Punjab National Bank
Chairman Speech
From the Managing Director and CEO's Desk
Dear Shareholders,
In the Financial Year 2021-22, the economy started gaining momentum despite the impact
of COVID-19 on the contact intensive sector in the first half. During the last couple of
years, the disruption due to COVID-19 has impacted every aspect of life and has altered
the way we live. The pandemic turned much attention towards technology as a key enabler,
for sustaining businesses across the globe. Since banking services can also be given
remotely, the linkage of the sector with the real sector as provider of payment, savings
and to some extent on credit, limited the negative effect of the COVID-19 crisis. The
banking sector played the role of supporting fi'rms and households during period of lower
revenues, through important policy actions by Financial Regulators and Governments.
Amidst this backdrop, the Bank provided continuous services to our customers while
ensuring the safety of our employees. Despite challenging circumstances, the Bank posted
growth in this Financial Year. The Annual Report, FY 2021-22 is a reflection of the year
bygone sharing major highlights, detailed performance and initiatives as the Bank treaded
on its growth trajectory. We continued to pursue transformational development and recorded
growth in both business and profit.
Economic Overview
The Global Economy
The global economy rebounded in Calendar Year (CY) 2021 posting a growth of 6.1 per
cent. The global recovery continued but momentum was weakened, hobbled by the pandemic.
The world economy now is simultaneously facing re-emergence of COVID-19, inflation,
scaling back of government spending and normalization of monetary policies. The new crisis
of Russia- Ukraine war and frequent and wider-ranging lockdowns in China is exacerbating
supply and demand tensions, damaging consumer sentiment and is threatening global economic
growth.
Risks to economic prospects have become challenging as the spill over of the war
spreads to other countries mainly through commodity markets, trade, and financial
linkages. IMF in its World Economic Outlook April, 2022 issue, has projected Global growth
to slow from an estimated 6.1 per cent in CY 2021 to 3.6 per cent in CY 2022 as well as CY
2023.
Inflation has emerged as another cause of concern for most economies due to global
supply shocks driven by war-induced commodity price increase.
Oil prices of more than $100 per barrel are weighing heavily on the economies of
import-dependent countries at large and particularly on South Asian nations and these
nations have been pushed on the brink of crisis with rising prices, declining GDP growth
and depleting foreign exchange reserves.
The two difficult policy trade-offs faced by the economies are between tackling
inflation and safeguarding the recovery; and between supporting the vulnerable sections of
the society and rebuilding fiscal buffers.
In such circumstances, efforts are needed to respond to the geo-political crisis to
prevent further economic fragmentation due to imposition of sanctions. Apart from the
same, it is essential to maintain global liquidity, manage debt distress, and tackle
climate change. Targeted support to households and firms would provide the space for
growth enhancing investment. Reform of trade-related policies in goods would enable
countries to take advantage of shifts in the global trade landscape. Improving skills and
enhancing competition would strengthen the capacity and incentive to adopt new digital
technologies.
The Indian Economy
The Provisional Estimates for FY 2021-22 released by the National Statistical Office
(NSO) placed India's real Gross Domestic Product (GDP) growth at 8.7 per cent. Economic
activity which was recovering with the ebbing of the third wave, rapid stride towards
universal vaccination, and supportive fiscal and monetary policies, now faces significant
headwinds from the worsening geopolitical developments and the accompanying sharp rise in
global commodity prices and weakening global growth outlook.
The GDP growth rate projections has been lowered down by various agencies citing
worsening supply bottlenecks and rising inflation risks caused by the geo-political
conflict. The Wholesale and Consumer Price Index for March, 2022 was at 14.55 per cent and
6.95 per cent, respectively. The CPI has remained above the upper limit of RBI's targeted
range for last four months. With limitation on both monetary and fiscal front, the path to
recovery will be marred by fresh challenges.
However, despite the challenges, the economy will get the much needed push from various
government reforms notably the 500-gigawatt (GW) green energy plan, Production-Linked
Incentive (PLI) manufacturing push, digital economy drive, Rs 145 lakh crore-plus
infrastructure pipeline, and targeted incentives for Micro, Small and Medium Enterprises
(MSMEs).
India launched the $1.9-triNion National Infrastructure Pipeline (NIP) in 2020 which
will give boost to the infrastructure sector. PM Gati Shakti launched in the Union Budget
is a transformative approach for economic growth and sustainable development. It will
steer the economy over the AmritKaal of the next 25 years - from India at 75 to India at
100.
All these developments indicate that the Indian economy is well placed to take on the
challenges during FY 2022-23 and will continue to remain the fastest growing economy in
the world.
Developments in the Banking Sector
The Banking sector was well supported by the measures from Regulator and Government
which helped manage the pandemic linked stress. As on March 25, 2022, Non Food credit by
Scheduled Commercial Banks rose by 9.7 per cent on YoY basis from 4.5 per cent during the
corresponding period of previous year. Support from the Government through various schemes
aided credit growth in almost all sectors.
The asset quality of SCBs improved further during FY 2021-22, with the overall
non-performing assets (NPA) ratio declining to 6.5 per cent in December 2021 from 6.8 per
cent a year ago, driven by lower NPAs in credit to industry. Banks continued to strengthen
their financials by raising capital and adding to provision buffers.
To rein in elevated inflation, Reserve Bank hiked Repo Rate in May, 2022 and this will
likely to have an impact on Bank's lending and deposits rate. The immediate impact on
consumption and investment will be limited. The growth will be supported by a broad
rebound in economic activity, the forecast of a normal monsoon and a revival in the
investment cycle and exports.
The pandemic forced banks to re-examine their technology strategies and strengthen
digital/branchless banking. Becoming a customer centric and customer fi'rst organization
is essential to ensure survival and retain existing customers.
I would now share with you some of key performance highlights of your Bank during the
FY 2021-22.
Financial Performance:
In spite of a challenging year, the Bank reached the mark of Rs. 19,31,322 Crore in
Gross Global Business as on 31st March, 2022 with Gross Global Advances at Rs.
7,85,104 Crore and Gross Global Deposit at Rs. 11,46,218 Crore.
Bank's low cost franchise remained robust with the Domestic CASA share at 47.43 per
cent an improvement of 195 bps over last year. Current and Saving Deposits (CASA) were at
Rs. 5,33,654 Crore. The Current and Savings during FY 2021-22 grew by more than 8 per
cent. The global cost of deposit was contained at 3.99 per cent.
For the FY 2021-22, Bank's profitability parameters and ratios remained stable. Bank's
Operating Profit was at Rs. 20,761 Crore. Net Profit grew by 71 per cent in FY 2021-22 to
Rs. 3457 Crore from Rs. 2022 Crore in FY 2020-21.
Return on Assets and Return on Equity improved to 0.26 per cent and 5.96 per cent
respectively during FY 2021-22. The key productivity parameter, Business per employee
increased to Rs. 1941 lakh in 31st March, 2022. The domestic and global Net Interest
Margin (NIM) stood at 2.79 per cent and 2.71 per cent respectively in FY 2021-22.
Asset Quality and Capital Adequacy
Level of NPAs have seen sequential reduction with Gross NPA reducing to Rs. 92,448
crore as on 31st March, 2022 and Net NPA reducing to Rs. 34,909 crore from Rs.1,04,423
crore and Rs. 38,576 crore respectively. Gross NPA ratio improved by 234 bps to 11.78 per
cent, Net NPA ratio improved by 93 bps and was at 4.80 per cent on 31st March, 2022.
Provision Coverage Ratio (PCR) (incl. TWO) improved by 146 bps to 81.60 per cent as on
31st March, 2022 from 80.14 per cent as on 31st March, 2021.
Improving asset quality continues to be our prime focus. The SASTRA portal rolled out
by bank for NPA management has 5 different modules for One Time Settlement (OTS),
Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest
(SARFAESI), Debts Recovery Tribunals (DRT), National Company Law Tribunal (NCLT) &
Wilful Default. Through this recovery management portal, status of major recovery actions
of a Borrower can be ascertained at a single place. For effective monitoring, standalone
DRT and SARFAESI Portals have been re-configured as separate modules in the SASTRA Portal.
Further, a new comprehensive application software for digitalization & automation
of Bank's recovery & litigation functions is being developed which will provide
end-to-end processing of all major recovery actions in NPA Accounts.
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.
The Capital Adequacy ratio of the Bank improved to 14.50 per cent as on 31st March,
2022 with Tier-I capital at 11.73 per cent and CET1 of 10.56 per cent. The focus of the
bank was on sustainable business growth by targeting better rated borrowers with low risk
profile.
Technology Initiatives and Digitalisati'on
Embracing futuristic technologies has gained significant momentum across the banking
and financial sector as well.
Both within and beyond the financial services industry, unique digital offerings and
innovative user experiences continue to raise the bar of customer expectations. Digital
content and marketing has assumed importance considering the customers now rely on them to
learn about the services available.
In the last decade technology has turned our world on its head. With the advent of
ultra-high-speed connectivity, the way we engage with customers has also evolved. Today,
even the smallest of transactions involve multiple touch points and complex multi-layered
interactions. Business has become more intricate than ever before. To remain competitive
and risk-free, technology-enablement in decision-making is indispensable.
We have developed PNB 360, a comprehensive dashboard to monitor business performance.
It has been developed to capture the day to day requirements of branches leveraging the
enterprise data warehouse capabilities of Bank's state of art analysis tool. In the next
phase, further enhancement of this tool will be done.
Apart from above, the Bank undertook several initiatives such as Bharat Bill Payment
System (BBPS) option is being provided in mobile app-PNB ONE for "anywhere,
anytime" bill payment, Positive Pay System (PPS) an electronic authentication system
allowing customers to share the cheque details with Bank in digital mode before the Bank
processes it, enabling online reset of password(s) for Internet Banking users having
active debit card etc. ASBA have been included in PNB ONE facilitating investors to
subscribe IPO 24*7.
Two new initiatives were incorporated in digital banking to make it user friendly for
our physically challenged customers. The visually impaired customers by using screen
reading software like JAWS (Job Access With Speech) which facilitates Text to Speech can
avail internet banking services and they can also avail mobile banking services as voice
enabled assistance have been introduced in PNB ONE.
To promote digitisation, to facilitate banking at doorstep the customers are receiving
the Debit Card at their registered address. Customers have also been facilitated to
activate the Debit Card delivered at their registered address by setting Debit Card PIN
through digital channel. Cardless cash withdrawal facility has been launched which allows
cash withdrawal facility from PNB ATMs without debit card.
Bank has launched Virtual Debit Card which can be used for e-Commerce transactions at
all merchant sites through second factor authentication. An umbrella application namely
PNB Personal Advisor- PNB PA has been developed for customers as well as non- customers of
the Bank to provide information on Bank's services, products, locators, financial
calculators and all apps at one place.
In the wake of changing environment, Bank shall design, develop and implement a
comprehensive solution along with change in policy to bring complete Digital
transformation, thereby, enabling and optimizing the organization for the future in terms
of achieving business goals, complying with benchmark needs of EASE, end to end
digitalisation of internal processes, other upcoming digital opportunities as permitted by
regulatory framework and other regulatory requirements.
MSME Lending
MSME sector suffered the most in ensuring business continuity in the face of severe
supply disruption and dipping demand after COVID-19. The Government initiated numerous
measures to provide much needed thrust to the sector.
The Bank gave highest importance to financing MSME in their strategic growth plan
through various schemes like Guaranteed Emergency Credit Line (GECL), Credit Guarantee
Scheme for Subordinate Debt (CGSSD) for Stressed MSMEs, PM Street Vendor's AtmaNirbhar
Nidhi (PM SVANidhi), Interest Subvention Scheme of 2% on Prompt Repayment of Shishu Loan
extended under Pradhan Mantri Mudra Yojana (PMMY), PNB COVID-19 Emergency Credit Facility
(PNB-CECF), etc.
Digital lending to MSME has been given requisite thrust through customized IT based
solution i.e. PNB LenS. Launch of e-RENEWAL scheme (a system for automatic renewal of
credit facilities) has been introduced to increase efficiency of the appraisal process,
reduce TAT and provide ease to small borrowers. PNB e-Mudra (Shishu) scheme was launched
to meet the credit needs of the Micro and Small entrepreneur through Digital platform as
well as through psbloansin59minutes.com platform.
People Management
The learning and development of employees is vital for their performance improvement as
well as retention. The training system of the Bank evolved through adoption of new
delivery systems and technology to upskill and prepare the maximum number of employees to
face the challenges.
During the year, the Bank took a slew of innovative measures to promote learning and
development amongst workforce, ensuring consistent delivery of an enhanced learning
experience at flexible timings.
The training system has been strategically aligned with the long term corporate goals,
manifested in the backdrop of global financial and economic scenario.
To understand new products and to keep the staff abreast of those changes, a daily
podcast service has been started wherein brief details of products/ processes/guidelines
are circulated for the benefit of the staff on daily basis. Interactive videos on 'PNB
ONE' has been launched to promote better understanding of its features amongst staff as
well as customers.
To facilitate field functionaries with consolidated guidelines/ SOPs/FAQs/common errors
on different banking process,
Training vertical has taken initiative of curating booklets for Current and Savings
account opening processes, NPA Management and customer service/complaint escalation
matrices.
Awards and Recognitions
In FY 2021-22 the Bank won many prestigious awards. Bank won the Best MSME Bank (PSU)
in 8*h MSME Excellence Awards by ASSOCHAM and Secured First position amongst
peer banks under Agriculture Infrastructure Fund (AIF) campaign launched by Ministry of
Agriculture and Farmers Welfare. Bank won the best Data Quality Improvement Award on
Commercial Bureau for FY 2021-22 amongst Public Sector Banks by TransUnion CIBIL. Award of
excellence in campaign APY Leadership Capital launched by PFRDA was also received by the
Bank.
Jointly with M/s Infosys the Bank won the "Global Banking & Finance Awards
2021" in the category "Initiative Core Amalgamation" for FY 2020-21 by
Global Finance Review Company.
Further, the Bank bagged 3rd position for its performance in implementing
the Government scheme PMEGP for the FY 2020 21.
Bank was awarded 2nd Best Bank in SHG Credit Linkage under NRLM scheme by
Ministry of Rural Development (MoRD).
Bank also won Dr. Ambedkar Business Excellence Award under the category "Most
Significant lender supporting SC Entrepreneurs".
Other awards that were received by the Bank-Special Commemorative Award 2021 by NABARD
for Best PSU in the fields of Agriculture Credit, Micro Finance, Financial Inclusion and
Technology Adoption; The Asian Banker Financial Technology Innovation Award 2021 for
"Best Core-banking Technology Implementation".
Looking Ahead
The pandemic is seen as a watershed event in the evolution of banking. COVID-19 has
caused banks to become more proactive, to question their long-held assumptions, and to
become more adaptive and innovative. The future of banking is digital.
Bank will emphasize to improve quality of business by focusing on advances from MSME,
Retail, Agriculture and Corporate. Bank is planning to transform the Digital resources
with the changing environment and expectations by using digitization of customer journeys
through pre-approved Personal, Pension loans, and e-Mudra for efficiency in business
operations, improving customer experience and reducing cost.
Bank is strengthening PNB ONE app by offering digital lending journeys, market place
features, life style offerings, wealth management services etc. by revamping the existing
features. In the next Financial Year, Bank will also make efforts towards profit
maximisation through increase in Non-Fund based business and income from third party
products, reaping synergies arising out of amalgamation, rationalization of branches/
ATMs, administrative offices to reduce cost/expenditure.
To transform the human resources in terms of expectations of customers and fast growing
financial ecosystem, the Bank is planning to design, develop and implement a comprehensive
solution along with change in policy to bring complete HR transformation. Thus, enabling
and optimizing the organisation for the future in terms of achieving business goals,
complying with benchmark needs of EASE and other regulatory requirements.
The main thrust areas of HR Transformation will be on Business intelligence (internal
and external) driven target setting, HR Resource optimization, Online Performance
Management System, Talent Management and Individual level compliance Monitoring tool. This
shall also lead to more transparency, better efficiency, optimization of resources and
enhanced productivity.
I would like to express my gratitude to all members of the Board for their trust, faith
and active association. I also thank the Ministry of Finance and Reserve Bank of India for
their support and guidance. I also take this opportunity to wholeheartedly thank all our
stakeholders for their unequivocal trust in the Bank.
I would also like to acknowledge the continuous patronage we have received in this
journey from our customers. I thank all our employees for their unstinted support during
this testing times. In the forthcoming financial year, we will continue our focus on
providing new and tailored solutions, improving efficiency and productivity, enhancing
customer centricity and brand presence, and expanding into new segments.
Yours Sincerely,
(Atul Kumar Goel)
Managing Director & CEO.
Punjab National Bank
Directors Reports
Financial Year (FY) 2021-22 was yet another challenging year for the entire banking
sector but the industry players could sail through it successfully owing to better
preparedness and conducive business conditions. The economic scenario improved during the
year which provided ample opportunities for credit growth. PNB in line with the economic
trend continued to scale greater heights and put up good performance in terms of business
growth during FY 2021-22. The Bank continued to emphasize on Retail Credit to enhance the
credit portfolio and with the added strength in terms of manpower and branches, PNB
exhibited the reinforced performance. During the year, the Bank also streamlined the
reporting structure of Mid Corporate Centres (MCC) and PNB Loan Points (PLPs) while
loaning power and other guidelines were revised to support quicker decision making.
The Bank also kept the focus on the asset quality throughout the year which resulted
into improved recoveries, reined in slippages and lower NPA ratios. In addition to it, the
Bank continued to innovate in order to serve the customers better and expediently.
Digitalization remained a buzzword as Bank added to the kitty of products and services and
explored tie- ups with the fintechs to provide the seamless banking to the customers in
the convenient manner. The Bank kept its focus on Human Resource Development by way of
up-skilling them in line with the changing requirements of the industry.
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 per cent. In addition, Bank's Operating Profit was at Rs.
20,762 Crore with the Net Profit of Rs. 3,457 Crore for the FY 2021-22. As at the end of
31st March, 2022, Gross Non-Performing Assets (GNPA) ratio declined to 11.78
per cent and Net NPA ratio declined to 4.80 per cent. While Global Net Interest Margin
(NIM) was at 2.71 per cent in FY 2021-22, Capital to Risk Weighted Assets Ratio (CRAR) was
comfortable at 14.50 per cent.
During FY 2021-22, Bank's efforts and achievements were recognized on many prestigious
platforms. The Bank was adjudged "Best MSME Bank (PSU) in 8th MSME
Excellence Awards by ASSOCHAM". Under EASE, PNB was declared Runners-up in two
theme-wise awards i.e., Governance & Outcome centric HR & Institutionalizing
Prudent Banking and Second runner-up in the best improvement category i.e., 42%
improvement over baseline. Further, the initiatives taken by bank in the area of
technology was duly appreciated as PNB won "The Asian Banker Financial Technology
Innovation Award 2021 for "Best Core-banking Technology Implementation.". The
Bank was also (adjudged 2nd Best Bank in SHG Credit Linkage under NRLM scheme
by Ministry of Rural Development (MoRD)). The Bank secured 1st position amongst
peer banks under Agriculture Infrastructure Fund (AIF) campaign launched by Ministry of
Agriculture and Farmers Welfare. PNB also bagged 3rd Position for its
performance in implementing the Government scheme PMEGP for the FY 2020-21. The Bank won
Dr. Ambedkar Business Excellence Awards under the Category "Most Significant Lender
Supporting SC Entrepreneurs".
"Against this backdrop, your Directors have pleasure in presenting the Annual
Report of your Bank for the year ended 31st March, 2022 (FY 2021-22) along with
its audited Annual Financial Statements".
OUR PERFORMANCE
A. Financial Performance Assets and Liabilities
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 the Borrowings was
at Rs. 45,681 Crore as on 31st March, 2022.
Net Interest Income
The Net Interest Income of your Bank stood at Rs. 28,694 Crore during FY 2021-22. While
Total Interest Income stood at Rs. 74,880 Crore, Interest Expenses was at Rs. 46,185
Crore.
Operating Profit
Operating Profit of your Bank during the FY 2021-22 stood at Rs. 20761 Crore. While the
total Income stood at Rs.87,200 Crore during FY 2021-22, total Expenses was Rs.66,438
Crore in FY 2021-22.
Net Profit
Bank has earned a Net Profit of Rs.3,457 Crore in FY 2021-22 vis-a-vis Rs.2,022 Crore
in FY 2020-21.
Provisions and Conti'ngencies
Total Provisions (other than tax) made during FY 2021-22 were at Rs.16,445 Crore with
Provision for NPA at Rs.14,159 Crore. Provision Coverage Ratio (PCR) including TWO of the
Bank was at a robust 81.60 per cent as at 31st March, 2022 and PCR excluding TWO was at
62.24 percent.
B. OPERATIONAL HIGHLIGHTS
Some of the operational highlights of the Bank during FY 202122 are listed below:
Financial
• Bank's Global Business reached the mark of Rs.19,31,322 Crore in 31st March,
2022, which was second highest among Public Sector Banks (PSBs).
• CASA Deposits at Rs.5,33,654 Crore also remained second highest amongst PSBs
with 47.43 per cent share in Domestic Deposits.
• Savings Deposit grew to Rs. 4,51,680 Crore as on 31st March, 2022. Retail Term
Deposit was at Rs. 5,15,751 Crore as on 31st March, 2022.
• Within Core Retail Credit Portfolio, Housing Loan increased to Rs.73,805 Crore,
Car/Vehicle Loan increased to Rs.12,615 Crore and Mortgage Loan was at Rs.12,232 Crore.
MSME loan grew to Rs. 1,25,032 Crore as on 31st March, 2022
• Return on Equity improved to 5.96 per cent in FY 2021-22 hence showing the
improvement of 208 bps over FY 2020-21.
• The Board of Directors have recommended a dividend of Rs. 0.64 per equity share
(32%) for the year ended 31st March, 2022 subject to requisite approvals.
Capital
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 2021-22, Bank
has raised equity of Rs.1800 Crore through QIP, Rs.1919 Crore through Tier-II Bonds and
Rs.3971 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
• The Capital Adequacy Ratio of the Bank stood at 14.50 per cent, as of 31st
March, 2022, with Tier-1 capital at 11.73 per cent and Common Equity Tier-1 (CET-1) at
10.56 per cent.
• The Credit Risk Weighted Assets (RWA) of the Bank were optimized to Rs.4,88,969
Crore in March 2022 on account of focus on better rated accounts and churning of portfolio
of the Bank.
Major Initiatives
a) Learning & Development
The Bank has always kept up-skilling of manpower in the forefront and adopted
innovative measures. At the same time, the Bank has also ensured consistent delivery of
enhanced learning experience. Further, Bank remodeled On Job Trainings (OJT) and
introduced workbooks for Management Trainees to facilitate them during OJTs. Bank also
upgraded Delivery through Online Channel.
b) Promoting inclusivity
Seminars to motivate the workforce were undertaken by the Bank under which Women's
Conclave for lady executives in the Bank was organised, where Madam Arundhati Bhattacharya
(former chairperson SBI) joined in for keynote address. This was aimed at motivating
female officers to rise up in the career ladder.
c) Cultural integrati'on
As part of the cultural integration, PF numbers of all the employees of PNB 1.0, e-OBC
and e-UNI have been harmonized.
Other Key Initiatives
• PNB Pride: For real time monitoring and record account visits details Mobile
application-PNB Pride has been developed for field functionaries. User can enter visit
details like name of contact persons, status of the unit, uploading photo, report by the
visiting officials, recovery details, promise date etc.
• Mtouch app: A Digital Mobile Application PNB Mtouch cum Web Portal has been
developed to capture the records of all field visits made by the Branch Officials for
recovery of overdue amount.
• PNB FASTag: An app was launched in November 2021 for Apple and Android devices
to facilitate application for tags, recharge and viewing transaction history on mobile
devices.
• Opening of Online & Instant Savings Account with Video KYC: The Bank
launched Instant Customer On-Boarding Platform through Video KYC to facilitate the
customers for opening account with KYC-verification on-line and to attract techno-savvy
new-age customers.
• Submission of life certificate for central/state govt. Pensioners through Video
Based Customer Identification Process (V-CIP): To enable the pensioners to submit Life
Certificate at their convenience and comfort, the Bank launched an online web-based
platform for Central/State Govt. Pensioners for submission of Life Certificate online
using Video based Customer Identification Process on 30th December 2021.
• Setting up 5 CASA Back Offices for opening of CASA accounts centrally: In order
to address KYC compliance and to achieve better customer service Bank has setup, 5 CASA
Back Offices for opening of CASA accounts centrally. It was operationalised in September
2021. These CASA Back Offices are located at Kolkata, Mumbai, Panchkula, Bhubaneswar and
Faridabad.
• PNB Virtual Debit Cards: Virtual Debit cards were launched by the Bank thereby
eliminating the need for carrying the physical Debit cards.
• PNB 360 portal: Bank has launched PNB-360 Portal which is a Dashboard available
for All Bank employee at their on Premise desktop and at Tab with auto-refresh, one stop
solution for Management and field functionaries.
• Trade Finance Portal: The Bank has launched 2nd phase of Trade
Finance Portal to allow import customers to scan and send documents directly to Bank
covering Import documents, Foreign Letter of Credit and Foreign Letter of guarantee.
• ASBA Service in PNB ONE: ASBA services has been introduced in MBS (PNB ONE). It
is popularly hassle free and user friendly approach for IPO application in few clicks in
less than a minute. Now, ASBA services can be availed through Branches, Internet Banking,
UPI and Mobile Banking i.e., PNB ONE.
C. ASSET QUALITY
Despite disruptions in economy due to 2nd and 3rd wave of
Covid-19 pandemic, Bank was able to reduce Gross NPA from the level of Rs.1,04,423 Crore
as on 31st March, 2021 to Rs.92,448 Crore as on 31st March, 2022. 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 81.60 per cent as on 31st March 2022.
• Cash Recoveries: Total Cash Recovery improved to Rs.15,788 Crore for FY 2021-22
from Rs.11,442 Crore in FY 2020-21.
• Upgradation: Upgradation for FY 2021-22 improved to Rs. 5,253 Crore from Rs.
2,363 Crore in FY 2020-21.
• Upgradation through Resoluti'on 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 2021-22 |
06 |
347 |
Further, a sum of Rs. 2,703 crore was recovered in NPA accounts under IBC in NCLT.
• Mega E-aucti'ons: During FY 2021-22, 23,771 properties were uploaded on e-Bikray
portal. Out of which 1,319
Immovable Properties (IPs) were auctioned successfully with success rate of 5.54 per
cent.
• 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:
|
(Amout Rs. in Crore) |
| Items |
FY 2021-22 |
| i. No. of Accounts sold to ARCs |
4 |
| ii. Book Outstanding of Accounts Sold |
2421 |
| iii. Aggregate consideration received (100 per cent cash) |
1058 |
• Initiatives taken to Improve Asset Quality during FY 2021-22
• In order to support recovery efforts of field functionaries, a common recovery
portal i.e. SASTRA Portal was rolled out during the year. The portal is having 5 different
modules like One Time Settlement (OTS), Securitization and Reconstruction of Financial
Assets and Enforcement of Security Interest (SARFAESI), Debts Recovery Tribunals (DRT),
National Company Law Tribunal (NCLT) & Wilful Default. Through this common recovery
portal, status of major recovery actions of a Borrower can be ascertained at a single
place. OTS Module provides an automated platform for online processing of settlement
proposals.
• For effective monitoring, standalone DRT and SARFAESI Portals have been
re-configured as separate modules in the SASTRA Portal.
• All the NCLT cases are being monitored through NCLT Module which captures the
latest status of each case. Wilful defaulter database of the Bank has been loaded through
a separate module.
• Further, for effective monitoring and follow-up of NPA Accounts, PNB Pride App
was also rolled out in all the SASTRA Centres and Branches. This Geo Tagging enabled App
records field functionaries visit details and captures visit location.
• Further, Bank has initiated steps for development of a new comprehensive.
Application Software for Digitalization & Automation of Bank's Recovery &
Litigation functions is being developed which will provide End-to-end processing of all
major recovery actions in NPA Accounts.
• Exclusive Vertical for recovery of NPA Accounts: As part of the Organizational
restructuring, a separate vertical called SASTRA Vertical has been created for exclusive
& focused recovery operations. The vertical operates with officers posted at different
levels in the field who are exclusively working for recovery.
• Special OTS Scheme: During the year, Bank has put more focus on accounts with
outstanding up to Rs. 5.00 Crore which constitutes the largest segment of the NPA
Portfolio. For more recovery, the Bank has launched special OTS Scheme for this segment.
The scheme is of Check box model-non-discriminatory and non-discretionary. More powers
have been delegated at the field level for speedy & transparent one-time settlement in
this segment. During FY 2021-22, 1,64,969 NPA accounts with outstanding of Rs. 3,016 Crore
were resolved under the said scheme. Suitable amendments were done to resolve accounts
under Agriculture and MUDRA NPA Accounts.
D. INFORMATION TECHNOLOGY (IT) AND DIGITALIZATION
Technology continues to drive the Banking sector and with the advent of Fintech on the
banking landscape, it has become all the more critical to adopt and imbibe technology in
the Bank's day to day operations effectively to remain competitive and grow. In this
regards, the Bank, during FY' 2021-22, took up various initiatives which are enumerated as
under:
• Implementati'on of Bharat Bill Payment System (BBPS) in IBS/MBS- Through BBPS
option in PNBOne, now customer can make payments towards variety of utility service
providers/billers under different categories like-Mobile, Landline, DTH, electricity, gas,
education fees etc. In addition to Bill Payment, there are several other options such as:
• Repeat your last 10 bill payment.
• Enroll for Standing Instruction
• Enable Notification button to receive monthly/ quarterly or yearly notification
of bill payment to never miss it
• Positive Pay in IBS: An electronic authentication system will allow customers to
share the cheque details with bank before the bank processes it. With Positive Pay System
every account holder now can enter details of cheque (date, amount etc.) issued by him
through PNB ONE for secondary authentication.
• Online reset of IBS Password of NRI without Debit card:
Internet Banking users having active debit card can online reset the password(s).
• Opening of Demat A/c via PNB ONE: Through this feature, Demat Account can be
opened instantly by submitting the required customer related information.
• Delivery of Debit card at customer address: In order to reduce the footfall in
branches and to facilitate the customers to get the Debit Card delivery at their
registered address, customers have been facilitated to activate the Debit Card delivered
at their registered address through setting Debit Card PIN without the need to visit the
branch. All other transactions shall be allowed after successful PIN set transaction.
• Internet Banking Services (IBS) facility for visually impaired: The visually
impaired customers by using screen reading software like JAWS (Job Access With Speech)
which facilitates Text to Speech, can avail internet banking services.
• Voice assistant in PNB ONE: Voice Assist enabled through PNB One provides a
voice driven feature for the following functionalities:
• Mini Statement
• Last transaction inquiry
• Balance Inquiry
• Cheque book request
• Debit card issuance through IVR
• Acceptance of RuPay card in Singapore: Domestic RuPay Debit Cards accepted at
all Network for Electronic Transfers (NETS) enabled POS terminals in Singapore.
• Virtual Debit card through PNB ONE: Bank has launched Virtual Debit Card which
can be used for e-Comm transactions at all merchant sites through Second factor
authentication (OTP).
• E-Mandate on Debit cards: Bank has tied up with NPCI to provide e-mandate
facility for Recurring payments on RuPay Debit Cards.
• PNB Personal Advisor (PA): In order to provide ease of access to the customer
and non-customers for various applications and services offered by the Bank, an umbrella
application namely PNB Personal Advisor (PNB PA) was launched. Phase-I made LIVE by 1st
November 2021 and has been downloaded by more than 18,000 users.
• Captcha for login into Retail & Corporate: In order to enhance security in
Retail and Corporate Internet Banking Bank introduced strong CAPTCHA at the time of login.
• Implementation of e-FRM in MBS & IBS: In order to check fraudulent
transactions, the e-FRM has been implemented in Mobile Banking and Internet Banking
Solution.
• Specific category UPI enhancement: Transaction value limit in UPI has
been enhanced from Rs. 2 Lakh to Rs. 5 Lakh for use-cases qualifying under the following
business:
• Category Identifier
• Initial Public Offering (IPO) Purpose Code 01 MCC- 6211
• G Sec through RBI Retail Direct Scheme
• (RDS) Purpose Code 25 MCC- 6211
• Transacti'on Alerts on E-mail: The customers have now been given
option to get the transaction alerts on e-Mail.
• SIM Binding: To enhance the security feature, SIM Binding is implemented
in PNB ONE App. With the SIM binding feature, PNB ONE will be activated only on the device
which have the SIM Card of Registered Mobile Number (RMN).
Other initi'ati'ves
a) Empanelment of vendors for Development/Customization/ Maintenance/ Testing/Support
of software solutions upto Rs. 35 Lakh. Development of four products/ solutions (PNB PA,
LIC Generic Module, C-KYC, PFMS) are done using said empanelled vendors.
b) Online savings Account with Video KYC In terms of RBI guidelines, Online Account
opening with Video KYC functionality was implemented to provide remote customer on
boarding. It was made live on 12th April 2021.
c) Pre-approved Personal Loan: Implementation of Digital customer Journey for
Pre-Approved Personal Loans to existing customers of the Bank. It has been made live on 12th
April 2021.
d) Digital e-Mudra (Shishu) loans: Implementation of Digital Customer Journey
for online Shishu MUDRA loans. It was made live on 19th August 2021. Further,
implementation of Digital customer Journey for online Tarun and Kishor Mudra loans is
underway.
e) CKYC Mobile Applicati'on for Scanning KYC Documents of old Accounts. The
project has been live since 24th November, 2021.
f) Life Certificate Facility to pensioners through Video KYC:
The project was made live on 30th December, 2021.
g) Tie-up with Paisa bazaar: The Bank entered into Partnership with loan
marketplaces for sourcing of leads (Housing Loans).
h) Indian Bank's Block Chain Infrastructure Company (IBBIC):
The Bank has joined IBBIC as one of its founding members. IBBIC will explore banking
related use cases with Blockchain technology. IBBIC and its members have decided to start
use of Blockchain for Domestic Letter of Credit (LC).
E. MANAGEMENT INFORMATION SYSTEM
The 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.
Enterprise-Wide Data Warehouse (EDW)
Data is the new cynosure of any form of organization and Banking is no exception to it.
Data when stored, arranged, structured and mined, it provides Information; which in turn
generates persistent Knowledge resulting in wisdom as final product. PNB has made its
Enterprise-wide Data Warehouse (EDW) live, as Single Source of Truth for operational,
management information system, decision support system, informative and analytics of Banks
data for Descriptive, Diagnostic, Predictive and Prescriptive manner to achieve the
targeted growth in Business. EDW is now one stop information source for regulatory ADF/
CIMS project.
Data Analytics
The Bank has set up a Data Analytics Centre of Excellence (CoE). 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.
Next Level Reforms: With EDW in place, Bank is well prepared to achieve the Action
Points under next level reforms in PSBs for short Term and Long Term Target like digital
enhancement, Big Data Analytics, adoption of change in Banking Technology, focused use of
Fin techs and improvement in Employee engagement through Analytics.
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. Team is
also geared up for analytics-based credit and non-credit offers. Process and systemic
optimization through promotion of Digitization driven by analytics is another avenue being
pursued by analytics team.
F. BRANCH NETWORK
Domestic Presence: The Bank has one of the largest networks of 10098 branches as on
31st March, 2022, comprising of 1753 Metropolitan, 2035 Urban, 2457 Semi Urban and 3853
Rural branches. Rural and Semi Urban Branches (RUSU) comprise around 63 per cent of the
Total Branch Network.
International Presence: At present Bank has its overseas presence in 7 Countries by way
of 3 branches (1 at Hong Kong (about to be closed), 1 at Dubai and 1 at GIFT City
Gujarat), 2 Subsidiaries (London and Bhutan), 1 Joint Venture (Nepal), 2 Representative
Offices (Myanmar and Bangladesh).
G. INTERNATIONAL BANKING
As on 31st March, 2022, there were 232 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. In addition to it, the Bank has 6 Exchange
Bureaus at important tourist centers to facilitate encashment of Foreign Exchange Currency
Notes by foreign tourists/NRIs.
• Domestic Forex Business
The Bank has registered a Foreign Exchange Business Turnover of Rs.1,24,172 Crore
(Exports and Imports together) for the FY 2021-22 registering the growth of 37 per cent.
The Bank has an International Service Branch (ISB) functioning at New Delhi for
handling Inward Remittances. During FY 2021-22, the Bank has handled remittance business
of Rs. 51,191 Crore.
The Bank has Rupee Drawing Arrangements (RDA) with 16 exchange Houses (10 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 Worldwide.
• Overseas Business
Overseas business of the Bank stood at Rs.47,060 Crore as on 31st March,
2022 registering YoY growth of 8.77 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.
Steps Initiated for Forex Business growth
• 55 Export Promotion Councils (EPCs) have been visited on Pan India basis during
the FY 2021-22. Further, all the Zonal Offices were advised to continue liasioning with
Export Promotion Councils (EPCs) for sourcing new relationships.
• 105 Exporter/Importer meets were conducted on Pan India basis to address their
grievances in respect of Forex business during FY 2021-22.
• The Bank generated 185 new leads of forex customers during FY 2021-22. Further,
149 relationships have been converted into business.
• Trade Finance Platforms for Exporters/Importer:
Subsequent to launch of Export module, recently, the Bank launched 2nd phase
of Trade Finance Portal covering Import documents, Foreign Letter of Credit and Foreign
Letter of guarantee to allow import customers to initiate transactions.
• 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 retail customers for
remitting for the purpose of Gift, Donation, Travel (Business, Pilgrimage, Medical
Treatment, Education and Maintenance of close relatives).
• A facility for sending direct intimation to customers in respect of Inward
remittance has been introduced.
• International Service Branch (ISB) has started sending mails directly to
customers with respect to their inward remittances which reduces the TAT.
• Dedicated customer care desks are made available at all TFCs to help trade
finance customers. The contact details are also placed on PNB Corporate website.
• A dedicated email ID eximcust@pnb.co.in has been created exclusively for
trade finance customers for their forex related operational issues.
• International Banking Unit (IBU), GIFT City Gandhinagar, Gujarat has been
operationalised w.e.f., 8*h April 2022. It will offer services like an overseas
branch of the bank under regulator International Financial Services Centres Authority
(IFSCA). The major products offered will be ECB, Buyers credit to Indian borrowers and
Term Loan, Working Capital, Trade Finance and FLC/FLG to overseas entities. Branch will
trade in Foreign currencies in overseas market, raise funds in foreign currency as
deposits and borrowings from non-resident sources and provide loan and liability products
for the clients.
H. BUSINESS DIVERSIFICATION
Insurance Business
• Life Insurance: Bank has tie-up with the following Insurance companies (FY
2021-22), Life Insurance Corporation of India (LIC), PNB MetLife India Insurance Co. Ltd
(PMLI) and Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd (CHOICe).
Presently, Bank is continuing tie-up with only two companies:
1. PNB Metlife India Insurance Co. Ltd (PMLI)
2. Life Insurance Corporation of India (LIC)
The Bank's earnings from Life Insurance business grew by 6.45 % during FY 2021-22 to
Rs. 294 Crore from Rs. 276 Crore during FY 2021-22.
• Non-Life Insurance: The Bank has tie-up with the following Insurance companies:
1. The Oriental Insurance Co. Ltd. (OICL)
2. Bajaj Allianz General Insurance Co. Ltd. (BAGIC)
3. Cholamandalam MS General Insurance Co. Ltd. (CHOLA)
4. Care Health Insurance Co. Ltd. (CHICL)
5. Star Health & Allied Insurance Co. Ltd. (SHICL)
The Bank's Commission Income stood at Rs. 101 Crore during FY 2020-21 (Health
Insurance- Rs. 66 Crore & Asset Insurance- Rs. 35 Crore) against Rs. 93 Crore in FY
2020-21 (which included Income of around Rs. 4.41 Crore pertaining to Crop Insurance and
the same is not included in FY 2020-21). During the FY 2020-21, the Bank registered a YoY
growth of 14.1 per cent in income (excluding Crop Insurance). The following new segment
specific products were launched during FY'2020-21:
a. Women Specific health insurance products covering critical illness (specifically
related to women).
b. Personal Accidental Insurance cover for customers falling in Lower income group.
• Mutual Funds: Bank is distributing and marketing Mutual Fund products of the
following Asset Management Companies:
1. M/s Sundaram Asset Management Pvt. Ltd (previously known as Principal Asset
Management Pvt Ltd).
2. M/s Nippon Life Asset Management Ltd.
3. M/s UTI Asset Management Company Ltd.,
4. M/s Aditya Birla Sunlife Asset Management Company Ltd.
5. M/s LIC Mutual Fund Asset Management Ltd.
6. M/s DSP Investment Managers Pvt. Ltd.
7. M/s Franklin Templeton Asset Management (India) Pvt Ltd.
8. FISDOM is also providing MF Aggregator and Robo- Advisory services to existing eOBC
customers on revenue sharing basis.
During FY 2021-22, Income of Rs. 5.72 crore was earned against the target of Rs. 7.00
crore and YoY growth was 50.13 per cent.
• Depository Services: As a Depository Participant, Bank opened 11,627 Demat
Accounts during FY 2021-22 against 5,539 in FY 2020-21 and 12,016 Online Trading Accounts
in FY' 2021-22 against 7,514 in FY 2020-21. Out of 11,627 Demat Accounts, around 9,022
i.e., 78 per cent of Demat accounts was opened digitally through Insta Demat available on
IBS and MBS. Income earned in FY 2021-22 from Depository services was Rs. 5.70 Crore
• ASBA & Merchant Banking: Bank has license to act as Banker to issue,
debenture trustee and merchant Banker. During FY 2021-22, 217 issues were handled. The
amount blocked through ASBA was Rs. 5442 Crore and Income of Rs. 0.45 Crore was earned
during FY 2021-22.
New Initiatives
a. Life Insurance & Non-Life Insurance Business: In order to reach out to Bank's
customers using the Bank's digital channels like Corporate website, Net Banking &
Mobile Banking App to conduct their banking activities, the Bank introduced facility of
soliciting its insurance products through Insurance Self-Networking Platform (ISNP) on
Bank's Website/IBS/MBS w.e.f., 27th April, 2021.
b. Depository & ASBA Business: e-DIS services is proposed to be introduced for our
trading customers to eliminate the POA (Power of Attorney) submission to trading members
for performing share trading. With the introduction of e-DIS services, customers can start
share trading instantly after opening of trading account with the channel partners.
ASBA services has been introduced in MBS (PNB ONE). It is hassle free and user friendly
approach for IPO application in just few clicks. Now, ASBA services can be availed through
Branches, Internet Banking, UPI and Mobile Banking i.e., PNB ONE.
c. Lead Management System: Introduction of two new channels for lodging customer
request through lead management system of CRM has been made effective from March 2022
through which customers can express their interest in Bank Products. Bank has also added
two new number for lodging Asset & Digital products by missed call.
d. Customer Acquisition Centres (CAC) and Government Business Vertical Centres (GBV):
In the new revamped structure of PNB, 57 Customer Acquisition Centres (CACs) at major
locations & 21 Government Business Vertical Centres (GBVs) at State Capitals across
India became operational since July 2020.
The main objective of these above mentioned set up is to give focused approach to
generate bulk business through strategic tie ups with existing/new Corporate/
Institutional/ Govt./Defence & PSU clients, by exploring cross sell/up sell bouquet of
various Bank products, Third Party Products (TPP). In addition, this structure also focus
on deepening relationship with HNI/NRI clients by exploring up sell/cross sell
opportunities.
e. Defence Business: Defence Business Cell was conceived as a distinct vertical under
Customer Acquisition Division with the sole purpose of functioning as a forearm of PNB's
banking business with Indian Armed forces, State police forces, Paramilitary. PNB will
sign MOU with Indian Airforce and Assam Rifles. Existing MOUs with Indian Army, Navy,
Coastguard will have, added and unique features under the flagship produc such as Rakshak
Plus scheme.
I. GOVERNMENT BUSINESS
With a view to play a more proactive role in the transfer of funds from Centre and
States to various beneficiaries, Bank has been making efforts to have a sizeable number of
Public Financial Management System (PFMS) agency accounts. Bank is also accredited banker
to nine different Central government departments, post amalgamation. Bank has been
increasing tie-ups with various State governments to cater to their specific needs.
New Initiatives
• Fastag: National Electronic Toll Collection Project has been implemented and all
branches have been enabled for issuance of Fastags.
• National Pension System (NPS): Four Regional Rural Banks sponsored by the
Bank have been on-boarded for NPS remittance.
• Govt. e-Market Place (GeM): Bank is first amongst nationalized banks to
be present on GeM portal for providing services to vendors, i.e. sellers and purchases.
These services include GeM pool account, e-PBG (Performance Bank Guarantee) & e-EMD
(Earnest Money Deposit).
• Public Financial Management System (PFMS): Bank has timely disbursed
funds of approximately Rs. 4080 Crore to about 68 lakh beneficiaries under PM Kisan Samman
Nidhi.
• Integration with Cochin Port Trust through Payment gateway has been carried out.
• The account of Rural Electrification Corporation Ltd. has been sourced for the
government scheme SAHYOG and PFMS integration has been implemented.
• The government account for Deen Dayal Upadhyaya Grameen Jyoti Yojana has been
sourced.
• Through active marketing, 1,39,544 PPF, 76,357 Sukanya Samridhi accounts and
61,031 Senior Citizen Saving accounts were opened during the FY 2021-22.
• Ten Series of Sovereign Gold Bond subscription launched by Govt. of India were
marketed by branches and 1229 Kilograms were sold.
• The Bank is disbursing pension of approximately 10.7 lakh pensioners i.e.
Central Govt. Defence, Railways, Telecom and state Government.
• The Bank is having integration with various states and we are collecting online
and offline taxes through their Cyber Treasury Portal and collection of VAT is done in 21
States.
• Collection of taxes (Direct & Indirect) is being done through offline and
online mode on PAN India Basis. We are one of the major collectors of taxes for Central
& State Government
J. TREASURY OPERATIONS
Gross Domestic Investments stood at Rs.3,75,006 Crore as on 31st March, 2022 while
average investments were at Rs.3,81,098 Crore in as on 31st March, 2022. Interest income
from the investment portfolio (Domestic) stood at Rs. 23,399 crore for FY 2021-22.
The Bank actively traded in SLR and Non-SLR securities throughout the financial year.
Total trading profit (domestic) for FY 2021-22 is Rs. 3150 Crore.
The liquidity remained comfortable throughout the year in the banking system due to
lack of desirable credit off-take, despite the fact that Cash Reserve Ratio (CRR) was
restored to pre-pandemic level of 4 per cent. Liquidity surplus in the banking system
reached record levels in September with average liquidity of around Rs. 6.5 lakh crore due
to increase in Government spending and absence of additional borrowing for GST
compensation. RBI continued to provide liquidity support through OMOs and G-SAP 2.0
operations in order to ensure orderly execution of the Government borrowing plan.
RBI announced various liquidity support measures during the year such as:
• On Tap Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)
was extended till 31st December, 2021.
• The TLTRO on Tap Scheme was extended by a period of six months, i.e., till 30th
September, 2021 and further till 31st December, 2021.
• RBI extended fresh support of Rs 50,000 Crore to the AIFIs for new lending in
FY' 2021-22.
• The MSF relaxation continued up to 31st December, 2021 and was restored to the
normal dispensation whereby banks will be able to dip up to 2% of NDTL for overnight
borrowing under the MSF from 1st January, 2022.
• RBI to conduct fortnightly Variable Rate Reverse Repo (VRRR) auctions as well as
auctions for longer duration maturities, however the 14-day VRRR auction would be the main
liquidity management operation and shall coincide with the CRR maintenance cycle.
RBI reitereted its stance to remain accommodative as long as necessary to revive and
sustain growth on a durable basis. RBI commenced normalizing liquidity conditions by
discontinuing its G-SAP operations and resuming its long term VRRR from 4th quarter
onwards and gradually started draining out excess liquidity from the system. RBI's
currency swap further drained durable rupee liquidity from the system. The recent CRR hike
of 50 bps will drain a further Rs. 87,000 Crore of liquidity.
• Fixed Income (SLR/NSLR)
Reserve Bank of India (RBI) tried to balance its objective of sustaining growth with
price stability and that of managing the Central and State Governments' massive borrowings
amid multiple waves of the pandemic and uncertain global macro environment. The Indian
bond market was well supported by RBI through both conventional and unconventional
measures including differentiated auction methodology, GSAP 1.0 and GSAP 2.0 program.
However, during second half of the Financial Year, yields inched up significantly due to
expectations of rate hikes by central banks in all major developed economies of the world
on account of high inflation expectations due to surging commodity prices, and the Indian
bond market yields were no exception.
During FY 2021-22, the 10 year benchmark G Sec yields rose to 6.95 per cent after the
announcement of budgeted market borrowing of Rs.14.95 Lakh Crore. However as per the
revised borrowing calendar, gross market borrowing was pegged at Rs.14.31 Lakh Crore. As a
result, the Central Government's borrowing programme for FY 2021-22 came to an end on 25th
February 2022 and the total auctions were much lower than expected due to cancellations of
scheduled auctions for the month of March 2022. This cooled off the yields temporarily,
but in the recently conducted unscheduled MPC meeting (May 2022), RBI raised the benchmark
repo rate by 40 bps due to concerns regarding domestic inflation along with a 50 bps CRR
hike to drain out excess liquidity. This resulted in benchmark yields touching a high 7.49
per cent and it continues to be at elevated levels. The short term yield also spiked
considerably with 1 year T Bill reaching a high 5.95 per cent on expectations of further
hikes in the forthcoming MPC Meetings.
Since the advent of COVID-19 pandemic, the government's borrowing has almost doubled,
but the pool of domestic investors has not kept pace with the same and still much needs to
be done before domestic sovereign bonds are listed on global indices. Hence, the
challenges for the smooth conduct of massive borrowings for the third consecutive year are
galore. The same is further intensified by the gloomy outlook on yields aggravated by
reversal of accommodative stance by central banks across the globe. Russian invasion of
Ukraine and other expected geo-political tensions including COVID-19 lockdowns in many
parts of the world including China, are further expected to make things difficult for the
bond markets. The near-term outlook on India's external sector has also worsened
considerably. Bond yields have hardened across the maturities as geo-political factors
have clouded the outlook on inflation, further compounding the challenges for the smooth
conduct of the massive borrowing planned by the Centre and the States for FY 2022-23.
• Equity & Mutual Funds
Indian equity markets have seen one of the steepest rallies from the lows of the
pandemic in the last Financial Year, however the current financial year has been marred by
rate hikes in developed markets, inflationary pressures, supply bottlenecks, commodity
shortages and geo political tensions. As a result, foreign investors have been net sellers
of Indian equities for the entire year, but domestic retail and institutional investors
have been more or less resilient to selling pressures. However, in the next fiscal year,
equity markets are expected to be more or less muted in absence of any fresh positive
triggers. Also, uncertainties regarding COVID-19, further flare up of tensions between
nations and steep rise in inflation, are expected to keep the markets on the offered side
only.
• Forex
Net forex income of the Bank for FY 2021-22 was Rs.1,866 Crore. The Indian Rupee
remained largely stable throughout the year and traded in a broad range of USD/INR 74-76.
However, it experienced a knee jerk depreciation during 7*h March 2022 pushing
it to USD/INR 77.01 on account of abnormal rise in crude oil prices due to geo-political
tensions. However, RBI continued to be active in markets to smoothen out the volatility.
It finally closed at USD/INR 75.92 on 31st March, 2022.
K. CUSTOMER CARE
The Bank fully realizes the importance of customer service and continues to lay utmost
priority to render prompt and efficient service to customers. 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.
Initiatives undertaken during the year for improvement in customer service
• 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 Service and Mobile App.
• The Bank has state-of-the-art Primary Contact Centers at Gurugram and Noida to
provide tele-banking services to its customers on 24x7x365 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 (During the FY 2021-22, 2 languages were incorporated over
IVR in addition to existing 11 languages).
• Further, the number of self-services extended to 14 by Contact Centre through
IVR during FY 2021-22 thereby making them more customer friendly.
• The Bank has constituted teams of officials at Customer Care Centre at Head
Office, Zonal Offices and Circle Offices to pay incognito visit to branches to assess
standard of service. During FY 2021-22, officials of the Bank made 14,576 incognito visits
to branches pan India. Deficiencies pointed out by the visiting officials are being shared
with the concerned branches/Circle Offices for taking corrective steps.
• The status of complaints received by the Bank is reviewed by "Customer
Service Committee of the Board", a SubCommittee of the Board, on quarterly basis. The
meetings of the Committee are presided over by 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.
• Door Step banking services is available in the Bank. It is a facility by which
customers can avail many of the financial/non-financial banking services at home through
the Vendors at 100 centers. It provides convenience to the customers to access different
type of banking services from their Door Step.
• 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.
• Selected complaints along with their solutions are displayed through Today's
Mantra- 'SAMASYA & SAMADHAAN' on regular basis, so that field functionaries can
provide quick/ on the spot resolution to customers on complaints of the similar nature.
• Regular training sessions are arranged at Call Centre for CSAs so that they can
handle customers call properly & resolve their trivial issues by giving correct/latest
information that customer wants about the products/ services.
• Creatives have been published at Social Media (Facebook &Twitter) 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.
• During FY 2021-22, out of a total number of 1,46,759 complaints (i.e., 7,175
complaints outstanding as on 31st March, 2021, and 1,39,584 complaints received
during FY 2021-22), 1,45,852 complaints were resolved up to the satisfaction of the
complainant, till 31st March, 2022 in CGRMS Portal.
• Further, during FY 2021-22, out of a total number of 16,80,065 complaints (i.e.,
81,389 complaints outstanding as on 31st March, 2021, and 15,98,676 complaints
received during FY 2021-22), 16,50,370 complaints were resolved up to the satisfaction of
the complainant, till 31st March, 2022 in CRM Portal.
L. IMPLEMENTATION OF OFFICIAL LANGUAGE
Punjab National Bank has always been a pioneer in the implementation of the Official
Language Hindi. During the Financial Year 2021-22, Bank continued to make concerted
efforts to increase the use of Hindi and compliance of guidelines received from Department
of Official Language, Ministry of Home Affairs, GoI, Committee of Parliament on Official
Language and Department of Financial Services, Ministry of Finance. Concrete and effective
steps were taken by the Bank to achieve various region wise targets set in the Annual
Program 2021-22 issued by the Department of Official Language, Ministry of Home Affairs,
Government of India, as a result, most of the targets have been achieved.
Special works done in the Field of Official Language Implementation
Hindi and Regional Languages were used in publicity and promotional campaigns related
to the schemes and products of the Bank.
• Online Hindi quiz for staff members was conducted on Bank's e-Learning portal
PNB UNIV.
• Cyber Security Glossary prepared in Hindi.
• "Noting Sahayika" was prepared to help the officers in Hindi noting
which was released by Dr. Sumeet Jerath, IAS, Secretary, Official Language, Ministry of
Home Affairs, Government of India.
• Inter Bank Hindi Essay Competition was organized at All India level.
During FY 2021-22, total 4 books were awarded by the Bank under the Original Hindi Book
Writing Scheme.
• Intensive monitoring was done to achieve targets set in Annual Programme and
Corporate Action Plan of Official Language duly approved by the Board
• Prizes were awarded to offices/staff doing excellent work in Hindi under Lala
Lajpat Rai Shield Yojana and various other incentive schemes to increase the use of Hindi
in the Bank.
• Quarterly house magazine of the Bank "PNB Pratibha" and half
yearly Hindi magazines of the Zonal Offices were published regularly.
During the FY 2021-22, the Bank celebrated the month of September 2021 as Hindi month
and on 14th September 2021, a grand celebration of Hindi Diwas was organized in
Head Office and its various offices. During this period various programs/competitions were
organized and prizes were given to the winners by the Managing Director and CEO and Heads
of the Offices.
• PNB has efficiently discharged the responsibility of convener of 29 Town
Official Language Implementation Committees across the country. Half yearly meetings of
these committees were held regularly and Hindi competitions, Hindi workshops, Hindi
seminars etc. were organized during the year.
External Inspection / Official Language Seminar/Conference
• A discussion meeting was organized on 3rd March, 2022 by the Drafting
and Evidence Sub-Committee of Parliament on Official Language with the Chairman of Delhi
Bank Nagar Rajbhasha Karyanvayan Samiti (NARAKAS) (Convener PNB) and its 5 member offices.
Apart from this, the official language inspections of Bank's various Zonal/Circle Offices
were also done by the Ministry of Finance and the Ministry of Home Affairs and the work
was being done by the bank towards the progressive development of Hindi was appreciated.
• In the graceful presence of Dr. Sumeet Jerath, IAS, Secretary, Official
Language, Ministry of Home Affairs, Government of India & under the Chairmanship of MD
& CEO an All India Official Language Seminar was organized on 29th June,
2021 at Head Office, Dwarka for the top Management and Executives of the Bank & Zonal
Managers and Official Language Officers from the field in which detailed information was
given on the strategy of '123', 'Leela' app and memory based translation tool KANTHASTH.
• A two-days All India "Rajbhasha Sammelan cum Review Meeting" was
organized by the Bank at Staff Training Collage, Civil Lines, New Delhi on 14th
March, 2022 and 15th March, 2022 for the Official Language Officers posted in
the Bank's offices located in Region 'A' and Region 'B' and second two-days All India
"Rajbhasha Sammelan cum Review Meeting" was organized by the Bank in Lucknow on
24th March, 2022 and 25th March, 2022 for Official Language Officers
posted in the Bank's offices located in Region 'B' and Region 'C'.
• Online Annual review meetings of all the Zonal Offices were organized by the
Bank for Zone wise official language review, in which all the subordinate Circle Offices
of respective zones also participated.
Progress made in the use of Hindi in Information Technology
• Internet banking facility was made available to the customers in 7 regional
languages besides Hindi and English.
• Option of Hindi and regional languages and facility to print transaction slip in
Hindi is available for customers at ATMs.
• Facility to make transactions in 10 Regional Languages apart from Hindi and
English has been made available to the customers in the mobile application "PNB
ONE".
• The Bank provides an option to its customers to receive banking SMS alerts in
their mother tongue (Hindi, Bangla, Gujarati, Kannada, Malayalam, Marathi, Odia, Punjabi,
Tamil, Telugu and Urdu) and SMS send in the language chosen by the customer.
• Bank's website is in bilingual form and Hindi language option has been made
available to the customers in the Bank's "Pihu Chatbot".
• Every day a podcast on a Banking topic in Hindi is released by the bank for the
employees.
• Online Hindi reporting of all Branches, Circles, Zones and Divisions of Head
Office was done on the Official Language web portal.
• Due to COVID-19 pandemic, virtual Hindi workshops, competitions, e-webinars,
e-Inspections were organized through digital platforms apart from physical mode.
• Facility is available to print Passbook, CDR/FDR in Hindi and doing service
related work of staff members in Hindi through bilingual software in Finacle and HRMS.
• Trainings were given to the staff members to work in Hindi on computer and
various e-Tools of Hindi.
M. PNB'S SUBSIDIARIES AND REGIONAL RURAL BANKS
• DOMESTIC
i. PNB Gilts Ltd: During FY 2021-22, debt market was characterised with gradual
firming up of yields, with accentuated fi'rming in the second half of the year. In the
fi'rst half of the year, yields remained largely anchored as the monetary policy committee
(MPC) continued with its accommodative growth-supportive stance and also undertook
government securities purchases through G-SAP. During H1FY 2021-22, RBI purchased
securities aggregating Rs. 1,90,000 Crore on a net basis, which helped create demand for
the large scheduled government securities issuances for the year. In the second half of
the year, however, yields remained largely upward bound, with Q4 witnessing a sharp spike
in yields. A sharp rise in global crude oil prices and reversal of monetary policy by
various emerging market and advanced economies pushed both global and domestic yields
higher during Q4 FY 2021-22. The rise in yields was aggravated by higher- than-expected
indicative calendar of market borrowings of State Governments/Union Territories, planned
market borrowings by the Centre indicated in the Union Budget 2022-23. The cancellation of
two consecutive central government bond auctions, however, tempered the hardening of
domestic yields towards the close of the Financial Year.
During the year, the 10-yr benchmark yield touched a high and low of 6.95 per cent and
5.97 per cent respectively and closed at 6.86 per cent as on 31st March,2022.
Against the backdrop of deteriorating market conditions, PNB Gilts Ltd. continued to
fulfil 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. 210.15 Crore during FY
2021-22 vis-a-vis PBT of Rs. 614.35 Crore during FY 2020-21. Profit after Tax (PAT)
amounted to Rs. 165.71 Crore during FY 2021-22 as against Rs. 454.12 Crore during FY
2020-21. Capital adequacy remains strong with its capital to risk weighted assets ratio
(CRAR) at 66.41 per cent as on 31st March, 2022 (45.58 per cent as on 31st
March, 2021) well above the regulatory minimum of 15 per cent for PDs.
ii. PNB Investment Services Ltd: The Company is a profitmaking company from the
very first year of its operations. During the year ended 31st March, 2022 the
Company registered operational (fee-based) income of Rs. 9.59 Crore and total income of
Rs. 12.10 Crore as against a fee-based income of Rs. 5.33 Crore and total income of Rs.
8.02 Crore for the year ended 31s* March, 2021. Profit before Tax during the
period ended 31s* March, 2022 was Rs. 6.10 Crore as against Rs. 1.87 Crore for
the period ended 31s* March, 2021.
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 PNB's fund-raising
transactions of Qualified Institutional Placement (QIP) and Tier II Bonds. The involvement
in these transactions varied from advising on compliance requirements, drafting of offer
documents and marketing of the offerings.
In the Trusteeship business, despite intense competition from entrants not having long
standing in the business by slashing fees, the company has been able to maintain the
clients by providing quality of services. A cautious strategy has been adopted while
selecting the clients, so as to ensure only credible clients are on-boarded. With its
prompt and quality service as also realigning our 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 poised 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.
iii. PNB Cards & Services Limited: The Company has been incorporated on 16*h
March, 2021 as a Non-Financial Entity for providing Business Support services related to
Credit Card Business of the Bank. Currently, the company is providing its services for
customer acquisition and merchant tie ups. During FY' 2021-22, being the first year of
operations, the company has earned revenue from operations of Rs. 2.60 Crore and Net
profit after Tax of Rs. 0.13 Crore. The company will operate on feet-on-street model with
its sales executives sourcing of Credit Cards in the potential market along with digital
on boarding platforms for better customer experience.
• INTERNATIONAL
i. PNB International Limited (PNBIL): PNBIL continues to serve its customers in London
and Midlands through network of seven branches located at Moorgate, Ilford, Wembley,
Southall, Leicester, Birmingham and Wolverhampton.
Even during the COVID pandemic the Bank ensured to provide all services to customers in
smooth and safe manner. During FY 2021-22, the total business of PNBIL increased from 1755
USD Million to 1825 USD Million thus showing growth of 4 per cent under challenging
circumstances with healthy profitability.
The Bank continues to grow the UK based business book and diversify within the product
variants in secured lending book in line with its strategy. Customer retention has been
the focus for the Bank and the Bank is also developing Alternate channel to raise low cost
retail deposits.
ii. Druk PNB Bank Ltd: 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 Bank has 8 branches and 30 ATMs spread across the
country. Total Business of the DPNBL increased to to Rs. 3,125 Crore as on 31st
March, 2022 from from Rs. 2,780 Crore as on 31st March, 2021 showing YoY growth
of 12.41 per cent. CASA Ratio of the Bank stood at 42.27 per cent as on 31st
March, 2022. Profit of the Bank has increased to Rs. 22.30 Crore as on 31st
March, 2022 from Rs. 19.56 Crore as on 31s* March 2021. Paid up capital of the
Bank as on 31st March, 2022 is Rs.84 Crore.
• REGIONAL RURAL BANKS (RRBs):
As on 31st March, 2022, 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
(PUGB), Meerut; Assam Gramin Vikas Bank (AGVB), Assam; Bangiya Gramin Vikas Bank (BGVB),
West Bengal; Tripura Gramin Bank (TGB), Agartala and Manipur Rural Bank (MRB), Imphal.
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 of 4613 branches.
i. Total Business of sponsored RRBs as on 31st March, 2022 is Rs.1,88,493 Crore
registering a YoY growth of 7.59 per cent.
ii. Deposits of RRBs are at Rs.1,21,659 Crore as on 31st March, 2022.
Aggregate Deposits registered a YoY growth of 8.20 per cent. The CASA deposits of the RRBs
have increased to Rs. 75,143 Crore as on 31st March, 2022 from Rs. 68,747 Crore
as on 31st March, 2021 with a YoY growth of 9.30 per cent.
iii. The advances of the RRBs as on 31st March, 2022 stood at Rs. 66,834 Crore with a
YoY growth of 6.51 per cent.
iv. As per RBI guidelines it is mandatory for RRBs to meet the regulatory requirement
of CRAR 9 per cent. The RRBs attaining CRAR over and above the regulatory requirement are
HPGB (9.47 per cent), PGB (15.56 per cent), PUPGB (13.49 per cent), SHGB (14.10 per cent)
and TGB (30.87 per cent). The RRBs having CRAR less than the regulatory requirement are
AGVB (7.59 per cent), DBGB (8.35 per cent) MRB (7.24 per cent) and BGVB (8.89 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.
v. The sponsored RRBs are in profit (except DBGB Patna and MRB Imphal) and combined Net
profit of the RRBs during the FY 2021-22 is Rs. 184 Crore.
vi. The RRBs have shown a remarkable growth of 59.85 per cent in enrollment under
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
N. AWARDS AND ACCOLADES
Bank's effort have been recognized at various platforms. The Bank has been conferred
the following awards for initiatives taken in various fields for the year 2021-22:
• Special Commemorative Award FY' 2021 by NABARD Best PSU in the fields of
Agriculture Credit, Micro Finance, Financial Inclusion and Technology Adoption.
• Finacle Client Innovation Award by Infosys- Runner Up for PNB's path breaking
"Process Innovations".
• ASSOCHAM Runner Up under Digital service under PSB Merged Category
• EASE 3.0 AWARDS
o Runner up under Theme 3 Institutionalizing Prudent Banking
o Runner up under Theme 4 Governance and Outcome Centric HR
o Amongst Top 3 Banks in Improvement from March baseline
• The Asian Banker Financial Technology Innovation Award 2021 "Best
Core-banking Technology Implementation.
• Rajbhasha Kirti Award for the year 2020-21, promoting Official language Hindi.
• 2nd highest percentage of digital payment Transactions "Utkarsh
Puraskar" Digi-Dhan Award 2019-20 by Ministry of Electronics & Information
Technology
• 2nd Best Bank in SHG Credit Linkage under NRLM scheme by Ministry of
Rural Development (MoRD).
• 1st position amongst peer banks under Agriculture Infrastructure Fund
(AIF) campaign launched by Ministry of Agriculture and Farmers Welfare.
• 3rd Position for its performance in implementing the Government
scheme PMEGP for 2020-21.
• Best MSME Bank (PSU) in 8*h MSME Excellence Awards by ASSOCHAM
• Felicitated by Pension Fund Regulatory and Development Authority (21.12.2021)
for contribution towards NPS Diwas (01.10.2021).
• "Global Banking & Finance Awards 2021" in the category
"Initiative Core Amalgamation" jointly with M/s Infosys.
• Award of Excellence in Campaign Atal Pension Yojana (APY) Leadership Capital
launched by Pension Fund Regulatory & Development Authority (PFRDA)
• Dr. Ambedkar Business Excellence Awards under the Category "Most
Significant Lender Supporting SC Entrepreneurs" by Ministry of Social Justice and
Empowerment.
O. FUTURE BUSINESS PLAN OF THE BANK
Bank has been able to survive in all the tough conditions successfully with
well-defined strategy. Bank during the year continued to provide superior banking
experience to its customers. Bank also successfully completed its amalgamation exercise
through smooth integration of people and processes within timeframe.
There has been immense opportunities awaiting the Banking sector going forward. First
of all the Bank will keep its focus on the diversified credit growth as it is expected
that the huge demand will erupt from MSME and Retail segment in FY 2022-23. With the
expected pick up in the credit growth, interest income may also see an uptick. CASA growth
is also one of the areas where the Bank will remain focused for higher profitability. The
Bank would scale up collaborations and partnerships for better results.
Asset quality will continue to be the buzzword for us and the Bank will take up action
oriented plans to keep the NPAs low so that the capital remains available for business
growth. Strong recovery measures will be driving the improvement in Asset quality for FY'
2022-23 as well. The thrust area of the Bank would be credit monitoring through proactive
steps on the basis of various early warning signals and address the stress upfront.
On Digitalization front, Bank will continue to build upon strong technological
platforms and innovate to provide convenient banking services to all the customers
especially tech savvy ones. Bank will tread the path with well delineated strategy so that
the potential of the branches may be utilized to the maximum.
Bank considers its HR as its most important resource to drive the business growth and
will continue to up skill it for holistic HR Transformation. Further, Customer Service and
Customer convenience to be on the priority and Bank will ensure that customer needs are
responded promptly and in a positive manner. It shall be the endeavor of the Bank to
remain a customer friendly bank with minimal grievances.
P. BOARD OF DIRECTORS
Board of the Bank compromises of 11 Directors including 05 whole time Directors i.e.
One Managing Director & CEO and four Executive Directors as on 31st March, 2022.
During the Financial Year 2021-22, the following changes took place in the composition of
Board of Directors:
• Shri Agyey Kumar Azad completed his tenure as Executive Director on 30.04.2021.
• Dr. Asha Bhandarker, Shareholder Director, completed her tenure on 11.09.2021.
• Dr. Rekha Jain, has been elected as Shareholder Director on the Board of Bank
w.e.f. 12.09.2021.
• Shri Kalyan Kumar has been appointed as Executive Director on the Board of Bank
w.e.f. 21.10.2021.
• Shri Pankaj Joshi has been appointed as Part time NonOfficial Director on the
Board of Bank w.e.f. 21.12.2021.
• Shri Sanjeev Kumar Singhal has been appointed as Part time Non-Official Director
on the Board of Bank w.e.f. 21.12.2021.
• Shri CH S.S. Mallikarjuna Rao completed his tenure as MD & CEO on
31.01.2022.
• Shri Atul Kumar Goel has been appointed as MD & CEO w.e.f. 01.02.2022.
• Shri Vivek Aggarwal, RBI Nominee Director, completed his tenure on 25.02.2022.
• Shri Anil Kumar Misra has been appointed as RBI Nominee Director on the Board of
Bank w.e.f. 25.02.2022 (After Business Hours).
The Board wishes to place on record its appreciation for the valuable contribution made
by Shri Agyey Kumar Azad (Executive Director), Dr. Asha Bhandarker (Shareholder Director),
Shri CH S.S. Mallikarjuna Rao (MD & CEO) and Shri Vivek Aggarwal (RBI Nominee
Director).
Q. DIRECTORS' RESPONSIBILITY STATEMENT
The Directors confirm that in the preparation of the annual accounts for the year ended
31st March, 2022:
• The applicable Accounting Standards have been followed along with proper
explanation relating to material departures, if any;
• The accounting policies, framed in accordance with the guidelines of the Reserve
Bank of India, were consistently applied;
• 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 for the year ended 31st March, 22.
• 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;
• The accounts have been prepared based on the principle of "going
concern".
R. ACKNOWLEDGEMENT
The Board expresses thanks to the Government of India, Reserve Bank of India,
Securities and Exchange Board of India, Stock Exchanges, Bank's customers, Public and all
other Stakeholders for valuable support, continued patronage and confidence reposed in 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 Director & CEO.