PROFILE OF PUNJAB NATIONAL BANK (Based on June’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 June2021, Bank has total 36851 delivery channels with a network of 10641 domestic branches, 2 International branches, 13690 ATMs & 12518 Business Correspondents. PNB is the second largest Public Sector Bank (PSB) in the country with Global Gross Business at Rs. 18,23,685 crore. The Bank continues to maintain its forte in low cost CASA deposits with a share of 45.15%. Bank’s focus has been on qualitative business growth, recovery and arresting fresh slippages.

BUSINESS PERFORMANCE

The Business figures of the Bank as on June2021 is given as under: (Rs. Crore) YoY variation Sl. Parameters June’20 Mar’21 June’21 Amount % 1 Domestic Deposits 1044290 1083335 1078937 34647 3.32% 2 Global Deposits 1074917 1106332 1097649 22732 2.11% 3 Gross Domestic Advances 702171 719138 708082 5911 0.84% 4 Gross Global Advances 721695 739407 726036 4341 0.60% 5 Gross Domestic Business 1746461 1802473 1787019 40558 2.32% 6 Gross Overseas Business 50151 43266 36666 -13485 -26.89% 7 Gross Global Business 1796612 1845739 1823685 27073 1.51% 8 CASA Deposits 453816 492782 487136 33320 7.34% 9 Current Deposits 66571 75546 67611 1040 1.56% 10 Saving Deposits 387245 417236 419525 32280 8.34% 11 CASA Share Domestic (%) 43.45% 45.48% 45.15%

In terms of bottom line parameters, the Bank’s Operating Profit stood at Rs. 6,099 crore in Q1FY’22 with a YoY growth of 15.5%. Net Interest Income stood at Rs. 7227 crore. Bank incurred a Net Profit of Rs. 1023 crore in Q1FY’22 as compared to a Net Profit of Rs. 308 crore in Q1FY’21 with YoY growth of 232.1%. Global Net Interest Margin (NIM) stood at 2.73 % in Q1FY’22.

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CAPITAL ADEQUACY RATIO The Bank’s CRAR as on June2021 improved to 15.19% from 12.63% in June2020. Out of this, Tier-I is 12.47% and Tier-II CRAR is at 2.72%.

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. 1,04,076 crore. Net NPA of the Bank stands at Rs. 38,581 crore as on June 2021. In terms of ratios, Gross NPA ratio was at 14.33% in June’21 and Net NPA ratio was at 5.84% in June’21. Provision Coverage Ratio (PCR) improved to 80.26 %. Provision Coverage Ratio (PCR) excluding TWO was at 62.93% as on June’21. Credit Cost declined to 1.76% in June’21 from 2.54% in June’20.

DOMESTIC BRANCH NETWORK (% Share)

As of the end of June2021, total number of branches stood at 10,641 (1916 Metro, 2216 Urban, 2636 Semi-Urban & 3873 Rural). The population wise breakup is given as under:

Population group wise

Rural 18.0% Semi Urban 36.4% Urban 20.8% Metro 24.8%

INTERNATIONAL FORAYS As on June’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:

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 Mobile Banking Services (MBS): As on June 2021, Bank’s Mobile Banking users crossed 251 lakhs.  Internet Banking Services (IBS): As on June 2021, Bank’s user-base increased to 262 lakhs.  UPI: As on June 2021, UPI transactions increased YoY by 90% to 36.45 crore.

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 June2021 stood at Rs. 2,83,935 crore. National Goal achievement of Priority Sector Advances was 42.10% of ANBC against the National Goal of 40% as on 30.06.2021. The Bank also achieved National Goals for Credit for weaker Sections (12.61% of ANBC against the target of 11% of ANBC), Micro Enterprises (7.93% of ANBC against National Goal of 7.5%) and small & marginal farmers (9.17% 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, 395 Lakh accounts were opened with an average balance of Rs. 3938 per account. As on 30.06.2021, progress under the social security schemes is as under:-  Pradhan Mantri Suraksha Bima Yojana [PMSBY]: 108.1 lakh customers enrolled under PMSBY.  Pradhan Mantri Jeevan Jyoti Bima Yojana [PMJJBY]: 22.0 lakh customers enrolled under PMJJBY.  Atal Pension Yojana [APY]: 14.8 lakh customers enrolled under APY.

ASSET QUALITY CONTROL – MULTI PRONG APPROACH

 Verticalized Credit Delivery Model • Large Corporate Branches (Loans above Rs. 50 Crore) • Mid Corporate Centres (Loans upto Rs. 50 Crore) • PNB Loan Points (RAM Loans upto Rs. 1 Crore)  PNB Lens – The Lending Solution • Technology Driven Credit Underwriting Model • Uniformity in Process Across the Bank • Rolled out for Retail, Agri and MSME (Upto Rs. 25 Crore)

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 Continuous Follow Up for Collections • Dedicated Credit Monitoring Vertical • Use of SMSes and Out-Bound Call Centres to Follow up with Customers • Mobile app for field Functionaries to Monitor SMAs  Strong Recovery Measures

• Sustained Recovery Efforts • Special OTS Scheme • Online Portal for monitoring of NPA Accounts • Mega e- Auctions NEW INITIATIVES UNDERTAKEN

 Bank has launched New Credit Cards • PNB Signature Credit Card – for Elite/Super premium segment of Customers on VISA Platform. • PNB Millennial Credit Card – for youth to serve mid segment of customers on NPCI RuPay platform. • Corporate Credit Card on VISA Platinum.

 Internet Banking • Change Home Branch. • Change account variant (for current account customers) • View Senior Citizen Scheme (SCSS) • Password resetting for NRI customers without debit card

 Mobile Banking

• Insta - Demat Account opening. • Link of opening online account through video KYC

 Others • Bharat bill pay system (BBPS Post log-in) & Positive Pay System in both IBS and MBS.

AWARDS AND RECOGNITIONS  Special Commemorative Award 2021 by NABARD

Best PSU in the fields of Agriculture Credit, Micro Finance, Financial Inclusion and Technology Adoption.

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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 12,98,074, Twitter following of 2,33,107, LinkedIn following of 74,082, Instagram following of 64,768 and YouTube subscribers of 59,500.

WAY FORWARD

Going forward, Bank’s focus will be on following areas:

 Focus on Cost Optimization through realization of synergies in various segments.  Differentiated Customer Experience through pnb@ease Outlets.  Leveraging Digital Credit Underwriting Capabilities for uniform credit processing standards across the Bank.  Implementing strong Recovery Measures to improve Asset Quality.  Sustained profitability and robust capital position.  Analytics Driven Approach for Deepening of Customer Relationship and Pricing.

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