Share Department, Finance Division, HO Plot No.

4 Sector 10, Dwarka, New Delhi-ll0075

Tel Nos : 011-28044866E-mail: hosd@[Link]

Scrip Code : PNB Scrip Code : 532461

The Asstt. Vice President The Dy General Manager
National Stock Exchange of India Bombay Stock Exchange Limited
Limited 1st Floor, PhirozeJeejeebhoy Towers,
"Exchange Plaza" Dalal Street,
Bandra - Kurla Complex, Bandra (E) Mumbai - 400001
Mumbai - 400051
Date: 29.05.2019

Dear Sir (s)

Reg: Analyst Presentation

In terms of Regulation 30 of SEBI (LODR) Regulations, 2015, Analyst

Presentation in respect of Financial Results in respect of Q4 & Full Year
2018-19 is enclosed please.

Thanking you

Yours faithfully,

~
(Ba161r Singh)
Company Secretary

Encls: as above

~ ~ : ~ "ffis;m-4, ~-10. 'GRQ>T. ~ ~-110b75 • ~: 011-28075000. 28045000 • ~: [Link]

Corporate Office: Plot No.- 4, Sector-10, Owarka, New Delhi-110075 • Telephone: 011-28075000, 28045000 • Website: [Link]
tiimli ~ tl;- <flt • 24 -ere- ~ 'fliIr If 'lIIlJl!iT ~ ! Punjab National Bank wtIc:omes)'ou to toll free 24 hours call canter :1800 180 222211800 1032222
PNB 2151
 FINANCIAL RESULTS
Q4 & FULL YEAR 2018-19 …the name you can BANK upon!!!

ANALYST PRESENTATION

Best PSB
under
EASE Banking Reforms index
Follow our Official Page ‘pnbindia’
125th Year of Service to the Nation ......the name you can BANK upon!!!
 125 Years of service to the Nation
PNB, a 125 years old institution has adapted to become one of the leading financial entities in the country.
Over this long journey, Bank has successfully surmounted varied challenges and emerged stronger every time.
The inherent strengths of the bank are…
125 Years of banking Experience

Resilient Business PAN India Presence

Model

Trust of 11 crore +
High CASA Share customers

Dedicated Workforce
Over 24000 Touch Points:
of more than 70000
6989 Branches, 9255 ATMs, 8143 BCs

Forbes Media ranked PNB at #2 among PSB in ranking based on Consumer endorsement on general satisfaction,
Key attributes such as Trust, Fees, Digital service and financial advice. 2
125th Year of Service to the Nation ......the name you can BANK upon!!!
 PNB: A Trend Setter in Banking Industry
Pre Partition... Recent Past…
1904 1993 2002 2009 2011 2018
1894 First bank to
First ever merger First Bank to
“Saga of PNB advertised First get approval for First PSB to
between two implement
Excellence”. for Probationers nationalized Bank migration to conclude
Nationalized bilingual Total
PNB started to implement an “The entire
Branch Automation.
Operations on 1944 banks Merger of
Enterprise-wide Standardized promotion

… 2003
12th April, 1895 First of its kind New Bank Approach”
Data Warehouse process by 31st
at Ganpatrai Road, ‘Teller’ system of India. under
Developed an to integrate Data. March
Anarkali Bazar, introduced at Operational Risk
Lahore. Nila Gumbad
2001 in-house software
program on
branch.
First Bank to adopt
ISO Quality “Techniques for Risk 2010 parallel run 2019
basis.
1895 1947 Management Assessment of Credit
First bank to have Adjudged best
An Auditor was
appointed long ‘Symbol of Trust’
norms widely. & for which the Bank
obtained Copyright
the largest 2012 PSB in First
A Preventive Finacle CBS First Bank to ever PSB
before it became Moved from Lahore Registration from GoI
Monitoring setup having Real introduce reforms Index-
statutory. It laid to Delhi and kept
down the loaning trust of displaced
System {PMS} for
monitoring the
2007 Application Online EASE Award
account holders by First PSB to Cluster Risk Based 2019.
powers of the conduct of
Board and the repaying deposits on Launched Internal
accounts and to RTGS –online Audit system
managers and the basis of whatever
trigger early warning through its Internet {e-RBIA}
type of securities evidence they could
signals Banking
acceptable. produce.
was implemented 3
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Content

1 Highlights: Financial Year 2018-19

2 Business Segment Performance
3 Asset Quality
4 Financials
5 Capital Optimization
6 Digitalization & Financial Inclusion
7 Awards & Accolades
8 Way Forward

4
125th Year of Service to the Nation ......the name you can BANK upon!!!
Highlights
Financial Year 2018-19

5
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Accelerated Growth

₹ 1,00,000 Crore
increase in

Domestic Business
during the Financial year 2018-19

6
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Our Journey in Transformation - Actuals v/s Target …(1/2)
A transformational exercise for Business Excellence with greater Efficiency, Productivity and Profitability was
undertaken under MISSION PARIVARTAN, where each alphabet defined the focus area of Bank
P
A
P:•Profit
Growth in operating profit 26% YoY.
• Growth in Core operating profit 69% YoY.
R
A: Asset Quality
• 88% fresh sanctions rated A and above
I • Credit RWAs density at 48.7%; reduced from 64.9% in Mar’17.
V
R: Recovery
A • Gross Recovery of ~₹ 20000 cr in FY’19 compared to ₹ 9666 of Gross Recovery in FY18.
• GNPA reduced to 15.50% from 18.38%, NNPA reduced to 6.56% from 11.24%.
R
i: Increase Credit
T • Healthy growth of 14% in Gross Domestic Credit. System’s Growth 13.2%.
• Gross domestic credit increased by ~₹ 60681 cr. in the year.
A V:Vigilant
• Strengthened Procedures and Controls: Created CLPC, SAMV, CBOTF
N • Integrated softwares, System based Checking and Monitoring implemented. 7
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Actuals v/s Target …(2/2)
A: Alternate Delivery Channels
P • One for all, all for one: PNB One
• 60% Digital transaction shifted to ADC in saving account.
A
R:Retail Business
R • Retail loans : 21% YoY growth.
• Innovative differentiated liability products i.e. Sugam Plus Scheme:111, 222, 333,
I 444 & 555

V
T: Turn around Time
• Technology and Digital initiatives; online Lead generation
• Monitoring of TAT at each level
A
R A: Ambience
• Digital HUT: set up new generation Branch.
• Improvement: Ambience of branches and ATMs.
T
N: New Relationships:
A • Over 45 lakh new customers added during year
• 32 lakh new Saving customers added in year
N
8
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Other Highlights

₹ 11.45 Lakh cr. 43.51% ~₹ 17700 cr. ₹ 7.74 Lakh cr.

Gross Domestic Business CASA Share Mobilized in Saving Deposits Assets Size
YoY: 11.1% during the year

2.59% 37.1% 74.5% ₹ 50986 cr.

Dom. Net Interest Margin Growth in Net Interest Provision Coverage Ratio Decline in
increase by 17 bps YoY Income in Q4 RWAs YoY

9
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Business

Gross Domestic Business

Bank added ₹ 1 lakh crore to the Domestic Business with YoY
growth of 11.1%

Gross Global Business

Business crossed 11.8 Lakh Cr.

CD Ratio:
At 67.79%, improved by 99 bps over Dec’18

Customer base
Added more than 45 Lakh customers during the year to
reach 11.5 crore.
10
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Business Growth Trend
Crore
GROSS BUSINESS AVERAGE GROSS BUSINESS
1081515
1039033
1182224
1113523 958884
1063455 888346
985826

627144
676030 613970
642226 561543
621704 509869
553051

506194 425063 454371

432775 441751 471297 378477 397341

Mar'16 Mar'17 Mar'18 Mar'19 Mar'16 Mar'17 Mar'18 Mar'19

Advances Deposits Business Advances Deposits Average Gross Business
11
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Deposits

Domestic Deposits
Increased by ₹ 54149 cr YoY growth : 9.0%

CASA share
at 43.51% improved by 16 bps over Dec’18

Saving Deposits
Increase of more than ₹ 17700 crore in Saving Deposits in the year
with 8.0% YoY growth.

Current Deposits:
YoY growth 9.9%.
12
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Improving CASA
Crore
Saving Deposit (₹ Crore )
240665 CASA Share %

231116 43.51%
227853 43.35%
221156

42.99%

June'18 Sep'18 Dec'18 Mar'19

42.57%
Current Deposits (₹ Crore)
42740 44375
39874
34723

June'18 Sep'18 Dec'18 Mar'19

June'18 Sep'18 Dec'18 Mar'19 13

125th Year of Service to the Nation ......the name you can BANK upon!!!
 Credit

Domestic Credit
Growth of 14.1% YoY. System’s credit growth : 13.2%

Retail Credit
Retail credit growth of 21.7% YoY

Agriculture Credit:
Growth of 17.8% YoY

Increase high rated portfolio

A and Above rated fresh sanctions accounts increased to 88%.

14
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Increasing Domestic Credit
Crore

Gross Domestic Advances YoY Growth % Average Gross Domestic Advances YoY Growth %
550 000 500 .00% 450 000

427101 0.0 %

14.10% 14.65%
500 000 490975 0.0 0%

8.9%
9.84% 400 000

5.6%
-1000.0 %

450 000

3.13% -500.00 % 372525

430294

391750
350 000

342111
400 000 -1000.0 0%

379849
-2000.0 %

323821

350 000 -1500.0 0%

300 000

-3000.0 %

300 000 -2000.0 0%

250 000

-4000.0 %

250 000 -2500.0 0%

200 000 -3000.0 0% 200 000 -5000.0 %

Mar'16 Mar'17 Mar'18 Mar'19 Mar'16 Mar'17 Mar'18 Mar'19

15
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Small Ticket Advances – RAM
Crore

Retail Agriculture MSME

92727 81500 86899 84054
81592
76188 66675 69207
65982

Mar'17 Mar'18 Mar'19 Mar'17 Mar'18 Mar'19 Mar'17 Mar'18 Mar'19

Composition of Retail Advances Performance under National Goals

National Mar’19
Components Mar’18 Mar’19 YoY % Parameter
Goals % Ach. % O/S
Total Retail 76188 92727 21.7 Priority Sector* 40 41.9 178644

Total Agriculture Adv.* 18 18.4 81500

Housing 41458 51980 25.4
Small & Marginal Farmers* 8 8.4 36826
* %age of ANBC 16
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Some Initiatives to boost RAM

1 Retail 2 Agriculture 3 MSME

Developed in house Centralized Online mode for generation of Contactless loan: PNB along with
Loan Appraisal & Processing business through R-SETI/FTC is SIDBI & 4 other PSBs invested in
System (CLAPS) covering all being promoted. the psbloansin59minutes
Retail Loans. platform to provide contactless
Portal/Mobile APP for Agriculture loan to MSME borrowers.
New Schemes: Officers launched for smooth
PNB Doctors Delight: A coordination. Credit Proposal Tracking System :
personal Loan Scheme for MSME Applicants can e-track the
Doctors. LAPS (Lending Automation status of their applications at
PNB Sugam Plus and PNB Processing System) for objective Bank’s corporate website
Uttam: 111, 222, 333, 444 assessment of agriculture ([Link]).
& 555 a limited period fixed proposals.
deposit scheme offering Bank has launched e-TReDS
preferential rate of interest. scheme for online discounting of
trade receivable of MSME RMCs

Developed a portal for in principal

approval for the loans upto Rs
1lakh which will be available on
bank’s website 17
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Increasing High Rated Portfolio
External Rating of Fresh Sanctions (%) Risk Weight wise Portfolio

87.9 75%
79.9
65%
60%
62.9

40%
35%

25%
19.8 17.3
12.7
7.4 9.4
2.7

FY'17 FY'18 FY'19

Mar'17 Mar'18 Mar'19

A & Above BBB & Below Unrated Exposure after risk mitigation Below 100% >=100%

18
125th Year of Service to the Nation ......the name you can BANK upon!!!
Improving Asset quality: Consistent Reduction in NPA

Recovery
Gross Recovery of more than ₹ 20,000 crore in FY19 against ₹ 9,666
in FY18

NNPA
NNPA ratio declined to 6.56% in Mar’19 from 11.24 in Mar’18

GNPA
GNPA ratio declined to 15.50% in Mar’19 from 18.38% in Mar’18

Provision Coverage Ratio

PCR improved to 74.50% in Mar’19 from 58.42% in Mar’18.
PCR under NCLT : 85.2%.
19
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Consistent Improvement in Asset Quality
Crore
GNPA NNPA NNPA Amt.
GNPA Amt. 11.24%
18.38% 18.26% 19. 00% 550 00

10.58% NNPA % 12. 00%

890 00

GNPA %
86620
18. 50%

500 00
48684 8.90% 8.22%
43872
10. 00%

870 00

17.16%
18. 00%

17. 50%
450 00
6.56%
82889 38279
850 00 8.0 0%

16.33% 17. 00%

35675
81251 15.50%
400 00

830 00

16. 50% 6.0 0%

30038
350 00

810 00 16. 00%

790 00
77733 78473 15. 50%
300 00
4.0 0%

15. 00%

2.0 0%

250 00
770 00

14. 50%

750 00 14. 00% 200 00 0.0 0%

Mar'18 June'18 Sep'18 Dec'18 Mar'19 Mar'18 June'18 Sep'18 Dec'18 Mar'19

STRESSED ASSETS PCR %

Stressed Assets Amt.
74.5%
19.49% 19.14% 66.9% 68.9%
950 00

Stressed Assets % 20. 00%

61.8%
91855 17.89% 19. 00%

58.4%
900 00

86903 16.84% 16.01% 18. 00%

850 00
84732 17. 00%

16. 00%

80167 81057 15. 00%

800 00 14. 00%

13. 00%

750 00 12. 00%

11. 00%

700 00 10. 00%

Mar'18 June'18 Sep'18 Dec'18 Mar'19 Mar'18 June'18 Sep'18 Dec'18 Mar'19
20
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Exposure to NCLT accounts
Crore
O/S Amount Provision Coverage (%)

79.0% 91.3% 94.5% 85.2% 85.2%

450 00

0.0 %

400 00

40314
350 00
-2000.0 %

300 00

-4000.0 %

250 00

200 00
24971
-6000.0 %

150 00

100 00

-8000.0 %

500 0

8172
4788 2383
0 -10000 .0%

RBI 1 List RBI 2 List Account Filed by PNB Accounts Filed by Other Total
and Admitted Banks / FI / Operational
Cresitors

21
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Credit Growth and Slippages
Crore

Gross Domestic Advances Fresh Slippages

490975
40672

30377

430294 16616

1580
5130

Mar'18 Mar'19 Q4'FY18 Q4'FY19 FY'18 FY'19

22
125th Year of Service to the Nation ......the name you can BANK upon!!!
Improving Credit quality: Risk Rating

RWAs
Reduction in RWA by ₹ 50985 crore YoY

Domestic Credit
Domestic Credit exposure increased by ₹ 51788 crore
Domestic credit RWA declined by ₹ 24782 crore

RWA density
RWA density has improved to 48.72% in Mar’19 from 64.88%
Mar’17.

Rating
Fresh Sanctions with external rating A and above increased by 8%
on YoY basis to reach 87.9%.
23
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Capital Optimization and Conservation
Crore
Credit RWA Density: Domestic RWAs vis-a-vis Advances

Increase in Gross Domestic credit Decrease in domestic credit

Decrease in Domestic Credit RWA Exposure by ₹ 51788 crore(YoY) RWA by ₹24782 crore(YoY)
density by 1616 bps over Mar’17

Domestic Credit Domestic Credit RWA

64.88%
586127
322985
58.09%
310390
534339

48.72% 497863 285608

Mar'17 Mar'18 Mar'19 Mar'17 Mar'18 Mar'19 Mar'17 Mar'18 Mar'19

24
125th Year of Service to the Nation ......the name you can BANK upon!!!
Business Segment Performance

25
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Business Performance As at 31 st March’19
Crore

YoY Growth %
Sl. Parameters Mar’17 Mar'18 Mar’19
Last Year This Year
1 Gross Domestic Advances 391750 430294 490975 9.8 14.1
Overseas Advances 50001 41003 15220 -18.0 -62.9
Gross Global Advances 441751 471297 506194 6.7 7.4
Net Advances 419493 433735 458249 3.4 5.7

2 Domestic Deposits 565573 600387 654536 6.2 9.0

Overseas Deposits 56131 41839 21494 -25.5 -48.6
Global Deposits (1+2) 621704 642226 676030 3.3 5.3
CD Ratio 67.47% 67.54% 67.79%

3 Gross Domestic Business 957323 1030681 1145511 7.7 11.1

Overseas Business 106132 82842 36714 -21.9 -55.7
Gross Global Business 1063455 1113523 1182224 4.7 6.2

26
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Business Performance (Daily Average Basis)
Crore

YoY Variation
Sl. Parameters Mar’17 Mar'18 Mar’19
Amt. %
1 Gross Domestic Advances 342111 372525 427101 54577 14.7
Gross Overseas Advances 55230 52538 27270 -25268 -48.1
Gross Global Advances 397341 425063 454371 29308 6.9

2 Domestic Deposits 506313 561391 601091 39699 7.1

Overseas Deposits 55230 52538 26053 -26485 -50.4
Global Deposits (1+2) 561543 613929 627144 13215 2.2
CD Ratio 67.1% 65.5% 66.1%

3 Gross Domestic Business 848424 933916 1028192 94276 10.1

Gross Overseas Business 110460 105075 53323 -51753 -49.3
Gross Global Business 958884 1038992 1081515 42523 4.1

Saving Deposits 185805 212606 223419 10814 5.1

27
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Business Performance: Deposits
Crore

YoY Growth %
Sl. Parameters Mar’17 Mar'18 Mar’19
Last Year This Year

1 Domestic Deposit 565573 600387 654536 6.2 9.0

2 Overseas Deposit 56131 41839 21494 -25.5 -48.6

3 Global Deposit 621704 642226 676030 3.3 5.3

4 CASA Deposit 260016 263247 285040 1.2 8.3

5 Current Deposit 45853 40374 44375 -11.9 9.9

6 Saving Deposit 214163 222873 240665 4.1 8.0

CASA Share Domestic (%) 45.94 43.80 43.51

28
125th Year of Service to the Nation ......the name you can BANK upon!!!
Profitability

29
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Interest Income & Expenditure
Crore

Q4’ Q4’ YoY Variation YoY

Sl. Parameters FY18 FY19
FY 18 FY 19 Amt. Gr. % Gr. %

1 Interest Income (2+3+4) 11385 12836 1451 12.7 47996 51310 6.9

2 Interest on Advances 7411 8811 1401 18.9 31833 35086 10.2

3 Interest on Investments 3470 3543 72 2.1 13947 14106 1.1

4 Other Interest Income 504 482 -22 -4.4 2216 2118 -4.4

5 Total Interest Paid (6+7+8) 8321 8635 314 3.8 33073 34154 3.3

6 Intt. Paid on Deposits 7572 8330 758 10.0 30456 32218 5.8

7 Intt. Paid on Borrowings 253 135 -118 -46.6 553 552 -0.1

8 Others 497 170 -326 -65.7 2065 1384 -33.0

9 Net Interest Income 3063 4200 1137 37.1 14922 17156 15.0

30
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Operating Profit
Crore

Q4’ Q4’ YoY Variation YoY

Sl. Parameters FY18 FY19
FY 18 FY 19 Gr. %
Amt. Gr. %
1 Interest Income 11385 12836 1451 12.7 47996 51310 6.9

2 Interest Expenses 8321 8635 314 3.8 33073 34154 3.3

3 NII (Spread) (1-2) 3063 4200 1137 37.1 14922 17156 15.0

4 Other Income 1561 1889 328 21.0 8881 7377 -16.9

5 Operating Income (3+4) 4624 6090 1465 31.7 23803 24534 3.1

6 Operating Expenses 5072 3229 -1843 -36.3 13509 11538 -14.6

6a Employee Benefits (AS-15) 2326 508 -1818 -78.2 3512 1143 -67.4

7 Operating Profit (5-6) -447 2861 3309 - 10294 12995 26.2

31
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Operating Profit from Core Operations (Excluding Treasury)
Crore

Q4’ Q4’ YoY Variation YoY

Sl. Parameters FY’ 18 FY’19
FY 18 FY 19 Gr. %
Amt. Gr. %

1 Operating Profit -447 2861 3309 - 10294 12995 26.2

2 Trading Profit 216 252 35 16.4 3257 1093 -66.4

3 Core Operating Profit (1-2) -664 2609 3273 - 7038 11903 69.1

32
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Provisions
Crore

Q4’ Q4’ YoY Variation YoY

Sl. Parameters FY18 FY19
FY 18 FY 19 Amt. Gr. % Gr. %

A Operating Profit -447 2861 3309 - 10294 12995 26.2

1 Provision towards NPAs 16203 9154 -7049 -43.5 24453 24435 -0.1

Standard Advances
2 -1793 223 2016 - -2197 208 -
incl. Std. Restructured
3 Depreciation on Investment 626 147 -479 -76.5 2027 1641 -19.1

4 Income Tax -7384 -2460 4923 - -7292 -5370 -

5 Others 5318 548 -4770 -89.7 5587 2058 -63.2

B Total Provision 12970 7611 -5359 -41.3 22577 22971* 1.7

C Net Profit -13417 -4750 8667 - -12283 -9975 -

*Includes provisions of ₹ 7167 crore for one off event

33
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Cost & Yield Ratios

Q4’ Q4’
Sl. Parameters FY 18 FY 19
FY 18 FY 19

1 Cost of Deposit * 5.09 5.28 5.25 5.24

2 Cost of Fund 4.17 4.24 4.31 4.29

3 Yield on Advances* 6.95 7.73 8.11 8.03

4 Yield on Investment 7.27 7.40 7.35 7.39

5 Yield on Fund 5.70 6.30 6.26 6.44

6 Net Interest Margin* 1.90 2.44 2.42 2.59

*Domestic
34
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Profitability Ratios
Q4’ Q4’ YoY YoY
Sl. Parameters FY 18 FY 19
FY 18 FY 19 Change Change

1 Opt. Profit to AWF Negative 1.40 1.63 1.34 1.63 0.29

2 Opt. Exp. To AWF 2.54 1.58 -0.96 1.76 1.45 -0.31

3 Cost to Income Ratio* 61.50 49.07 -12.43 43.81 45.74 -1.59

4 Book Value per Share [₹] 135.4 89.5 -45.95 135.4 89.5 -45.95

5 Return on Assets Negative Negative - Negative Negative -

6 Return on Net worth Negative Negative - Negative Negative -

7 Earnings per share [₹] Negative Negative - Negative Negative -

* Excluding ‘Recovery in Written-off accounts’ and ‘provisions made under AS-15’.

35
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Treasury Operations
Crore

Sl. Parameters Mar’17 Mar’18 Mar’19

1 Domestic Investment 183297 197328 200632

SLR 144417 145271 140391

Non SLR 38880 52057 60241

Held To Maturity 116117 119439 135102

Available For Sale 65606 77839 65280

Held For trading 1574 50 250

Investment by
2 4841 6081 5493
Overseas Branches

3 Global Investment 188138 203409 206125

36
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Treasury Highlights

Core Trading Profit Increase in Domestic Increase in Yield on Decrease in AFS

Increased by Turnover by 32.21% investment from 7.27 duration from 4.29 to
17% in Q4’19 YoY to 7.40 (QoQ) 3.44 (YoY)

Core Trading Profit at Interest Income on Yield on Investment AFS Duration at

₹ 251.58 Cr. Investment at at 7.40 3.44
₹ 3501.51 Cr.

37
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Cost & Yield Ratios (FY)

Yield on advances* Yield on Funds Yield on Investment

6.26 6.44
8.11 8.03
7.35 7.39

FY'18 FY'19 FY'18 FY'19 FY'18 FY'19

Cost of Deposit* Cost of Funds NIM*

4.31 4.29 2.59
5.25 5.24 2.42

FY'18 FY'19 FY'18 FY'19 FY'18 FY'19

* Domestic 38
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Cost & Yield Ratios (Q4)
Yield on Advances* Yield on Funds Yield on Investment
7.73 6.30 7.27 7.40
6.95 5.70

Q4FY18 Q4FY19 Q4FY18 Q4FY19 Q4FY18 Q4FY19

Cost of Deposit* Cost of Funds NIM*

5.28 4.24
5.09 4.17 2.44
1.90

Q4FY18 Q4FY19 Q4FY18 Q4FY19 Q4FY18 Q4FY19

* Domestic 39
125th Year of Service to the Nation ......the name you can BANK upon!!!
Asset Quality

40
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Improving Asset Quality
Crore

Sl. Parameters Mar’18 Mar’19 Q1FY19 Q2FY19 Q3FY19 Q4FY19

1 NPA as at the beginning of Year 55370 86620 86620 82889 81251 77733
2 -Cash Recovery 4443 12165 5519 2321 2967 2518 Rs. 20189 Crore
3 -Up-gradation 1174 3633 2926 1418 1457 1064
4 -Write Off 7407 12253 2648 3543 3082 2981
5 Total Reduction (2+3+4) 13025 28051 11094 7282 7505 6562
6 Fresh Addition 44274 19904 7363 5644 3988 7302
-Fresh slippages 40672 16616 5250 4476 3324 6710
-Debits in existing NPA A/cs 3602 3288 2113 1167 664 592
7 Gross NPAs at end of the period 86620 78473 82889 81251 77733 78473

8 Eligible Deductions incl. Provisions 37936 48435 39016 42972 42058 48435

9 Net NPAs 48684 30038 43872 38279 35675 30038

10 Recovery in written-off debt A/Cs 981 1808 508 377 378 545

11 Gross NPA (%) 18.38 15.50 18.26 17.16 16.33 15.50

12 Net NPA (%) 11.24 6.56 10.58 8.90 8.22 6.56
13 Provision Coverage Ratio (%) 58.42 74.50 61.80 66.92 68.85 74.50
41
125th Year of Service to the Nation ......the name you can BANK upon!!!
Capital and Shareholding

42
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Capital Adequacy (Basel III)
Crore

Sl. Parameters Mar’18 Mar’19

1 Tier I 32267 30309
Common Equity 26971 25107
Additional Tier I 5296 5202
2 Tier II 9413 9057
3 Total (Tier I+II) 41680 39366
4 Risk-weighted Assets 453070 404622

1 Tier I % 7.12 7.49

Common Equity % 5.95 6.21
Additional Tier I % 1.17 1.29
2 Tier II % 2.08 2.24
3 Total (Tier I+II) % 9.20 9.73

43
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Share holding Pattern: 31.03.2019
Non-
institutions;
FIIs; 3.4% 1.5%
Mutual Funds;
4.6%
FIs/Banks/Insur
ance; 8.5%

Govt. of India;
75.4%

Successful mobilization under ESPS with 90% subscription by staff, raised ₹ 649 crore
44
125th Year of Service to the Nation ......the name you can BANK upon!!!
Digitalization & Financial Inclusion

45
125th Year of Service to the Nation ......the name you can BANK upon!!!
Digitalization & Financial Inclusion

Internet Banking and Mobile Banking

22% increase in Internet Banking users and mobile Banking User

Debit Card and UPI Transaction

Debit Card base of 7.4 crore, Increase by 433% over Mar’18

Credit Card
2nd PSB in terms of No. of O/S Credit Card with the base of 3.3 crore.

PMJDY Account Avg. Balance:

Average balance in ₹ 2397 in PMJDY accounts, increased by 24% on YoY
46
125th Year of Service to the Nation ......the name you can BANK upon!!!
 PNB One: ‘One for All’ ‘All for One’
Unified Mobile application with advanced features

Interactive Scan and Pay Simplified Value Added Pay Available in Manage Debit Bio-metric
Interface through QR Dashboard to Services with Bills/Recharge English and and Credit authentication
Code manage key Complaint Hindi Card for greater
Banking Service Security
Activities Management
47
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Expanding Digital Footprints
UPI txns Debit Card Base
Internet Banking
Users Crossed
14.92 Crore Users Crossed
YoY: 433% 7.42 Crores
YoY: 16% 153.99 Lacs
YoY: 22.0%

Mobile Banking Credit Card

Users Crossed Total issued
125.26 Lacs 334113
YoY: 21.9%

PoS Bharat QR Code

PNB E-Rupaya
Total Installed
Digital Solution in Total Installed
71370
YoY:25.77% Villages without 38,569
internet
connectivity

1st in No. of Debit cards issued and 2nd position in Credit cards issued among all Nationalized Banks*
*As per latest report(Mar’19) of RBI
48
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Rapidly increasing Digital Transaction
IBS & MBS Users (in Lac) Transactions (in Lac)
UPI Transactions Debit Card Transactions
Mobile Banking users
Internet Banking users 1541
1492
153.9 1304

126.2 125.3
280

102.7
97.7 Mar'18 Mar'19

69.9 ATM Daily Average Hits

130

112

Mar'17 Mar'18 Mar'19

Mar'18 Mar'19 49
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Dominant Pan India Presence
No. of Branches / No. of ATMs
114/150 6989 / 9255
Population Group wise Break up of Dom.
352/394 branches
720/713 37/42
261/389
3/2
543/593
238/736 18%
3/3
1356/1776 69/90 37%
540/713 603/683 1/1
13/8

Rural 20%
134/204 5/6
292/377
196/152 318/487
Semi-Urban
133/236 3/5 Urban 25%
1/1
1/1 181/252 Metro
1/2
262/399
80/94

7/7
62/90
89/105
2/2 Branches BCs ATM
4/4
195/260 6989 8143 9255
171/208

50
125th Year of Service to the Nation ......the name you can BANK upon!!!
Financial Inclusion : Profitable Business Proposition
PMJDY Accounts PMJDY Avg. Balance
No. in Lac Amt. in ₹
198 2397
183
163 1828 1928

Mar'17 Mar'18 Mar'19 Mar'17 Mar'18 Mar'19

No. of DBT Txns DBT Amount 11234

No. in Lac Amt. in ₹ Cr
2858
1974 6430
1177 3359

Mar'17 Mar'18 Mar'19 Mar'17 Mar'18 Mar'19

No. in Lac
Sl. Jansuraksha Schemes Enrollment Up To Mar’18 Mar’19
1 Pradhan Mantri Jeevan Jyoti Bima Yojana 13.9 15.7
2 Pradhan Mantri Suraksha Bima Yojana 65.5 69.6
3 Atal Pension Yojana 3.1 4.1 51
125th Year of Service to the Nation ......the name you can BANK upon!!!
 CSR : Socially Responsible Bank
CSR is at the core of PNB’s Corporate Business Initiatives in CSR Activities
Strategy and the Bank makes following commitments:

 Farmers Training Centers (FTCs): Bank has established 12 Farmers Training

Sustainability Centers. The FTCs are providing free of cost training on agriculture & allied
activities .FTCs have imparted training to 14,19,292 persons by conducting
46185 training programs.
Green Initiatives Corporate
Volunteering  Rural Self Employment Training Institutes (RSETIs): There are 55 (RSETIs) (
under aegis of MoRD) and 2 Rural Development Centre ( PNB initiatives)
are operating in India.

 Financial Literacy Centers: Bank has Operationalized 105 Financial Literacy

Health & Social Centers. Total number of enquiries made during the year is 330684. Total
Sanitation Investments 12188 seminars/ programmes/ Camps conducted during the year.

 Schemes for empowerment & upliftment : PNB Ladli, PNB Vikas, PNB Ujala,
Mahila Kaushal Vikas Yojna , PNB Kisan Balak Shiksha protsahan Yojana
Adjudged Best Bank for Corporate
Social Responsibility by Asia Money

52
125th Year of Service to the Nation ......the name you can BANK upon!!!
 HR Initiatives
HR as a Strategic Business Partner

Completion of Promotion process from Scale I to Scale VII and declaration of Result by
31.03.2019

A step towards objectivity & transparency, a New system for performance Management
introduced for officers in the Bank enabling Greater clarity of roles and expectations and clear
identification of contribution of an individual and team towards growth of Business units of the
organization

Capacity of 2.10 Lakh Training Man Days per annum with focus on Functional , Managerial &
Behavioral aspects along with training in form of foreign exposure for outstanding performers in
various field.

Profiling talent to enhance performance by way of Optimum placement of officers through

informed decisions on the basis of extensive HR analytic exercises considering employee’s
skills, educational background, competency level, functional areas & experience

53
125th Year of Service to the Nation ......the name you can BANK upon!!!
Awards & Accolades

54
125th Year of Service to the Nation ......the name you can BANK upon!!!
PNB: Best PSB under Ease Banking Reforms

Of Total 6 themes excelled in

1. Credit Off-take: Winner
2. Customers Responsiveness : Winner
3. Responsible Banking’ : Winner
4. Deepening FI & Digitization. : Runner up

PNB maintains Numero Uno position in

Mar’19 also
55
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Awards for Excellence

Rajbhasha Kirti Purashkar

Received from Hon. Vice President
Sh. M. Venkaiah Naidu
1st position in K shetra

IBA Banking Technology Awards 2019- Top Rankers Excellence Award

"Most Customer Centric Bank using Technology“ : Runner Up For Entrepreneurial Path-breaker 56
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Awards for Excellence

CISO Security Excellence Awards 2019

Business Today
Winner in Annual dynamic ‘Champion
Best bank in Financial Inclusion
CISO’ category

UIDAI, GoI Adhar Excellence Award

Asia Money 2nd Best Public Sector Bank for Total
Best Bank for Corporate Social Aadhar Generation and Update
Responsibility

SKOCH Order-of-Merit 2018 Awards:

Express Group for the BFSI Digital M Touch, Privileged Identity and Access
Innovation Award 2019 in the Management, Finacle 10.x Version
Enterprise Mobility Category Migration, ATM Switch - FIS Switch (IST
Version 7.7), Email Security and RSA
Security Analytics

NSDL Star Performer Awards 2018 ASSOCHAM Social Banking Excellence

Top performer in Account growth Rate Awards 2018
and New accounts opened Second Runner Up under Priority Sector
for Large Class
57
125th Year of Service to the Nation ......the name you can BANK upon!!!
Way Forward

58
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Mission Parivartan

Aligns Bank’s activities relating to 3 Ps i.e., People, Centralized Loan Processing Centers : 18 CLPC
Processes & Products more with the business strategy opened
& vision.

Product Revamping of Marketing Structure : Product

(Customer Centric to Customer Centric
Centric)

People Branch Rationalization Streamlining our

(Empower Footprints
& Inspire)

Process
(Simple, Quick
TAT, Secure) Stressed Asset Management Vertical for
Effective Monitoring, Recovery and Resolutions

‘Lead The Parivartan’ Portal – The platform offering

opportunity to all PNBians to Contribute as ideators. End to End Digitalization of Trade Finance
Operations
OVER 6000 IDEAS RECEIVED 59
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Data Analytics Centre
Bank has set up an in-house Data Analytics Centre over its large Enterprise wide Data warehouse, to realize
valuable business and optimize business modules.
Focus of Analytics Progress in Data Analytics:
To use Bank’s data for better Interest Income generated through
customer service conversion of Loan leads during FY
2018-19
Cross Selling and Up-selling of
Financial and Investment
Products Next Best Offer to Customers

Revamping Scoring Models- Housing

Digital Channel Optimization
Loan and Car Loan
Cost Optimization for Sentiments Analysis- To improve
Transaction and Customer’s customer services
Profitability
Customer Retention- HNI Customer,
Improvement of products and Activation of Dormant accounts,
services Predictive Analysis on churning of
MSME accounts
Further focus areas of Analytics:
Growth Share Matrix : Asset and Cluster Analytics : Next Best Delinquency Forecasting: Win Back Modeling
Liability products action marketing to target groups Retail Loan
60
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Way Forward…

Revamping Credit Processing with PAN India Roll Out of CLPCs.

Leveraging DATA Analytics and Artificial Intelligence for Business Growth and
profitability.

Algorithm based decision making in MSME loans.

Digitalization of credit processing as well as monitoring system.

Hub and Spoke model in Agriculture Finance.

Development of Centralized Agriculture Loan Processing System

Rationalization of branches by leveraging synergies in the network.

61
125th Year of Service to the Nation ......the name you can BANK upon!!!
Focus area FY20: ‘Year of Growth and Profitability’

Recovery in NPA Accounts

CAPITAL Conservation AND

OPTIMISATION OF RWAs

Rationalising Operations

Sale of Non Core Assets

LEVERAGING TECHNOLOGY FOR BUSINESS

GROWTH AND ENHANCED CUSTOMER EXPERIENCE
62
125th Year of Service to the Nation ......the name you can BANK upon!!!
 Disclaimer
This presentation has been prepared by Punjab National Bank (the“Bank”) solely for information purposes, without
regard to any specific objectives, financial situations or informational needs of any particular person. Except for the
historical information contained herein, statements in this release which contain words or phrases such as “will”, “aim”,
“will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”,
“contemplate”, “seek to”, “future”, “objective”, “goal”, “strategy”, “philosophy”, “project”, “should”, “will pursue” and
similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-
looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ
materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not
limited to our ability to successfully implement our strategy, future levels of non-performing loans, our growth and
expansion, the adequacy of our allowance for credit losses, our provisioning policies, technological changes,
investment income, cash flow projections, our exposure to market risks as well as other risks. Punjab National Bank
undertakes no obligation to update the forward-looking statements to reflect events or circumstances after the date
thereof.

Note: All financial numbers in the presentation are from Audited Financials or Limited Reviewed financials or based on
Management estimates.

63
125th Year of Service to the Nation ......the name you can BANK upon!!!
Thank You!

64
125th Year of Service to the Nation ......the name you can BANK upon!!!