RETAIL PNB - DIGITAL PNB

Presentation on Financial Performance

for the
Quarter/FY March 2016
1

Sl.

Contents

Slide No.

Landmarks

Key Strengths

Business

5-11

Credit

12-17

Investment

18-20

Profitability

21-31

Asset Quality

32-41

Capital Adequacy

42-44

Network

45-47

10 Share holding pattern

11 Way Forward

48
49-57

 Operating Profit of the Bank crosses landmark of Rs. 12000 cr.

(Over Rs. 10000 cr. for consecutive 5 years ).
Domestic Business has crossed Rs. 8.50 Lac Crore.
Global Deposits has crossed Rs. 5.50 Lac Crore.
CASA Deposits has crossed Rs. 2.00 Lac Crore, with CASA share in Total
Deposit crossing 40%. Savings Deposit: Rs. 1.70 Lac Crore.
Cost to Income Ratio declined from 46.74% in Mar15 to 44.94% in
Mar16.

PNB Key Strengths

Touch Points:
(6760
branches,
9463 ATMs
& 7996 BCs)

CASA share
consistently
at more
than 40%

121 Years
of
Banking
Customer
base of
approximate
9.5 cr.

Operating
Profit of over
Rs. 10000 cr.
for last 5
years

Consistently
higher
Share of
Small ticket
advances
constantly
up- 56% of
credit

NIM

PNB is ranked 1st among Nationalized Banks as the Most Trusted Bank according to The
Brand Trust Report 2016 launched by TRA .
4

Business Performance of the Bankduring Q4 & FY16

Business Performancevarious component

(Terminal level)

Sl.

Parameters

1 Global Business

Mar'15 Dec'15

(Rs. Cr.)

Mar'16

Mar16/Mar15
Amt.
(%)
83464
9.5

881913 941468

965377

Domestic Business

781128 827201

853254

72126

9.2

Overseas Business

100785 114267

112123

11338

11.2

11.43% 12.14%

11.61%

2 Global Deposits

501379 548532

553051

51672

10.3

3 Net Advances

380534 392937

412326

31791

8.4

4 CD Ratio [%]

75.90% 71.63%

74.55%

5 CASA Deposits

183780 197922

205583

21803

11.9

6 Savings Deposits

150200 161460

169426

19227

12.8

Share of Overseas Business (%)

Business Performancevarious component

(Daily Average basis)

Sl.

Parameters

1 Global Business

Mar'15

Dec'15

(Rs. Cr.)

Mar'16

Mar16/Mar15
Amt.

795314

865586 876676 81362

10.2

Domestic Business

710078

762524 772672 62594

8.8

Overseas Business

85236

103062 104004 18768

22.0

Share of Overseas Business [%]

10.72%

11.91%

11.86%

2 Global Deposit

453295

503830 509869 56574

12.5

3 Net Advances

342019

361756 366807 24788

7.2

4 CASA Deposit

157534

170354 173032 15498

9.8

5 Savings Deposit

138033

148995 151298 13265

9.6

Approach for Deposits Growth

Shift in focus during last 5 quarters in the following areas:

Emphasis on stable deposit growth (on daily average basis)
Least dependence on Bulk Deposits
Emphasis on low cost deposits CASA share consistently above 40%
Aggressive savings deposit mobilization growth 12.8%.
Conversion of zero balance a/cs under Financial Inclusion into value a/cs contributing to stable saving fund growth

CONSTANTLY GROWING CASA

% Share of CASA to Dom. Deposits

Increasing CASA Amt. in Cr. (yoy gr. %)

134129
(11.5%)

172872
(12.7%)

153344
(14.3%)

31499

183781
(6.3%)

(Rs. Cr.)

205583
(11.9%)

36.16%

36157

40.86%

41.31%

40.57%

7.96%

7.53%

7.41%

41.63%
7.32%

7.68%

33581

29874
28472
28.51%
105657

Mar'12

123470

Mar'13

141373

150200

Mar'14
CA
SF

Mar'15

32.90%

33.79% 33.15%

34.31%

169426

Mar'16

Mar'12

Mar'13

Mar'14
SF

Mar'15

Mar'16

CA

Bank has crossed landmarks of Rs 2 lakh Cr. in CASA and close to Rs. 1.7 Lakh cr. in Savings Deposits.
9

Business Performance -Deposits

(Rs. Cr.)

1
2
3

Global Deposits
Domestic Deposits
Overseas Deposits

501379 548532
453029 490095
48350 58437

Mar16/Mar15
Amt.
(%)
553051
51672 10.3
493855
40826
9.0
59196
10847 22.4

4
5
6

CASA Deposits
Current Deposits
SB Deposits
Share of CASA To Dom. Dep. (%)
Term Deposit
Differential Rate Dep. Incl. CD
Share of DRI Dep. to Total %

183780
33581
150200
40.57%
317598
12123
2.42%

205583
36157
169426
41.63%
347468
1354
0.24%

Sl.

7
8

Parameters

Mar'15 Dec'15

197922
36462
161460
40.38%
350610
2913
0.53%

Mar'16

21803 11.9
2576
7.7
19227 12.8
29870
9.4
-10769 -88.8

Reduced dependence on DRI deposits and increasing share of CASA

10

Reducing Dependence on Bulk/High Cost Deposits

Share of High Cost Dep. to Total Deposits
0.1

12.49%

0.1
0.1
0.1
0.1

4.99%

0.0

2.42%

0.0

1.20%

0.59%

0.53%

0.24%

Sep'15

Dec'15

Mar'16

0.0
Mar'13

Mar'14

Mar'15

Jun'15

11

Business Performance of the Bank

CREDIT

12

Approach for Credit Growth

Shift in focus during last 5 quarters

Shift in focus from Corporate to Retail/MSME/Agriculture
Credit
De-risking of credit portfolio by focusing on growth of Small
Ticket Advances
Engagement of each business unit in contributing towards
qualitative credit

Profitable Growth from the Grassroots (Branches)

(Rs. Cr.)

Moving through Small Ticket Advances

Share of Small Ticket Advances
Share of Small Ticket Advances

56.0%

Drivers of Small Ticket Advances

Agriculture & Allied

Small & Marginal Farmers

59157
23823

YoY Gr.
Amt %
64155 4998 8.4
30058 6235 26.2

MSME
MSME Manufacturing
MSME Services

78162
40161
38001

87588 9426 12.1

39213 -948 -2.4
48375 10374 27.3

Retail Credit
Housing
Car/vehicle
Education

48415
21544
4089
4397

57801 9386 19.4

26923 5379 25.0
4772 683 16.7
4589 192 4.4

Parameters

Mar15 Mar'16

55.6%

52.9%

Mar'14

Mar15

Mar'16

Total Small Ticket

185734 209544 23810 12.8

Bank is aligning Business strategy with cyclical movement in the economy

14

Advances - Sectoral Classification

Sl.
1
2
3

Parameters

(Rs. Cr.)

YoY Variation
Amt.
(%)
100.0 40353
10.3
12.2
491
0.9
87.8 39862
11.7

Mar'15 Dec'15 Mar'16 % Share

Global Gross Advances

392422 405210 432775
Overseas Advances
52435 55830 52926
Domestic Gross Advances 339987 349380 379849

3a Large Industries

106190 115129 117749

27.2 11559

10.9

3b Agriculture & Allied

59157

60132 64155

14.8

4998

8.4

3c MSME

78162

85506 87588

20.2

9426

12.1

3d Retail Loans

48415

54351 57801

13.4

9386

19.4

3e Others (incl. NBFC)

48063

34262 52556

12.1

4493

9.3

Diversification through Small Ticket Advances and reduced dependence on Large Ticket
15

Advances to Industry - Breakup

Mar'15
Sl.

Major Industry

Share %
to NFC
1 Food Processing
11789
3.5
2 Textiles
10546
3.2
5734
1.7
3 Chemical & Chemical Products
4 Cement & Cement Products
2101
0.6
5 Basic Metal & Metal Products
23652
7.1
5a
-Iron & Steel
21445
6.4
6 Paper & paper products
1432
0.4
7 Petroleum
1267
0.4
8 All Engineering Products
4405
1.3
9 Vehicles & Vehicle parts
789
0.2
10 Construction
3558
1.1
11 Infrastructure
57023
17.1
12 Residual
22895
6.9
145190
43.5
Total Industry @
Amt.

* NFC: Domestic Non Food Credit;

Dec 15

Mar16

(Rs. Cr.)
Variation
Mar'16/Mar'15

Share %
Share %
Amt.
(%)
Amt.
to NFC
to NFC
12714
3.7 13390
3.6
1601 13.6
11749
3.4 12082
3.2
1536 14.6
6835
2.0 7013
1.9
1279 22.3
2333
0.7 2298
0.6
197
9.4
27839
8.1 29988
8.0
6336 26.8
25494
7.4 27766
7.4
6321 29.5
1607
0.5 1503
0.4
71
5.0
1503
0.4 1992
0.5
725 57.2
4832
1.4 4827
1.3
422
9.6
862
0.3
867
0.2
78
9.9
3986
1.2 3660
1.0
102
2.9
61764
18.0 55106
14.7
-1917 -3.4
23787
6.9 24235
6.5
1341
5.9
159811
46.7 156962
41.9 11772
8.1
Amt.

@This includes Large Industries of Rs. 117749 cr. and MSME manufacturing of Rs. 39213 cr.

To improve Asset Quality & conserve Capital we are pruning our exposure in Stressed Sectors.
16

Advances to Infrastructure Sector- Breakup

Mar'15

Amt.
Advances to Infrastructure
- Power

- Telecom
- Roads & Ports
- Others

Dec 15

(Rs. Cr.)

Variation
Mar'16/Mar'15

Mar16

Share %
Share %
Share %
Amt.
Amt.
to NFC
to NFC
to NFC

Amt.

(%)

57023

17.1 61764

18.0 55106

14.7

-1917

-3.4

34620

10.4 37443

10.9 32582

8.7

-2038

-5.9

4515

10459
7429

1.4

4959

3731

1.0

-784 -17.4

3.1 12132

3.5 12516

3.3

2057

2.2

2.1

1.7

7230

1.4

6278

19.7

-1151 -15.5

NFC i.e. Non food credit

17

Investment

18

Domestic Treasury Operations - Highlights

(As on 31st Mar16)

Domestic Investment Book at Rs. 154727 Crore.

Yield on Investment at 7.95% during Q4 FY 16.

Share of SLR Securities in Total Investment at 77.14%.

64.9% of Total Domestic Investment in HTM.

SLR as percentage to NDTL as on Mar16 at 24.44%.

Modified duration of AFS investments at 4.11.

Trading Profit at Rs. 114.29 crore in Q4 FY 16 and Rs. 726.10 crore in FY 16.

19

Business performance Investment portfolio

1

2
3
4
5
6
7
8
9
10

Particulars
Gross Domestic Investment
Total SLR
Total Non SLR
Held To Maturity (HTM)
Available For Sale (AFS)
Held For trading (HFT)
Duration (AFS)
Modified Duration (AFS)
Duration Total Portfolio
Modified Duration Total Portfolio
Net demand & time Liabilities
SLR (%)
SLR HTM to Total SLR (%)
HTM To Gross Investment (%)
Investment by overseas branches
Total Gross Investment (1+10)

Mar'15
149266
123133
26133
106969
39116
3181
4.97
4.73
5.09
4.89
455134
27.19
84.97
71.66
1215
150480

Dec'15
162532
128561
33971
104103
58211
218
4.31
4.10
4.79
4.59
480521
26.75
79.07
64.05
3607
166139

(Rs. Cr.)

Mar16
154727
119364
35363
100410
53909
408
4.33
4.11
4.87
4.67
488445
24.44
78.37
64.89
4080
158807

Reduced SLR portfolio-funds being deployed in higher returns avenues

20

10

ProfitabilityPerformance during Q4 & FY Mar16

21

Profitability Performance Highlights

Operating Profit of the Bank crosses landmark of Rs. 12000 cr.

(Over Rs. 10000 cr. for consecutive 5 years ).
Consistently high Net Interest Margin at 2.60%.
Decreasing Cost of Deposits (5.85%) / Funds (4.93%).
High growth in Non Interest Income i.e. 16.7% during FY16 on yoy
basis.

22

11

Consistently higher Operating Profit & Operating Income

(Rs. Cr.)

Operating Profit
9056

2917

4006

3617

5690

10614

10907

11384

11955

12216

7326

Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Mar'16
Operating Income = Net Intt. Income +Non Intt. Income
17617

19072

20723

22446

22189

15420
12088
9897
5940

6944

7532

Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Mar'16
23

(Rs. Cr.)

Business Performance-Profit
Sl.

Parameters

Q4
FY 15

Interest Income

Interest Expenses

7859

NII (Spread) (1-2)

Q4
FY 16

11651 10824

YoY
Gr. %

FY 15

FY 16

YoY
Gr. %

-7.1

46315

47424

2.4

8056

2.5

29760

32113

7.9

3792

2768

-27.0

16556

15312

-7.5

Other Income

1805

2452

35.8

5891

6877

16.7

Operating Expenses

2394

1992

-16.8

10492

9972

-4.9

Contribution (4-5)

-589

460

-178.1

-4601

-3095

-32.7

Operating Profit (3+6)

3203

3228

0.8

11955

12216

2.2

Provisions

2896

8595

196.8

8893

16192

82.1

Net Profit

307

-5367

3062

-3974

24

12

(Rs. Cr.)

Provisions

Sl.

Parameters

Q4
FY 15

Provision towards NPAs

Standard Advances incl.

Standard Restructured

324

Depreciation on Investment

Income Tax

Others
Total Provision

Q4
FY 16

3281 11380

YoY
Gr. %

FY 15

FY 16

YoY
Gr. %

246.8

7979 18469 131.5

-1019

-414.3

491 -1385 -381.9

286

-80

-127.8

-938

-1890

101.5

-57

204

-454.0

2896

8595

196.8

-567

345 -161.0

896 -1762 -296.9

94

525 459.3

8893 16192

82.1

25

(Rs. Cr.)

Income head wise break up

Sl.

Parameters

1
2
3
4

Interest Income (2+3+4)

Interest on Advances
Interest on Investments
Other Interest Income

Other Income (6+7+8+9+10)

of which
6 Fee Based Income
7 Recovery in Written off A/Cs
8 Trading Profit
9 Dividend from Liquid MF
10 Residual (incl. Derivative inc)

Total Income (1+5)

Q4
FY 15

Q4
FY 16

11651 10824
8569 7592
2781 2980
301
252
1805

2452

YoY
Gr. %

FY 15 FY 16

-7.1 46315 47424

-11.4 34794 34446
7.2 10600 12034
-16.5
921
944
35.8

5891

6877

YoY Gr.
%
2.4
-1.0
13.5
2.6
16.7

850
920
8.2 3485 3470
-0.4
335 1326 296.2 1017 2297 125.9
538
114 -78.7 1023
726 -29.0
85
91
8.1
334
351
5.0
-2
1 -166.8
32
33
2.2
13456 13276
-1.3 52206 54301
4.0
26

13

(Rs. Cr.)

Fee Based Income-head wise break up

Sl.

Parameters

Q4
FY 15

Q4
FY 16

FY 15

FY 16

Processing Fees

124

133

577

606

LC/LG Income

198

197

796

727

Bills & Remittance

120

110

483

473

Incidental Charges

52

53

201

194

Inc from ATM operations

93

118

384

402

Income from Ins & MF

30

42

85

114

Govt. Business

22

33

85

103

Misc Income

114

125

376

424

Exchange Profit

98

109

498

427

850

920

3485

3470

Total Fee Based Income

27

(Rs. Cr.)

Expenditure-head wise break up

Sl.

Parameters

Q4
FY 15

Q4
FY 16

YoY
Gr. %

FY 15 FY 16

YoY Gr.
%

1
2
3
4

Total Interest Paid (2+3+4)

Intt. Paid on Deposits
Intt. Paid on Borrowings
Others

7859
7161
81
617

8056
7448
51
557

2.5 29760 32113

7.9
4.0 27621 29803
7.9
-36.8
567
250 -55.9
-9.7 1571 2060 31.1

5
6

Operating Expenses (6+9)

Estab. Expenses
Of Which
Empl. Benefits (AS-15)
Other Operating Expenses
Total Expenses (1+5)

2394
1507

1992
1008

-16.8 10492
-33.1 7337

7
8

9972 -4.9
6426 -12.4

850 -255 -130.0 3218 1569 -51.2

887
984
11.0 3155 3546 12.4
10253 10048
-2.0 40251 42085
4.6
28

14

Cost & Yield Ratios

Sl.

Particulars

(Annualized)

FY
Mar15

FY
Mar16

Cost of Deposit [%]

6.09

5.85

Cost of Fund [%]

5.14

4.93

Yield on Advances [%]

9.88

9.10

Yield on Investment [%]

7.99

7.94

Yield on Fund [%]

8.00

7.28

Net Interest Margin [%]

-Global

3.15

2.60

-Domestic

3.55

2.95

29

Net Interest Margin (%)

Cost of Deposits

Net Interest Margin

5.99 5.97

2.87

2.60

6.09

2.93

6.33
2.90

6.82

(Annualized)

5.92
5.85

Jun'15

Sep'15 Dec'15 Mar'16

30

15

Profitability Ratios
Sl.

Particulars

(Annualized)

FY
Mar15

FY
Mar16

Return on Assets [%]

0.53

Negative

Return on Net worth [%]

8.12

Negative

Opt. Profit to AWF [%]

2.06

1.88

Cost to Income Ratio [%]

46.74

44.94

Estb. Exp. To Total Exp. [%]

18.23

15.27

Opt. Exp. To AWF [%]

1.81

1.53

Book Value per Share [Rs]

203.24

180.61

Earnings per share [Rs]

16.91

Negative

31

Asset Quality

32

16

Eight months of war on Non Performing Assets

Creation of War Room at HO real time monitoring of NPA
recovery / reduction across Pan India. Minimum target of Rs. 50
lac per day per circle
Increase in pace of growth in up gradation/recovery in NPA a/cs
Cash recovery & Recovery in written off account has increased
due to recent new measures
Better control on slippages due of regular follow-up even in SMA
0 a/cs
Intensification of e-auction drive /exploring possibilities in each
stressed account is yielding result
Intensification of sale to ARCs especially in those a/cs in which all
other banks have already sold their exposures

33

34

17

Break up of Gross Credit as per Asset Class

Year

Mar 15
% Share
Mar 16
% Share

(Rs. Cr.)

Standard
Adv.

Restructured
Standard (O/S)

GNPA

Stressed
Advances

Gross
Advances

4 (2+3)

5 (1+4)

328412

38315

25695

64010

392422

83.69

9.76

6.55

16.31

100.00

356813

20144

55818

75962

432775

82.45

4.65

12.90

17.55

100.00

35

Industry wise O/S Restructured Accounts

Sl.
Sector
1 Iron & Steel
2 Infrastructure
Power
of which SEBs
Telecom
3 Drilling
4 Textiles
5 Aviation
6 Sugar
7 Paper/Printing
8 Chemical/Fertiliser/Drugs
9 Cement
10 Manufacturing
11 Engineering
12 Auto parts
13 Hotel
14 Education
15 Finance
16 Others
Total Industries

(Rs. Cr.)

Mar'15 %age Share Mar'16 %age Share

5588
14.6
2562
12.7
16042
41.9
8777
43.6
13685
35.7
5635
28.0
8127
21.2
1904
9.5
371
1.0
263
1.3
610
1.6
0
0.0
1414
3.7
1000
5.0
32
0.1
61
0.3
1415
3.7
1391
6.9
147
0.4
76
0.4
1947
5.1
613
3.0
535
1.4
357
1.8
1589
4.1
846
4.2
194
0.5
11
0.1
156
0.4
0
0.0
732
1.9
409
2.0
478
1.2
320
1.6
105
0.3
117
0.6
3294
8.6
1667
8.3
34278
89.5
18208
90.4
36

18

Non-Performing Assets
Sl.
1
2
3
4
5
6

Parameters
NPA as at the beginning of Yr.
Cash Recovery
Up-gradation
Write Off
Total Reduction (2+3+4)
Fresh Addition
-Fresh slippages
-Debits in existing NPA A/cs
7 Gross NPAs end period
8 Eligible Deductions incl. Provisions
9 Net NPAs
10 Recovery in written-off debt accounts
Particulars
Gross NPA%
Net NPA%
NPA Coverage Ratio

(Rs. Cr.)

Mar'15 Mar'16
18880
25695
2925
4262
1000
1381
5920
6485
9845
12128
16660
42252
15692
41060
968
1192
25695
55818
10298
20395
15396
35423
1017
2297

Mar'15 Mar'16
6.55%
12.90%
4.06%
8.61%
58.21%
51.06%
37

Sector wise NPA & Slippages

Sl.

SECTOR/INDUSTRY

1 AGRICULTURE
2 INDUSTRY
MSME MANF.
3 RETAIL ADVANCES
EDUCATION
HOUSING
VEHICLE
OTHER RETAIL
4 SERVICES/OTHERS
MSME SERVICES
5 FOREIGN BRANCHES
6 CREDIT CARD
TOTAL
INCREASE IN EXISTING NPAs
TOTAL SLIPPAGE

GROSS
GNPA
GNPAs
ADVANCES
Ratio
64155
156962
39213
57801
4589
26923
4772
21517
100265
48375
53491
101
432775

4381
37824
9132
1326
389
611
186
140
10874
5355
1394
19
55818

6.83
24.10
23.29
2.29
8.47
2.27
3.90
0.65
10.85
11.07
2.61
18.46
12.90

(Rs. Cr.)

SHARE
SLIPPAGES SLIPPAGES % SHARE IN
in
2015-16 Q-4, FY16 Q4 SLIPPAGE
NPA %
7.85
67.76
16.36
2.38
0.70
1.10
0.33
0.25
19.48
9.59
2.50
0.03
100.00

2212
28207
1775
745
243
434
66

1378
14881
492
116
13
96
6

5.28
57.01
1.89
0.44
0.05
0.37
0.02

8834
2205
1055
8
41060
1192
42252

8810
771
913
2
26100
607
26706

33.76
2.95
3.50
0.01
100.00

38

19

(Rs. Cr.)

Industry wise NPA & Slippages

Sl.

INDUSTRY

SLIPPAGE
SLIPPAG
Total
Gross
GNPA
Standard
Total
GNPAs
E Q-4,
Stressed
Advances
Ratio 2015-16
Restructured Stressed
15-16
Ratio

1 IRON AND STEEL

27666

14103 50.97

12820

7591

2562

16665

60.23

2 INFRASTRUCTURE

55106

8945 16.23

7311

4788

8777

17722

32.16

Power

32582

7430 22.80

1620

5635

13065

40.10

3 CHEMICALS &PRODUCTS

7013

2488 35.48

1660

1504

613

3101

44.22

4 CONSTRUCTION

3606

1001 27.77

926

627

1181

2183

60.53

12082

2348 19.43

813

320

1000

3348

27.71

4827

1007 20.85

758

613

11

1018

21.08

5 TEXTILES
6 ALL ENGINEERING
7 CEMENT

2289

1106 48.31

597

513

357

1463

63.91

TOTAL OF 7 INDUSTRIES

112589

30997 27.53

24885

15958

14501

45498

40.41

TOTAL BANK

432775

55818 12.90

41060

26100

20144

75962

17.55

55.53

60.61

61.14

71.99

59.90

% SHARE OF 7 INDUSTRIES

26.02

Sustained higher operating profit despite NPAs

13000

12216
11955

12000

Operating Profit

11000

11384

10614

(Rs. Cr.)
14.0%

12.0%

10907

12.90%
10.0%

10000
8.0%
9000
6.0%

6.55%

8000

5.25%
7000

6000

G
N
P
A

4.0%

4.27%
2.93%

2.0%

5000

0.0%

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016
40

20

Reducing Restructured Adv Increasing Reduction

Standard Restructured
(Rs. Cr.)

Total NPA Reduction

31.03.2016

20144

12128 (FY)

31.12.2015

35004

10064 (9M)

38261

6745
(HY)

39969

3680
(Qtr)

30.09.2015

30.06.2015

41

Capital Adequacy

42

21

Capital Conservation/ new initiatives

Diversification of loan portfolio towards low risk sectors &

borrowers requiring lower RWAs
Emphasis on better quality collaterals while taking fresh exposure
to ensure capital conservation
Efforts for sale of non-core assets to ensure release of capital

43

Capital Adequacy (Basel III)

Sl.
Capital raising Plan: Infusion by Govt. of India
Bank is in readiness to shore up
Capital at an opportune time and market
Option is available through AT1 and Tier
2 bonds.

CET I is well above the regulatory level .

Focus on Capital Conservation.

Particulars
Capital Fund

1 Tier I

(Rs. Cr.)

Mar'15 Mar'16
36991

35718

34745

33435

Of Which
Common Equity

2246

2283

2 Tier II

Additional Tier I

11555

12203

3 Total (Tier I+II)

48546

47921

4 Risk-weighted Assets

397610 424868

Capital Adequacy Ratio

5 Tier I

9.30%

8.41%

Common Equity

8.74%

7.87%

Additional Tier I

0.56%

0.54%

2.91%

2.87%

Of Which

6 Tier II
7 Total (Tier I+II)

12.21% 11.28%
44

22

Expanding Network

45

Branches
6200

6559

ATM network
6759

6940

16%

16%

16%

21%

21%

21%

24%

24%

24%

Mar'14

8348

Mar'15

9463

Mar'16

Geographical Distribution of Branches

6%

39%

40%

39%

Mar'14

Mar'15

Mar'16

9%

37%

30%

Rural

Semi-Urban

Urban

17%

Metro

Number of BCs as on 31.03.16 : 7996

1%
NORTHERN
CENTRAL

NORTH-EASTERN
WESTERN

EASTERN
SOUTHERN
46

23

Overseas Network

Bank has overseas presence in 9 countries i.e. Hong Kong, Dubai, UK, Bhutan,
Kazakhstan, Australia, China, Nepal and Bangladesh.

4 Overseas branches, 2 in Hong Kong, 1 in Dubai and 1 Offshore Banking Unit at

Mumbai.

2 subsidiaries viz. UK (Punjab National Bank International Ltd-wholly owned)

with 7 branches & Druk PNB Bank Ltd Bhutan with 6 branches and one Associate
at JSC Bank Kazakhstan with 4 branches.
4 Representative Offices at Dubai-UAE, Sydney-Australia, Shanghai-China and
Dhaka- Bangladesh.
Joint Venture with Everest Bank Ltd. Kathmandu Nepal, (EBL) with 61 branches.
Overseas Business as on 31.03.2016
Branches
Deposit
Advances
Hong Kong
5180
3397
Dubai
3735
4608
OBU
20
71
TOTAL
8935
8076
TOTAL (INR Crore)
59196
53505

(USD MIO)
Business

8576
8342
92
17010
112701
47

Shareholding Pattern (%)

NonInstitutions, 6.
75

MF & UTI, 6.2

(31st Mar16)

FIs/Banks, 0.1

Insurance, 14.5

FIIs, 10.4

Govt., 62.1

48

24

Way
Forward

49

PNB Indradhanush
Retail PNB

Digital PNB

25

People before the Numbers

PNB UNIV: An online learning platform, available on all major Mobile Platforms.
Provide quick access to quality curriculum and training 24x7 right on the palm top.
PNB Univ will bring learning to people instead of people to learning.
PNB NAVODAYA: On-boarding & Mentoring Mechanism: Introduced for newly
recruited energetic, tech-savvy but inexperienced employees.
Employee Communication: Employee Surveys, Employee Suggestion Box (ESB)
Organizational Development:
Competency Mapping
Succession Planning,
Performance Management System with Measurable KRAs
HR Audit
Reward & Recognition etc.

Robust HRMS covering entire gamut of data relating to employees

Constantly improving Age Profile of human resource
Avg. Age as on

Officers

Clerks

Others

All

31.03.2015

48.22

41.08

38.79

43.13

31.03.2016

46.23

39.67

37.35

41.63
51

DIGITAL PNB
Tab Banking

Social
Media

Debit Card
Digital
Banking

Leveraging
Technology

Mobile
Banking

Fee Portal

SMS Banking
Door step
Banking
Internet
Banking

26

DIGITAL PNB FOR CUSTOMER CONVENIENCE

PNB Mobi-ease an android mobile app, introduced to facilitate SMS Banking
customers execute their Banking operations through single touch.
Mobile App namely ATM Assist launched to meet twin objectives of assisting
and resolving ATM problems of the customers and improve customer services.
Online PPF/RD account opening: Internet Banking Users can open PPF account, RD
account, link existing PPF account, transfer funds to PPF accounts through Internet
Banking.
Presence in Social Media: With an objective of brand promotion and better
customer service, Bank had made presence on Twitter with over 8370 following.
Bank has recently come out with Tab Banking for acquisition of new customers using
the newly set up marketing vertical.
As a part of Green initiative, PNB has launched Green Pin facility for its Debit Card
holders.
PNB Sleep Easy has been introduced for blocking internet banking and mobile
banking transaction password by sending SMS through registered mobile
number, when not in use.
53

Leveraging of Digital platform (Transactions in lakh)

INTERNET BANKING

Percent of business
through Electronic
Transactions

Ecom

187
480

123

58.86

149

Mar' 15

Mar' 16

Mar' 15

MOBILE BANKING

75

Mar' 15

ATM
4878

174

55.99

Mar' 16

Mar' 15

Mar' 16

4140

Mar' 16

Mar' 15

Mar' 16

27

Growth in Rural & Semi-Urban areas where risk is lower

Credit % Share

GNPA % Share
4.35

4.61

15.27
10.95

22.67

53.86
68.37

19.92

Rural

Semi-Urban

Urban

Metro

Rural

Semi-Urban

Urban

Metro

More than 60% of branches of the Bank are in Rural & Semi Urban area
These areas have low concentration of NPAs
Banks Business Model is oriented towards qualitative growth through branches in these areas
55

Financial Inclusion as a Business Driver

Sl
1
2
3
4
5
6
7

Particulars
Deposits Mobilized under Financial Inclusion
Income earned from Financial Inclusion
Average Balance under Financial Inclusion(Rs.)
Accounts opened under PMJDY (No. in Lakh)
-Amt. mobilized under PMJDY
-No. of Rupay Card Issued (in Lakh)
Aadhaar Seeding in PMJDY A/Cs (No. in Lakh)

BC Transactions in Lakh

Mar 15
2195.39
12.01
1152.9
89.73
777.39
84.09
20.78

Mar 16
3193.28
47.61
1242.34
130.80
1621.45
97.65
60.55

% of Zero Balance A/C to total PMJDY

298
135

(Amt. in Cr.)

58.90

50.97
36.98

186

15.93

12.12

23
Dec'14

Mar15

Dec'15

Farmers Training Centers -10

Supporting farmers in learning & earning
Free of cost training
Trained 936555 farmers

Mar 16

Mar'15

Jun'15 Sept' 15 Dec'15

Financial Literacy Center -108

239562 persons were attended
during FY16
520358 persons attended 7345
seminars

Mar'16

RSETIs-56
35917 persons have
been trained during FY 16
Out of above 19082 were
women
56

28

Awards & Accolades

During FY16, in recognition of its performance and initiatives in multifarious
areas, PNB received various awards, some of the notable are:
Golden Peacock National Training Award 2016 by Institute of Directors.

Social Banking Excellence Awards 2015 under Rural Banking Category (Large Bank) by
ASSOCHAM.
Best Bank Award for PMJDY (Large Bank)-Winner of Banking Excellence Awards 2015 by
CIMSME.
Best MSME Bank (Large Bank)-Runners Up by CIMSME- Banking Excellence Awards 2015
ABP News Brand Excellence Awards 2015 under Banking Financial Services and
Insurance Category by CMO Asia with World Marketing Congress
Inspiring Work Place Awards 2015 under the category Best HR and Talent Management
Practices by The Banking Frontiers.

Agriculture Leadership Award 2015 by Agriculture Today Group.

57

58

29