Amount of equity Capital raised 2112.00** 21.81

vii. UR7LC;YC;7I¶LK"WG3LGK%S*LXBUIEI 2250.00 LX6 vii. Amount of Additional Tier 1 Capital 2250.00 NIL
raised; of which :
KLGLGUM&LTBDTGFLOIY4KMBQI Perpetual Non- Cumulative Preference NIL NIL
WGFLVILTK *LI VMI*LI M
 LX6 LX6 Shares(PNCPS):
DTGFLOIžLGZ&