About
Punjab National Bank
Punjab National Bank (PNB) is a state-owned commercial bank located in New Delhi. PNB is one of the leading commercial banks in India. They offer banking products, and also operate credit card and debit card business, bullion business, life and non-life insurance business, and gold coins and asset management business. They are recognized as the bank offering highest levels of customer satisfaction in Delhi and Chennai.
As on 31 December 2020, PNB's domestic branch network stood at 10,925 along with 13,914ATMs. The bank has four overseas branches in Hong Kong, Dubai and Offshore Banking Unit in Mumbai and Representative Offices (RO) at Dubai (UAE), Shanghai (China), Sydney (Australia) and Dhaka (Bangladesh). The bank has two overseas subsidiaries viz. PNB International Ltd. (UK) and Druk PNB Bank Ltd (Bhutan). The bank also has one associate company viz. JSC Tengri Bank (Kazakhstan) and one Joint Venture Bank in Nepal i.e. Everest Bank Ltd. The bank has got permission from RBI for opening Representative office in Yangon (Mynamar).
Punjab National Bank was incorporated in the year 1895 at Lahore, undivided India. The Bank has the distinction of being the first Indian bank to have been started solely with Indian capital. In the year 1940, the Bank absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi circle. In the year 1951, they acquired the 39 branches of Bharat Bank and in the year 1961, they acquired Universal Bank of India.
Punjab National Bank was nationalised in July 1969 along with 13 other banks. In the year 1986, they acquired Hindustan Commercial, which added Hindustan's 142 branches to the Bank's network. In the year 1993, they acquired New Bank of India which the GOI. During the year 1996, they developed a packaged for corporate customers for fast remittance of funds from different up-country branches. In the year, they set up a representative office in Almaty, Kazakhstan.
In the year 2000, the Bank has introduced a scheme for providing finance against mortgage of immovable property. In September 2000, they commenced their gold business in the form of Gold Import Scheme. In November 2000, they launched an International Co-branded Credit Card of Punjab National Bank and Hong Kong & Shanghai Banking Corporation (HSBC) in New Delhi.
In March 2002, the Bank came out with their first Initial public offer (IPO) for 5,30,60,700 equity shares of Rs 10 each which resulted in the reduction of the government's shareholding in the Bank. During the year 2002, they started their branch in M.G. Road, Bangalore named as Mid-Corporate Branch (MCD) to provide their corporate clients with a credit limit of Rs 3.5 crore and above. They made joint venture with Infosys for the implementation of a Centralized Banking Solution for them. Also, they made a tie up with Cisco Systems for networking 3,870 branches as part of their Rs 150 crore plan.
In the year 2003, the Bank took over Kozhikode-based Nedungadi Bank Ltd (NBL). The Bank entered into an alliance with New India Assurance for selling their general insurance products. Also, they opened a representative office in London. During the year, PNB Capital Service Ltd was amalgamated with the Bank.
In June 2003, the Bank entered into an MoU with Principal Financial Services Inc (USA) and Vijaya Bank for joint venture partnership in Life Insurance, Pensions and Asset Management (MF) business. Also, they formed a strategic alliance with Infrastructure Leasing and Financial Services Ltd (IL&FS) for setting up a private equity fund for investing in domestic companies.
In the year 2004, the Bank acquired the assets of Hindustan Transmission Product Ltd. They signed a corporate agency agreement with Export Credit Guarantee Corporation of India Ltd (ECGC) for marketing ECGC's export credit insurance products through the network of the bank's branches. Also, an MoU was signed with Intel for the deployment of various IT-related solutions.
During the year, the Bank signed an MoU with ICICI Bank for ATM network sharing. They awarded a project to Tata Consultancy Services (TCS) for implementing human capital management and payroll solution. They established a branch office in Kabul, Afghanistan. Also, they opened a representative office in Shanghai. The bank established an alliance with Everest Bank in Nepal that permits migrants to transfer funds easily between India and Everest Bank's 12 branches in Nepal.
In the year 2005, the Bank unveiled ATM at Edappal. Also, they opened a representative office in Dubai. In the year 2006, the Bank made a tie up with MasterCard International to launch a signature-based debit card. Also, they made a tie up with Indian Airlines for online booking of air tickets. They opened a new branch in Uttarakhand. In October 2007, the Bank entered into MoU with India Infrastructure Finance Company with an aim to extend their cooperation and support to IIFC in areas of creating a deal flow of infrastructure projects. In January 2008, the Bank commenced commercial banking operations in Hong Kong.
During the year 2008-09, the Bank opened 168 branches, out of which 90 are new branches and 78 branches was added through upgradation of Extension Counters. They made collaboration with LIC for selling insurance policies and also made a tie up with Oriental Insurance for selling non-life policies on a referral basis. In June 2008, they entered into a MoU with ILFS Cluster Development Initiative Ltd for providing finance for various industrial infrastructure projects in the country.
In September 2008, they signed an MoU with SMC Global Securities Ltd and Networth Stock Broking Ltd for providing online trading facility to Company's customers. They offered a unique '3 in 1 account' comprising of Saving, Demat and trading account. In February 2009, they commercially launched their credit cards with 2 types of consumer credit cards, namely Gold and Classic. Also, they entered into an agreement with Oriental Insurance Company to market insurance products, a practice also known as bancassurance.
In March 2009, the Bank entered into an understanding with Tata Motors for financing entire range of passenger cars. Also, they executed an agreement with The Life Insurance Corporation of India for bancassurance, life insurance under the provisions of IRDA's Referral Arrangement.
During the year 2009-10, the Bank opened 524 domestic branches, out of which 347 are at new locations while 177 branches was added through upgradation of existing Extension Counters. They deployed 1400 ATMs taking the total count of ATMs to more than 3500 Nos. They opened two overseas branches 1 in Hong Kong and another at DIFC Dubai and started a JV banking subsidiary 'DRUK PNB Bank Ltd' in Bhutan. Also, they opened a representative office in Oslo, Norway.
During the year, the Bank sold 6.5% of their stake in UTI Assets Management Co Ltd and UTI Trustee Pvt Ltd, thus bringing down their stake in both these companies to 18.5%. They launched Corporate Credit Card with Individual liability. Also they launched Merchant Acquiring Business through installation of Point of Sale (PoS) Terminals at Merchant Establishments and Internet Payment Gateway by integrating through Merchant Website, with Brand Name PNB Biz.
In May 2009, the Bank incorporated a subsidiary company namely PNB Investment Services Ltd. In November 2009, they entered into an agreement with FIM Bank (Malta), Banca IFIS, Italy and Blend Financial Services Ltd, Mumbai for setting up a joint venture company for providing factoring, forfeiting and trade finance related business.
During the year 2010-11, the Bank introduced new set of products and services such as PNB Uphaar, PNB Suvidha and World Travel Card. In December 13, 2010, they acquired 63.64% stake in JSC Dana Bank of Kazakhstan. In January 12, 2011, the Bank's joint venture India factoring and Finance Solutions Pvt Ltd started its commercial operations from Delhi, Mumbai & Chennai.
The total number of branches at the end of March 2011 rose to 5189. The branch network comprises 2047 Rural, 1154 Semi Urban, 1111 Urban and 877 Metropolitan branches. During the review period 210 domestic branches were opened. With 5189 branches, including 28 Extension Counters, the Bank has the largest network amongst the nationalized banks. As part of customer segmentation, Bank has opened specialized Branches that include 6 Micro Finance branches, 59 SME branches, 11 International Banking Branches, 17 Asset Recovery Management Branches, 13 Mid Corporate Branches, 11 Large Corporate Branches, 73 Retail Asset Branches, 11 Agriculture Finance Branches, 3 high-tech agriculture branches, 1 Capital Market Services Branch and 1 International Service Branch. Besides, 41 Back Offices, 2 Special Foreign Exchange Offices, 17 Special MICR Centres, 41 Service (Regional Clearing Centre) centres, 4 Financial Inclusion Service Centres, 3 Centralised Draft Payable Centres, 1 Central Clearing Service Centre and 1 Depository Back Office are established to reduce delivery time and improve response time.
On 5 March 2010, PNB announced that the bank has received permission from RBI for setting up a representative office in Sydney, Australia.
On 13 December 2010, PNB announced that the bank has completed the transaction for acquisition of 63.64% stake in JSC Dana Bank Kazakhstan. PNB has acquired 35 million shares of 1000 Tenge each, at par, for 3.5 Bn Tenge (USD 23.765 million approx.), which has raised the capital of JSC Dana Bank to the level of 5.5 Bn Tenge from the existing 2 Bn. Tenge.
On 12 January 2011, PNB announced that it has bought Principal Financial Group of Mauritius (PFG) and U K Paints stake of 26% and 32% respectively in Principal PNB Life Insurance Company Ltd. After the transaction, the bank's stake in Principal PNB Life Insurance Company Ltd stands at 88%. PNB also said at that time that it would continue to support Principal PNB Asset Management Company Pvt Ltd for a period of three years.
On 15 February 2011, PNB announced that the bank has entered into an arrangement with Weizmann Forex Ltd., Mumbai (Principal Agent) for handling inward remittances under MTSS (Money Transfer Service Scheme) through Western Union. The bank also entered into an arrangement with BFC Forex & Financial Services Ltd., Thane (Maharashtra) for handling inward remittances under MTSS (Money Transfer Service Scheme) through the web based product EzRemit.
On 28 April 2011, PNB announced the issue and allotment of 15.09 lakh equity share at issue price of Rs 1218.82 per equity share to Government of India on preferential basis aggregating Rs 184 crore.
On 28 March 2012, PNB announced that upon receipt of allotment money of Rs 1589.90 crore from Life Insurance Corporation of India (LIC), the bank has allotted 1.58 crore equity shares at issue price of Rs 1003.69 per share to LIC on preferential basis. On 2 April 2012, PNB announced that upon receipt of allotment money of Rs 654.99 crore from Government of India, the bank has allotted 65.25 lakh equity shares at issue price of Rs 1003.69 per share to Government of India on preferential basis.
On 16 January 2013, PNB announced that the bank has acquired 30% stake in Metlife India Insurance Co. Ltd.
On 6 March 2013, PNB announced that upon receipt of allotment money of Rs 1247.99 crore from Government of India on 4 March 2013, the bank has allotted 1.42 crore equity shares at issue price of Rs 873.05 per share on preferential basis to Government of India.
On 28 October 2013, PNB announced that the Chairman & Managing Director of the bank, as per authority delegated by the Board, has approved issuance of equity shares of face value of Rs 10 each for an amount upto Rs. 500 crore, at such price as may be decided as per SEBI (ICDR) Regulations, 2009, on preferential basis in favour of Government of India, subject to necessary approvals.
On 4 March 2014, PNB announced that the bank has sold its entire stake in Credit Information Bureau India Ltd. (CIBIL) to TransUnion International Inc. (FII). On 1 April 2014, PNB announced that it has sold its entire 30% stake in India Factoring & Financial Solutions Ltd. (IFFSL) to parent promoter FII (FIM Bank (Malta) and realized Rs 107.83 crore. On 4 July 2014, PNB announced that it has sold 41% stake in High Mark Credit Information Services Ltd. (High Mark) to CRIF and realized Rs 4.15 crore.
The Board of Directors of PNB at its meeting held on 19 September 2014 granted in-principle approval for sub-division of existing equity shares of face value of Rs 10 each into 5 equity shares of face value of Rs 2 each.
On 1 April 2015, PNB announced that capital funds to the tune of Rs 870 crore have been received from the Government of India on 31 March 2015 for issue and allotment of 4.42 crore equity shares at a price of Rs 196.80 per equity share to Government of India on preferential basis in accordance with Regulation 76(1) of SEBI ICDR Regulations.
The Bank made Tie ups with the leading manufacturers of agriculture implements & tractors, irrigation solutions, etc. during FY 2015. During the year, the Bank also laid focus on increasing livestock advance portfolio by financing through tie-ups with dairy companies/cooperatives. Further, the Bank focused on financing to Agri logistics like Rural Godown/ Cold Storage & Agri Transport.
On 30 September 2015, PNB announced that consequent upon receipt of capital funds to the tune of Rs 1732 crore from the Government of India on 29 September 2015, the bank has issued and allotted 10.9 crore equity shares at a price of Rs 158.84 per equity share on preferential basis to Government of India in accordance with Regulation 76(1) of SEBI ICDR Regulations.
During FY 2015, the Bank entered into a tie up with National Small Industries Corporation (NSIC). In this, NSIC would source the applications to the Bank with sharing of processing fee. Besides, the Bank also formulated Scheme for financing Business Correspondents.
The Bank signed a MOU with vehicle manufacturers like Ashok Leyland, Tata Motors, Asia Motors Works, Hindustan Motors, Mahindra & Mahindra, Piaggio, ICM Ltd., Eicher Volvo, Atul Auto, Bajaj Motors and J S Auto P Ltd. and MOU had also been signed with Escorts for financing transport dealers.
In FY 2015, to expand the presence of the Bank, an exclusive scheme for issuing credit cards to employees of PNB's sponsored RRBs was launched apart from liberalizing the terms for issuance of credit cards against fixed deposit.
In FY 2015, PUNGRAIN, a food grains procurement agency of Punjab Government has launched Kisan Arhtiyas Information & Remittance Online Network (KAIRON) project whereby they are making payments to the farmers through Arhtiyas using RuPay Debit cards with the help of National Payment Corporation of India (NPCI). The Bank was actively participating in the project and brought a business of Rs 4038 crore as Acquiring bank and Rs.1997 crore as Issuing bank during FY 2015.
During FY 2016,157 new branches were opened by RRBs, taking the total network of Branches to 2301 with all being on CBS and total numbers of employees were 8714.
On 15 September 2016, PNB announced that consequent upon receipt of capital funds to the tune of Rs 2112 crore from the Government of India on 14 September 2016, the bank has issued and allotted 16.43 crore equity shares at a price of Rs 128.49 per equity share on preferential basis to the Government of India in accordance with Regulation 76(1) of SEBI ICDR Regulations.
Punjab National Bank (PNB) and India Post Payments Bank (IPPB) signed a memorandum of understanding on 17 January 2017 wherein PNB shall provide technology platform for pilot launch of IPPB on receipt of regulatory approval from Reserve Bank of India.
The Board of Directors of PNB at its meeting held on 2 November 2017 authorized the management to partially sell its stake in PNB Housing Finance Ltd. Further, consequent upon the exercise of call option by the Principal Group, the Board has approved to offload PNB's entire stake in Principal PNB Asset Management Company and Principal trustee Company Pvt Ltd to the Principal group.
On 5 December 2017, PNB announced that the bank successfully sold 98.15 lakh equity shares of PNB Housing Finance Ltd (PNBHFL) to different investors (Non Retail and retail) at above the floor price /cut off price, with gross sales consideration of Rs 1315.33 crore.
During FY 2017, 1218 new ATMs were installed and as an outcome, the total ATM network reached 10681. E-Surveillance systems were installed at ATM sites. Solar UPS were installed to decrease the downtime of ATMs on account of electricity failure. ESQ ATM Monitoring System was installed for on line ATM monitoring and to take prompt corrective/preventive actions in case ATM gets down.
Business Debit Card was launched with enhanced transaction limit permitting withdrawal up to Rs 1 lakh from ATMs and e-commerce transaction up to Rs 3 lakh in FY 2017.
On 18 December 2017, PNB announced allotment of 29.76 crore equity shares to successful eligible qualified institutional buyers at a price of Rs 168 per share. Earlier, PNB on 14 December 2017 announced the closure of the qualified institutions placement (QIP) of equity share. The bank raised Rs 5000 crore from the QIP.
The Board of Directors of PNB at its meeting held on 6 February 2018 accorded approval for Capital Infusion by Government of India up to Rs 5473 crore.
During FY 2017, the Bank mobilized total amount of Rs 4545 crore, Asset under Management (AUM) stood at Rs 814 crore and brokerage earned was Rs 4 crore.
The Bank has one of the largest branch networks of 6937 as on 31st March 2017. To fulfill the banking needs of unbanked areas, 178 new branches were added to the vast network of branches during the year.
On 14 February 2018, PNB informed the stock exchanges of detection of a massive fraud of Rs 11394.02 crore. On 12 February 2018, on the basis of investigation report, total fraud of Rs 11394.02 crore (about USD 1771.69 million) in case of unauthorized issuance of Letters of Undertakings, Foreign Letter of Credits and Inland Letter of Guarantees in the group accounts of Nirav Modi Group and M/s Gitanjali Group and in the account of M/s. Chandri Paper & Allied Products Pvt. Ltd. was reported to RBI. Later, on 26 February 2018, PNB informed the stock exchanges that the quantum of reported unauthorized transactions could increase by about USD 204.25 million.
During the FY2019, the bank has allotted 31,29,93,219 equity shares at a price of Rs 89.97 per share to GOI on preferential basis. Further the bank also made another preferential allotment of 63,81,90,364 equity shares at a price of Rs 85.10 per share to GOI. Also third time during the FY2019, the bank made another preferential allotment of 80,20,63,535 equity shares at a price of Rs 73.66 per share to GOI.
The Bank has one of the largest networks of 6989 branches and 9255 ATMs as on 31.03.2019 comprising of 1280 Metropolitan, 1387 Urban, 1727 Semi Urban and 2595 Rural branches.
During the FY2020, the bank made a preferential allotment of 213,35,18,960 equity shares at a price of Rs 75.42 per share to GOI.
The Bank has one of the largest networks of 7041 branches and 9168 ATMs as on 31.03.2020 comprising of 1259 Metropolitan, 1430 Urban, 1753 Semi Urban and 2599 Rural branches.
PNB won IBA Banking Technology Awards 2020 for Most Innovate Project using Technology for PNBOne and also Runners Up in Best Use of Data and Analytics for Business Outcome in the Large Bank Category. The Bank won BFSI Digital Innovation Awards in the category of Robotic Process Automation. The bank was also adjudged Bank of the year' by Indo-American Chamber Of Commerce (IACC).
The Government of India (Gol), Ministry of Finance, Department of Financial Services has issued Gazette Notification no. CG-DL-E- 04032020-216535 dated 4th March, 2020, approving the scheme of Amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank in exercise of the powers conferred by section 9 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 and section 9 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1980. The amalgamation has come into effect from 01 April 2020. On 05.03.2020 the Board of Directors of the Bank and the Board of Directors of Oriental Bank of Commerce and United Bank of India at their respective meetings, approved amalgamation. The Boards of respective banks have also approved the swap ratio of 1150 equity shares of Face Value Rs 2/- each of Punjab National Bank for every 1000 equity shares of Face Value Rs 10/- each of Oriental Bank of Commerce and the swap ratio of 121 equity shares of Face Value Rs 2/- each of Punjab National Bank for every 1000 shares of Face Value Rs 101- each of United Bank of India.
The bank has Made investment in JSC Tengri Bank (previously known as Bank of Kazakhstan) of Rs.300 crores which is an associate of our bank Consequent to the study conducted by the independent agency, Whereby the associate Bank has to create certain provisions towards NPA's because of which the networth of the bank has diminished as on 31.03.2020.
During the quarter ended 31 December 2020, the Bank has issued 1,06,70,52,910 equity shares having Face Value of Rs.2 each for cash to Qualified Eligible Buyers pursuant to Qualified Institutional Placement (QIP) in accordance with the provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 at a premium of Rs.33.50 per share aggregating Rs. 3,788.04 Crore.
During the quarter ended on 31 December 2020, Bank has issued Tier-II Bonds aggregating to Rs.3,000 Crore.
The Bank has one of the largest networks of 10769 branches as on 31st March, 2021, comprising of 1931 Metropolitan, 2257 Urban, 2680 Semi Urban and 3901 Rural branches. Rural and Semi Urban Branches (RUSU) comprise around 61 per cent of the Total Branch Network.
The Bank has one of the largest networks of 10098 branches as on March 31, 2022 comprising of 1753 Metropolitan, 2035 Urban, 2457 Semi Urban and 3853 Rural branches. It has over 13350 ATMs as on March 31, 2022.
During FY 2021-22, Bank raised equity of Rs. 1800 Crore through QIP, Rs. 1919 Crore through Tier -II Bonds and Rs. 3971 Crore through AT-1 Bonds. As at the end of 31st March, 2022, Bank's Gross Global Business stood at Rs. 19,31,322 Crore with Gross Global Advances at Rs. 7,85,104 Crore and Gross Global Deposit at Rs. 11,46,218 Crore. Current and Saving Deposits (CASA) was at Rs. 5,33,654 Crore with domestic CASA share at 47.43%. Total Assets of the Bank was at Rs. 13,14,805 Crore as at 31st March, 2022. While the Net Advances stood at Rs. 7,28,186 Crore, Investment was at Rs. 3,72,168 Crore. On the Liabilities side, Deposits stood at Rs. 11,46,219 Crore while Borrowings was at Rs. 45,681 Crore as on 31st March, 2022.
The Bank has one of the largest networks of 10076 branches as on March 31, 2023. It has over 12898 ATMs as on March 31, 2023.
As at the end of 31st March, 2023, Bank's Gross Global Business stood at Rs. 21,65,844 Crore with Gross Global Advances at Rs. 8,84,681 Crore and Gross Global Deposit at Rs. 12,81,163 Crore. Current and Saving Deposits (CASA) was at Rs. 5,38,015 Crore with domestic CASA share at 43%. In addition, Bank's Operating Profit was at Rs. 22,529 Crore with the Net Profit of Rs. 2,507 Crore for the FY 2022-23. Total Assets of the Bank was at Rs. 1461831 Crore as at 31st March, 2022. While the Net Advances stood at Rs. 830834 Crore, Investment was at Rs. 395996 Crore. On the Liabilities side, Deposits stood at Rs. 1281163 Crore while Borrowings was at Rs. 51,292 Crore as on 31st March, 2023.
Punjab National Bank
Company History
Punjab National Bank (PNB) is a state-owned commercial bank located in New Delhi. PNB is one of the leading commercial banks in India. They offer banking products, and also operate credit card and debit card business, bullion business, life and non-life insurance business, and gold coins and asset management business. They are recognized as the bank offering highest levels of customer satisfaction in Delhi and Chennai.
As on 31 December 2020, PNB's domestic branch network stood at 10,925 along with 13,914ATMs. The bank has four overseas branches in Hong Kong, Dubai and Offshore Banking Unit in Mumbai and Representative Offices (RO) at Dubai (UAE), Shanghai (China), Sydney (Australia) and Dhaka (Bangladesh). The bank has two overseas subsidiaries viz. PNB International Ltd. (UK) and Druk PNB Bank Ltd (Bhutan). The bank also has one associate company viz. JSC Tengri Bank (Kazakhstan) and one Joint Venture Bank in Nepal i.e. Everest Bank Ltd. The bank has got permission from RBI for opening Representative office in Yangon (Mynamar).
Punjab National Bank was incorporated in the year 1895 at Lahore, undivided India. The Bank has the distinction of being the first Indian bank to have been started solely with Indian capital. In the year 1940, the Bank absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi circle. In the year 1951, they acquired the 39 branches of Bharat Bank and in the year 1961, they acquired Universal Bank of India.
Punjab National Bank was nationalised in July 1969 along with 13 other banks. In the year 1986, they acquired Hindustan Commercial, which added Hindustan's 142 branches to the Bank's network. In the year 1993, they acquired New Bank of India which the GOI. During the year 1996, they developed a packaged for corporate customers for fast remittance of funds from different up-country branches. In the year, they set up a representative office in Almaty, Kazakhstan.
In the year 2000, the Bank has introduced a scheme for providing finance against mortgage of immovable property. In September 2000, they commenced their gold business in the form of Gold Import Scheme. In November 2000, they launched an International Co-branded Credit Card of Punjab National Bank and Hong Kong & Shanghai Banking Corporation (HSBC) in New Delhi.
In March 2002, the Bank came out with their first Initial public offer (IPO) for 5,30,60,700 equity shares of Rs 10 each which resulted in the reduction of the government's shareholding in the Bank. During the year 2002, they started their branch in M.G. Road, Bangalore named as Mid-Corporate Branch (MCD) to provide their corporate clients with a credit limit of Rs 3.5 crore and above. They made joint venture with Infosys for the implementation of a Centralized Banking Solution for them. Also, they made a tie up with Cisco Systems for networking 3,870 branches as part of their Rs 150 crore plan.
In the year 2003, the Bank took over Kozhikode-based Nedungadi Bank Ltd (NBL). The Bank entered into an alliance with New India Assurance for selling their general insurance products. Also, they opened a representative office in London. During the year, PNB Capital Service Ltd was amalgamated with the Bank.
In June 2003, the Bank entered into an MoU with Principal Financial Services Inc (USA) and Vijaya Bank for joint venture partnership in Life Insurance, Pensions and Asset Management (MF) business. Also, they formed a strategic alliance with Infrastructure Leasing and Financial Services Ltd (IL&FS) for setting up a private equity fund for investing in domestic companies.
In the year 2004, the Bank acquired the assets of Hindustan Transmission Product Ltd. They signed a corporate agency agreement with Export Credit Guarantee Corporation of India Ltd (ECGC) for marketing ECGC's export credit insurance products through the network of the bank's branches. Also, an MoU was signed with Intel for the deployment of various IT-related solutions.
During the year, the Bank signed an MoU with ICICI Bank for ATM network sharing. They awarded a project to Tata Consultancy Services (TCS) for implementing human capital management and payroll solution. They established a branch office in Kabul, Afghanistan. Also, they opened a representative office in Shanghai. The bank established an alliance with Everest Bank in Nepal that permits migrants to transfer funds easily between India and Everest Bank's 12 branches in Nepal.
In the year 2005, the Bank unveiled ATM at Edappal. Also, they opened a representative office in Dubai. In the year 2006, the Bank made a tie up with MasterCard International to launch a signature-based debit card. Also, they made a tie up with Indian Airlines for online booking of air tickets. They opened a new branch in Uttarakhand. In October 2007, the Bank entered into MoU with India Infrastructure Finance Company with an aim to extend their cooperation and support to IIFC in areas of creating a deal flow of infrastructure projects. In January 2008, the Bank commenced commercial banking operations in Hong Kong.
During the year 2008-09, the Bank opened 168 branches, out of which 90 are new branches and 78 branches was added through upgradation of Extension Counters. They made collaboration with LIC for selling insurance policies and also made a tie up with Oriental Insurance for selling non-life policies on a referral basis. In June 2008, they entered into a MoU with ILFS Cluster Development Initiative Ltd for providing finance for various industrial infrastructure projects in the country.
In September 2008, they signed an MoU with SMC Global Securities Ltd and Networth Stock Broking Ltd for providing online trading facility to Company's customers. They offered a unique '3 in 1 account' comprising of Saving, Demat and trading account. In February 2009, they commercially launched their credit cards with 2 types of consumer credit cards, namely Gold and Classic. Also, they entered into an agreement with Oriental Insurance Company to market insurance products, a practice also known as bancassurance.
In March 2009, the Bank entered into an understanding with Tata Motors for financing entire range of passenger cars. Also, they executed an agreement with The Life Insurance Corporation of India for bancassurance, life insurance under the provisions of IRDA's Referral Arrangement.
During the year 2009-10, the Bank opened 524 domestic branches, out of which 347 are at new locations while 177 branches was added through upgradation of existing Extension Counters. They deployed 1400 ATMs taking the total count of ATMs to more than 3500 Nos. They opened two overseas branches 1 in Hong Kong and another at DIFC Dubai and started a JV banking subsidiary 'DRUK PNB Bank Ltd' in Bhutan. Also, they opened a representative office in Oslo, Norway.
During the year, the Bank sold 6.5% of their stake in UTI Assets Management Co Ltd and UTI Trustee Pvt Ltd, thus bringing down their stake in both these companies to 18.5%. They launched Corporate Credit Card with Individual liability. Also they launched Merchant Acquiring Business through installation of Point of Sale (PoS) Terminals at Merchant Establishments and Internet Payment Gateway by integrating through Merchant Website, with Brand Name PNB Biz.
In May 2009, the Bank incorporated a subsidiary company namely PNB Investment Services Ltd. In November 2009, they entered into an agreement with FIM Bank (Malta), Banca IFIS, Italy and Blend Financial Services Ltd, Mumbai for setting up a joint venture company for providing factoring, forfeiting and trade finance related business.
During the year 2010-11, the Bank introduced new set of products and services such as PNB Uphaar, PNB Suvidha and World Travel Card. In December 13, 2010, they acquired 63.64% stake in JSC Dana Bank of Kazakhstan. In January 12, 2011, the Bank's joint venture India factoring and Finance Solutions Pvt Ltd started its commercial operations from Delhi, Mumbai & Chennai.
The total number of branches at the end of March 2011 rose to 5189. The branch network comprises 2047 Rural, 1154 Semi Urban, 1111 Urban and 877 Metropolitan branches. During the review period 210 domestic branches were opened. With 5189 branches, including 28 Extension Counters, the Bank has the largest network amongst the nationalized banks. As part of customer segmentation, Bank has opened specialized Branches that include 6 Micro Finance branches, 59 SME branches, 11 International Banking Branches, 17 Asset Recovery Management Branches, 13 Mid Corporate Branches, 11 Large Corporate Branches, 73 Retail Asset Branches, 11 Agriculture Finance Branches, 3 high-tech agriculture branches, 1 Capital Market Services Branch and 1 International Service Branch. Besides, 41 Back Offices, 2 Special Foreign Exchange Offices, 17 Special MICR Centres, 41 Service (Regional Clearing Centre) centres, 4 Financial Inclusion Service Centres, 3 Centralised Draft Payable Centres, 1 Central Clearing Service Centre and 1 Depository Back Office are established to reduce delivery time and improve response time.
On 5 March 2010, PNB announced that the bank has received permission from RBI for setting up a representative office in Sydney, Australia.
On 13 December 2010, PNB announced that the bank has completed the transaction for acquisition of 63.64% stake in JSC Dana Bank Kazakhstan. PNB has acquired 35 million shares of 1000 Tenge each, at par, for 3.5 Bn Tenge (USD 23.765 million approx.), which has raised the capital of JSC Dana Bank to the level of 5.5 Bn Tenge from the existing 2 Bn. Tenge.
On 12 January 2011, PNB announced that it has bought Principal Financial Group of Mauritius (PFG) and U K Paints stake of 26% and 32% respectively in Principal PNB Life Insurance Company Ltd. After the transaction, the bank's stake in Principal PNB Life Insurance Company Ltd stands at 88%. PNB also said at that time that it would continue to support Principal PNB Asset Management Company Pvt Ltd for a period of three years.
On 15 February 2011, PNB announced that the bank has entered into an arrangement with Weizmann Forex Ltd., Mumbai (Principal Agent) for handling inward remittances under MTSS (Money Transfer Service Scheme) through Western Union. The bank also entered into an arrangement with BFC Forex & Financial Services Ltd., Thane (Maharashtra) for handling inward remittances under MTSS (Money Transfer Service Scheme) through the web based product EzRemit.
On 28 April 2011, PNB announced the issue and allotment of 15.09 lakh equity share at issue price of Rs 1218.82 per equity share to Government of India on preferential basis aggregating Rs 184 crore.
On 28 March 2012, PNB announced that upon receipt of allotment money of Rs 1589.90 crore from Life Insurance Corporation of India (LIC), the bank has allotted 1.58 crore equity shares at issue price of Rs 1003.69 per share to LIC on preferential basis. On 2 April 2012, PNB announced that upon receipt of allotment money of Rs 654.99 crore from Government of India, the bank has allotted 65.25 lakh equity shares at issue price of Rs 1003.69 per share to Government of India on preferential basis.
On 16 January 2013, PNB announced that the bank has acquired 30% stake in Metlife India Insurance Co. Ltd.
On 6 March 2013, PNB announced that upon receipt of allotment money of Rs 1247.99 crore from Government of India on 4 March 2013, the bank has allotted 1.42 crore equity shares at issue price of Rs 873.05 per share on preferential basis to Government of India.
On 28 October 2013, PNB announced that the Chairman & Managing Director of the bank, as per authority delegated by the Board, has approved issuance of equity shares of face value of Rs 10 each for an amount upto Rs. 500 crore, at such price as may be decided as per SEBI (ICDR) Regulations, 2009, on preferential basis in favour of Government of India, subject to necessary approvals.
On 4 March 2014, PNB announced that the bank has sold its entire stake in Credit Information Bureau India Ltd. (CIBIL) to TransUnion International Inc. (FII). On 1 April 2014, PNB announced that it has sold its entire 30% stake in India Factoring & Financial Solutions Ltd. (IFFSL) to parent promoter FII (FIM Bank (Malta) and realized Rs 107.83 crore. On 4 July 2014, PNB announced that it has sold 41% stake in High Mark Credit Information Services Ltd. (High Mark) to CRIF and realized Rs 4.15 crore.
The Board of Directors of PNB at its meeting held on 19 September 2014 granted in-principle approval for sub-division of existing equity shares of face value of Rs 10 each into 5 equity shares of face value of Rs 2 each.
On 1 April 2015, PNB announced that capital funds to the tune of Rs 870 crore have been received from the Government of India on 31 March 2015 for issue and allotment of 4.42 crore equity shares at a price of Rs 196.80 per equity share to Government of India on preferential basis in accordance with Regulation 76(1) of SEBI ICDR Regulations.
The Bank made Tie ups with the leading manufacturers of agriculture implements & tractors, irrigation solutions, etc. during FY 2015. During the year, the Bank also laid focus on increasing livestock advance portfolio by financing through tie-ups with dairy companies/cooperatives. Further, the Bank focused on financing to Agri logistics like Rural Godown/ Cold Storage & Agri Transport.
On 30 September 2015, PNB announced that consequent upon receipt of capital funds to the tune of Rs 1732 crore from the Government of India on 29 September 2015, the bank has issued and allotted 10.9 crore equity shares at a price of Rs 158.84 per equity share on preferential basis to Government of India in accordance with Regulation 76(1) of SEBI ICDR Regulations.
During FY 2015, the Bank entered into a tie up with National Small Industries Corporation (NSIC). In this, NSIC would source the applications to the Bank with sharing of processing fee. Besides, the Bank also formulated Scheme for financing Business Correspondents.
The Bank signed a MOU with vehicle manufacturers like Ashok Leyland, Tata Motors, Asia Motors Works, Hindustan Motors, Mahindra & Mahindra, Piaggio, ICM Ltd., Eicher Volvo, Atul Auto, Bajaj Motors and J S Auto P Ltd. and MOU had also been signed with Escorts for financing transport dealers.
In FY 2015, to expand the presence of the Bank, an exclusive scheme for issuing credit cards to employees of PNB's sponsored RRBs was launched apart from liberalizing the terms for issuance of credit cards against fixed deposit.
In FY 2015, PUNGRAIN, a food grains procurement agency of Punjab Government has launched Kisan Arhtiyas Information & Remittance Online Network (KAIRON) project whereby they are making payments to the farmers through Arhtiyas using RuPay Debit cards with the help of National Payment Corporation of India (NPCI). The Bank was actively participating in the project and brought a business of Rs 4038 crore as Acquiring bank and Rs.1997 crore as Issuing bank during FY 2015.
During FY 2016,157 new branches were opened by RRBs, taking the total network of Branches to 2301 with all being on CBS and total numbers of employees were 8714.
On 15 September 2016, PNB announced that consequent upon receipt of capital funds to the tune of Rs 2112 crore from the Government of India on 14 September 2016, the bank has issued and allotted 16.43 crore equity shares at a price of Rs 128.49 per equity share on preferential basis to the Government of India in accordance with Regulation 76(1) of SEBI ICDR Regulations.
Punjab National Bank (PNB) and India Post Payments Bank (IPPB) signed a memorandum of understanding on 17 January 2017 wherein PNB shall provide technology platform for pilot launch of IPPB on receipt of regulatory approval from Reserve Bank of India.
The Board of Directors of PNB at its meeting held on 2 November 2017 authorized the management to partially sell its stake in PNB Housing Finance Ltd. Further, consequent upon the exercise of call option by the Principal Group, the Board has approved to offload PNB's entire stake in Principal PNB Asset Management Company and Principal trustee Company Pvt Ltd to the Principal group.
On 5 December 2017, PNB announced that the bank successfully sold 98.15 lakh equity shares of PNB Housing Finance Ltd (PNBHFL) to different investors (Non Retail and retail) at above the floor price /cut off price, with gross sales consideration of Rs 1315.33 crore.
During FY 2017, 1218 new ATMs were installed and as an outcome, the total ATM network reached 10681. E-Surveillance systems were installed at ATM sites. Solar UPS were installed to decrease the downtime of ATMs on account of electricity failure. ESQ ATM Monitoring System was installed for on line ATM monitoring and to take prompt corrective/preventive actions in case ATM gets down.
Business Debit Card was launched with enhanced transaction limit permitting withdrawal up to Rs 1 lakh from ATMs and e-commerce transaction up to Rs 3 lakh in FY 2017.
On 18 December 2017, PNB announced allotment of 29.76 crore equity shares to successful eligible qualified institutional buyers at a price of Rs 168 per share. Earlier, PNB on 14 December 2017 announced the closure of the qualified institutions placement (QIP) of equity share. The bank raised Rs 5000 crore from the QIP.
The Board of Directors of PNB at its meeting held on 6 February 2018 accorded approval for Capital Infusion by Government of India up to Rs 5473 crore.
During FY 2017, the Bank mobilized total amount of Rs 4545 crore, Asset under Management (AUM) stood at Rs 814 crore and brokerage earned was Rs 4 crore.
The Bank has one of the largest branch networks of 6937 as on 31st March 2017. To fulfill the banking needs of unbanked areas, 178 new branches were added to the vast network of branches during the year.
On 14 February 2018, PNB informed the stock exchanges of detection of a massive fraud of Rs 11394.02 crore. On 12 February 2018, on the basis of investigation report, total fraud of Rs 11394.02 crore (about USD 1771.69 million) in case of unauthorized issuance of Letters of Undertakings, Foreign Letter of Credits and Inland Letter of Guarantees in the group accounts of Nirav Modi Group and M/s Gitanjali Group and in the account of M/s. Chandri Paper & Allied Products Pvt. Ltd. was reported to RBI. Later, on 26 February 2018, PNB informed the stock exchanges that the quantum of reported unauthorized transactions could increase by about USD 204.25 million.
During the FY2019, the bank has allotted 31,29,93,219 equity shares at a price of Rs 89.97 per share to GOI on preferential basis. Further the bank also made another preferential allotment of 63,81,90,364 equity shares at a price of Rs 85.10 per share to GOI. Also third time during the FY2019, the bank made another preferential allotment of 80,20,63,535 equity shares at a price of Rs 73.66 per share to GOI.
The Bank has one of the largest networks of 6989 branches and 9255 ATMs as on 31.03.2019 comprising of 1280 Metropolitan, 1387 Urban, 1727 Semi Urban and 2595 Rural branches.
During the FY2020, the bank made a preferential allotment of 213,35,18,960 equity shares at a price of Rs 75.42 per share to GOI.
The Bank has one of the largest networks of 7041 branches and 9168 ATMs as on 31.03.2020 comprising of 1259 Metropolitan, 1430 Urban, 1753 Semi Urban and 2599 Rural branches.
PNB won IBA Banking Technology Awards 2020 for Most Innovate Project using Technology for PNBOne and also Runners Up in Best Use of Data and Analytics for Business Outcome in the Large Bank Category. The Bank won BFSI Digital Innovation Awards in the category of Robotic Process Automation. The bank was also adjudged Bank of the year' by Indo-American Chamber Of Commerce (IACC).
The Government of India (Gol), Ministry of Finance, Department of Financial Services has issued Gazette Notification no. CG-DL-E- 04032020-216535 dated 4th March, 2020, approving the scheme of Amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank in exercise of the powers conferred by section 9 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 and section 9 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1980. The amalgamation has come into effect from 01 April 2020. On 05.03.2020 the Board of Directors of the Bank and the Board of Directors of Oriental Bank of Commerce and United Bank of India at their respective meetings, approved amalgamation. The Boards of respective banks have also approved the swap ratio of 1150 equity shares of Face Value Rs 2/- each of Punjab National Bank for every 1000 equity shares of Face Value Rs 10/- each of Oriental Bank of Commerce and the swap ratio of 121 equity shares of Face Value Rs 2/- each of Punjab National Bank for every 1000 shares of Face Value Rs 101- each of United Bank of India.
The bank has Made investment in JSC Tengri Bank (previously known as Bank of Kazakhstan) of Rs.300 crores which is an associate of our bank Consequent to the study conducted by the independent agency, Whereby the associate Bank has to create certain provisions towards NPA's because of which the networth of the bank has diminished as on 31.03.2020.
During the quarter ended 31 December 2020, the Bank has issued 1,06,70,52,910 equity shares having Face Value of Rs.2 each for cash to Qualified Eligible Buyers pursuant to Qualified Institutional Placement (QIP) in accordance with the provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 at a premium of Rs.33.50 per share aggregating Rs. 3,788.04 Crore.
During the quarter ended on 31 December 2020, Bank has issued Tier-II Bonds aggregating to Rs.3,000 Crore.
The Bank has one of the largest networks of 10769 branches as on 31st March, 2021, comprising of 1931 Metropolitan, 2257 Urban, 2680 Semi Urban and 3901 Rural branches. Rural and Semi Urban Branches (RUSU) comprise around 61 per cent of the Total Branch Network.
The Bank has one of the largest networks of 10098 branches as on March 31, 2022 comprising of 1753 Metropolitan, 2035 Urban, 2457 Semi Urban and 3853 Rural branches. It has over 13350 ATMs as on March 31, 2022.
During FY 2021-22, Bank raised equity of Rs. 1800 Crore through QIP, Rs. 1919 Crore through Tier -II Bonds and Rs. 3971 Crore through AT-1 Bonds. As at the end of 31st March, 2022, Bank's Gross Global Business stood at Rs. 19,31,322 Crore with Gross Global Advances at Rs. 7,85,104 Crore and Gross Global Deposit at Rs. 11,46,218 Crore. Current and Saving Deposits (CASA) was at Rs. 5,33,654 Crore with domestic CASA share at 47.43%. Total Assets of the Bank was at Rs. 13,14,805 Crore as at 31st March, 2022. While the Net Advances stood at Rs. 7,28,186 Crore, Investment was at Rs. 3,72,168 Crore. On the Liabilities side, Deposits stood at Rs. 11,46,219 Crore while Borrowings was at Rs. 45,681 Crore as on 31st March, 2022.
The Bank has one of the largest networks of 10076 branches as on March 31, 2023. It has over 12898 ATMs as on March 31, 2023.
As at the end of 31st March, 2023, Bank's Gross Global Business stood at Rs. 21,65,844 Crore with Gross Global Advances at Rs. 8,84,681 Crore and Gross Global Deposit at Rs. 12,81,163 Crore. Current and Saving Deposits (CASA) was at Rs. 5,38,015 Crore with domestic CASA share at 43%. In addition, Bank's Operating Profit was at Rs. 22,529 Crore with the Net Profit of Rs. 2,507 Crore for the FY 2022-23. Total Assets of the Bank was at Rs. 1461831 Crore as at 31st March, 2022. While the Net Advances stood at Rs. 830834 Crore, Investment was at Rs. 395996 Crore. On the Liabilities side, Deposits stood at Rs. 1281163 Crore while Borrowings was at Rs. 51,292 Crore as on 31st March, 2023.
Punjab National Bank
Directors Reports
Dear Shareholders,
Financial Year 2022-23 has seen green shoots of recovery in the global economy and
improved supply chain financing despite risk of geo-political conflicts, rising inflation
and consequent rate hikes by central banks.
For Indian Economy, it was a year of recovery and growth. The second advance estimates
(SAE) released by the National Statistical Office (NSO) placed India's real gross domestic
product (GDP) growth at 7.2 per cent in FY 2022-23 majorly driven by private consumption
and public investment. The Industry experienced come back in terms of credit and deposits
growth. FY 2022-23 experienced favorable business conditions and deleveraging of corporate
balances-sheets. The overall size of deposits was around Rs.180 Lakh Crore and credit
Rs.137 Lakh Crore yielding a credit deposit ratio of 75.8 per cent Growth in deposits at
9.6 per cent was higher than that of last year which was 8.9 per cent. The increase in
interest rates by banks to mop up deposits helped in this effort. The growth in credit
remained 15.0 per cent which was 11.2 percent last year. It was due to improvement of
economic activities.
Punjab National Bank performed well up to the expectations of its stakeholders and
exhibited reinforced performance during FY 2022-23. The Bank's Business reached the level
of Rs. 21.66 Lakh Crore with a quantum increase of Rs. 2.35 Lakh Crore over previous year.
Total deposits and Gross Advances both showed the double digit growth. As on 31st
March, 2023, Deposits stood at Rs. 12.81 Lakh Crore while Gross Advances stood at Rs. 8.85
Lakh Crore.
Amongst Advances, Retail, Agriculture and MSME (RAM) Advances registered the growth of
20.85 per cent wherein Retail showed the growth of 41.62 per cent on YoY basis. In Retail
Segment, Housing Loan, Vehicle Loan and Personal Loan exhibited the growth of 10.92 per
cent, 30.62 per cent and 48.87 per cent respectively.
Digitalization remained the focus area of the Bank as Bank came up with 35+ Digital
journeys towards better customer experience and improved Turn Around Time (TAT). Some of
such journeys included Pre-approved Personal Loan, Pre Approved pensioner Loan, Pre
Qualified Credit cards, Pre Approved e-mudra Loans, etc. This provided Bank an edge over
its competitors in the Industry and enhanced delivery experience for the customers.
Customer services remainedz on top of the agenda of the Bank and digitalization added pace
to improve the same in order to remain competitive and growing.
Asset quality of the Bank improved during the year through number of measures adopted
by the Bank towards recovery and underwriting standards. The Bank's GNPA per cent came
down to 8.74 per cent as on 31st March, 2023 from 11.78 per cent as on 31st
March, 2022. Net NPA per cent also went below 3 per cent to 2.72 per cent as on 31st
March, 2023 from 4.80 per cent as on 31st March, 2022. Provision Coverage Ratio
of the Bank improved to 86.90 per cent as on 31st March, 2023 from 81.60 per
cent as on 31st March, 2022.
At PNB, Human resources is considered as important ingredient in the success of the
organization. FY2022-23 was landmark year for the bank from HR perspective as the bank
adopted HR Transformation. It's a tool that will aid the bank in efficiently utilizing its
human resource by deploying the skilled staff at the appropriate place. Also, tool will
help the bank in differentiating between performer and non performer and provide adequate
rewards to the performer and proper skill training and learning to improve performance.
"Against this backdrop, your Board of Directors have pleasure in presenting the
Annual Report of your Bank for the year ended 31st March, 2023 (FY2022-23)
along with its audited Annual Financial Statements".
BANK'S PERFORMANCE
I. FINANCIAL PERFORMANCE AS ON 31st March, 2023
1. Topline
a. Total Business stood at Rs. 21,65,844 Crore vis-a-vis Rs. 19,31,322 Crore,
registering YoYgrowth of 12.14 percent.
b. Total Deposits stood at Rs. 12,81,163 Crore as on 31st March, 2023
as against Rs. 11,46,218 Crore as on 31st March, 2022, showing the growth of
11.77 percent.
c. CASA Deposits was at Rs.5,38,015 Crore as on 31st March 2023 as
against Rs. 5,33,654 Crore as on 31st March, 2022.
i. Current Deposits was at Rs.74,028 Crore as on 31st March, 2023
ii. Savings Deposits was at Rs. 4,63,987 Crore as on 31st March, 2023
d. Gross Advances stood at Rs. 8,84,681 Crore as on 31st March, 2023
against Rs. 7,85,104 Crore as on 31st March 2022, recording the growth of 12.68
percent.
e. Retail Agriculture MSME (RAM)
Advances was at Rs.4,69,981 Crore as on 31st March, 2023 vis-a-vis Rs.
3,88,910 Crore as on 31st March, 2022, showing the growth of more than 20 per
cent on YoY basis,
i. Retail Advances was at Rs. 1,97,698 Crore as on 31.03.2023 registered the
massive growth of 41.62 per cent on YoY basis.
ii. Agriculture Advances was at Rs. 1,46,105 Crore as on 31.03.2023 with growth
on 14.34 per cent on YoY basis.
iii. MSME Advances was at Rs.1,30,178 Crore as on 31.03.2023.
iv. Corporate and other segment was at Rs. 3,79,785 Crore on 31.03.2023
v. Share of RAM w.r.t. Domestic Advances was at 55.3 per cent as on 31st
March, 2023 vis-a-vis 51.2 per cent as on 31st March, 2022.
2. Bottom Line
a. Operating Profit of the Bank was at Rs. 22,529 Crore in FY2022-23showingYoYgrowthof
8.5percent. It stood at Rs. 20761 Crore. In FY 2021-22.
b. Net Profit of the Bank was at Rs. 2507 Crore in FY 2022-23.
c. Net Interest Income was at Rs. 34,492 Crore in FY 2022-23 vis-a-vis Rs.
28,694 Crore, registering the growth of 20.2 per cent on YoY basis.
3. Asset Quality
a. Gross NPA of the Bank stood at Rs. 77,328 Crore as on 31st March, 2023,
improving from the level of Rs 92,448 Crore as on 31st March, 2022.
b. Gross NPA % exhibited the decline of 304 bps from a level of 11.78 per cent
as on 31st March, 2022 and stood at 8.74 per cent as on 31st March,
2023.
c. Net NPA of the Bank improved from as high as Rs. 34,909 Crore as on 31st
March, 2022 to Rs. 22,585 Crore as on 31st March, 2023.
d. Net NPA % declined by 208 bps from a level of 4.80 per cent as on 31st
March, 2022 and stood at 2.72 per cent as on 31st March, 2023.
4. Key Ratios
a. Net Interest Margin improved to 3.06 per cent in FY 2022-23 from 2.71 percent
in FY2021-22.
b. Cost of Deposits was at 4.10 per cent in FY 2022-23 as against 3.99 per cent
in FY 2021-22.
c. Yield on Advances increased to 7.16 per cent in FY 2022-23 from 6.79 percent
in FY2021-22.
d. Yield on Investment increased to 6.57 per cent in FY 2022-23 from 6.29
percent in FY2021-22.
e. Return on Average Assets was at 0.18 per cent in FY 2022-23
f. Business per employee improved to Rs 21.64 Crore as on 31st March,
2023 from Rs. 19.41 Crore in 31st March, 2022.
g. Business per branch improved to Rs. 209.53 Crore as on 31st March,
2023 from Rs. 187.73 Crore as on 31st March, 2022.
5. Capital Position
The capital adequacy of the Bank improved during the financial year on account of
capital raising by the Bank coupled with improved profitability. During FY 2022-23, Bank
has raised Rs.4000 Crore through Tier-ll Bonds and Rs. 4214 Crore through AT-1 Bonds. The
Bank continued with its focus on sustainable business growth by targeting better rated
borrowers with low risk profile. Going forward, the Bank is strategically well placed to
meet the growing credit needs of the economy.
Key Highlights
a. The Capital Adequacy Ratio of the Bank recorded increase by 100 bps to reach at
15.50 per cent, as of 31st March, 2023, with AT-1 capital at 1.47 per cent and
Common Equity Tier-1 (CET-1) at 11.22 percent.
b. Risk Weighted Assets (RWA) of the Bank were optimized to Rs. 6,58,982 Crore as on 31st
March, 2023 on account of focus on better rated accounts and churning of portfolio of the
Bank and registered Y-o-Y growth of 9.68 per cent as against 12.68 per cent growth of
advances during same period.
II. OPERATIONAL HIGHLIGHTS
1. Key Digital Initiatives & Achievements
PNB has embarked upon an ambitious digital transformation program. PNB has designed
more than 35 digital initiatives across lending (Retail, MSME, Agri and Corporate),
liabilities, Third-party products, and Asset Quality. Of these, The Bank is "Industry
Leader" in thefollowingdigital initiatives
a. E-OTS (Express-One Time Settlement) for E2E digital settlement approval
process for NPA Accounts having o/s balance upto Rs. 10 Lakh.
b. Digital journey for New To Bank (NTB) Credit Card:
Web-based interface for NTB customers to apply for Credit Card online
c. Credit Card Linkage to UPI: Enablement of Credit Card linkage to UPI through
Virtual Payment Address (VPA)
d. Credit Card against Fixed Deposit: E2E digital journey for Existing to Bank
(ETB) customers to avail the facility of Credit Card against FD
e. Co-Lending portal: Simplified Straight Through Processing (STP) based
solution aiding collaboration with NBFCs having low API capabilities
f. Aadhar-based registration on Mobile App PNB ONE:
'Self-register' method allowing customers to register on PNBOnevia Aadhar
authentication
g. Fintech on-tap portal: Platform to evaluate and empanel FinTechs on a unified
digital interface
h. Bharat Bill Payment System (BBPS) for loan EMI: EMI repayment using BHIM App
and other BBPS supported apps like GPay, PayTM, PhonePe, etc.
i. New TIN (Tax Identification Number) 2.0 platform:
We are one of the first banks to go live on the new TIN 2.0 platform of Central Board
of Direct Taxes (CBDT) from 1st December, 2022.
2. Key Structural and Cost Rationalization Initiatives
a. Three Divisions such as Customer Acquisition, Retail Liability Business and Credit
Card & Merchant Acquiring Business have been merged to form Business Acquisition and
Relationship Management Division (BA and RM Division) to provide focused approach on
acquisition of liability side Business and Marketing of Bank's Products and Services. New
vertical like Digital Banking Transformation was also formed to give focused attention to
digitalization.
b. Rationalization of 2 Zonal Offices, 23 Circle Offices to achieve cost-efficient
admin structure.
c. Rationalization of 431 unprofitable offsite ATMs completed; another 500+ planned.
d. Rationalization of more than 140 branch offices during FY' 2022-23
e. Rationalization of 20 cr+ monthly SMSs to reduce cost overhead.
3. HR Transformation-Key Initiatives
Human resource is the most important asset for any organization involved in providing
service and therefore it is essential that organization undertakes steps for skilling,
upskilling, reskilling, increasing efficiency of human assets for overall growth of the
organization. The Bank assigns high importance to the same and takes up various
initiatives from time to time to develop the human resources for taking up higher and
newer roles and responsibilities.
Taking a step further in this direction, a comprehensive HR Transformation process has
been initiated in the Bank with the focus on improving employee productivity,
strengthening various systems and procedures through system driven data & tools in the
following ways:
a. Market-linked targets for each branch and Clarity of roles & expectations from
each employees with well- defined, measurable Key Responsibility Areas (KRA).
b. Comprehensive leadership development program to prepare future Bank leaders on
functional and behavioral aspects.
c. Personalized, role-based training interventions to upskill functional capabilities
and Performance linked rewards to acknowledge & motivate contributors.
4. DIVIDEND
Board of Directors of the Bank has recommended a dividend of Rs.0.65 per equity share
(32.5 per cent) of face value of Rs.2/- each for FY 2022-23, subject to
declaration/approval of the shareholders at the 22nd Annual General Meeting of
the Bank.
III. ASSET QUALITY
The Bank was able to reduce Gross NPA from the level of Rs.92,448 Crore as on 31st
March, 2022 to Rs.77,328 Crore as on 31st March, 2023. Focus on asset quality
continues to be one of the top priorities for the Bank. Provision Coverage Ratio (PCR)
including TWO continued at satisfactory level of 86.90 per cent as on 31st
March, 2023.
1. Recovery & Upgradation: Total Recoveries improved to Rs. 24,576 Crore for FY
2022-23 from Rs. 21,041 Crore in FY 2021-22. Of this, total Cash Recoveries (Cash
Recovery+ Recovery in TWO+ Rl) improved to Rs. 19,806 Crore for FY 2022-23 from Rs. 15,788
Crore in FY 202122.
2. Upgradation through Resolution Mechanism: The Resolution Cell was created to
exclusively deal with Restructuring/Resolution of NPA accounts and recovery in National
Company Law Tribunal (NCLT) cases. The details regarding the same is as under:
|
Restructured Accounts
(Amount Rs. in Crore) |
|
Total Sanctioned |
|
No. of A/c's |
Amount |
| FY 2022-23 |
09 |
1129.06 |
Further, a sum of Rs.3,206 Crore was recovered in NPA accounts under IBC in NCLT.
3. Mega E-auctions: During FY 2022-23, 23,315 properties were uploaded on e-Bikray
portal. Out of which, 1,657 Immovable Properties (IPs) were auctioned successfully.
4. Sale of Assets to Asset Reconstruction Company (ARC): Details of financial assets
sold to Securitization/ Reconstruction Company (SC/RC) for Asset Reconstruction is as
under:
|
(Amount Rs. in Crore) |
| Items |
FY 2022-23 |
| i- Number of Accounts sold to ARCs |
7 |
| ii. Book Outstanding of Accounts sold |
1409.12 |
| iii. Aggregate Consideration received |
617.71 |
5. Initiatives taken to Improve Asset Quality during FY 2022-23
a. War against NPA campaign
i. Dedicated tele-calling campaigns and rigorous field visits to N PA borrowers
ii. Field functionaries are Involved for targeted recovery actions
iii. Launched 21 SASTRA booklets containing strategy and tactical procedures to
increase recovery
b. Digitization of recovery efforts
i. Launch of industry-first digital OTS offering for NPA recovery for eligible a/cs
upto Rs 10 lakh.
ii. Recovery portal - SAMARTH underdevelopment
c. Digital e-OTS journey for robust recovery- This provide instant and easy loan
repayment option.
i. e-OTS is a digital OTS approval process on filtered NPA Accounts having outstanding
amount up to Rs.10 Lakh, in which all the steps from applying for OTS to sanctioning of
OTS & steps involved thereafter are automated. The solution has been rolled out
through PNB official website & PNB ONE App.
ii. PNB is the first Bank to launch such kind of an online automated OTS approval
process.
iii. To enhance the outreach of available Special One Time Settlement Scheme (SOTS) and
to target small NPA Accounts, e-OTS can prove to be a very effective tool in the recovery
process.
iv. Settlement approval process shall be expedited for small loan NPA accounts and OTS
approval TAT will get reduced substantially.
v. The recovery generated through this process, will have a positive impact on the
overall profitability of the Bank, especially in DB3and Loss accounts.
vi. Convenience to eligible NPA Account borrowers as under e-OTS process, Sanction
Letter and No Dues Certificate shall be generated online.
d. Overhaul of Outbound Call Center
i. Technology and process enablement of outbound Call Centres to increase efficiency.
ii. Agent ramp-up & robust Standard Operating Procedure (SOP) for SMAO, SMA1, and
SMA2 calling.
IV. INFORMATION TECHNOLOGY (IT) AND
DIGITALIZATION
Progress in Digital Banking
|
|
|
(Number in Lakh) |
| Channels |
31.03.22 |
31.03.23 |
Growth |
|
|
|
Absolute |
% |
| Internet Banking Users |
340 |
392 |
52 |
15.3 |
| Mobile Banking Users |
338 |
406 |
68 |
20.1 |
Digital initiatives and journeys: For delivering superior customer experience and
process excellence following initiative were taken.
LIABILITY:
1. In order to reduce TAT and improve customer service, the Bank introduced the
following three products:
a. Tab Based Saving Account (SA) Opening
b. Insta Saving Bank (SA) Account
c. Tab based Current Account (CA) Opening
2. Public Financial Management System (PFMS) 2.0 Integration with PFMS External System
Model 1
3. FIP (Financial Information Provider) Account Aggregator: Enablement of account
aggregation service for PNB.
4. Implementation of Finger Print Image Recognition (FIR) + Finger Miniature Record
(FMR) in Aadhaar based biometric authentication at BC Location.
5. Deposits in PPF accounts through NEFT: A new facility has been provided to customers
for depositing in PPF account through NEFT.
6. Customize single API call for Instant eKYC through BC location
7. CKYC bulk email: Now the customers receive mails on their registered email ids
intimating their CKYC details as per PMLA(Maintenance of Records) Rules, 2005.
8. Implementation of SMS to waitlist customer in Locker Module
9. Cash Deposit off-us facility has been made live and through this facility our bank
customer visits other bank's BC location for depositing cash & vice versa.
10. Implementation of Green PIN functionality in case of World Travel Card and Prepaid
cards
11. Standardization of SMS Alerts to customers: SMS alerts be sent when our bank
customer visits other banks BC location for depositing cash & vice versa.
RETAIL
1. Pre-Approved Personal Loan to existing customers (Central Govt. /State Govt. / PSU/
PVT.
Employees) in Internet Banking & PNB ONE:
Financial assistance to the Bank's existing customers who are salaried (Govt, employees
/PSU's) for their personal needs.
2. Pre-Approved Personal Loan on the basis of Total Relationship Value (TRV), Quarterly
Average Balance (QAB) and Top Up Digital Personal Loan to existing Housing Loan/Vehicle
Loan/Personal Loan Borrowers: In order to give boost to digital lending, new variant of
"Pre-Approved Personal loan to existing
Car loan, Home loan and Personal loan borrowers, in addition to Pre-Approved Personal Loan
facility to existing customers (Central Govt./ State Govt./PSU/PVT. Employees and
Pensioners) has been launched by the Bank
3. Pre-Approved Pensioner Loan: Financial assistance (through Personal Loan) to the
Bank's Customers whose pension is drawn through our Bank.
4. Pre-Qualified Credit Card : To strengthen and broaden our credit card portfolio and
also in an endeavor to extend our digital products, the Bank launched Pre-Qualified Credit
Card through which selected customers of PNB can apply PNB Credit Card injust few clicks
5. e-OD against offline FD: Online Overdraft Facility (e- OD) through PNB ONE against
offline fixed Deposit also.
6. Credit Card Digital On-boarding
7. Debit Card EMI (Buy now Pay Later): Debit Card EMI (Offline) on POS machine
8. PNBAgni-Rakshak for PNB Rakshak Plusscheme- SBARK made live.
MSME
1. Pre-approved e-Mudra loans: Financial assistance to the Bank's existing
customers/entrepreneur with Maximum Amount of Rs. 50,000/-
2. Pre-approved Business Loan: To offer straight through digital lending loan
facilities above Rs. 1.00 Lac to Rs. 10 Lakh under Business Loan
3. PNB e-Mudra Scheme: End to end digital lending upto Rs.1.00 Lakh has been launched.
AGRICULTURE
1. Digital Journey of Agriculture Loan Segment: KCC
Renewal < Rs.1.6 Lakh: Digital Renewal of KCC has been started on the following
channels also:
a. Through SMS/Missed Call/ Outbound Interactive Voice Response (OIVR)
b. Through PNB ONE App; PNB Internet Banking & PNB Corporate Website.
2. Easy Renewal upto Rs 10.00 Lakh : End to end digital renewal will be done for all
eligible borrowers having exposure upto Rs.10.00 lakh.
3. Digital Journey of PNB Kisan Tatkal Rin Yojana: End to end Digital Journey for PNB
Kisan Tatkal Rin Yojana to give hassle free digital experience and ease to small farmer
borrowers.
4. Digital KCC journey through Jansamarth Portal:
Bank customers can avail KCC loan up to Rs. 1.60 Lakh through Jansamarth Portal. Entire
loan journey from loan application till KCC account opening completes within Jansamarth
portal in a paperless and hassle free manner.
ASSET QUALITY & RECOVERY
1. Loan Repayment through Corporate Website: To facilitate Term Loan EMI Repayment
through PNB Corporate Website, customer can visit PNB Corporate website, click on link and
enter loan account number and amount to be paid and make payment.
2. Express One Time Settlement (e-OTS) Portal: The
Bank launched first of its kind End to End PreApproved One Time Settlement (PAOTS)
system with focus to automate the OTS process in NPA Accounts up to Rs.10 Lakh.
3. RinnSetu Co-Lending Development Platform (CLDP) Portal: Web Portal has been
developed through which leads are going to be generated through various Co-Lending
partners, and those leads shall be processed through this portal for sanctioning of loans.
GOVERNMENT BUSINESS
1. SMS alerts to Customers for informing date of maturity of PPFaccounts
2. 24*7 deposit in Public Provident Fund (PPF) & Sukanya Samridhi Accounts (SSA)
through internet banking/PNB ONE Passbook Printing with Additional Transaction
Information.
FOREX
1. Dubai International Financial Centre(DIFC): Separate website created for overseas
branch- PNB Dubai Website- https://pnbdubai.com
2. New facility has been implemented for TDS certificate (26Q) generation on request of
customers using the Bank's IVR.
3. Implementation of TIN 2.0 (Tax Information Network) for Online and Over The Counter
(OTC) Mode of Payments.
4. CBS Trade Finance module for sending payment advice in the email to customer through
Bulk mail solution: Changes has been made in existing system to link the payment advice
through mail automatically on realization of Bills & Remittance in CBS.
MOBILE BANKING (PNB ONE) & INTERNET BANKING
1. PNB ONE Registration Without Debit Card: With introduction of this alternate on
boarding process, customers can avail PNB ONE without any hindrance and can enjoy banking
services from anywhere
2. In PNB ONE - Scan & Pay and UPI Payment Using IFSC & Account Number: Keeping
in view of emerging need of customers for quick payment, Scan & Pay feature has been
provided to allow users to transfer money using QR code - Bharat QRcode&UPIQR code
through PNB ONE.
3. Onboarding for PNB ONE Using Aadhaar OTP: To increase the adoption of PNB ONE and
further facilitate the customers,
"Aadhaar OTP" as
additional authentication medium for Self Registration in PNB One has been introduced.
4. Replacement of Transaction Password with Transaction Pin (TPIN) For PNB ONE: To make
PNB One more user friendly, Transaction Password has been replaced with 4-digit
Transaction PIN (TPIN).
5. CASH @ PNB- CARDLESS cash Withdrawal:
Card-less Cash Withdrawal is a service which enables customer to withdraw cash at PNB
ATMs without holding any physical or virtual card. The facility is available to customers
registered for IBS and PNB One.
6. OTP Waiver upto Rs. 5000/- in SCAN and PAY in PNB One: For customer's ease &to
increase use of PNB One, all QR payments up to Rs.5000/- can be done using 4-digit
Transaction PIN (TPIN) only instead of TPIN & OTP both.
7. Loan repayment facility through Bharat Bill Payment Services (BBPS) and PNB
corporate website: With these two newly added channels a customer can repay the Term Loan
from accounts of other banks also.
8. Online Self Registration of Sole Proprietor in Retail Internet Banking & PNB
One: To enhance digital services to customers, the facility has been extended to
proprietorship concern also.
9. OTP on E-MAIL in Retail Internet Banking:
To facilitate our customers, users of Retail Internet Banking get OTP over E-mail
10. SAFETY RING in PNB One & Internet Banking:
This enables a customer to set limit on maximum withdrawal of funds from total amount
of Term Deposit accounts through all digital channels. Once the limit is set, the Term
Deposits will not be broken/withdrawn/used for loan against Term Deposits through IBS/MBS
beyond the limit set by the customer, unless a modification for the same is done.
11. Customer can now check his/her KYC Status like KYC Date, CKYC Number and KYC Due
Date through PNB One.
12. lmmediate Payment Service (IMPS) or Quick Fund Transfer using IFSC and account
number through PNB One /Internet Banking: PNB One/ Internet Banking now allows Quick Fund
Transfer up to Rs. 10,000/- without adding beneficiary using IMPS- IFSC&within Bank.
13. Addition/Updation of Nominee functionality in IBS/M BS for convenience of
customers.
14. Debit Freezing of Account through IBS/MBS as a security measure for safety of
customer.
15.lmmediate Payment Service (IMPS) for Corporate IBS Customers.
16.Showing emergency Services in one Tab in PNB One.
a. Earlier services: Hotlist Debit Card, Stop Cheque, Generate Green Pin.
b. Addition: Report Lost Credit Card, Set Limits, Block U PI, Debit Freeze, Restrict FD
fore-OD.
17. PNB SHOPPE (E-market place) in PNB One and Internet Banking: Bank introduced PNB
Shoppe in PNB One and Internet Banking. PNB Account holders will now be able to earn extra
rewards for their day to day shopping needs
18. QR code generation through PNB One and Retail Internet Banking: QR Code Generation
facility has been introduced in PNB One and Retail Internet Banking. Customers can now
display QR Code to receive payments instantly through UPI
19. Banking Services through WhatsApp: Bank has introduced Banking Services through one
of the most popular application - WhatsApp (in Hindi & English Language) with features
such as Balance Inquiry, Last 5 Transactions, Cheque Book Registration and Stop Cheque
Facility.
UPI
1. Credit on UPI- Enable linking of RuPay Credit Card on UPI for making merchant
payments.
2. UPI Lite-The customers can make small payments of up to Rs 200/- using on-device
"wallet".
3. Onboarding in UPI Using Aadhar OTP-Authentication In lieu of Debit Card for Customer
On-boarding on UPI. In lieu of debit card, customers can now set UPI pin using Aadhaar
number registered in bank.
4. Aadhaar + OTP Based On-boarding in lieu of Debit Cards: Customers can set UPI pin
using Aadhaar number and OTP.
5. Unified Dispute and Issue Resolution (UDIR)- Enhancing complaint handling &
resolution process for all UPI users: With Implementation of UDIR, customers can initiate
status enquiry & online settlement for UPI suspect/time-out transaction instead of
waiting for reconciliation on T+lday.
6. Set UPI PIN through Virtual Debit Card: Customers can set UPI PIN through virtual
debit card, in addition to physical debit card and Aadhaar.
7. Implementation of Operating Circular (OC)-153: Geo-location capturing in BHIM
PNBApp.
8. BHIM 2.0: Implementation of recurring mandates in BHIM PNBApp.
9. Blocking UPI through IVR: Customers can block UPI through bank's IVR number
10. e-RUPI for Department of Tribal Welfare, Tripura:
As per government initiative to issue E-RUPI vouchers for various DBT schemes, bank has
partnered with Department of Tribal Welfare, Tripura for providing assistance to tribal
students for hostel accommodation.
11. UPI 123PAY: Customers can use UPI through IVR based channel, which would benefit
the feature phone users and customers in low connectivity zone
12. Auto-Pay functionality in BHIM PNB app:
Customers can create recurring mandates through BHIM PNB app forscheduled/recurring
payments
13. BHIM 2.0- Implementation of recurring mandates in BHIM PNB app.
Cash Management Services (CMS)
Integrated payments and collection services (iPaCS) for corporate and institutional
customers: The first module of iPaCS system to go live is the Integrated Payments services
which enables the corporate/ institutional customers to initiate bulk payment transactions
through various modes byway of a file- upload through the Corporate Front-end or by
automating the entire process by way of dedicated Host-to-Host (H2H) interface (both
Secure File Transfer Protocol (SFTP) and Application Programming Interface (API) based)
with their Enterprise Resource Planning (ERP) systems.
Fintech Portal
Web based Fintech portal enabling fintechs to request for empanelment in bank: Fintech
companies to register on Bank's Fintech portal as per selection criteria and submit their
proposal for empanelment in our Bank. This facility will help bank to engage with new
FinTech Companies by onboarding them via empanelment process and on tap basis to cater to
bank's requirement in various segments/domains.
V. MANAGEMENT IN FORMATION SYSTEM
Analytics Centre of Excellence (ACoE): Bank believes in harnessing the power of both
big data and small data not only to drive decision-making and operational excellence but
also to provide personalized experiences to increase customer delight. Bank also aims to
set-up analytical function in the Bank and move towards data-driven organization.
To align with the present and future strategic business requirements of PNB, to gain
competitive edge and to cater to the needs of creating advanced digital capabilities for
Bank, Model based business leads are being generated on various personal segment.
Enterprise-Wide Data Warehouse (EDW): The Bank has operational Enterprise Data
Warehouse project catering various analytical/statutory/ regulatory and reporting/
dash-boarding requirement with data from 60 plus source systems being integrated into EDW.
All downstream applications are receiving data through EDW and also all data requirements
for various digital journeys are catered.
Data Analytics: The Bank has set up a Data Analytics Centre of Excellence (CoE) with an
objective of setting-up analytical function to provide insights. Analytics is being
conducted on broadly three verticals- Business, Control and Support, with objective of new
value-creation, cross-sell and up- sell opportunity, increasing revenue, cost reduction,
product enhancement, channel optimization, default loan prediction, maximizing digital
footprint and improve risk profiling of the customer base. Data Analytics has also
initiated steps towards setting up of analytical functions in the bank which is to be
aligned with business strategy. Analytics 360 is a step towards bringing insights in day
to day business decision making.
Statement analyzer, Customer's propensity score, customer's digital profile score &
collection propensity score are few initial use cases being developed. Analytics driven
various digital journey have been undertaken such as Pre Approved Personal Loans (PAPL),
Pre Approved Business Loan (PABL), Debit Card EMI, e- RENEWAL, e-GST EXPRESS, Pre
Qualified Credit Card (PQCC) etc.
Next Level Reforms: With EDW in Place, the Bank is well prepared to achieve the Action
Points under next level reforms in PSBs for short Term and LongTerm targets like digital
transformation & enhancement, Big Data Analytics, adoption of change in Banking
Technology, focused use of Fin- Tech and improvement in Employee engagement through
Analytics.
VI. BRANCH NETWORK
1. Domestic Presence: As on 31st March, 2023, the number of branches were at
10,076. The population-group wise branches along-with the percentage share are given as
under:
2. International Presence: As on 31st March, 2023, Bank has its overseas
presence in 6 Countries by way of 1 branch at Dubai (another 1 branch at GIFT City Gujarat
also caters to the international business of the bank), 2 Subsidiaries (London-UK and
Bhutan), 1 Joint Venture (Nepal), 2 Representative Offices (Myanmar and Bangladesh).
VII. INTERNATIONAL BANKING
As on 31s1 March, 2023, there were 233 branches authorized to handle Foreign
Exchange Business and 4 Trade Finance Centers functioning at New Delhi, Chennai, Kolkata
& Mumbai specialized for centralized handling of trade transactions and International
Service branch for all Inward remittances. The Bank has 6 Exchange Bureaus at important
tourist centers to facilitate encashment of Foreign Exchange Currency Notes by foreign
tourists/NRIs.
1. Domestic Business
The Bank registered a Foreign Exchange Business Turnover of Rs.1,39,990 Crore (Exports
and Imports together) for the FY 2022-23 registering YOYgrowth of 11 percent.
We have an International Service Branch (ISB) functioning at New Delhi for handling
Inward Remittances of the Bank as a whole. During FY 2022-23, Bank handled remittance
business of Rs.67,805 Crore.
Our Bank has Rupee Drawing Arrangements (RDA) with 13 exchange Houses (7 in the Gulf, 1
in Singapore, 2 in the USA, 1 each in UK, Canada and Seychelles) to facilitate remittance
from NRIs.
The Bank also has remittance arrangement under Money Transfer Service Scheme (MTSS)
with Transfast Financial services Pvt. Ltd. and Ria Money transferservices Pvt. Ltd.
2. Overseas Business
Overseas business of the Bank stood at Rs.64,440 Crore as on 31st March,
2023 registering YOY growth of 37 per cent. Overseas branches are focusing on High Quality
Medium/ Long term Assets to build a diversified loan portfolio with low Credit Risk Weight
to improve profitability.
3. Steps Initiated for Forex Business growth:
a. 87 Export Promotion Council (EPCs) have been visited on Pan India basis during the
FY 2022-23. Further, all the Zonal offices continue liasoning with Export promotion
councils for sourcing new relationships.
b. 153 Exporter/ Importer meets were conducted on Pan India basis to address their
grievances in respect of Forex business during FY2022-23.
c. Trade Finance portal forTrade Finance Products:
Exporter and Importer can submit all types of trade finance request through the portal.
d. Outward remittance facility for Resident Individuals through Net-Banking: The Bank
launched Outward Remittance Facility for resident individuals for remitting funds under
LRS through Internet Banking. This gives ease to retails customers for remitting for the
purpose of Gift, Donation, Travel (Business, Pilgrimage, Medical Treatment and Education)
and Maintenance of close relatives.
e. A facility of sending direct intimation to customers in respect of Inward remittance
was introduced. International Service Branch (ISB) has started sending mails directly to
customers with respect to their inward remittances which reduces the TAT of inward
remittance transactions.
f. Dedicated customer care desks are made available in all Trade Finance Centres (TFCs)
to help trade finance customers. The contact details are also placed on PNB Corporate
website.
g. A dedicated email ID eximcust@pnb.co.in has been created exclusively for trade
finance customers for their forex related operational issues which is directly being
handled at Head Office.
h. International Banking Unit (IBU), GIFT City Gandhinagar branch of the Bank was
opened on 08.04.2022. The major products offers in the branch are Cash Management Service,
Forex Services, External Commercial Borrowings, Foreign Currency Term Loan, Trade Finance
etc,. Branch booked profit of Rs.28.85 Crore in FY 2022-23.
VIII. BUSINESS DIVERSIFICATION
Insurance Business
1. Life Insurance: The Bank solicits Life Insurance Business under Corporate Agency
Agreement with the following Life Insurance companies:
a. PNB MetLife India Insurance Co. Ltd (PMLI)
b. Life Insurance Corporation of India (LIC)
2. Non-Life Insurance: Bank solicits Non-Life Insurance Business under Corporate Agency
Agreement with the following insurance companies:
a. The Oriental Insurance Co. Ltd. (OICL)
b. Bajaj Allianz General Insurance Co. Ltd. (BAGIC)
c. Cholamandalam MS General Insurance Co. Ltd. (CHOLAMS)
d. Care Health Insurance Ltd. (CHIL)Star Health & Allied Insurance Co. Ltd.(SHICL)
Bank's commission income from insurance business (both life & non-life) stood at
tentative Rs. 428 Crore during FY 2022-23. During FY 2022-23, Bank registered a YoYgrowth
of 8.6 per cent in such income.
3. Mutual Funds: Bank is a distributor of Mutual Fund products of the following Asset
Management Companies:
a M/s Sundaram Asset Management Pvt. Ltd (previously known as Principal Asset
Management Pvt. Ltd).
b. M/s Nippon Life Asset Management Ltd.
c. M/s UTI Asset Management Company Ltd.,
d. M/s Aditya Birla Sunlife Asset Management Company Ltd.
e. M/s LIC Mutual Fund Asset Management Ltd.
f. M/s DSP Investment Managers Pvt. Ltd.
g. M/s Franklin Templeton Asset Management (India) Pvt. Ltd.
h. FISDOM is also providing MF Aggregator and Robo-Advisory services to existing
invested customers only and providing commission to the bank on revenue sharing basis.
During FY 2022-23, Income of Rs. 8.26 Crore was earned with YoYgrowth was 34.3 percent
4. Depository Services: As a Depository Participant, Bank opened 15,314 Demat Accounts
during FY 2022-23 against 11,627 in FY 2021-22 with a YoY growth of 31.7 per cent and
18,538 Online Trading Accounts in FY 2022-23 against 12,016 in FY 202122 with YoY growth
of 54.3 percent.
Out of 15,314 Demat Accounts, around 9466 i.e., 62 per cent of De-mat accounts was
opened digitally through Insta-Demat available on IBS and MBS.
Income earned in FY 2022-23 from Depository services was Rs. 5.71 Crore against Rs.3.48
Crore in FY2021-22.
5. Application Supported by Blocked Amount (ASBA) & Merchant Banking: Bank has
license to act as Banker to Issue, Debenture Trustee and Merchant Banker. During FY
2022-23, 297 number of issues were handled against 217 in FY 2021-22 with a YoY growth of
36.9 percent.
The amount blocked through ASBA was Rs.8211 Crore in FY 2022-23 against Rs.5442 Crore
in FY 2021-22 with a YoY growth of 50.9 per cent and Income of Rs.2 Crore was earned
during FY2022-23 against Rs.0.61 Crore during FY2021-22.
6. New Initiatives
a. Life Insurance: Bank has added two new Life Insurance Products in its bouquet:
i. PNB MetLife Grand Assured Income Plan - An annuity product for regular income to
customer.
ii. PNB MetLife Mera Term Plan Plus - A pure Term plan forcomplete Life risk cover.
b. Non-Life Insurance Business
i. On the basis of Request for Proposal (RFP), fresh Agreement with two companies has
been executed, Star Health & Allied Insurance Co. Ltd for Health Insurance &
Cholamandalam MS general Insurance Co Ltd for General Insurance business fora period
of3years.
ii. Launched Travel Insurance product covering the financial loss caused to the Bank
customers during travel orjourney within India.
iii. Credit Linked Health & Group Personal Accident Insurance Product providing
financial assistance to borrowers and protect the loan accounts covering entire Sum
assured/EMI to the loan account holders in case of detection of Critical illness or
unfortunate events such as Permanent Total Disability (PTD)/Personal accident,
hospitalization, loss of job etc.
iv. Motor Insurance product
"Pay as you consume"
gives an option to the insured to covertheir private car as per the usage and get rewarded
for Safe Driving.
v. Incorporation of
"Exception
Check" in Finacle during
verification of Asset Insurance Bank financed assets wherein non partner option is
selected which has increased our Asset Insurance business byapprox. 2 percent.
vi. Analytical leads on various parameters for potential business generation is shared
to field.
c. Depository &ASBA Business:
i. Discount brokerage: The Bank in coordination with M/s SMC Global Securities Limited
has introduced discount brokerage facility, which is very popular in the present trading
market. It offers Zero Brokerage for delivery and flat Rs.15 for Intra-daytrading.
ii. Online mutual fund conversion and redemption:
It has been proposed to make available a facility in retail IBS and MBS, using which
Bank's NSDL Demat account holders can convert their singly held Mutual fund units to Demat
form and Customers can request for redemption of their singly held Mutual Fund units in
Demat accounts online. The facility once developed will reduce TAT for such requests, in
comparison to presently available physical mutual fund conversion and redemption request
process.
d. Lead Management System: A new channel i.e. Branch Walk-in for capturing customers
request through Finacle-CBS, has been made effective during FY 2022-23, through this
facility leads of customers who shows interest in Third Party Products are captured.
Bank has also initiated the process of procuring new CRM system (through RFP), which
would be more advance, feature loaded and would be at par with otherapplications used in
the industry.
e. Defence Business: Defence Business Cell (DBC) is established for strengthening PNB's
banking business with Indian Armed forces, Paramilitary and Police forces.
The Bank has already engaged retired Major General as Chief Defence Banking Advisor and
expansion of DBC is underway by engaging more retired Defence Officials as advisors to be
deputed at different locations across nation mapped with major defence establishments.
During the previous financial year, Bank has entered into MOU for the first time with
Assam Rifles, Indian Air Force, Himachal Pradesh Police and also renewed MOUs with Indian
Army, Indian Navy, Indian Coastguard for extending Banks flagship products for defence
personnel.
The Bank solicits business from Defence Forces personnel and organizations through its
network of offices and terms in the field. During the year, the bank's business from
Defence Vertical gained as mentioned hereunder:
i. Defence salary/pension accounts under Bank's flagship Rakshak plus scheme grew 2.6
per cent on YoY basis.
ii. In real terms the value of business under the Defence Segment (Salary / Pension)
grew by 2 percent on YoY basis.
iii. The gross relationship value which includes salary / pensions as well as
organization accounts, is over 3700 crores as on 31st March, 2023.
IX. GOVERNMENT BUSINESS
With a view to play a more proactive role in the transfer of funds from Centre and
States to various beneficiaries, the Bank has a an exclusive Government Business Division
(GBD) which is one of the Business Divisions of the Bank. The GBD looks after various
functions such as Pension, Processing & Disbursement, small savings schemes of the
Government, Direct & Indirect Taxes Collections and Currency Chest Management. Bank is
also accredited banker to nine different Central government departments post amalgamation.
These numbers will further rise. Bank has been increasing tie-ups with various State
governments to cater to their specific needs.
Key Initiatives taken up under Government Business are as under:
1. Fastag: National Electronic Toll Collection Project has been implemented and all
branches have been enabled for issuance of Fastags.
2. TIN2.0: We are one of the first banks to go live on the new TIN 2.0 platform of
Central Board of Direct Taxes (CBDT) from December 1, 2022. Direct Taxes can be paid on
the website https:// eportal.incometax.gov.in through Internet Banking, Debit Card and
Over the Counter (Cheque/DD/Cash).
3. Bank has integrated with the new Central Board of Indirect Taxes and Customs (CBIC)
e-payment platform-Electronic Cash Ledger (ECL) of Indian Customs Electronic Data
Interchange Gateway (ICEGATE), through Internet Banking. It was made live on 1st
April, 2023.
4. Old Government Business Solution Software (GBSS) upgraded to newGBSS system and it
was made live on 15.03.2023. The new GBSS is robust enough to handle large volume of data
for pension processing.
5. Our Bank is disbursing pension of approximately 8.5 lakh pensioners i.e. Central
Govt, Defense, Railways, Telecom and state Government.
6. National Pension System (NPS): All the Branches of our Bank are enabled for NPS
transactions. Online facilities for NPS Registration and Contribution is also available
through our website (https:/'www.pnbindia.in/nps.html) as well as PNB ONE App. Total
number of NPS subscribers associated with our Bank as on 31s1 March, 2023 is
116825. The Bank is also providing NPS facilities to 27 corporates under Corporate Model.
7. Govt. e-Market Place (GeM): The Bank is providing facilities of GeM pool account,
e-PBG (Performance Bank Guarantee) & e-EMD (Earnest Money Deposit) on Government e-
market place to sellers and purchasers.
8. Public Financial Management System (PFMS):
The Bank has timely disbursed funds of approximately Rs. 3704 Crore to about 66 lakh
beneficiaries under PM Kisan Samman Nidhi.
9. Through active marketing, more than 80861 PPF, 69596 Sukanya Samridhi Accounts and
48981 Senior Citizen Saving accounts were opened during the FY2022-23.
10. Four Series of Sovereign Gold Bond subscription launched by Government of India
were marketed by our branches and 683 Kgs were sold.
11. We are having integration with various states and collecting online and offline
taxes through their CyberTreasury Portal and collection of VAT is done in 19 States.
12. Collection of taxes (Direct & Indirect) is being done through offline and
online on PAN India Basis. We are one of the major collectors of taxes for Central &
State Government.
X. TREASURY OPERATIONS
The liquidity remained mostly comfortable in FY 2022-23 in the Banking system. However,
to contain the rising inflation, Reserve Bank of India (RBI) has increased the Cash
Reserve Ratio (CRR) to 4.50 per cent from 4.00 per cent of NDTL in May'22. Further, RBI
has also absorbed liquidity from the system through various tools such as Variable Reverse
Repo Rate (VRRR). At the same time, RBI was always there to infuse liquidity, whenever, it
was required through variable repo rate auction.
Our Gross Domestic Investments stood at Rs.3,99,830 crore as on 31st March,
2023 with YoY growth of 6.6 percent.
The Bank actively traded in SLR and Non-SLR securities throughout the financial year.
Total Trading Profit for FY2022-23 was Rs.1047 Crore.
1. Fixed Income (SLR/NSLR)
Easy monetary policies across the globe during the pandemic period and the conflict
between Russia and Ukraine, which disrupted supply chains and caused a rise in energy and
other commodity prices sent inflation rates worldwide above the Central Banks'targeted
range.
This forced Central banks across the globe to tighten financial conditions by
increasing policy rates. The Reserve Bank of India (RBI) was no exception. To combat
sticky inflation, the RBI increased the repo rate by 250 basis points from 4.00 per cent
to 6.50 per cent in FY 2022-23, which reduced liquidity from almost Rs.7 Lakh Crore in the
beginning of Financial Year to Rs. 1 Lakh Crore by the end of Financial Year as per RBI
data. This resulted in hardening of yields across the curve with 1-year T Bill reaching a
high of 7.48 per cent and 10-year benchmark G-sec yields touched the high of 7.62 per
cent.
In the Union Budget for the FY 2023-24, estimated gross borrowing of the Central
government was announced at Rs.15.43 Lakh Crore, largely in line with the market
expectation and the gross fiscal deficit was estimated at 5.9 per cent of GDP. Overall, a
fiscal consolidation of 50 basis points has been achieved, along with a push on
investment.
2. Equity & Mutual Funds
FY 2022-23 proved to be a rough year for equity markets. The turbulence can be
attributed to interest rate hikes, liquidity tightening, foreign investment outflows, geo
political tension and the resulting soaring of fuel and food prices.
The S&P BSE Sensex closed at 58,991.52, while the Nifty 50 closed at 17,359.75 on
31st March, 2023. Over the past one year, the S&P BSE Sensex gained 0.72
per cent while the Nifty 50 declined 0.6 percent during the same period.
3. Forex
USD/INR traded in the range of 76 to 83 per dollar during the year. The Indian Rupee
depreciated against USD during the year on account of geopolitical tensions, rate hikes by
US FED to contain rising inflation, hardening US treasury yields, which led to outflows of
USD from Indian economy. However, rupee performed better than most of the other emerging
market currencies. It finally closed at USD/INR82.1750on 31s* March, 2023.
XI. CUSTOMERCARE
The Bank fully realizes the importance of customer service and continues to lay utmost
priority to render prompt and efficient service to customers. To achieve the objective,
the bank has introduced many digital initiatives in the past year to enhance the customer
experience like online debit and credit card, preapproved personal loan, whatsapp banking,
revamped PNB One with many added features etc. In order to achieve the desired objective,
the Bank has formulated a robust Grievance Redressal Policy keeping in view the guidelines
issued by Reserve Bank of India on Customer Service. The Bank is ensuring the redressal of
the grievances of customers within the framework laid down in the said policy.
The Bank has an on-line Grievance Redressal Management Portal called Centralized
Grievance Redressal Management System (CGRMS), which is in-house Portal. Through this
system, the customer gets an immediate acknowledgement and can keep a track of the
complaint also. Customers can lodge their requests/complaints in the CGRMS through Bank's
website, Internet Banking Service, Mobile Banking Serviceand MobileApp.
The status of complaints received by the Bank is reviewed by
"Customer Service Committee of the Board", a Sub-Committee of the Board, on quarterly basis. The meetings of
the Committee are presided overby Managing Director&CEO.
The Bank has in place an Internal Ombudsman as per the recommendations of the Damodaran
Committee. The system ensures greater transparency in the redressal of grievances by the
Bank.
Customer Service Committees in all the branches and Circle Offices look into the
quality of customer service rendered and critically examine the feedback/suggestions for
improvement in customer service. These committees meet once in a month where staff and the
invited customers interact freely on service-related issues.
A monthly magazine
"Customer
Speaks" is published in
which selected complaints filed by customers and the action taken/resolution provided to
the complainants are also mentioned. Appreciation letters issued by customers appreciating
the service of officials of the bank are also published in the magazine. Bank's guidelines
on important issues pertaining to customer service, products and services are highlighted
in the magazine for the benefit of field staff.
Theme Based Meetings are being conducted at monthly intervals in all branches on a
pre-decided date and theme to improve awareness among field staff about bank's products
and services, and to sensitize them about the issues of maximum importance.
For faster resolution of complaints Bank has designated Chief Customer Executive
Officer (CCEO) with the rank of Dy. Zonal Manager /Dy. Circle Head at all ZOs/COs level
whom a customer can approach for redressal of his grievance. The contact details of CCEOs
have also been displayed at Bank's website.
Regular training sessions are arranged at Call Centre for Customer Service Agents
(CSAs) so that they can handle customers call properly & resolve their trivial issues
by giving correct/latest information that customerwants about the products/services.
The Bank has state-of-the-art Primary Contact Centers at Gurugram and Noida to provide
telebanking services to its customers on 24 x 7 x 365 basis through two leading Service
Providers. In addition to these two Primary Sites, the Bank has also established two
Secondary Contact Centers at Dehradun and Bhopal to provide tele-banking services to its
customers in 13 languages.
The customer's complaints are received and stored in two online portals i.e CGRMS
Portal and Contact Centre's CRM Portal. The nature of complaints received at CGRMS Portal
and CRM Portal are largely Non- Digital & Digital transaction related respectively
Atotal of 17,06,462 complaints were received during the FY 2022-23, out of which
3,51,425 complaints were resolved within T+l days of its receipt. As such, these have not
been treated as complaints. Therefore, the total number of reported complaints received
during the FY 2022-23 is 13,55,037. The portal wise break-up of the same is as under:
• During FY 2022-23, out of a total number of 1,24,048 complaints (i.e., 907
complaints outstanding as on 31st March, 2022, and 1,23,141 complaints received
during FY 202223), 1,22,805 complaints were resolved up to the satisfaction of the
complainant, till 31st March, 2023 in CGRMS Portal.
• Further, during FY 2022-23, out of a total number of 12,61,591 complaints (i.e.,
29,695 complaints outstanding as on 31st March, 2022, and 12,31,896 complaints
received during FY 2022-23), 12,39,649 complaints were resolved up to the satisfaction of
the complainant, till 31s1 March, 2023 in Customer Relationship Management
Portal (CRM).
Initiatives undertaken for improvement in customer service
1. To augment the capabilities of Contact Centre and facilitate self-service for
customers, the number of selfservices through IVR have been increased to 16 during FY
2022-23 including facility of marking debit-freeze their account in case of suspicious
& unauthorized transaction and issuance of TDS Certificate.
2. The Bank has constituted teams of officials at
Customer Care Centre at Head Office, Zonal Offices and Circle Offices to pay surprise
visits to branches to assess standard of service. During FY 2022-23, officials of the Bank
made 18,562 surprise visits across India. Deficiencies pointed out by the visiting
officials are being shared with the concerned branches/Circle Offices fortaking corrective
steps.
3. Special Campaign for increasing nomination in accounts was launched through social
media, Contact Centre's, Email & SMS, during the month of Feb-Mar 2023. In order to
make customers aware about nomination, creatives are shared on Social Media, SMS are sent
to such account holders and message is displayed at Bank's website and on Statement of
account being sent through email.
4. Creatives are published at Social Media (Facebook STwitter) on regular basis to
educate customer about Banks service such as, Balance enquiry on Missed Call, and not to
share their credentials over fraudulent calls and for registering nomination in deposit
account.
5. Facility of Door Step Banking Services has been extended to customers, wherein they
can avail the listed financial/non-financial banking services at the convenience of their
home.
XII. IMPLEMENTATION OF OFFICIAL LANGUAGE
Punjab National Bank has always been pioneer in implementation of Official language
Hindi.Your Bank continued to make concerted efforts to comply with the instructions
received from Department of Official Language, Ministry of Home Affairs, Government of
India, Committee of Parliament on Official Language and Department of Financial Services,
Ministry of Finance. Your Bank has achieved most of the targets prescribed in annual
programme for the Financial Year 2022-23 issued by Department of Official Language,
Ministry of Home Affairs, Government of India.
We are pleased to inform that during FY 2022-23, your Bank has been awarded 2nd
Prize under the highest
"Rajbhasha
Kirti" award of the Government of India for "A"
Region and Delhi Bank Narakas, Whose convener is Punjab National Bank, was given first
prize "Rajbhasha Kirti" award. A total of 11 award have been
received by various offices of the bank from the Regional Implementation Office of the
Ministry of Home Affairs. Also, more than 265 awards from various institution have been
received by various offices/staff members of our Bank.
1. Special works done in the field of official language implementation:
During the FY 2022-23, Punjab National Bank continued to make effective efforts to
further increase the progressive use of official language in the bank.
a. Intensive monitoring was done to achieve the targets prescribed in the Annual
Program of Department of Official Language, Ministry of Home Affairs and Rajbhasha
Corporate Action Plan duly approved by the Board.
b. Awards were given to winner offices/employees of Lala Lajpat Rai Rajbhasha Shield
Scheme, other incentive schemes and Hindi competitions to increase the use of Hindi in the
bank.
c. Bank's quarterly home magazine "PNB Pratibha" and half yearly Hindi
magazines of Zonal Offices were published regularly. Hindi books were made available in
Hindi libraries established at various level.
d. PNB has efficiently discharged the responsibility of convener of 28 Town Official
Language Implementation Committees across the country. Half yearly meetings of these
committees were organized regularly and Hindi competitions, Hindi workshops, Hindi
seminars etc. were organized during theyear.
e. All India level Inter Bank Hindi Essay Competition was organized on the subject
"Contribution of MSMEs in building
Atmanirbhar Bharat".
f. A total of 8 books were awarded by the Bank under the Original Book Writing Scheme
(for working and retired staff) during the FY2022-23.
g. The eligible offices of PNB were notified in the Government of India Gazette under
Rule 10(4) of the Official Language Rules, 1976.
h. Hindi and regional languages were used in publicity and promotional campaigns
related to the Bank's schemes and products.
i. In May 2022, under the direction of the Ministry of Finance, one day workshop was
organized for all the banks and financial institutions/insurance companies located in
Delhi.
j. An incentive scheme was implemented on obtaining higher degree in Hindi for working
employees of the bank.
2. External Inspection/Official Language Seminar/ Conference:
a. Smt. Anshuli Arya, (IAS), Secretary, Rajbhasha Vibhag, Ministry of Home Affairs
awarded the winner of Member Banks/lnstitutions on 22.12.2022 in Annual Function of Delhi
Bank Narakas in Bank's STC and appreciated the work done in Hindi by the Bank.
b. Implementation of official language was appreciated by officials of Ministry of
Finance, Department of Financial Services during inspections of Head Office and Madurai
Branch.
c. The official language inspection of Sonepat main branch was done by the Draft and
Evidence subcommittee of the Parliamentary Committee on Official Language.
d. The work done in Hindi was appreciated by The Third Sub-Committee of the
Parliamentary Committee on Official Language during the inspections of Bank's branch:
Rudraprayag, Circle Office: Srinagar, Circle Office: Udaipurand Zonal Office: Bhopal.
e. Hindi Day and Hindi Month were celebrated enthusiastically in the Bank. Lala Lajpat
Rai Shield was given to the winners by Managing Director and Chief Executive Officer and
Executive Directors in the main official language function organized at Head office. Kavi
Sammelan was also organized, which was graced by renowned poet Surendra Sharma and poetess
Prof. Sita Sagar.
f. All India Conference cum Review Meeting of Official Language Officers of the Bank
was organized for Zone A1, 'B' and 'C' at Lucknow, Chandigarh and Chennai
respectively. Intensive monitoring was done through official language inspections and
annual review meetings of all the offices.
3. Progress made in the use of Hindi in Information Technology:
a. Online module of Hindi Knowledge Roster added in HRMS.
b.
"Standard Draft" of routine letters/office notes related
to various department for easily doing work in Hindi is available on Bank's e-portal.
c. Hindi version of new product WhatsApp Banking has been launched to provide the
facility of doing banking in Hindi to the customers.
d. Hindi and regional language are available in ATM.
e. SMS alerts have been sent to customers in their preferred language (Hindi and
regional language).
f. The Bank's website is available bilingually in Hindi and English.
"Pihu Chatbot" is also available in Hindi.
g. Online Hindi reporting of all the Branches, Circles, Zones and Divisions of the Head
Office was done on the 'Rajbhasha web portal'.
h. Bilingualization of Finacle and HRMS was done through Linguify software updated
version, through which customers can get passbook, CDR/FDR etc. in Hindi also.
I. Staff members were given training of e-tools to work in Hindi on computer.
j. PNB ONE' was implemented in the new revamped look in various regional languages
including Hindi.
k. Internet Banking available in Hindi as well as in regional languages.
l. A daily Hindi podcast is being released on banking subject.
m. For the employees, 3 online Hindi courses were introduced on the bank's e-learning
portal PNB Univ, on passing which the employees are given marks in Performance Appraisal.
n. Forms to be used by customers are available in Hindi and regional languages.
XIII.PNB'S SUBSIDIARIES AND REGIONAL RURAL BANKS
1. DOMESTIC
a. PNB Gilts Ltd.: FY2022-23 was characterized by firming up of yields for most of the
year, and witnessed some moderation while approaching towards the end. The year began with
hardening of the benchmark yield by 61 bps due to higher crude oil prices and monetary
policy tightening across the major global economies amid persisting inflationary pressure.
During the end of Q2 FY 2022-23, yields increased intermittently on the back of hawkish
commentary by Fed officials on US monetary policy, which was however, offset by ease in
crude oil prices and rising expectations over likely inclusion of India's bond in global
bond indices. During the second half, G-sec yields hardened in the beginning, taking cues
from the sharp surge in US treasury yields following the 75 bps rate hike by the US Fed
and its hawkish forward guidance, followed by the policy repo rate hike by the Reserve
Bank. Subsequently, the market sentiment was also dented after JP Morgan held off the
inclusion of Indian government bonds in its widely tracked emerging market bond index.
Towards the end of the third quarter, bond yields extended a softening bias in tandem with
the easing of US treasury yields and the decline in international crude oil prices. The
last quarter marked the range bound trading in the mid and longer dated segment, while
shorter dated yields firmed up significantly due to continued rate hike expectations. In
March 2023, the yields softened, taking cues from US yields following bank collapses,
which drove investors to safe assets, which had a salutary impact on Indian yields as
well.
During the year, the 10-yr benchmark yield touched a high and low of 7.62 per cent and
6.84 per cent respectively and closed at 7.32 per cent as on 31s1 March, 2023.
Against the backdrop of deteriorating market conditions, PNB Gilts Ltd continued to
fulfill all its obligations as a Primary Dealer mandated by RBI both in Primary and
Secondary market. Company posted a Profit Before Tax (PBT) of Rs. (85.07) Crore during FY
2022-23 vis-a-vis PBT of Rs. 210.15 Crore during FY 2021-22. Profit after Tax (PAT)
amounted to Rs. (77.22) Crore during FY 2022-23 as against Rs. 165.71 Crore during FY
2021-22. Capital adequacy remains strong with its Capital to Risk Weighted Assets Ratio
(CRAR) at 31.83 per cent as on 31st March, 2023 well above the regulatory
minimum of 15 per cent for Primary Dealers (PDs).
b. PNB Investment Services Limited (PNBISL):
The Company is a profit-making company from the very first year of its operations.
During the year ended as on 31s1 March, 2023, the Company registered
operational (fee-based) income of Rs.7.35 Crore and total income of Rs.9.98 Crore as
against a fee- based income of Rs.9.59 Crore and total income of Rs.12.10 Crore for the
year ended as on 31s1 March, 2022. Profit before Tax during the period ended as
on 31st March 2023 was Rs.4.85 Crore as against Rs.6.10 Crore for the period
ended as on 31st March, 2022.
The company operates in three verticals, namely Corporate Advisory, Merchant Banking
and Security Trustee. In the Corporate Advisory Vertical, during the year PNBISL advised
many marquees business groups and corporate clients on various transactions, including
debt syndication, debt resolution and other corporate advisory assignments. With in-house
expertise and deep understanding of select sectors, PNBISL prepared and delivered credible
TechnoEconomic Viability (TEV) reports to its clients.
In Merchant Banking Vertical, PNBISL actively participated in financial closure of
ARCIL stake sale Transaction. The Equity Capital Market team also commenced participating
in placement of Tier 1 Bonds Issuances and NCDs Issuances mobilizing Rs. 1000 Crore plus
funds for Banks/NBFCs. The Company had commenced this placement for the first time in a
small way. The company also filed with SEBI an IPO (approx Rs. 130- Rs. 150 Crore), Rights
Issue (approx. Rs. 25 Crore) with BSE and an open offer assignment during the yearg
enerating reasonable revenues.
In the Trusteeship business, PNBISL was able to permeate into the second & third
Tier cities offering its services to medium scale businesses as well. With its prompt and
quality service as also realigning the card rates with market requirement, the company
continues to add on new clients and build on its strategy to be a trusted partner of
leading banks and corporates.
Going forward, the company is committed to build on its capabilities across business
verticals such as credit appraisal & debt syndication services, TEV consultancy,
Merchant Banking services and Security Trusteeship services to offer greater value to the
parent bank and all its stake holders.
c. PNB Cards and Services Limited (PNBCSL):
PNBCSL is a wholly-owned subsidiary of Punjab National Bank (PNB) incorporated on March
16, 2021 in terms of RBI approval letter dated December 7, 2020 to undertake the
nonfinancial support services related to credit card business of the Punjab National Bank.
PNBCSL operates on a feet-on-street model with its sales executives for sourcing of
credit cards in the potential market. The company is also using digital onboarding
platforms for better customer experience.
The Company has been profitable since the very first year it has been in business. The
company reported a net profit after taxes of Rs. 1.20 Crore for the FY 2022-23 and Rs.
0.13 Crore for the FY 2021-22. This shows that the company is on the right track and is
well-positioned to grow in the future.
During the current Financial Year, the Board of the Company has accorded its approval
for diversification of Business of the company. RBI vide letter dated January 13,2023, has
conveyed their approval to PNB for undertaking additional non-financial support services
by PNBCSL. As per their approval, PNBCSL may provide the following non-financial support
services viz. sourcing, marketing, promoting, publicizing, advertising, soliciting
distributing Deposit (Current and Saving Accounts etc.) & Retail Loan Products
(Housing Loan, Loan against property, Vehicle Loan, Education loan, Personal loan etc.) of
Punjab National Bank.
The approval from RBI is a significant development for PNBCSL. It will enable the
company to grow and compliment Parent Bank business with a larger choice of services. The
Company will increase its geographic reach by opening new Territory offices at multiple
locations to serve the various business verticals, including Credit Card, Housing Loan,
Vehicle Loan and Deposit Products. PNBCSL is dedicated to offering consumers high-quality
services, and this approval will assist the Company in achieving its objectives.
2. INTERNATIONAL
a. PNB International Limited (PNBIL): Punjab National Bank (International) Limited was
incorporated in the UK on April 13, 2006 and registered with the Companies House in
England & Wales. The Bank is authorized by the Prudential Regulation Authority ('PRA')
and regulated by Financial Conduct Authority ('FCA') to conduct banking Business in UK.
The total deposits increased from Rs. 6471 Crore as on 31s1 March, 2022 to
Rs. 6644 Crore as on 31st March, 2023, showing growth of 2.7 per cent. The net
advance increased from Rs. 5153 Crore as on 31st March, 2022 to Rs. 5411 Crore
as on 31s1 March, 2023, showing growth of 5.0 per cent. In the FY 2022-23,
PNBIL recorded a Net Profit of Rs. 136.34 Crore, representing a growth of 32.1 per cent
compared to the previous financial year's net profit of Rs. 103.22 Crore.
PNBIL's main business is to provide commercial and retail banking services to different
segments of customers, with a focus on the Indian community within the UK. This includes
accepting deposits from both retail and corporate clients; lending to retail, SME's, and
corporate clients; and transaction banking services such as currency remittances. The
deposit products primarily include current, savings, term deposits and Individual Saving
Accounts. Some of these products such as ISAs and Fixed deposits are also being availed by
a wider audience in the UK. The lending products includes real estate lending i.e., Buy to
Let- Residential, Commercial, Development Loans and Hotels & Hospitalities, lending to
SME and Term loans backed bySBLCs.
b. Druk PNB Bank Ltd (DPNBL): Druk PNB Bank Ltd, Bhutan, Banking Company having its
corporate office at Thimphu, Bhutan. It started its operation on 27th January, 2010, in
Bhutan as the country's fourth commercial Bank, with a component of both FDI and joint
venture in the Banking Sector. Presently, the Bank has 9 branches and 30 ATMs spread
across the country. Total Business of the DPNBL increased to Rs.4,627 Crore as on 31sl
March, 2023 from Rs.3,125 Crore as on 31st March, 2022 showing YoY growth of
48.1 per cent. CASA Ratio of the Bank stood at 43.3 per cent as on 31s1 March,
2023. Profit of the Bank has increased to Rs.32.53 Crore as on 31s1 March, 2023
from Rs.22.30 Crore as on 31st March 2022. Paid up capital of the Bank as on 31s1
March, 2023 is Rs.84 Crore.
3. REGIONAL RURAL BANKS (RRBs): As on 31st March, 2023, there are 9 RRBs
sponsored by the bank namely Dakshin Bihar Gramin Bank (DBGB), Patna; Sarva Haryana Gramin
Bank (SHGB), Rohtak; Himachal Pradesh Gramin Bank (HPGB); Mandi; Punjab Gramin Bank (PGB),
Kapurthala; Prathama UP Gramin Bank (PUPGB), Moradabad; Assam Gramin Vikas Bank (AGVB),
Guwahati; Bangiya Gramin Vikas Bank (BGVB), Berhampore; Tripura Gramin Bank (TGB),
Agartalaand Manipur Rural Bank(MRB), Imphal. 4. These 9 RRBs are operating in 9 states
namely Bihar, Haryana, Himachal Pradesh, Punjab, Uttar Pradesh, West Bengal, Assam,
Manipur and Tripura covering 185 districts with a network of4642 branches.
a. Total Business of sponsored RRBs as on 31s1 March, 2023 is Rs. 2,04,907
Crore registering a YoYgrowth of 8.71 percent.
b. Deposits of RRBs are at Rs. 1,30,369 Crore as on 31st March, 2023.
Aggregate Deposits registered a YoYgrowth of 7.16 per cent.
c. The Advances of the RRBs as on 31sl March, 2023 stood at Rs. 74, 537
Crore with a YoY growth of 11.53 percent.
d. As per RBI guidelines it is mandatory for RRBs to meet the regulatory requirement of
CRAR of 9 per cent. The RRBs attaining CRAR over and above the regulatory requirement are
TGB (26.77 per cent), PGB (15.61 per cent), PUPGB (14.64 per cent), SHGB (14.17 per cent)
and BGVB (11.63 per cent). The RRBs having CRAR less than the regulatory requirement are
DBGB (
0.27 per cent), MRB (6.93 per cent), AGVB (7.82 per cent) and HPGB (8.24 per cent). As
an outcome of recapitalization assistance to the RRBs by Centre/ States / Sponsor Bank and
improvement in operational efficiency these RRBs are expected to achieve CRAR of 9 per
cent in the coming years.
e. The sponsored RRBs are in profit (except DBGB Patna, AGVB Guwahati and MRB Imphal).
Operating profit of RRBs as a whole stood at Rs. 2527 Crore as on 31st March,
2023 with YoY growth of 15.0 percent.
f. The RRBs have cumulatively disbursed Rs. 2760.30 Crores under PM MY/ MUDRA as on 31s1
March, 2023, with YoY growth of 24.32 per cent under disbursement.
g. The RRBs have cumulatively opened 2,12,04,663 accounts under Pradhan Mantri Jan Dhan
Yojana (PMJDY) as on 31st March, 2023.
XIV. AWARDSANDACCOLADES
The Bank's efforts have been recognized at various platforms. The Bank has been
conferred the following awards for initiatives taken in various fields for FY2022-23
1. The Bank was awarded with achievement award for "Excellent Guarantee Coverage
(number)" for FY 2022-23 by Credit Guarantee Fund Trust for Micro and Small
Enterprises (CGTMSE).
2. The Bank stood Third in NPS Reward Recognition Programme (Maximum number of fresh
Subscriber Registration) for FY2022-23 by Pension Fund Regulatory and Development
Authority (PFRDA).
3. The Bank was felicitated with ET Best BFSI Brands by EconomicTimes.
4. The Bank was felicitated with Best MSME Bank (Runner UP) at 9th MSME
Excellence Awards and Summit Associated Chambers of Commerce & Industry of India
(ASSOCHAM).
5. The Bank was awarded Best MSME Bank, MSME Friendly Bank, Government Schemes
implementing Bank and Implementing COVID related scheme Bank in MSME Banking Excellence
Award 2022 ceremony organized by Chamber of Indian Micro, Small and Medium Enterprises
(CIMSME).
6. The Bank awarded first prize for outstanding contribution under Prime Minister's
Employment Generation Program in Uttar Pradesh by Government of Uttar Pradesh.
7. The Bank won Award of Excellence award in circle of excellence campaign launched for
APY enrolment by Pension Fund Regulatory and Development Authority (PFRDA).
8. At the 18th Annual Banking Technology Conference, Expo and Awards 2022,
the Bank was felicitated by IBAwith
a. Runner-up award for the Best Fintech Collaboration
b. Special award for BestAI& ML Bank.
9. NCDEX felicitated Punjab National Bank for their contribution as an emerging Banks
in the e- NWR space.
10.
"Rajbhasha Kirti" 2nd prize for the FY 2021-22
by Department of Official Language, Ministry of Home Affairs, Government of India.
11. The Bank was declared winner under 2 Themes of EASE 4.0 awards by DFS, Ministry of
Finance, Government of India.
• Tech Enabled Banking- 1st Runner Up
• Governance and HR-Is1 Runner Up
12. First Prize-Best Core Banking System Initiative- 13th Annual Retail
Banker International Trailblazer Awards by Retail Banker International.
13.
"Highly
Recommended-Most Innovative Branch Offering"-13th Annual Retail Banker International
TrailblazerAwards
14. Recognized by PFRDA for performance under National Pension System (NPS) in
Quarterly Award Recognition Programme for Q4 FY2022-23.
15. National MSME Awards-2022 to Banks for Outstanding Contribution in the Promotion
and Development of MSME Sector - 3rd Prize Winner by Ministry of MSME.
XV. FUTURE BUSINESS PLAN OFTHE BANK
The Bank has a carefully prepared strategy to define & achieve its future goals.
Strategies lay down specific measurable parameters on day to business, profitability &
Asset Quality that is being strictly monitored against targets.
The Bank will continue to focus on building Business through traditional and digital
banking. Mobilization of Low-Cost Deposits remain a focus area. Mobilization of Current
Accounts will be the area of thrust for FY 2023-24. The Bank will ensure that all the
Business units of the Bank function as the profit centers for the Bank. The Bank will
strive to regain the lost share in the system and continue to make efforts towards new
customer acquisition. The Bank will continued focus on customer service through product
differentiation & value addition at every step. Digitalisation of products &
services will also contribute to that effect and will be prioritized.
In the area of Asset Quality, the Bank will deploy all the out effort to arrest
slippage and will aim at doubling recoveries over the amount of slippage.
Nation building byway of implementing Government Schemes & Financial Inclusion been
the spirit of the Bank. As of now, PNB has lived up to the expectations of the Government
and of the society at large particularly the underprivileged sections.
The markets are buoyant with positive sentiments forthe Bank. Further, with the
anticipation of RBI not taking any further rate hike action as of now, we may have reached
the end of this cycle of peak interest rates. In FY 2023-24 growth in deposits should be
higher while that in credit marginally lower which should assuage the liquidity situation.
The Bank will continue on sustained growth trajectory.
All in all, there are expectations of evolution of positive business sentiments which
may provide ample opportunities for business growth of the Bank. Further with the
anticipation of RBI not taking any further rate hike action as of now hence we may have
reached the end of this cycle of peak interest rates. In FY 2023-24 growth in deposits
should be higher while that in credit marginally lower which should assuage the liquidity
situation. Therefore, the picture should be steady going ahead with rates probably tending
to move downwards than upwards given that inflation projections for FY 2023-24 are in the
5.5 percent band.
XVI. BOARD OF DIRECTORS
1. Shri Pankaj Jain, Govt. Nominee Director, ceased to be directorw.e.f. 11.04.2022.
2. Shri Pankaj Sharma has been appointed as Govt. Nominee Directorof the Bank w.e.f
11.04.2022.
3. Shri Swarup Kumar Saha, Executive Director, was elevated to MD & CEO of Punjab
and Sind Bank on 03.06.2022
4. Shri K. G. Ananthakrishnan has been appointed as Non-Executive Chairman of the Bank
w.e.f. 07.11.2022.
5. Shri Binod Kumar has been appointed as Executive Director of the Bank w.e.f.
21.11.2022.
6. Shri Sanjay Kumar, Executive Director, completed his tenure on 30.11.2022.
7. Shri M. Paramasivam has been appointed as Executive Director of the Bank w.e.f.
01.12.2022.
XVII. DIRECTORS' RESPONSIBILITYSTATEMENT
The Directors confirm that in the preparation of the annual accounts for the year ended
31st March, 2023:
1. The applicable Accounting Standards have been followed along with proper explanation
relating to material departures, if any;
2. The accounting policies, framed in accordance with the guidelines of the Reserve
Bank of India, were consistently applied;
3. Reasonable and prudent judgment and estimates were made so as to give a true and
fair view of the state of affairs of the Bank at the end of the financial year and of the
profit of the Bank fortheyearended 31st March. 2023.
4. Proper and sufficient care was taken for the maintenance of adequate accounting
records in accordance with the provisions of applicable laws governing banks in India,
and;
5. The accounts have been prepared based on the principle of "going concern
".
XVIII. ACKNOWLEDGEMENT
The Board of Directors thank the shareholders, valued customers, well-wishers and other
stakeholders for their goodwill, patronage and support.
The Board acknowledges with gratitude for the guidance and support of Government of
India, Reserve Bank of India, Securities & Exchange Board of India, Insurance
Regulatory and Development Authority of India, Central Vigilance Commission, Stock
Exchanges and Statutory Central Auditors of the Bank, in the functioning of the Bank.
The Board also placed on record its appreciation for the valuable contribution made by
the members of the Bank's staff at all levels and looks forward to their continued
involvement in achieving the future goals.
For and on behalf of Board of Directors
Atul Kumar Goel
Managing Directors CEO.