PROFILE OF PUNJAB NATIONAL BANK

(Based on September’21 Results)

Punjab National Bank (PNB), India’s first Swadeshi Bank, commenced its
operations on April 12, 1895 from Lahore, with an authorised capital of Rs 2 lac
and working capital of Rs 20,000. The Bank was established by the spirit of
nationalism and was the first bank purely managed by Indians with Indian
Capital. During the long history of the Bank, 9 banks have been
merged/amalgamated with PNB.

Post amalgamation of eOBC & eUNI w.e.f 01.04.2020, PNB has expanded its
presence across India. As at the end of September’ 2021, Bank has total 36,514
delivery channels with a network of 10,528 domestic branches, 2 International
branches, 13,506 ATMs & 12,478 Business Correspondents. PNB is the second
largest Public Sector Bank (PSB) in the country with Global Gross Business at
Rs. 18,51,097 crore. The Bank continues to maintain its forte in low cost CASA
deposits with a share of 45.42%. Bank’s focus has been on qualitative business
growth, recovery and arresting fresh slippages.

BUSINESS PERFORMANCE

The Business figures of the Bank as on September’2021 is given as under:

(Rs. Crore)
Sl YoY variation
Parameters Sept’20 June’21 Sept’21
. Amt. %
1 Domestic Deposits 1041681 1078937 1098117 56436 5.42%
2 Global Deposits 1069747 1097649 1115373 45626 4.27%
3 Gross Domestic Advances 697342 708082 715799 18457 2.65%
4 Gross Global Advances 716924 726036 735724 18800 2.62%
5 Gross Domestic Business 1739023 1787019 1813916 74893 4.31%
6 Gross Overseas Business 47648 36666 37181 -10467 -21.97%
7 Gross Global Business 1786671 1823685 1851097 64426 3.61%
8 CASA Deposits 459477 487136 498757 39280 8.55%
9 Current Deposits 66593 67611 71958 5365 8.06%
10 Saving Deposits 392884 419525 426799 33915 8.63%
11 CASA Share Domestic (%) 44.10% 45.15% 45.42%

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In terms of bottom line parameters, the Bank’s Operating Profit stood at Rs. 4,021
crore in Q2FY’22. Net Interest Income stood at Rs. 6,353 crore. Bank incurred a
Net Profit of Rs. 1,105 crore in Q2FY’22 as compared to a Net Profit of Rs. 621
crore in Q2FY’21 with YoY growth of 78%. Global Net Interest Margin (NIM) stood
at 2.56 % in H1 FY’21.

CAPITAL ADEQUACY RATIO

CRAR improved to 15.20% in September’21 from 12.84% as at September’20. Out
of which Tier-I is 12.50% (CET-1 was at 11.58%, AT1 was at 0.92%) and Tier-II
CRAR is 2.70% as at September’21.

ASSET QUALITY
Management of stressed assets continues to be one of the top priorities for the
Bank. As a result of focused efforts in this direction, Gross NPA of the Bank stood
at Rs. 1,00,291crore. Net NPA of the Bank stands at Rs. 36,934 crore as on
September’2021. In terms of ratios, Gross NPA ratio was at 13.63% in
September’2021 and Net NPA ratio was at 5.49% in September’2021. Provision
Coverage Ratio (PCR) improved to 80.77%. Provision Coverage Ratio (PCR)
excluding TWO was at 63.17% as on September’2021. Credit Cost declined to
1.47% in Q2 FY’22 from 2.26% in H1 FY’21.

DOMESTIC BRANCH NETWORK (% Share)

As of the end of September’2021, total number of branches stood at 10,528

(1902 Metro, 2177 Urban, 2585 Semi-Urban & 3864 Rural). The population wise
breakup is given as under:

Population group wise

Rural
18.1%
Semi Urban
36.7%
Urban
20.8%
Metro
24.6%

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INTERNATIONAL FORAYS
As on September’2021, Bank is having 2 International branches in Hong Kong and
Dubai. The Bank has two overseas subsidiaries viz. PNB International Ltd. London
and Druk PNB Bank Ltd. Bhutan and one joint Venture Bank in Nepal under the
name Everest Bank Ltd. Nepal.

ENHANCING DIGITALISATION
Digital Banking Initiatives: Bank has focused on creation of digital canvas for
customers by allowing all tools for customers like debit card, PNB One, BHIM UPI
etc. The progress under digitalization is outline below:

 Internet Banking Services (IBS) users increased to 284 Lakhs as at

September’21 from 236 Lakhs in September’20 with YoY growth of 20%.
 PNB One Mobile Banking Services (MBS) users increased 30% YoY to 226
Lakhs as at September’21 from 173 Lakhs in September’20.
 Number of Mobile Banking Services (MBS) transactions increased by 26%
YoY to 7.14 Lakh during September’21 from 5.65 Lakh in September’20.
 Bharat QR Code users increased to 4.73 Lakhs as at September’21 from
1.21 Lakh in September’20 with YoY growth of 290%.

PRIORITY SECTOR LENDING

PNB has constantly been achieving National Goals and Targets allocated under
flagship schemes of the nation for upliftment and employment of targeted groups.
The outstanding under Priority Sector as on September’21 stood at Rs. 2,82,671
crore. National Goal achievement of Priority Sector Advances was 43.63% of ANBC
against the National Goal of 40% as on 30.09.2021. The Bank also achieved
National Goals for Credit to Weaker Sections (14.07% of ANBC against the target of
11% of ANBC), Micro Enterprises (8.31% of ANBC against National Goal of 7.5%)
and Small & Marginal Farmers (10.37% of ANBC against National Goal of 9%).

FINANCIAL INCLUSION
The Bank has been a pioneer in taking initiatives in the area of Financial
Inclusion. Under PMJDY, 402 Lakh accounts were opened with an average balance
of Rs. 3585 per account. As on 30.09.2021, progress under the social security
schemes is as under:-
 Pradhan Mantri Suraksha Bima Yojana [PMSBY]: 117.3 lakh customers
enrolled under PMSBY.
 Pradhan Mantri Jeevan Jyoti Bima Yojana [PMJJBY]: 24.5 lakh customers
enrolled under PMJJBY.
 Atal Pension Yojana [APY]: 15.9 lakh customers enrolled under APY.

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NEW INITIATIVES UNDERTAKEN

 Launch of 6S Campaign for Business Growth

1. Shikhar-Retail Assets Growth – Focused effort aimed at increasing
home loans: increase ticket-size and portfolio quality.

2. Swagat- MSME Assets Growth – Strategy to bring back quality MSME

customers.

3. Sankalp & Sankalp plus- Fresh loans from New MSME, Fresh loans to
New Bank customers

4. Samruddhi-Focus on Agricultural Assets Growth

5. Swabhiman- Ensuring access to Financial Inclusion

6. Sampark- Digital outreach and service delivery

AWARDS AND RECOGNITIONS

1. Winner of Rajbhasha Kirti Award for the year 2020-21
2. The Asian Banker Financial Technology Innovation Award 2021
“Best Core-banking Technology Implementation.”
3. Under EASE 3.0
“Runner up under Theme 3: Institutionalizing Prudent Banking”
“Runner up under Theme 4: Governance and Outcome Centric HR”
“Amongst Top 3 Banks in Improvement from March baseline”

SOCIAL MEDIA PRESENCE

Bank believes in a thriving communication with its customers and in this context
understands the importance of Social media as an effective tool. Punjab National
Bank is having a Facebook following of 13,71,899, Twitter following of 2,53,500,
LinkedIn following of 77,069, Instagram following of 68,400, YouTube
subscribers of 65,600 and Koo following of 7,000.

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