MIRA
INFORM REPORT
|
Report Date : |
06.01.2011 |
IDENTIFICATION DETAILS
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Name : |
PUNJAB NATIONAL BANK |
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Registered Office : |
7, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Year of Establishment : |
1895 |
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Legal Form : |
Subject is a Government of India Undertaking Bank. |
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Line of Business : |
Banking Activities |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (79) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
Large |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed nationalized bank. It is a bank having fine track. Fundamentals are strong and healthy.
Payments are regular and as per commitments. The bank can be considered normal for business dealings at usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
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Name : |
Mr. Saurabh |
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Date : |
06.01.2011 |
LOCATIONS
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Registered Office : |
7, |
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Tel. No.: |
91-11-26102303 / 6869 / 8379 / 26196353 / 26108205 / 26196487 |
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Fax No.: |
91-11-26876456 / 26108741 / 26160149 / 26196462 / 26176297 / 26102303 |
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E-Mail : |
Queries related to
Dividends, Mututal Fund: mbd@pnb.co.in Queries Related to Follow
on Public Offer: fpo@pnb.co.in
Queries Related to Retail
Internet Banking: ibsretail@pnb.co.in Queries Related to Corporate
Internet Banking: ibscorporate@pnb.co.in General Queries Related
to Internet Banking: ibshelpdesk@pnb.co.in Queries Related to Payments done through Internet: itdibs@pnb.co.in |
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Website : |
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Head Office/ Retail Banking Division/ Financial Products Marketing
Division : |
5, |
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Tel. No.: |
91-11-23311164 (AGM-RBD) |
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Fax No.: |
91-11-23753373 (Chief-FPMD) |
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Over 4100 offices spread across the country. |
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DIRECTORS
As on 31.03.2010
|
Name : |
Mr. K.C. Chakrabarty |
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Designation : |
Chairman and Managing Director |
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Date of Ceasing: |
14.06.2009 |
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Name : |
Mr. K.R. Kamath |
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Designation : |
Chairman and Managing Director |
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Date of Appointment: |
28.10.2009 |
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Name : |
Mr. K. Raghuraman |
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Designation : |
Executive Director |
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Name : |
Mr. Rakesh Sethi |
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Designation : |
Executive Director
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Name : |
Mr. Rakesh Singh |
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Designation : |
Nominee (Government) |
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Name : |
Mr. L.M. Fonseca |
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Designation : |
Nominee (RBI) |
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Name : |
Mr. S.R. Khurana |
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Designation : |
Director |
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Name : |
Mr. P.K. Nayar |
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Designation : |
Director (Officer Employee) |
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Name : |
Mr. Mohan Lal Bagga |
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Designation : |
Director (Workman Employee) |
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Name : |
Mr. Harsh Mahajan |
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Designation : |
Director (Shareholders) |
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Name : |
Mr. Mohanjit Singh |
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Designation : |
Director |
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Name : |
Mr. Prakash Agarwal |
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Designation : |
Director |
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Name : |
Mr. Jag Mohan Garg |
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Designation : |
Executive Director and Wholetime Director |
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Name : |
Mrs. Ranveet Kaur |
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Designation : |
Government of |
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Name : |
Mr. Mushtaq A. Antulay |
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Designation : |
Part-Time Non-Official Director |
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Name : |
Mr. Gautam P. Khandelwal |
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Designation : |
Part-time
non-official Director |
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Name : |
Mr. M.V. Tanksale |
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Designation : |
Executive Director |
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Name : |
Mr. Nagesh Pydh |
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Designation : |
Executive Director |
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Name : |
Mr. Nagesh Pydh |
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Designation : |
Executive Director |
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Name : |
Mr. Vinod Kumar Mishra |
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Designation : |
Part-time
non-official Director |
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Name : |
Mr. Tribhuwan Nath Chaturvedi |
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Designation : |
Share Holder
Director |
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Name : |
Mr. G.R. Sundaravadivel |
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Designation : |
Share Holder
Director |
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Name : |
Mr. Devinder Kumar Singla |
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Designation : |
Share Holder
Director |
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Name : |
Mr. Mohindre Paul Singh |
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Designation : |
Workmen
Employees Director |
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Name : |
Mr. Pradeep Kumar |
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Designation : |
Officer
Director |
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Name : |
Mr. Jasbir Singh |
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Designation : |
Reserve Bank of |
KEY EXECUTIVES
|
Name : |
Mr. Ramesh Kumar Kochar |
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Designation : |
Company Secretary |
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Name : |
Mr. C.P. Swarnkar |
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Designation : |
Chief General Manager |
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Name : |
Mr. V. Nagaraja |
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Designation : |
Chief General Manager |
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Name : |
Mr. V.K. Nagar |
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Designation : |
Chief General Manager |
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Name : |
Mr. P.L. Madan |
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Designation : |
General Managers |
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Name : |
Mr. K.G. Sathyasingan |
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Designation : |
General Managers |
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Name : |
Mr. B.M. Mittal |
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Designation : |
General Managers |
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Name : |
Mr. D.L. Rawal |
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Designation : |
General Managers |
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Name : |
Mr. A.D. Paliwal |
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Designation : |
General Managers |
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Name : |
Mr. |
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Designation : |
General Managers |
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Name : |
Mr. A. Balasubramanian |
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Designation : |
General Managers |
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Name : |
Mr. Harwant Singh |
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Designation : |
General Managers |
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Name : |
Mr. Arun Kaul |
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Designation : |
General Managers |
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Name : |
Mr. R.I.S. Sidhu |
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Designation : |
General Managers |
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Name : |
Mr. V.R. Choudary |
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Designation : |
General Managers |
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Name : |
Mr. L.P. Agarwal |
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Designation : |
General Managers |
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Name : |
Mr. Ranjan Dhawan |
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Designation : |
General Managers |
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Name : |
Mr. I.D. Singh |
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Designation : |
General Managers |
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Name : |
Mr. P.K. Mitra |
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Designation : |
General Managers |
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Name : |
Mr. B.P. Chopra |
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Designation : |
General Managers |
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Name : |
Mr. K.S. Bajwa |
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Designation : |
General Managers |
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Name : |
Mr. V.K. Sood |
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Designation : |
General Managers |
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Name : |
S. Ranganathan |
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Designation : |
General Managers |
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Name : |
Mr. Y.N. Mathur |
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Designation : |
General Managers |
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Name : |
Mr. R K Gupta |
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Designation : |
General Managers |
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Name : |
Mr. V K Gupta |
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Designation : |
General Managers |
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Name : |
Mr. S K Roy |
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Designation : |
General Managers |
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Name : |
Mr. G K Sawhney |
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Designation : |
General Managers |
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Name : |
Mr. N C Jain |
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Designation : |
General Managers |
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Name : |
Mr. S P Singh |
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Designation : |
General Managers |
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Name : |
Mr. Jagat Ram |
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Designation : |
General Managers |
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Name : |
Mr. B C Nigam |
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Designation : |
General Managers |
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Name : |
Mr. S S Bhandari |
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Designation : |
General Managers |
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Name : |
Mrs. Sudesha Sharma |
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Designation : |
General Managers |
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Name : |
Mr. N K Mehta |
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Designation : |
General Managers |
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Name : |
Mr. K G Sharma |
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Designation : |
General Managers |
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Name : |
Mr. V K Khanna |
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Designation : |
General Managers |
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Name : |
Mr. A K Gupta |
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Designation : |
General Managers |
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Name : |
Mr. R K Dubey |
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Designation : |
General Managers |
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Name : |
Ms. Archana S Bhargava |
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Designation : |
General Managers |
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Name : |
Mr. G Banerjee |
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Designation : |
General Managers |
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Name : |
Mr. V M Sharma |
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Designation : |
General Managers |
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Name : |
Mr. K Bhaskar |
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Designation : |
General Managers |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
(1) Indian |
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Central Government / State Government(s) |
182241300 |
57.80 |
|
Sub Total |
182241300 |
57.80 |
|
(2) Foreign |
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|
Total shareholding of Promoter and Promoter Group (A) |
182241300 |
57.80 |
|
(B) Public Shareholding |
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|
(1) Institutions |
|
|
|
Mutual Funds / UTI |
14114873 |
3.53 |
|
Financial Institutions / Banks |
6610713 |
1.99 |
|
Insurance Companies |
35507842 |
12.66 |
|
Foreign Institutional Investors |
61370603 |
19.08 |
|
Sub Total |
117604031 |
37.26 |
|
(2) Non-Institutions |
|
|
|
Bodies Corporate |
2973778 |
0.92 |
|
Individuals |
|
|
|
Individual shareholders holding nominal share capital up to Rs. 0.100
Million |
11959528 |
3.88 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 Million |
390075 |
0.10 |
|
Any Others (Specify) |
133788 |
0.04 |
|
Non Resident Indians |
69048 |
0.03 |
|
Overseas Corporate Bodies |
943 |
- |
|
Trust & Foundation |
63797 |
0.02 |
|
Sub Total |
15457169 |
4.94 |
|
Total Public shareholding (B) |
133061200 |
42.20 |
|
Total (A)+(B) |
315302500 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
Total (A)+(B)+(C) |
315302500 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Banking Activities |
GENERAL INFORMATION
|
No. of Employees : |
56928 (Approximately) |
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|
|
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Bankers : |
Reserve Bank of |
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Banking
Relations : |
Good |
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|
Auditors : |
· Kalani and Company · Surrender K. Jain and Company · Mookherjee Biswas and Pathak · M. C. Bhandari and Company · P. K. Chopra and Company · G. P. Chartered Accountants · Ramanlal G Shah And Company · B.K. Ramadhyani And Company · V Sankar Aiyer and Company · N C Rajagopal and Company · Gupta and Gupta · P Jain and Company · Anjaneyulu and Company · V K Varma and Company · Amit Ray and Company · Sarda and Pareek |
|
|
|
|
Associates : |
· Everest Bank Limited · Principal PNB Asset Management Company Private Limited · Principal trustee Company Private Limited · PNB Principal Financial Planners Private Limited · PNB Principal Insurance Broking Private Limited · UTI Asset Management Company Private Limited · UTI Trustee Company Private Limited · Asset Care Enterprises Limited · Principal PNB life Insurance Company Limited (Operation not started) ·
·
Madhya Bihar Gramin Bank, · Haryana Gramin Bank, Rohtak · Himachal Gramin Bank, Mandi · Punjab Gramin Bank, Kapurthala · Rajasthan Gramin Bank, Alwar ·
Sarva UP Gramin Bank, |
|
|
|
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Subsidiaries : |
· PNB Gilts Limited · PNB Housing Finance Limited ·
Punjab National Bank (International) Limited, · PNB Capital Services Limited · PNB Investment Services Limited · Druk PNB Bank Limited · PNB Asset Management Company Limited |
CAPITAL STRUCTURE
(As on 31.03.2010)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3000000000 |
Equity Shares |
Rs.10/- each |
Rs.30000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
315302500 |
Equity Shares (includes 182241300 Equity Shares of Rs.10/- Each held by Central Government) |
Rs.10/- each |
Rs.3153.025 millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
|
|
|
Capital |
3153.025 |
3153.025 |
3153.025 |
|
Reserves and Surplus |
174076.160 |
143383.271 |
120030.439 |
|
Deposits |
2493298.030 |
2097604.967 |
1664572.260 |
|
Borrowings |
192623.660 |
124596.633 |
54465.596 |
|
Other Liabilities &
Provisions |
103176.897 |
100448.277 |
147982.286 |
|
TOTAL |
2966327.772 |
2469186.173 |
1990203.606 |
|
|
|
|
|
|
|
|
|
|
|
Cash & Balances with RBI |
183275.755 |
170582.536 |
152581.517 |
|
Balances with Banks & money
at Call & Short Notice |
51459.888 |
43548.908 |
35725.721 |
|
Investments |
777244.678 |
633851.803 |
539917.050 |
|
Advances |
1866012.080 |
1547029.887 |
1195015.662 |
|
Fixed Assets |
25134.690 |
23971.073 |
23155.219 |
|
Other Assets |
63200.681 |
50201.966 |
43808.437 |
|
TOTAL |
2966327.772 |
2469186.173 |
1990203.606 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
|
|
|
Interest Earned |
214669.111 |
191272.168 |
142650.176 |
|
Other Income |
35653.113 |
30646.858 |
19975.606 |
|
TOTAL |
250322.224 |
221919.026 |
162625.782 |
|
|
|
|
|
|
Interest expended |
129440.233 |
122953.036 |
87308.619 |
|
Operating Expenses |
47619.169 |
42062.017 |
35254.771 |
|
Provisions & Contingencies |
34209.247 |
25995.163 |
19574.761 |
|
TOTAL |
211268.649 |
191010.216 |
142138.151 |
|
|
|
|
|
|
Net Profit for the year |
39053.575 |
30908.810 |
20487.631 |
|
Add: Balance in Profit and Loss
account |
76.413 |
0.000 |
155.173 |
|
Profit available for
appropriation |
39129.988 |
30908.81 |
20642.804 |
|
|
|
|
|
|
Appropriations |
|
|
|
|
Transfer to: |
|
|
|
|
Statutory Reserve |
9763.393 |
7727.203 |
5121.907 |
|
Capital Reserve |
4241.182 |
2756.342 |
839.448 |
|
Revenue and Other Reserve |
15704.488 |
11900.000 |
9885.902 |
|
Final Dividend @ 120% proposed
for the year 2009-10 |
3783.630 |
6306.050 |
0.000 |
|
Tax on Dividend proposed for the
year 2009-10 |
628.413 |
1071.713 |
0.000 |
|
Interim Dividend @ 100% |
3153.025 |
-- |
0.000 |
|
Proposed Dividend 2007-08 |
0.000 |
0.000 |
4098.933 |
|
Tax on Iterim Dividend |
535.857 |
-- |
0.000 |
|
Special Reserve as per Income
Tax Act |
1320.000 |
-- |
696.614 |
|
Investment Reserve Account |
0.000 |
1071.089 |
0.000 |
|
Balance in Profit and Loss
Account |
0.000 |
76.413 |
0.000 |
|
Total |
39129.988 |
30908.810 |
20642.804 |
|
|
|
|
|
|
Earning per Share (Basic and
Diluted) |
123.86 |
98.03 |
64.98 |
QUARTERLY RESULTS
|
Year |
30.06.2010 |
30.09.2010 |
|
Type
|
1st
Quarter |
2nd
Quarter |
|
Interest Earned |
59918.600 |
64554.300 |
|
Operating Expenses |
47652.100 |
50735.900 |
|
Operating Profit Before Prov. &
Cont. |
20981.700 |
21000.900 |
|
Provisions & Contingencies |
5341.300 |
5160.300 |
|
Depreciation |
0.000 |
0.000 |
|
Provision for Taxes |
4957.500 |
5095.200 |
|
Fringe Benefit Tax |
0.000 |
0.000 |
|
Deferred Tax |
0.000 |
0.000 |
|
Net Profit |
10682.900 |
10745.400 |
KEY RATIOS
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Credit
Deposit Ratio |
74.34 |
72.88 |
70.55 |
|
Investment
Deposit Ratio |
30.74 |
31.20 |
32.38 |
|
Cash
Deposit Ratio |
7.71 |
8.59 |
9.02 |
|
Interest
Expended/Interest Earned |
60.30 |
64.28 |
61.2 |
|
Other
Income/Total Income |
14.44 |
14.97 |
12.44 |
|
Operating
Expense/Total Income |
19.18 |
19.08 |
21.82 |
|
Interest
Income/Total Funds |
7.94 |
8.64 |
7.93 |
|
Interest
Expended /Total Funds |
4.79 |
5.55 |
4.85 |
|
Net
Interest Income/Total Funds |
3.15 |
3.08 |
3.08 |
|
Non
Interest Income/Total Funds |
1.34 |
1.52 |
1.13 |
|
Operating
Expense/Total Income |
1.78 |
1.94 |
1.98 |
|
Profit
Before Provisions/Total Funds |
2.71 |
2.67 |
2.23 |
|
Net
Profit/Total Funds |
1.44 |
1.40 |
1.14 |
|
Return
On Net Worth(%) |
26.59 |
25.84 |
19.58 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors: Not Available
HISTORY
Subject established in the year 1895 at
A package was developed for corporate customers for fast remittance of funds
from different up-country branches to the controlling office during the year
1996. The Bank has introduced a scheme for providing finance against mortgage
of immovable property in the year 2000. It commenced its Gold Business in the
form of Gold Import Scheme in September of the same year 2000. An International
Co-branded Credit Card of Subject and Hongkong and Shanghai Banking Corporation
(HSBC) was launched in
Subject has taken over Kozhikode-based Nedungadi Bank Limited (NBL) in February
of the year 2003. The Bank has entered into an alliance with New India
Assurance for selling its general insurance products in the same year 2003. In
June of the year 2003, Subject made Memorandum of Understanding (MoU) with
Principal Financial Services Inc. (USA) and Vijaya Bank for joint venture
partnership in Life Insurance, Pensions and Asset Managements (MF) business.
The Bank has formed a strategic alliance with Infrastructure Leasing and
Financial Services Limited (IL and FS) to set up a private equity fund for
investing in domestic companies. Entered an agreement with Oriental Bank of
Commerce, Indian Bank, UTI Bank and Global Trust Bank for sharing ATMs spread
across the country. In the year 2004, Subject acquired the assets of Hindustan
Transmission Product Limited (HTPL) under Sarfaesi. The Bank had signed a
corporate agency agreement with Export Credit Guarantee Corporation of India
Limited (ECGC) for marketing ECGC's export credit insurance products through
the network of the bank's branches. A MoU was signed for the deployment of
various IT-related solutions between the bank and Intel. Subject and ICICI Bank
had signed a MoU for ATM network sharing. Subject implements Loans and Advances
Data Desk for Evaluations and Reports, (LADDER) system for rationalisation of
returns, asset classification and provisioning, credit monitoring and NPA management.
The Bank has mandated the project worth of Rs 50-100 millions to Tata
Consultancy Services (TCS) for implement human capital management and payroll
solution in the year 2004. The Bank branch at
During the year 2006, Subject had tied up with MasterCard
International to launch a signature-based debit card and opened one new branch
in Uttaranchal. Also during the same year of 2006, the bank has made tie up
with Indian Airlines for online booking of air tickets and ties up with IDBI
Capital. Subject had entered into MoU with India Infrastructure Finance Company
(IIFC) in October of the year 2007 with an aim to extend its cooperation and
support to IIFC in areas of creating a deal flow of infrastructure projects.
RBI rejected subject's proposal to float a credit card joint venture with
insurer American International Group Inc. (AIG) and Venture Infotek Global
Private Limited, a third-party processor for credit card companies.
The Bank had commenced commercial banking operations in
Subject aims to expand its base in the entire northern
NON
FINANCIAL-HIGHLIGHTS
• Customer centric business through Robust Technology platform.
• Continued to expand, adding over 500 branches and 1400 ATMs while
improving internet and mobile banking
capabilities.
• Expanding International forays to newer destinations like
• Strong revenue growth across all client segments, geographies and
products despite the challenging conditions during the stressed economic
conditions.
• Created a competitive advantage through the efficient management of
the capital and liquidity.
• Significantly strengthened the pool of management talent as part of
succession planning exercise.
• Streamlined CSR activities in the Bank to move forward in a planned
way in this direction
CORPORATE
GOVERNANCE
The Bank stresses on implementing best practices in Corporate governance
as they believe in following
• Full transparency in all the operations and policies which has earned
them the customers’ trust over the years and the customers have stayed with
them for generations which may seem unrealistic to many in these times of
declining brand loyalty.
• Zero tolerance for any malpractices which has made the institution
fundamentally stronger and has withstood many testing times.
• All the decisions are consensus decisions involving voice of the
stakeholders. They take the opinions of the customers while deciding the
roadmap and future directions of the Bank.
• The Bank being a financial intermediary has to undertake risks while
managing assets and liabilities, making risk mitigation the most crucial aspect
of the functioning. Towards understanding, measuring and managing various risks
and ensuring a sustained growth of healthy asset portfolio, the bank has put in
place a robust risk management system.
• The Bank is guided (to the extent possible/applicable) by the
acclaimed OECD (Organization for Economic co-operation and Development)
principles of corporate governance as far as responsibilities of the Board of
Directors, governance infrastructure, rights of shareholders, equitable
treatment of shareholders, role of shareholders in governance and disclosures
and transparency are concerned.
• The Bank has a strong and committed Board of Directors with
specialists from various fields; a robust risk management framework; audit
committee including Management audit committee, etc. The Bank is a listed
entity and ensures that the Shareholders
are satisfied with Bank’s performance and are kept well informed about the
performance of the Bank. The Bank has a consistent track record of paying
dividends.
• The Bank ensures ‘disclosure and transparency’ in financial statements
as per section 29 of Banking Regulation Act, 1949; RBI guidelines; section 49
of the Listing Agreement; Accounting Standards and Guidelines issued by the
Institute of Chartered Accountants of India, etc. Disclosures as per RBI
guidelines and ICAI Accounting Standards (AS) include Segment reporting,
Related Party Disclosures, Lending to sensitive sectors, Loan assets
restructured, ALM, Key Business Ratios and Performance of bank’s share price vis-ŕ-vis
NIFTY/ Bank index. In addition to the statutory disclosures, the Bank discloses
voluntarily additional information by way of Directors’ Report about the bank’s
overall performance, business strategies, products and services, Risk
Management etc.
The Bank gives high priority to good Corporate Governance. ICRA Limited,
the rating Agency has reaffirmed the CGR 2 rating (on a rating scale of CGR1 to
CGR 6, where CGR 1 denotes the highest rating) to the Bank in February 2010,
which reflects that PNB has adopted and follows such practices, conventions and
codes as would provide its financial stake holders a high level of assurance on
the quality of Corporate Governance. This is the highest rating assigned to a
financial institution in
The Bank has complied with the guidelines of Reserve Bank of
MANAGEMENT
DISCUSSION AND ANALYSIS
1. BUSINESS ENVIRONMENT
Currently, Indian economy is riding on a wave of optimism in the medium
to long term. Overall growth figures and fundamentals indicate that recovery
mode is in full swing. As per the revised estimates of Central Statistical
Organization (CSO), real Gross Domestic Product (GDP) growth rate is estimated
to be at 7.4 percent in 2009-10 as compared to 6.7 percent in 2008-09.
IMF’s April 2010 forecast suggests that the global recovery is poised
for a stronger growth. Global real GDP growth is projected to be at 4.2 per
cent in 2010 against a decline of 0.6 percent in 2009.The emerging and
developing economies are expected to perform better with projected GDP growth
of about 6.3 per cent in 2010 as
compared to a modest 2.4 per cent output growth in 2009. IMF estimates
for
• ‘Agricultural and allied sector’, is estimated to grow at 0.2 percent
in 2009-10 as compared to growth of 1.6 percent in 2008-09 as a result of
delayed and deficient monsoon. Its share in GDP at 14.6 percent in 2009-10 is
also lower than 15.7 percent of GDP during 2008-09.
• Industrial growth as per Index of Industrial Production (IIP),
registered double digit growth of 10.4 per cent during April– March 2009-10 as
compared to 2.8% during corresponding period last year. This growth was driven
by growth in the Mining, Manufacturing and Electricity sectors at 9.7%, 10.9%
and 6.0% respectively, as compared to 2.6%, 2.8% and 2.8% growth in the
corresponding period of 2008-09. Strong domestic demand for consumer durables
owing to sixth pay commission arrears payments, NREGA, Debt waiver to farmers,
fiscal and monetary stimulus packages and recovering exports are the major
contributing factors towards this spectacular recovery of Indian industry.
• The services sector, accounting for 65.1 percent of GDP, is estimated
to grow at a marginally slower pace of 8.3 per cent in 2009-10 as against a
growth of 9.3 percent in 2008-09. This slowdown is mainly due to major slowdown
in ‘community, social and personnel services’ which has reduced to 5.6 percent
against last year’s 13.9 percent.
The rupee has strengthened against the US dollar during 2009-10, backed
by signs of recovery and return of FII flows. Exchange rate of the rupee
against the US dollar appreciated by 12.9 per cent in end of March 2010 as
compared to depreciation of 21.5% in end March 2008-09. The Foreign exchange
reserves stood at US$ 280 billion as on April 09, 2010. Besides,
The recovery in the economic growth is still in nascent stage and
fragile. The biggest threat to this weak recovery is posed by continuing high
rate of inflation. Wholesale Price Index (WPI) inflation, that reached 9.9 per
cent by March 2010, is no longer driven by supply side factors alone. The
contribution of non-food items to overall WPI inflation, which was negative at
(-) 0.4 per cent in November 2009, rose sharply to 53.3 per cent by March 2010.
Consumer price index (CPI) based measuers of inflation were in the range of
14.9-16.9 per cent in January/February 2010. In view of this, the weight of
policy may have to shift towards containing inflation, since high inflation
itself will dampen the recovery in growth.
2. BANKING
DEVELOPMENTS
During 2009-10, Scheduled Commercial Banks (SCBs) met the targets set by
RBI regarding both Deposit as well as Credit. Aggregate Deposits grew by 17.1
per cent in 2009-10 as against the target of 17 per cent set by RBI and 19.3%
growth registered in 2008-09. While Demand Deposits grew by 22.8 per cent as
against 0.5% last year, Time Deposits rose by 16.2 per cent as against 23.1%
last year.
Reflecting the revival in flow of credit from the SCBs, the nonfood
credit growth was 16.9 per cent by end-March 2010 as against the Reserve Bank’s
projection of 16 per cent and 17.8 % during previous year. Bank Credit to
Government rose by 30.6 % against 42.0% last year while the same to commercial
sector grew by 15.3 % as against 17.1% last year. Reflecting the stronger
recovery in economic activities, growth in broad money (M3) also exceeded the
Reserve Bank’s indicative projections for 2009-10. M3 grew by 16.8 per cent
during 2009-10 as compared to 18.9 per cent in 2008-09.
RBI’s monetary stance is shifting from an accommodative policy to
tighter monetary policy regime with a view to contain high inflationary
expectations. Accordingly, CRR has been raised by RBI in two steps from 5.0 per
cent to 5.5 per cent on Feb 19, 2010 and then to 5.75 per cent on March 5,
2010. RBI has further raised the repo, reverse repo and CRR, all by 25 basis
points in its monetary policy review on
20 April 2010. Repo rate and reverse repo were hiked to 5.25 per cent and 3.75
per cent respectively. CRR has been raised to 6.0 per cent, which will flush
out another Rs 125000.000 Millions of liquidity from the system.
3. INDUSTRY
STRUCTURE
There were 166 Scheduled Commercial Banks (SCBs) and 4 Non- Scheduled
Commercial Banks in the Indian Banking System as at the end of March 2009. Out of
the 166 SCBs, there were 27 Public Sector Banks, 86 Regional Rural Banks, 31
foreign banks and 22 other scheduled commercial Banks.
PNB remained Numero Uno amongst Nationalized Banks with more than 5000
outlets spread through the length and breadth of country. PNB improved its
share in system’s credit to 5.33 per cent as on LRF of March 2010 from 5.31 per
cent as on LRF March 2009. Similarly, PNB’s share in aggregate deposits of the
system improved to the level of 5.24 per cent as on LRF of March 2010 from 5.17
per cent as on LRF of March 2009.
DETAILED BUSINESS
OVERVIEW
a) Business
Bank’s domestic business increased to Rs. 4245940.000 Millions as on
March 31, 2010, registering an absolute increase of Rs. 667030.000 Millions and
a growth of 18.6 percent. After including the business of foreign branches,
Bank’s Global Business increased by 19.6 percent to Rs. 4359310.000 Millions.
b) Resource
Mobilisation
The share of Bank’s deposits to total resources was 84.05 percent as on
31st March 2010. Bank’s total deposits
amounted to Rs 2493300.000 Millions as on March 31, 2010, showing an
absolute accretion of Rs 395700.000 Millions and a growth of 18.9 percent over
previous year. The share of low cost deposits (current + savings) in total
deposits stood at 40.85 percent.
c) Credit
Deployment and Delivery
During the FY 2009-10, resilience in traditional and potential new
sectors/segments of the economy besides the stimulus packages announced by the
Govt. helped the Bank to raise net advances by 20.6 per cent to touch Rs.
1866010.000 Millions as at March, 2010, compared to Rs.1547030.000 Millions at
the end of March, 2009. Incremental advances during the year worked out to Rs.
318980.000 Millions.
During the year various initiatives taken to boost the asset portfolio
of the Bank include:
I. Creation of New Business Group (NBG) forum to evince interest in new
proposals.
II. (Syndication assignments) received the necessary emphasis to shore
up such business and income thereof.
III. To further bolster asset quality and ensure speedier credit
dispensation of Credit proposals, the number of offices reporting directly to
HO for credit matters have been increased.
IV. Holding of the meetings of Credit committee/NBG/ Management
Committee at shorter intervals.
V. The Centralized Credit Processing Centres (CCPCs) have been further
strengthened and online Tracking system
implemented for enhancing efficiencies in operations.
To give focused attention to credit needs of corporate clients (credit
limits of Rs.250.000 Millions and above), 4 new LCBs have been operationalised
at Ghaziabad, Gurgaon, Hyderabad and Chandigarh besides the 7 existing LCBs
operating at Ahmedabad, Bangalore, Chennai, New Delhi, Kolkata, Ludhiana and
Mumbai Centres, taking their total number to 11. To facilitate the Mid-cap
corporate segment, the Bank has a setup of Mid Corporate Branches (MCB) for
handling credit proposals with credit limits of Rs 50.000 Millions to Rs
250.000 Millions. During the year, 6 new MCBs have been operationalised at
During the year 2009-10, Bank disbursed Rs 1565.200 Millions to eligible
textile units under TUFS.
C(i) Syndication
Despite the general economic slowdown which saw many companies defer or
scrap their new projects, Bank managed to perform well in the area of loan
syndication. During the year, the Bank gave approvals for syndicating
debt aggregating Rs. 319040.000 Millions. The sectors that were
syndicated include logistics, steel, textile, hotel, power, sugar, cement,
hospital, media, roads etc. This has generated fee income of Rs. 1255.400
Millions, out of which Rs. 417.600 Millions has been credited to income during
this financial year. The rest of the syndication fee would be received in next
year, being linked to achievement of certain milestones.
C (ii)NPA
Management
Ratio of Gross NPAs to Gross Advances of the Bank stood at 1.71 percent
as on March 31, 2010. The ratio of Net
NPAs to Net Advances stood at 0.53 percent as on March 31, 2010. Bank
has recognized Rs 3380.000 Millions as NPAs on account of Agricultural Advances
eligible for debt relief due to non-payment of their share amount by the
farmers by 31.03.2010, though the Government has extended the scheme till June
2010. Excluding this amount, gross NPA ratio and net NPA ratio improve to 1.53
percent and 0.35 percent, respectively.
The hallmark of the year was implementation of account specific
resolution strategies and regular monitoring in all NPA accounts, with special
thrust laid on upgradation of NPAs to performing category. Accordingly,
accounts with aggregate outstanding of Rs 3276.700 Millions were upgraded to
standard category.
To further improve the quality of
asset portfolio based on experience gained and regulatory guidelines, Bank’s
‘Policy on Recovery of Loans and NPA Management’ has been finetuned. Special
recovery campaigns were launched in various geographical locations. Total cash
recoveries in NPA accounts amounted to Rs 9503.800 Millions. Through well
defined recovery policy 25,878 NPAs amounting to Rs 5288.500 Millions were
resolved through negotiated settlements. Besides, 3 NPAs amounting to Rs 91.800
Millions have been resolved through sale to ARCs/other banks/ NBFCs as per RBI
guidelines. During the year 2009-10, the Bank recovered Rs 384.400 Millions out
of the accounts earlier written off. Besides, in accounts technically written
off at Head Office level a recovery of Rs 2950.200 Millions was affected during
the year.
Bank initiated enforcement action under SARFAESI Act in majority of
eligible NPAs. Compromise/negotiated
settlement was adopted as another vital strategy to tacke NPAs.
Pursuant to the measures announced by the Government/Reserve Bank of
Bank has set up specialized branches known as Asset Recovery Management
Branches (ARMBs) and specialized cells known as Special Asset Recovery Cells
(SARCs) which function exclusively for resolving NPAs. As on 31.3.2010, 12
ARMBs and 50 SARCs were functional. Opening of more ARMBs and SARCs in a phased
manner is underway to give further fillip to the Bank’s recovery efforts.
C(iii)Industrial
Rehabilitation
In order to assist the Industrial sector which was stressed on account
of economic slowdown, the Bank restructured a lot of accounts to provide the
much needed relief to the customers. Thus the Bank supported them when they
needed the assistance the most, i.e. in times of distress. The Bank also
continued its efforts towards rehabilitation of potentially viable sick units
under BIFR reference, either by debt restructuring or through one time
settlement, wherever found feasible. It has been assigned the role of
‘Operating Agency’ of BIFR in a number of cases. During the year, Draft
Rehabilitation Schemes (DRS) were formulated by the bank as ‘Operating Agency”
of BIFR in 3 accounts.
C(iv) Corporate
Debt Restructuring (CDR)
CDR system has been formed to ensure timely and transparent mechanism
for restructuring the corporate debt of viable entities facing problem, outside
the purview of BIFR, DRT and other legal proceedings. During the current year
2009-10, 14 accounts with outstanding of Rs.17060.000 Millions were
restructured under CDR. Out of the 14 cases, 5 cases with outstanding of Rs.
2650.000 Millions have been referred for restructuring under CDR in which PNB
is the Monitoring Institution.
C(v) Debt
Restructuring Mechanism for Small and Medium Enterprises
The Reserve Bank of
C(vi)Restructuring
– Others
The Bank has put in place a transparent mechanism for restructuring of
debts of potentially viable units, which are facing temporary problems due to
factors beyond their control. During the year 2009-10, 2376 accounts involving
Rs. 60240.000 Millions were restructured by the Bank other than under CDR/DRM
category.
5. FOCUS ON
FUNDAMENTALS
Central to the Bank’s approach is its focus on the Fundamentals of
banking like Risk Management and liquidity. Risk Management: The risk
management philosophy and policy of the Bank is an embodiment of the Bank’s
approach to understand, measure and manage risk and aims at ensuring sustained
growth of healthy asset portfolio. This entails reducing exposure in high risk
areas, emphasizing more on the promising industries, optimizing the return by
striking a balance between the risk and the return on assets and striving
towards improving market share to maximize shareholders’ value.
6. SEGMENT-WISE
PERFORMANCE
Priority Sector
The Bank continued to achieve the National Goals under Priority Sector
(PS). The portfolio of PS advances increased to Rs 637690.000 Millions as at
March 2010, registering an increase of Rs 129760.000 Millions and a growth of
25.5 per cent. At the same time the ratio of PS advances to Adjusted Net Bank
Credit (ANBC) at 40.55 percent continued to be above the National Goal of 40
percent.
Credit to
Agriculture
Credit to Agricultural sector grew by 25.56 percent to Rs 302070.000
Millions as on March 2010 from Rs. 240570.000 Millions in March 2009. The ratio
of Agriculture Advances to ANBC was 19.53 percent, higher than the prescribed
National Goal of 18 per cent. Direct Agriculture Advances of the Bank have
shown a growth of 24.84 percent over March 2009 and rose to Rs 236040.000
Millions in March 2010. The Bank has issued 0.427 Million Kisan Credit Cards
(KCCs) during 2009-10 taking the cumulative number of KCCs issued to 3.259
Millions since inception. Further, the Bank disbursed Rs 68550.000 Millions
during 2009-10 to 0.666 Million new farmers under Special Agricultural Credit
Plan.
The Bank continued financing against pledge of warehouse receipts to
farmers, processors and traders under the tie-up arrangements of the Bank with
M/s National Bulk Handling Corporation Limited, M/s Star Agri Warehousing and
Collectoral Management Limited and M/s National Collateral Management Services
Limited The relaxed KCC scheme has been implemented by all the branches across
Short term production credit upto Rs 0.300 Million has been provided to
farmers @ 7 percent interest with a 2 percent subvention support from Govt of
India/RBI. The Govt of India has also allowed 1% incentive subvention to the
prompt paying farmers. The Bank also provided relief to the farmers affected by
Natural Calamities during the year 2009-10 as per Reserve Bank directives.
Under Debt Swap Programme, a noble scheme launched to free the farmers
from the clutches of the moneylenders, where in the Bank financed Rs 1859.200
Millions to 46,445 farmers during 2009-10.
)Agriculture Debt
Waiver and Debt Relief Scheme 2008
The Bank has successfully implemented the Debt Waiver and Debt Relief
Scheme announced by the Hon’ble Finance Minister in his Budget Speech for the
year 2008- 09. Under the scheme, the Bank waived loans to the tune of Rs 11462.500
Millions in 3,39,274 farmers’ accounts.
Further, 94228 farmers, who had given undertaking, are eligible under
Debt Relief with an amount of Rs 10036.300 Millions (farmer’s share Rs 7416.900
Millions and debt relief i.e. Govt. share of Rs 2619.300 Millions). Out of the
above, 65,768 farmers have settled their accounts completely and 703 farmers have paid their share partially.
The scheme has been extended by the Government till June, 2010. Accordingly,
the Bank has also extended the Special OTS scheme for providing relief upto 60
percent (inclusive of 25 percent of debt relief provided by the Govt.) on
outstanding under debt relief accounts till June 2010.
Micro Credit
The Bank continued its efforts to promote Micro Finance through
formation and credit linkage of Self Help Groups. As at end of March 2010, the
Bank had credit-linked 150007 SHGs with the amount of Rs 10430.000 Millions,
registering an increase of 16602 SHGs (12.4 per cent). The number of SHGs that
had been deposit-linked rose to 178166 cumulatively from 161998 as of previous
year (growth of 10 per cent). Out of the total credit linked SHGs, 100047 are
women SHGs and of Saving linked, 113823 are women SHGs.
Small and Medium
Enterprises
The Micro and Small Enterprises (MSME) sector continues to be a thrust
area due to their contribution to manufacturing and service sector, exports and
employment generation. The MSMEs are playing a significant role in the
development and economic upsurge of the country.
At the end of March 2010, the credit to MSME sector stood at Rs.
350340.000 Millions, registering a growth of 27.4 percent over March 2009. The
advances to Micro and Small Enterprises grew at 27.84 percent to reach a level
of Rs. 279200.000 Millions. The focused attention of the Bank resulted in the
fast paced growth of credit to this sector and was the largest contributor to
the Bank’s loan book during the year.
The thrust on SME lending enabled the Bank to double its exposure to
MSMEs by March 2008 itself, far ahead of the scheduled 5 year doubling deadline
given by the Government, which expected Banks to double credit exposure to this
sector from 2005 levels by 2010.
The MSME sector was the most impacted by the global recession. The Bank
supported this sector in stressful times and implemented a special package that
comprised liberalized terms of finance like reduced interest rates, extension
of adhoc working capital facilities upto 20 per cent of the existing
facilities, sanction of working capital demand loans, extension of the debtor’s
period for financing upto 6 months from the earlier practice of 3 months,
lowering of margin against book debts and advances against existing
un-encumbered machinery to 20 per cent, extending soft loans for generator
sets, undertaking the restructuring of loans and advances including SME
advances and setting up of Rehabilitation cum Care centers at Circle Offices.
Collateral Free
Lending
The Bank covered 26,069 cases under the Credit Guarantee Scheme of Micro
and Small Enterprises (CGTMSE) scheme during 2009-10, with a credit outlay of
Rs 9270.000 Millions, the highest amongst all the Member Lending Institutions
of the CGTMSE. In recognition of this significant contribution, Hon’ble Finance
minister honoured the Bank by handing over the 3,00,001th policy coverage
certificate (cumulative Credit Guarantee Cover extended by CGTMSE up to March,
2010) on Bank’s behalf to Bank’s borrower.
Other Support
Initiatives
• SME clusters: The Bank has adopted 16 clusters under the cluster based
lending approach to meet requirements of the MSMEs. During the current
financial year, Mega Artisan clusters at
• MSE Code: Bank adopted the Code of Bank’s Commitment to Micro and
Small Enterprises in to as released by the Banking Codes and Standards Board of
India. This has enhanced customer service levels offered in a more transparent
manner and has strengthened the bonding between Bank and its MSE clients.
• MSME specialized and MSME focus branches: To further broaden the base
for augmenting the credit to MSMEs, the bank has designated MSME Focus branches
in addition to the already existing Specialised MSME branches. These branches
aim ensuring lower delivery time for faster hassle free credit to the MSMEs. As
on date there are 523 such branches.
• Working Group on Rehabilitation of Sick SMEs: The Bank has also
implemented the recommendations of the Working Group on Rehabilitation of Sick
SMEs headed by Dr. K.C Chakrabarty thereby relaxing various terms and
conditions for financing SMEs. Some of the recommendations implemented include
:
i. Setting up of 7 SME Centres
(HUBs) at
ii. Setting up of Centralised Processing Centres at Circle Offices for
quality lending and speedy decisions.
iii. Implementation of Credit Scoring Model for advances upto Rs 5.000
Millions for efficient credit decisions and speedy disposal. The Scoring Model
will be rolled out in phased manner for loans above Rs 5.000 Millions and upto Rs
20.000 Millions.
iv. Setting up of SME Rehabilitation-cum-Care Centres at Circle Offices
and specialized SME branches
v. Adoption of Cluster based lending approach through adoption of 15 SME
clusters and 2 Artisans Mega clusters.
vi. Compilation of District-wise project profiles comprising
standardized project reports for common industrial activities to obviate the
need for detailed project reports with every proposal.
vii. Setting up 523 branches (59 specialized SME branches and 464 MSME
focus branches) for delivering credit to the MSME sector.
viii. Facility for centralized registration of loan applications.
ix. Simplification of Loan application form for Micro and Small
Enterprises (loans upto Rs 5.000 Millions).
x. Adoption of committee approach for sanction of new loans
xi. To facilitate Factoring related Business the Bank has initiated
steps to set up joint venture factoring company with FIM Bank (
The Bank is pro-actively participating in various schemes of The
Government of India like Prime Minister Employment Generation Programme(PMEGP)
and institutional finance under KVIC Scheme etc. The exemplary work done by the
Bank led to conferment of 5 National Awards for the contribution made in
promoting MSMEs.
These awards which are highest number of awards given to any Bank, are
given below :-
i. Recognizing excellent performance in lending under PMEGP scheme PNB
has been conferred 2 National Awards i.e First for North Zone and First for
Central Zone.
ii. Under the KVIC – ISEC scheme, PNB has been conferred 3 National
Awards for excellence in Institutional finance in propagating KVIC programmes
which are Over All first at National level, First for North Zone and First for
Central Zone of the country.
Credit to Weaker
Sections and SC/ST
Credit to weaker sections by the Bank increased to Rs 157790.000
Millions as at March, 2010, registering an increase of Rs 22700.000 Millions
and a growth rate of 16.8 per cent. Ratio of weaker section advances to ANBC at
10.33 per cent continued to be higher than the National Goal of 10 per cent.
Credit to SC/ST beneficiaries amounted to Rs.33960.000 Millions in 2009-10 as
against Rs. 32830.000 Millions in 2008-09.
Credit to Women
beneficiaries
The Bank is sensitive to women empowerment and hence Credit extended to
women beneficiaries rose by Rs 17630.000 Millions to Rs 78480.000 Millions, as
on March 31, 2010. Credit to women as percent to ANBC stood at 5.14 per cent at
the end of March 2010, higher than the National Goal of 5 per cent. A dedicated
Women Cell functions at corporate Office headed by a Lady Senior Officer, that
closely monitors the progress under various lending schemes for women
beneficiaries and redesigns the existing ones as per emerging needs.
Promoting
Financial Inclusion
Financial inclusion means extension of financial services, at affordable
costs, to reach those who are “unbanked”
particularly the rural and less privileged sections of the society
through mainstream financial institutions. Achievement of financial inclusion
has become easier now due to advent of ICT (Information and Communication
Technology) based delivery mechanisms.
Under the branchless banking model of the financial inclusion, the Bank
has launched a drive for biometric smart card based technology enabled
Financial Inclusion with the help of Business Correspondents/Business
Facilitators (BC/BF) in Indo Gangetic Plain where the Bank has a major
presence. The BC/BF addresses the outreach issue so as to reach out to the last
mile customer while technology provides cost effective and transparent services
at the doorstep of the customer.
Recently, the Reserve Bank of
like (i) Individual kirana/Medical/Fair price shop owners (ii)
Individual Public Call Office (PCO) operators (iii) Agents of Small Savings
schemes of Government of
Pumps (v) Retired teachers and (vi) Authorized functionaries of well run
Self Help Groups (SHGs) linked to banks. With the inclusion of the above
entities, it is estimated that there will be substantial addition of BCs/ BC
agents. With this process BC model will help to bring the vast majority of
population within the banking fold. In recognition of its efforts towards
financial inclusion, the Bank has been conferred with Skoch Challenge Award
2010 for “Livelihood Linkage” of the milk producers in Bulandshahr District,
Uttar Pradesh. This project has been undertaken with the support of Mother
Dairy, a wholly owned subsidiary of National Dairy Development Board (NDDB).
This tie up ensures better prices to milk producer and time bound payment
through smart cards distributed by the Bank. Under this project, the credit
facility is also provided to these milk pourers under “PNB Saathi Scheme” to
redeem indebted milk pourers from the clutches of private money lenders.
Presently, this project is on pilot basis covering 70 villages which would be expanded
to other districts of Uttar Pradesh, Haryana,
Opening ‘No Frill’
Accounts
During the year 2009-10, the Bank has opened 0.538 Million No Frill
accounts (including ICT based accounts), thus making the cumulative accounts to
53.81 Lakh at the end March 2010. Amount outstanding as on 31.3.2010 stood at
Rs 8550.000 Millions. Overdraft facility has been provided in 22177 No Frill
accounts amounting to Rs 22.000 Millions, taking the cumulative total to 31,681
accounts with an amount outstanding at Rs 28.500 Millions.
Financial
Inclusion Projects
• ICT Enabled
Projects
In order to reach the unbanked and under banked areas and to expand the
presence, the Bank has been implementing 40 projects under the Branchless
Banking Model in rural as well as urban areas covering 16 states of Jharkhand,
Orissa, Bihar, Uttar Pradesh, Uttarakhand, Rajasthan, Punjab, Haryana,
Chhattisgarh, Himachal Pradesh, Chandigarh, Delhi, J and K, West Bengal and
Karnataka. In urban areas, the emphasis is on unbanked sections like migrated
labour or mobile population, rickshaw pullers, vegetable vendors, women,
landless agricultural labourers/tenant farmers, ethnic minorities, etc. Under
these projects, biometric smart card based technology is used and the help of
Business Facilitators/Business Correspondents is taken for reaching the
customers at their doorsteps. The bank has engaged 637 BC/ BC Agents and 2029
BF/BF Agents for implementing the financial inclusion activities.
·
Credit Driven
Projects:
Apart from ICT
enabled projects, the Bank has
also implemented credit
driven projects for providing
financial assistance to the customers
which inter alia include financing Village Level Entrepreneurs
(VLEs) under CSC Project (Special Purpose Vehicle Scheme under
E-governance) for setting up of 5500 Common Service Centres
(CSCs)/E-kiosks in rural areas covering
the entire State
of Bihar through SREI Sahaj E
Village Limited, provision
of deposit facilities to migrated
construction workers at Bangalore, credit
driven project for SHGs in two
districts of Chhattisgarh viz., Dantewara
and Rajnandgaon in association with Society for
Educational Welfare and
Economic Development (SEED), etc
In North East, the bank has tied up with Kabongram Asa Kashung Shang
Social Upliftment Society (KAKSSUS), an
NGO to enlarge micro-finance activities to
farmers spread in the States of Manipur,
The bank has
also undertaken disbursement of
Government payments like
NREGA, old age
pensions, etc. on sharing
basis/commission basis under
Electronic Benefit Transfer (EBT) model through smart cards. These projects are in operation in Sonepat and Rohtak
Districts, Haryana, Warangal District,
Andhra Pradesh, Sonebhadra District,
·
Mobile Banking:
In order to
mitigate the difficulty faced by the
migrant labourers in
remittance of money to their families in their home state,
the Bank
has devised a system whereby the
customer can remit funds using his mobile hand
set. The model is combination of Business Correspondent and Mobile
Banking. A Proof
of Concept (PoC) for implementation
of this
model in Gurgaon
(Kapashera) near Delhi and Nalanda and Patna in Bihar has
been initiated w.e.f.
February 4, 2010 for a period of three months. ILandFS Education and
Technology Services Limited is the Technology Service provider and
M/s SammaN Foundation is the Business Correspondent.
Opening of Banking
KIOSKs:
The Bank has decided to deploy
banking KIOSKs in villages with
population over 2,000
allotted to the Bank. The KIOSKs shall be a fixed
manned location in the village through which banking services
shall be
provided
using Information and Communication Technology. 3,000 such KIOSKs
shall be
opened during the FY 2010-11. 30 KIOSKs in Districts of
Bulandshahar,
Financial Literacy
and Credit Counseling (FLCC):
In order to foster a 'financially inclusive growth', the biggest challenge
is the challenge of financial education because an
important reason for
financial exclusion is lack of
awareness on the part of people regarding
the importance of being the customers of a bank. A
social revolution is
needed and the
Financial Literacy and Credit Counseling
Centres are required
to face this challenge. Bank has
opened 20 FLCCs in
different districts of the
country. These centres are providing the
face to face
counseling regarding deposits,
No frill Accounts,
credit, debt restructuring, technology, industry, education, finance and
livelihood to all.
Forex Business:
Despite the global meltdown, the Export credit outstanding rose to Rs
82940.000 Millions as on March 2010,
registering a y-o-y growth of 10.32 per cent
over the corresponding
period of previous year. The Bank achieved Export
and Import turnover
of Rs. 305750.000 Millions and Rs. 428470.000 Millions, respectively,
during the FY ended 2010. The
growth in Forex business has been
generally in line with the system's growth. Under precious
metal business, the Bank achieved
gold import turnover
of Rs. 6584.600 Millions and silver
import business of Rs. 1449.700
Millions upto March 2010.
The Bank has authorized 165 branches for handling foreign exchange
business (including two Foreign Exchange
Offices) which are provided with the
SWIFT connectivity. The
Bank has 1064 approved banks
worldwide to facilitate
trade transactions of
the clients. Besides, the Bank
has set up
11 specialized International
Banking Branches (IBBs) at important centres
for dedicated services to the
exporter/ importer clients. Bank has also
opened International Service Branch at
Another initiative towards
enhanced customer service
levels include establishment
of a Back Office (E-bay) at Delhi to
centralise account opening
of NRIs at any of the Bank branches in India and to offer
speedy
services like, issuance
of pass book, cheque book,
ATM Debit cards,
Internet Banking Services etc. The Bank has set up Exchange Bureaus
at important tourist
centres to facilitate encashment
of foreign currency
notes/ travellers' cheques to foreign tourists/NRIs, etc.
The Bank has entered into Rupee Drawing Arrangements (RDA) with 23
Exchange Houses in
Gulf countries and one in
Treasury
Operations:
As at the end of March 2010, the yield on 10 year Govt. paper was higher
at 7.85 percent as compared to 7.01
percent as on March 31, 2009. The spread
between 1 year and 10 year Govt
Securities dropped to 169 bps as at
March 31, 2010 from 190 bps as at March 31, 2009. The average daily
volume in the gilt market decreased to Rs 88550.000 Millions in the year
2009-10 from Rs.91620.000 Millions in the previous year due to hardening of
yields on account of various economic factors viz. inflation, US yields, etc.
Govt of India announced huge borrowings during FY 2009-10 to meet
the wide fiscal deficit.
To insulate the bond portfolio, the Bank
shifted longer duration
securities amounting to Rs 13495.300 Millions from 'Available for Sale'
(AFS) to 'Held to Maturity' (HTM)
category and booked a loss of Rs
1900.400 Millions. The Bank also
shifted mostly shorted duration securities
amounting to Rs 9876.700 Millions from HTM to AFS category.
The Bank continued its focus in Government Securities, Bonds, equity,
Forex and derivative market to boost its trading income. During
2009-10, the equity market saw a
smart recovery to 17,711 as on March 29, 2010 from the low of 9901 as on April 1, 2009. The
Treasury' has earned a trading profit of
around Rs. 8040.000 Millions against Rs. 6650.000 Milllions during
2008-09. The Bank's investment portfolio rose to Rs.
777240.000 Millions as on 31st March, 2010
from Rs.633850.000 Millions as on 31st March, 2009.
The Bank had meticulously complied with statutory prescriptions relating
to CRR and SLR, compliance under section 19(2) of Banking Regulation Act 1949 and prudential norms prescribed by RBI.
Business
Diversification:
Bank is undertaking various financial services or para-banking activities.
These activities have been
initiated after exercising due diligence
while entering into tie up arrangements with third party
companies to take care of the reputational risk to which the Bank is
exposed to while dealing with these companies. Care is also taken to ensure that
such operations offer synergy between Bank and its tie up
associates in terms of networth, network,
brand image, credibility and corporate governance.
I) Mutual Fund Business: The Bank is distributing and marketing Mutual
Fund products of Principal PNB AMC and
UTI AMC and earned brokerage to the tune
of Rs. 21.100 Millions during 2009-10.
II) Gold Coin Business: Under the Gold Coins Scheme, the Bank is presently
selling Gold Coins
of 2 gm, 5 gm, 8 gm, 10 gm
and 20
gm through the
Branches. Bank's earnings from
sale of gold coins in 2009-10 stood at
Rs. 13.800 Millions.
III) Depository Services: Presently, Bank is having a client base of
57,800 demat accounts.
The Bank earned an income of
Rs.6.700 Millions in 2009-10
as against Rs. 9.700 Millions in
2008-09 due to subdued global sentiment.
IV) Online trading
facility: Presently, the Bank has a
client base of
13,050 online trading accounts. Bank's earnings increased to Rs. 21. lac
in 2009-10.
V) Insurance Business: Under
'Referral Arrangement' in case of Insurance
Tie-up for Non-Life Insurance Business with M/s Oriental Insurance
Company Limited (OICL), the
premium collections during F.Y.2009-10 amounted to
Rs.363.700 Millions from 1,85,046 policies. The Bank earned revenue of
Rs 28.700 Millions from Non Life
Insurance during the
period. Similarly, under
'Referral Arrangement' Tie-up
with LIC of India in respect of
Life-Insurance, the premium collections amounted to Rs.470.300 Millions
from 13544 policies referred from leads generated by the Bank which earned the
Bank revenue of Rs. 22.000 Millions from
life insurance.
VI) Merchant Banking: As Category - I Merchant Banker, the Bank
handled 18 assignments
as 'Banker to the
Issue' and 70 assignments
of dividend payment/Interest payment, etc during 2009-10. An assignment as
a Co-Lead Manager
and Underwriter' in a right issue was also handled. Besides, the
2 assignments as Monitoring Agency are also being handled.
The Bank is also acting as Debenture Trustee to 25 issues of
different companies.
Bank is registered with the SEBI
as Self Certified Syndicate Bank (SCSB) and
is offering the facility of
submitting application in public
issue (IPO/FPO/Right issue)
through the Application Supported by Blocked
Account (ASBA) process via its
selected branches.
Bank has set up a 100 percent
owned Merchant Banking subsidiary
i.e. PNB Investment
Services Limited exclusively for Merchant Banking activities like
issue management, project appraisal and loan syndication.
VII) Cash Management Services:
CMS facilitates the corporate in
effective fund management.
A new CMS for collection
(local cheque collections,
upcountry cheque collections,
cash collections, post
dated cheque collections)
and payment (fund
transfers, RTGS/NEFT, payable
at par instruments,
cheque writing) of funds for
corporate clients has
been introduced in the recent
past.
There are 46 active CMS customers and 138 PAYFEE' institutes (PAYFEE
is a
module developed to help
institutes and corporates maintain their MIS
and keep track of inward
remittances) currently.
VIII) Door Step Banking: To facilitate cash management
of customers and
branches, door step banking has been introduced at ten
circles on pilot
basis. The same
will be offered across
through pilot projects.
IX) Credit Card Venture: Credit Card was commercially launched in February
2009. Initially, 2 types of
consumer credit cards were launched i.e.
Gold and Classic.
To satisfy needs of the
corporate clients, the
Bank has recently
launched Corporate Credit Card with Individual liability. As on 31.03.2010, the credit card base of the Bank
was around 48,000.
SUPPORT SYSTEM:
Branch Network:
At the end of March, 2010, total
number of domestic branches of the Bank
rose to 4951, comprising 1992
rural, 1043 semi-urban, 1100 urban
and 816 metropolitan
branches. Bank also has 5
foreign branches at
Kabul (Afghanistan), Hong Kong (2 branches), DIFC (Dubai) and Mumbai
(Offshore Banking Unit).
During 2009-10, the Bank opened 524 domestic branches, out of which 347
are at new locations while 177 branches
have been added through upgradation
of existing Extension
Counters. With 4997 domestic Offices,
including 46 Extension
Counters, the Bank
has the largest
network amongst the
Nationalized Banks. To give focused attention to select areas, the Bank has opened
specialized Branches that include 6 Micro finance branches, 17 SME
branches; 11 International
Banking Branches; 11 Asset Recovery
Management Branches; 12 Mid Corporate Branches; 10 Large Corporate
Branches; 7 Trade Finance
Branches; 9 High Value Branches;
4 Retail Lending Branches;
11 Agriculture Finance Branches;
3 high tech agriculture branches, 1
Personal Banking Branch;
1 Capital Market Services Branch
and 1 International
Service Branch. Besides, the Bank has 72 Retail HUBs and 41 Back
Offices.
International
Presence:
The Bank has international presence in 9 countries, with a branch at
Kabul, 2 branches in Hong Kong, representative offices at Almaty, Dubai, Shanghai
and Oslo, a wholly owned
subsidiary in UK (with 5 branches), and
a joint venture with Everest Bank
Limited Nepal.
During 2009-10, the Bank opened 2
branches, 1 in Hongkong and another at
DIFC Dubai and started a JV banking subsidiary 'DRUK
PNB Bank
Limited' in Bhutan.
During the year, the Bank also
received permission from RBI for
setting up a representative office in
The deposits of overseas branches have grown from US$ 541.58 Million
as on
March 31, 2009 to US$ 973.53 Million as on March
31,2010 registering an
increase of 79.76%.
The advances portfolio increased from
US$ 754.14 Million
to US$ 1555.72 Million during the same period,
registering an increase
of 106.29%. Profit increased to US$12.83 Million during the same
period. The deposits of the Druk PNB bank Limited as on March 31, 2010
stood at Rs. 782.800 Millions and
advances stood at Rs. 293.100 Millions.
PNB'S SUBSIDIARIES
and REGIONAL RURAL BANKS:
i) PNB Housing
Finance Limited:
During the year,
PNB sold 26 per cent of its equity in
the Company in
favour of a strategic investor, Destimoney Enterprise P. Limited (DEPL) which was
earlier acquired by New Silk Route, a US $ 1.4 billion Private Equity
Fund. As per the agreement the
strategic partner will also bring further
funds within two years to increase their stake to the
extent of 49
per cent. The Partnership with
DEPL is aimed at accelerated business growth and bringing best Pracices of the Industry
During 2009-10, the Company
achieved 24 per cent growth in
Profit before tax at
Rs. 940.000 Millions and 25 per cent growth in Profit after Tax at Rs.
670.000 Millions. The Company
improved Net Interest Margin
to 3.41
per cent by
controlling cost of funds. While
total income grew by 14 per cent to Rs.
3160.000 Millions, Operating expenditure
during the year was Rs.
2160.000 Millions.
Provisions and Contingencies were
Rs. 65.000 Millions, including
provisions on standard housing
assets @0.50per cent.
As on 31st
March 2010, the total net worth of the Company was
Rs. 2670.000 Millions. CAR at
16.78 per cent was higher than NHB's norm of 12 per cent. The Book
Value of Company's share was Rs. 88.9 and the EPS was Rs. 22.3.
The gross NPAs were contained at
1.25 per cent and net NPAs were 0.97 per
cent of the net loans
outstanding.
During the year, the Company achieved an overall 18
per cent
growth in fresh
business and disbursed loans to the tune of Rs. 8050.000 Millions.
The main
focus of fresh business was
individual housing loans (total
disbursements RS.5690.000
Millions), a growth of 46per cent over previous year.
ii) PNB Gilts
Limited:
PNB Gilts Limited, a leading
Primary Dealer (PD) in Government
securities has fulfilled all it obligations as PD during FY 2009-10.
As against the
stipulated success ratio of 40% in Treasury bill auctions, Company
achieved 40.56% in First half of FY
2009-10 and 40.82% in second half of FY 2009-10. Company
also fulfilled its
commitments under Additional
committed Underwriting (ACU)
and Minimum Underwriting
Commitment (MUC) in
G-sec auctions. Company
registered a total turnover of Rs. 637260.000 Millions compared
to Rs. 621870.000 Millions during the previous
year. Company PBT
during the current
fiscal stands at Rs. 560.300 Millions as against a profit of Rs. 381.200 Millions as on 31st March, 09. iii)
PNB (International) Limited (PNBIL)
During the year PNBIL added one more branch i.e
PNBIL also got
itself rated from Moody's and was
awarded Invest Grade
ratings {Baa3 / P3 for local and foreign currency deposits and D-
for BFSR
(Bank Financial Strength Rating)} with Stable Outlook. PNBIL is perhaps
one of
the youngest banks to have got itself rated, with only two year
track record.
iv) PNB Investment
Services Limited (PNBISL):
To improve the share in various
fee based segments of Business
especially relating to Capital
Market, Project Appraisal and Loan Syndication
related Business, Bank
has set up a 100per cent owned
subsidiary named as
PNB investment services
Limited in the current financial year.
PNBISL is a
registered Category I Merchant
Banker with SEBI and offers
basket of financial
services such as Issue
Management for IPO/FPO/Rights issues,
Advisory to Public Issue, Underwriting, Syndicate Member,
Placement of Equity
Shares to Qualified Institutional Buyers (QIBs), Private Placement
of Debt/Equity and
ESOP valuation. In addition to
the abovementioned services,
PNBISL is offering Debt / Loan Syndication, Project
Appraisal, Financial Restructuring, Security/Debenture Trustee
services and Advisory to SME.
v) Regional Rural
Banks:
After amalgamation of
the sponsored RRBs, presently
they have 6
RRBs operating in
6 States covering 67 districts with a network
of 1408 branches. 47 new branches have been opened
during 2009-10.
During 2009-10, RRBs have made
fresh disbursement of Rs.53136.300 Millions
to Agriculture and Allied Sector registering a growth of
30.89 per cent over the previous year. Aggregate advances of RRBs
increased to Rs.94235.700 Millions from
Rs.62838.700 Millions showing a growth of 49.96 per cent and Deposits
of all RRBs increased to
Rs.150473.800 Millions from Rs.111654.700 Millions, registering the growth of 34.77 per cent. During the year
2009-10, profit (PBT) of all RRBs stood at Rs.2294.700 Millions.
As on date, all the 6 sponsored
RRBs stand fully migrated to Core
Banking Solution (CBS).
RRBs also share the vision of PNB on financial inclusion. RRBs
opened 5.69 lacs No Frill' accounts and issued 10609
fresh General Credit Cards during the year.
2 RRBs viz Haryana Gramin Bank, Rohtak and Rajasthan Gramin Bank, Alwar
have implemented ICT based financial inclusion in their
area of operation. All RRBs have also entered in tie
ups for marketing of life and non-life insurance products with insurance
companies on referral basis.
AWARDS AND
ACCOLADES CONFERRED ON THE BANK:
- 'Best Corporate Social Responsibility Practice' award for 2009 by
- Gold trophy
of SCOPE Meritorious Award
for Excellence in
Corporate Governance 2009 by Standing Conference of Public Enterprises.
- Golden Peacock Award for Excellence in Corporate governance for 2009
from the
- India Pride Awards for excellence in PSU category by the Dainik Bhaskar'
in association with Daily News and Analysis' for 2009.
- Dun and Bradstreet Award for
'Priority Sector Lending including
Financial Inclusion'
- Conferment of 5 National Awards
for the contribution made in promoting MSMEs.
- Skoch Challenge Award 2010 for 'Livelihood Linkage' of the milk
producers in Bulandshahr District, Uttar Pradesh.
- Golden Peacock Innovative Product/Service Award for 'BCP implementation' for the year 2010 by
- 'Best Info-Sphere Warehouse Solution' Award for 2009 by IBM.
- IDC Financial Insights Innovation awards 2010 by IDC Financial
Insights.
- CIO 100 Awards for the year 2009 by IDG Media Private Limited
- Emerson Uptime Champion Awards for 2009 in the Government and PSU category from the Indian Express.
- Excellence in Training Award in 2009-10 by Employer Branding
Institute.
THE YEAR AHEAD:
Opportunities:
With the global economic turmoil
behind them and the recovery having set
in across all economies, though at divergent paces, it is time to consolidate and plan to make best use of
opportunities coming in way. As far as
Indian economy is concerned,
the recovery is at a faster
rate vis-a-vis the developed economies.
The growth has
been particularly good
in the industrial sector
and hence the opportunities
for business growth
are immense as they foresee greater credit off-take from the major
sectors of the economy.
The focus on inclusive growth also holds huge opportunity waiting to be
en-cashed. The Bank
has already planned to leverage
on this through
the aggressive financial inclusion
drive that aims
at increasing Bank's
presence in rural areas through branches and with
the help
of Business
correspondents/facilitators. This will
also facilitate in business growth by
bringing in more number of people into the banking fold.
Further, the fusion of banking and technology, assisted
by clear
policy initiatives and backed by market intelligence can create large
business opportunities for bank. With multichannel banking, aided by
technology,
Banks shall be
able to drive lower value transactions
to lower cost channels. By
focusing on availing of self service
methodology through alternative
delivery channels, the Bank will be able to free valuable time of the staff, which can be used further
for providing value added services to
the customers.
While the economic growth results in higher purchasing power and surplus
in the hands of consumers, the demand
for a diversified portfolio increases.
It is with this in view that the Bank has diversified its activities and is
offering para-banking activities spanning gold coins to mutual funds
to insurance products, etc. These initiatives are expected to give a
fillip to the fee based
income and boost revenue income from
the non interest sources.
CONTINGENT LIABILITIES
|
Particulars |
As on 31.03.2010 (Rs. In
Millions) |
|
Claims against the Bank not acknowledged as
debts |
2453.641 |
|
Disputed income tax and interest tax demands
under appeals, references etc. |
14808.000 |
|
Liability for partly paid investments |
0.169 |
|
Liability on account of outstanding forward
exchange contracts |
421184.757 |
|
Guarantees given on behalf of constituents : |
|
|
In |
165141.891 |
|
Outside |
75470.619 |
|
Acceptances, endorsements and other
obligations |
236889.461 |
|
Other items for which the Bank is
contingently liable |
2185.817 |
|
|
|
|
Total |
918134.355 |
WEB DETAILS
ORIGIN:
At the instance of Rai Mool Raj, Lala Lajpat Rai sent round a circular to
selected friends insisting on an Indian Joint Stock Bank as the first special
step in constructive Swadeshi. Lala Harkrishan Lal who had returned from
On May 23, 1894, the efforts materialized. The founding board was drawn from
different parts of India professing different faiths and a varied back-ground
with, however, the common objective of providing country with a truly national
bank which would further the economic interest of the country.
The Bank opened for business on 12 April, 1895. The first Board of 7 Directors
comprised of Sardar Dayal Singh Majithia, who was also the founder of Dayal
Singh College and the Tribune; Lala Lalchand one of the founders of DAV College
and President of its Management Society; Kali Prosanna Roy, eminent Bengali
pleader who was also the Chairman of the Reception committee of the Indian
National Congress at its Lahore session in 1900; Lala Harkishan Lal who became
widely known as the first industrialist of Punjab; EC Jessawala, a well known
Parsi merchant and partner of Jamshedji and Co. of Lahore; Lala Prabhu Dayal, a
leading Rais, merchant and philanthropist of Multan; Bakshi Jaishi Ram, an
eminent Civil Lawyer of Lahore; and Lala Dholan Dass, a great banker, merchant
and Rais of Amritsar. Thus a Bengali, Parsi, a Sikh and a few Hindus joined
hands in a purely national and cosmopolitan spirit to found this Bank which
opened its doors to the public on 12th of April 1985. They went about it with a
Missionary Zeal. Sh. Dayal Singh Majithia was the first Chairman, Lala
Harkishan Lal, the first secretary to the Board and Shri Bulaki Ram Shastri
Barrister at
A Maiden Dividend of 4% was declared after only 7 months of operation. Lala
Lajpat Rai was the first to open an account with the bank which was housed in
the building opposite the Arya Samaj Mandir in Anarkali in
The first branch outside
The years 1926 to 1936 were turbulent and loss ridden ones for the banking
industry the world over. The
It was during this period that the Jalianwala Bagh Committee account was opened
in the Bank, which in the decade that followed, was operated by Mahatma Gandhi
and Pandit Jawaharlal Nehru. The five years from 1941 to 1946 were ones of
unprecedented growth. From a modest base of 71, the number of branches
increased to 278. Deposits grew from Rs.100.000 millions to Rs.620.000
millions. On March 31, 1947, the Bank officials decided to leave
PNB was then housed in the precincts of Sreeniwas in the salubrious Civil
Lines,
The Bank then embarked on its task of rehabilitating the displaced account
holders. The migrants from
In 1951, the Bank took over the assets and liabilities of Bharat Bank Limited
and became the second largest bank in the private sector. In 1962, it
amalgamated the Indo-Commercial Bank with it. From its dwindled deposits of
Rs.430.000 millions in 1949 it rose to cross the Rs.3550.000 millions mark by
the July 1969. Its number of offices had increased to 569 and advances from
Rs.190.000 millions in 1949 to Rs.2430.000 millions by July 1969 when it was
nationalised.
Since inception in 1895, PNB has always been a "People's bank"
serving millions of people throughout the country and also had the proud
distinction of serving great national leaders like Sarvshri Jawahar Lal Nehru,
Gobind Ballabh Pant, Lal Bahadur Shastri, Rafi Ahmed Kidwai, Smt. Indira Gandhi
etc. amongst other who banked with us.
PROFILE
With over 56 million satisfied customers and 5002 offices including 5
overseas branches, PNB has continued to retain its leadership position amongst
the nationalized banks. The bank enjoys strong fundamentals, large franchise
value and good brand image. Besides being ranked as one of
Since its humble beginning in 1895 with the distinction of being the first
Swadeshi Bank to have been started with Indian capital, PNB has achieved
significant growth in business which at the end of March 2010 amounted to
Rs.4359310.000 millions. PNB is ranked as the 2nd largest bank in the
country after SBI in terms of branch network, business and many other
parameters. During the FY 2009-10, with 40.85% share of CASA deposits, the Bank
achieved a net profit of Rs.39050.000 millions. Bank has a strong capital base with
capital adequacy ratio of 14.16% as on Mar’10 as per Basel II with Tier I and
Tier II capital ratio at 9.15% and 5.01% respectively. As on March’10, the Bank
has the Gross and Net NPA ratio of 1.71% and 0.53% respectively. During the FY
2009-10, its ratio of Priority Sector Credit to Adjusted Net Bank Credit at
40.5% and Agriculture Credit to Adjusted Net Bank Credit at 19.7% was also
higher than the stipulated requirement of 40% and 18% respectively.
The Bank has been able to maintain its stakeholders’ interest by posting an
improved NIM of 3.57% in Mar’10 (3.52% Mar’09) and a Return on Assets of 1.44%
(1.39% Mar’09). The Earning per Share improved to Rs 123.98 (Rs 98.03 Mar’09)
while the Book value per share improved to Rs 514.77 (Rs 416.74 Mar’09).
Subject continues to maintain its frontline position in the Indian banking
industry. In particular, the bank has retained its NUMBER ONE position among
the nationalized banks in terms of number of branches, Deposit, Advances, total
Business, Assets, Operating and Net profit in the year 2009-10. The impressive
operational and financial performance has been brought about by Bank’s focus on
customer based business with thrust on CASA deposits, Retail, SME and Agri
Advances and with more inclusive approach to banking; better asset liability
management; improved margin management, thrust on recovery and increased
efficiency in core operations of the Bank. The performance highlights of the
bank in terms of business and profit are shown below:
(Rs in millions)
|
Parameters |
Mar'08 |
Mar'09 |
Mar'10 |
CAGR (%) |
|
Operating Profit |
40060.000 |
56900.000 |
73260.000 |
22.29 |
|
Net Profit |
20490.000 |
30910.000 |
39050.000 |
23.98 |
|
Deposit |
1664570.000 |
2097600.000 |
2493300.000 |
14.42 |
|
Advance |
1195020.000 |
1547030.000 |
1866010.000 |
16.01 |
|
Total Business |
2859590.000 |
3644630.000 |
4359310.000 |
15.09 |
PNB has always looked at technology as a key facilitator to provide better customer service and ensured that its ‘IT strategy’ follows the ‘Business strategy’ so as to arrive at “Best Fit”. The Bank has made rapid strides in this direction. All branches of the Bank are under Core Banking Solution (CBS) since Dec’08, thus covering 100% of its business and providing ‘Anytime Anywhere’ banking facility to all customers including customers of more than 3000 rural and semi urban branches. The Bank has also been offering Internet banking services to its customers which also enables on line booking of rail tickets, payment of utilities bills, purchase of airline tickets, etc. Towards developing a cost effective alternative channels of delivery, the Bank with more than 3700 ATMs has the largest ATM network amongst Nationalized Banks.
With the help of advanced technology, the Bank has been a frontrunner in the
industry so far as the initiatives for Financial Inclusion is concerned. With
its policy of inclusive growth, the Bank’s mission is “Banking for Unbanked”.
The Bank has launched a drive for biometric smart card based technology enabled
Financial Inclusion with the help of Business Correspondents/Business
Facilitators (BC/BF) so as to reach out to the last mile customer. The Bank has
started several innovative initiatives for marginal groups like rickshaw
pullers, vegetable vendors, dairy farmers, construction workers, etc. Under
Branchless Banking model, the Bank is implementing 40 projects in 16 States.
Backed by strong domestic performance, the Bank is planning to realize its
global aspirations. Bank continues its selective foray in international markets
with presence in 9 countries, with 2 branches at Hongkong, 1 each at Kabul and
Dubai; representative offices at Almaty, Dubai, Shanghai and Oslo; a wholly
owned subsidiary in UK; a joint venture with Everest Bank Limited Nepal and a
JV banking subsidiary “DRUK PNB Bank Limited” in Bhutan. Bank is pursuing
upgradation of its representative offices in
The Life and Times of Lala Lajpat Rai
There are few leaders of the pre-independence era who, after having plunged
themselves into the political struggle, continued to take an active interest in
social, cultural and educational work. Lala Lajpat Rai was one of such leader.
Born on 28th January, 1865 at a small village, Dhudike in the Ferozpur district of Punjab,
he belonged to the Agarwal Baniya caste and it was perhaps because of this, in
addition to taking part in social and political life of the country, he took
keen interest in industrial and financial matter also. His father was a teacher
of Persian and Urdu in a government school.
Having passed the final examination in Law from
Having qualified as a pleader, Lala Lajpat Rai started
practice at Hissar and soon became a leading lawyer of the district. He
organized the Arya Samaj there and put it on proper lines. In 1892, he
transferred his practice to the wider field at
Education, both secular and religious, was in Lala Lajpat
Rai’s view an important factor in national development. HE took part in the
foundation of the
Lalaji and Politics
Lala Lajpat Rai always felt drawn towards politics. It was
in 1888 that he joined the Indian National Congress when it met at
In 1905, the Indian National Congress Committee having
recognized in him an austere, sincere and selfless devoted worker selected him
as one of its delegates to place before the British public the political
grievances of the Indian people. He met the expenses of his trip from his own
pocket. He along with Gokhale carried on the political campaign in various
parts of England and brought home to the mind of the British, the evils of an
unsympathetic and bureaucratic government under which India was labouring and
pleaded in eloquent language, adding facts and figures in supporting their
contention, cause of the half starving and half dying people of India. Lala
Lajpat Rai created an impression on the public of
After his return from
The movement of “Swadeshi” was in the offing and he put his heart and soul
into it. He preached the message of swadeshi to the people of
The Jalianwala Bagh tragedy and the Government's denial to censure the conduct of its officers made him a complete non cooperator. He lost his faith in the British and threw himself whole heartedly into the non-cooperation movement.
In 1925, he joined the Swaraj Party and became its deputy
leader. He took active part in the deliberations of the debates of the
Assembly. It was he, who moved the resolution for the Boycott of the Simon
Commission in the Assembly. It was while leading the boycott procession at
Lala Lajpat Rai and PNB
Lalaji was keenly concerned with the fact that though Indian capital was being used to run English Banks and companies, the profits went entirely to the British, while Indians had to contend themselves with a small interest on their capital. He echoed this sentiment in one of his writing while concurring with Rai Mul Raj of Arya Samaj who had long cherished the idea that Indians should have a National Bank of their own. At the instance of Rai Mul Raj, Lala Lajpat Rai sent a circular to selected friends insisting on an Indian joint stock Bank as the first step in constructive Swadeshi and the response was satisfactory.
After filing and registering the memorandum and Articles of
Association on 19 May, 1894, the bank was incorporated under Act VI of the 1882
Indian Companies Act. The prospectus of the bank was published in the Tribune,
and the Urdu Akhbar-e-Am and Paisa Akhbar. On 23rd May, 1894, the
founders met at the
On 12th April 1895, the bank opened for business, a day before the great Punjabi festival of Baishakhi. The essence of the Bank’s culture was clear at this first meeting itself. The fourteen original shareholders and seven directors took only a modest number of shares; the control of the bank was to lie with the large, dispersed shareholding, a purely professional approach that was as uncommon then as it is today.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.20 |
|
|
1 |
Rs.70.27 |
|
Euro |
1 |
Rs.59.99 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
79 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.