MIRA
INFORM REPORT
|
Report Date : |
24.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
PUNJAB NATIONAL BANK |
|
|
|
|
Registered
Office : |
7, Bhikhaiji Cama Place, New Delhi - 110607 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Year of Establishment : |
1895 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.3534.734 Millions |
|
|
|
|
Legal Form : |
Subject is a Government of India Undertaking Bank. |
|
|
|
|
Line of Business
: |
Banking Activities. |
|
|
|
|
No. of Employees
: |
63292 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
Large |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed nationalized bank. It is a bank having fine track record. Fundamentals are strong and
healthy. Trade relations are fair. Business is active. Payments are regular
and as per commitments. The bank can be considered good 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw a
change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial
years of the contagion but finally lost ground last year. GDP growth slowed
down. Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
7, Bhikhaiji Cama Place,
New Delhi – 110607, India |
|
Tel. No.: |
91-11-26102303 / 6869 / 8379 / 26196353 / 26108205 / 26196487 |
|
Fax No.: |
91-11-26876456 / 26108741 / 26160149 / 26196462 / 26176297 / 26102303 |
|
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 Queries Related to RTGS (Real Time Gross Settlement) : rtgs@pnb.co.in Queries Related to NEFT (National Electronic Fund Transfer) : neft@pnb.co.in |
|
Website : |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. K.R. Kamath |
|
Designation : |
Director |
|
Date of Appointment: |
28.10.2009 |
|
|
|
|
Name : |
Mr. Rakesh Sethi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Usha Ananthasubramanian |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S R Bansal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Anurag Jain |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N S Vishwanathan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B B Chaudhary |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mushtaq A Antulay |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M N Gopinath |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D K Singla |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sunil Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Tara Chand Jhalani |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. V K Khanna |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mrs. Sushma Bali |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Rajinder Mahajan |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. S S Bhatia |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. A K Verma |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Farid Akhtar |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. S R Sharma |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. K Ram Mohan |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. K K Aravindakshan |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Santosh Madan |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. B S Passi |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Vinay Kumar |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. G S Chauhan |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Shiv Kumar Gupta |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. A C Chugh |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Kiran Grover |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. I S Phogat |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Dr. B L Patheja |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. B P Ray |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. G Rajkumar |
|
Designation : |
General Manager |
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|
|
|
Name : |
Mr. S K Mohanty |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Kamal Prasad |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. P K Sharma |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. A K Gupta |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Y K Barar |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Joginder Bajaj |
|
Designation : |
General Manager |
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|
|
|
Name : |
Mrs. Sumita Roy |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. A K Ahuja |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. R K Raizada |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. M K Pangtey |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. S K Goyal |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. S S Banerjee |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Harpal Singh |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. R Subramania Kumar |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. V K Kathuria |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Dr Rakesh Gupta |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. G S Gusain |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. P K Mohapatra |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. V P Jain |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Dhaneshwar Sahoo |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Rakesh Kumar |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. J K Gupta |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. N K Arora |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. Himanshu Joshi |
|
Designation : |
General Manager |
|
|
|
|
Name : |
Mr. K Thyagarajan |
|
Designation : |
General Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2013
|
Category
of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
204571589 |
57.87 |
|
|
204571589 |
57.87 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
204571589 |
57.87 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
12607380 |
3.57 |
|
|
921800 |
0.26 |
|
|
100637 |
0.03 |
|
|
53778040 |
15.21 |
|
|
63589563 |
17.99 |
|
|
2227 |
0.00 |
|
|
2227 |
0.00 |
|
|
130999647 |
37.06 |
|
|
|
|
|
|
2510368 |
0.71 |
|
|
|
|
|
|
13245547 |
3.75 |
|
|
1232274 |
0.35 |
|
|
913971 |
0.26 |
|
|
64301 |
0.02 |
|
|
943 |
0.00 |
|
|
355990 |
0.10 |
|
|
234977 |
0.07 |
|
|
166 |
0.00 |
|
|
257594 |
0.07 |
|
|
17902160 |
5.06 |
|
Total Public
shareholding (B) |
148901807 |
42.13 |
|
Total (A)+(B) |
353473396 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
353473396 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Banking Activities. |
|
|
|
|
Export to : |
No Export |
|
|
|
|
Import from : |
No Import |
GENERAL INFORMATION
|
Suppliers : |
Not Available |
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|
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Customers : |
Not Available |
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|
|
||||||||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
63292 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
Reserve Bank of India |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors 1 : |
|
|
Name : |
Borkar and Muzumdar Chartered Accountants |
|
Auditors 2 : |
|
|
Name : |
G. S. Madhava Rao and Company Chartered Accountants |
|
|
|
|
Auditors 3 : |
|
|
Name : |
Phillipos and Company Chartered Accountants |
|
|
|
|
Auditors 4 : |
|
|
Name : |
K N Gutgutia and Company Chartered Accountants |
|
|
|
|
Auditors 5 : |
|
|
Name : |
CVK and Associates Chartered Accountants |
|
|
|
|
Auditors 6 : |
|
|
Name : |
Ramesh Kapoor and Company Chartered Accountants |
|
|
|
|
Subsidiaries : |
· PNB Gilts Limited · PNB Housing Finance Limited · Punjab National Bank (International) Limited, UK · PNB Investment Services Limited · Druk PNB Bank Limited, Bhutan. · PNB Insurance Broking Private Limited. · PNB Life Insurance Company Limited ·
JSC SB PNB Kazakhstan |
|
|
|
|
Associates : |
· Everest Bank Limited, Nepal · Principal PNB Asset Management Company Private Limited · Principal Trustee Company Private Limited · Assets Care and Reconstructions Enterprise Limited · India Factoring and Finance Solutions Private Limited · PNB Metlife India Insurance Company Limited · Madhya Bihar Gramin Bank. · Haryana Gramin Bank · Himachal Gramin Bank, Mandi · Punjab Gramin Bank · Rajasthan Gramin Bank ·
Sarva UP Gramin Bank |
CAPITAL STRUCTURE
As on: 31.03.2013
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 |
|
|
|
|
|
|
353473396 |
Equity Shares (includes 204571589 equity shares of Rs.10 each held by Central Government ) |
Rs.10/- each |
Rs.3534.734 Millions |
|
|
|
|
|
LISTING DETAILS
|
|
BSE : 532461 NSE : PNB |
|
Stock Exchange Place : |
Ø
The Stock Exchange, Mumbai Ø
National Stock Exchange of India Limited |
|
Listed Date : |
24.04.2002 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
Capital |
3534.734 |
3391.786 |
3168.122 |
|
Reserves and Surplus |
323234.295 |
274762.396 |
211917.450 |
|
Deposits |
3915600.633 |
3795884.792 |
3128987.266 |
|
Borrowings |
396209.246 |
372642.705 |
315896.905 |
|
Other Liabilities &
Provisions |
150191.455 |
135241.793 |
123282.659 |
|
TOTAL |
4788770.363 |
4581923.472 |
3783252.402 |
|
|
|
|
|
|
|
|
|
|
|
Cash & Balances with Reserve Bank of India |
178862.497 |
184928.960 |
237768.960 |
|
Balances with Banks & money
at Call & Short Notice |
92491.329 |
103351.375 |
59143.156 |
|
Investments |
1298961.914 |
1227030.238 |
951623.475 |
|
Advances |
3087252.086 |
2937747.567 |
2421066.661 |
|
Fixed Assets |
33576.774 |
31688.611 |
31055.961 |
|
Other Assets |
97625.763 |
97176.721 |
82594.189 |
|
TOTAL |
4788770.363 |
4581923.472 |
3783252.402 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
Interest Earned |
418933.292 |
364761304 |
269864800 |
|
Other Income |
42159.227 |
42026043 |
36125803 |
|
TOTAL |
461092.519 |
406787347 |
305990603 |
|
|
|
|
|
|
Interest expended |
270368.241 |
230616.907 |
151791.441 |
|
Operating Expenses |
81650.545 |
70027.511 |
63642.242 |
|
Provisions & Contingencies |
61597.018 |
57300.885 |
46221.967 |
|
TOTAL |
413615.804 |
357945.303 |
261655.650 |
|
|
|
|
|
|
PROFIT- Net Profit for the period |
47476.715 |
48842.044 |
44334.953 |
|
Add: Balance in Profit and Loss
account |
0.000 |
0.000 |
0.000 |
|
Profit available for appropriation |
47476.715 |
48842.044 |
44334.953 |
|
|
|
|
|
|
Appropriations |
|
|
|
|
Transfer to: |
|
|
|
|
Statutory Reserve |
11869.179 |
12210.511 |
11083.740 |
|
Capital Reserve |
303.526 |
330.207 |
120.165 |
|
Revenue and Other Reserve |
23108.899 |
26345.208 |
23650.494 |
|
Dividend @ 270% proposed for the
year 2012-13 (@220% paid for the year 2011-12) |
9543.781 |
7461.931 |
6969.867 |
|
Tax on Dividend proposed for the
year 2012-13 |
1621.965 |
7461.931 |
1130.687 |
|
Balance Transferred from provision for Tax on Dividend |
(30.635) |
(78.824) |
0.000 |
|
Special reserve as per Income Tax Act |
1060.000 |
1362.500 |
1380.000 |
|
Balance in Profit & Loss Account |
0.000 |
0.000 |
0.000 |
|
TOTAL |
47476.715 |
48842.044 |
44334.953 |
|
|
|
|
|
|
Earning per Share
(Rs.) (Basic/Diluted) |
139.52 |
154.02 |
140.60 |
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2013 1st
Quarter |
|
|
|
|
UnAudited |
|
Interest Earned |
|
|
104045.400 |
|
Income On Investments |
|
|
24393.200 |
|
Interest On Balances With Rbi Other Inter Bank Funds |
|
|
785.700 |
|
Interest / Discount On Advances / Bills |
|
|
78747.300 |
|
Others |
|
|
119.200 |
|
Other Income |
|
|
13420.500 |
|
Total Income |
|
|
117465.900 |
|
Interest Expended |
|
|
64970.300 |
|
Operating Expenses |
|
|
22757.600 |
|
Total Expenditure |
|
|
22757.600 |
|
Operating Profit Before Provisions and Contingencies |
|
|
29738.000 |
|
Exceptional Items |
|
|
0.000 |
|
Provisions and contingencies |
|
|
10664.800 |
|
Profit Before Tax |
|
|
19073.200 |
|
Tax |
|
|
6320.000 |
|
Profit After Tax |
|
|
12753.200 |
|
+/- Extraordinary Items |
|
|
0.000 |
|
+/- Prior period items |
|
|
0.000 |
|
Net Profit |
|
|
12753.200 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
OPERATIONAL
HIGHLIGHTS
Under PNB Pragati-Organizational Transformational Exercise of the Bank, operational excellence is one of the important pillars amongst three pillars on which this programme stands.
The Bank has expanded its Wealth Management Services by forming PNB MetLife India Insurance Company Limited after acquiring 30% stake in MetLife India Insurance Company Limited.
The Bank has set up its Corporate Office Building named 'PNB Pragati Tower' housing the integrated Treasury office and Circle Office at Bandra Kurla Complex, Mumbai.
The Bank has expanded its international presence to Sydney, Australia its 10th international destination.
Further, the Bank is exploring possibilities for establishing its presence in Maldives, South Africa, Bangladesh, Myanmar and Singapore.
The Bank is steadily adding to the kitty of its products and services. PNB RuPay Card is one such step in this direction.
The Bank has launched PNB Express Money Remit Card and approximately 15,000 cards have been issued so far to beneficiaries of Inward remittance from Middle East.
The Bank also modified the existing schemes and launched several new schemes of loans for meeting the growing aspirations of customers.
MANAGEMENT DISCUSSION
AND ANALYSIS
Business and Economic
Environment
The financial year 2012-13 was challenging for Indian economy. Gross Domestic Product (GDP) of Indian economy deviated from its high growth trajectory of last two financial years. Deceleration in GDP growth, which started in FY'12, continued in FY'13 as well because of moderation in all the three sectors namely Agriculture, Industry and Services. Over all GDP growth for nine months of FY'13 stands at 5% as compared to 6.1% growth recorded during the corresponding financial year.
Weak monsoon affected the Agricultural performance during FY'13. Agricultural Sector recorded a meager growth rate of around 1% in Q2 and Q3 of FY'13 declining from around 3% growth seen in Q1FY'13.
Industrial growth continued to remain sluggish in FY'13, driven by both domestic and global factors. Tardy recovery in developed countries of the world continued political and economic turmoil in EU and low growth in developing countries hampered Indian exports. High price levels in domestic and global markets kept demand subtle. Hence, industrial growth for eleven months of FY13 i.e. from April-February 2013 remained at 0.9% as compared to 3.5% growth recorded during the same period of the last financial year. As a result of credible economic reform measures since September 2012 and policy rate reduction by Regulator, investment climate has improved and industrial growth has recorded positive growth successively during two months (Jan and Feb 2013) of Q4 FY'13. It is expected that industrial activity may improve gradually.
Subdued growth in Agricultural and Industrial sectors and weak external demand pulled down the growth of Services Sector. Growth of Services Sector slowed down from around 7.5% in Q1 FY'13 to 6% in Q3 FY'13. Slowdown in Services sector is mainly on account of fall in the Hospitality industry, Transport industry, Banking, Finance and Insurance sector.
High inflation is another problem that has haunted the economy for last two financial years. In FY'13, inflation measured by Wholesale Price Index (WPI) remained stubbornly high at around 8% limiting the scope for reduction in interest rate. Similarly, inflation measured by Consumer Price Index (CPI) also remained mostly above 10% in FY'13. Unabated high price level throughout the financial year dampened overall demand condition in the economy.
Economic growth in FY'13 was also plagued by Twin deficits - Fiscal deficit and Current Account Deficit. Low growth and uncertainty in advanced economies as well as emerging market economies adversely affected exports in FY'13. This, combined with continuing large imports of oil and gold, resulted in an adverse trade balance during the first nine months of FY'13.
Industry Structure
There were 169 Scheduled Commercial Banks (SCBs) and four Non-Scheduled Commercial Banks in Indian Banking System as at end March 2012.
PNB has maintained its position as one of the largest nationalized banks in India with more than 5800 branches throughout the country. As on LRF March 2013, PNB's share in system's aggregate deposits reached 5.18% and that in system's credit reached 5.11%.
Banking Development
The banking industry had to pass through severe stress in FY'13 as a result of economic slowdown. Slowdown in industrial growth, low agricultural production, tepid services sector growth, high inflation and elevated interest rate affected the overall performance of Indian banks.
As a result of overall slowdown in the economy continuously for last two financial years, recovery climate for the commercial banks got affected. Consequently, Non Performing Assets (NPA) of the commercial banks witnessed an increase in FY'13. Subdued performance of some infrastructure sectors especially power and civil aviation stressed the asset quality of the commercial banks. This gave rise to an increase in the amount of Restructured Standard Assets in the FY'13 leading to higher provisioning requirement. Hence, FY'13 posed double pressure upon the banking sector, one in the form of low profit and the other in the form of higher provisioning requirement.
Credit demand remained subdued throughout FY'13. However, due to 100 bps reduction in Repo rate by regulator in a gradual manner, and some pickup in credit demand during the last quarter of FY13, banks were able to record credit growth of 17% for FY'13. Similarly, negative real return to the depositors in the banking sector because of persistent high inflation resulted in weak accretion of deposits. Apart from the above, migration of financial savings to physical assets like real estate and gold also caused less flow of deposits to the banking system. However, like credit growth, the year-end surge in deposit accretion helped the YoY growth rate of deposits to reach the level of 17.4% for FY13.
Apart from the above, the banks continuously faced shortage of liquidity throughout FY'13. The commercial banks borrowed over Rs. 1 lakh crore on an average from the Repo window of Liquidity Adjustment Facility (LAF) in FY'13. Apart from that, to infuse liquidity into the system and to ensure availability of enough credit to the productive sectors of the economy, the regulator conducted Open Market Operations (OMO) from time to time, whenever required. In addition to the above, Cash Reserve Ratio (CRR) was slashed by 75 bps in FY'13 to 4% which helped banks in terms of improving liquidity for increasing lendable resources and improving profitability.
Despite all the above, economic reform measures undertaken in India and policy rate reduction by regulator have enabled investment environment to revive. The banking sector is likely to witness a better and healthier financial year ahead.
BUSINESS OVERVIEW
Business
Bank's total business reached Rs. 7002850.000 Millions at the end of March'13, registering an absolute increase of Rs. 269220.000 Millions and a growth of 4.0%. Bank's overseas business increased by 57.2% to reach Rs.483350.00 Millions.
CONTINGENT
LIABILITIES
(Rs. in Millions)
|
Particular |
31.03.2013 |
31.03.2012 |
|
Claims against the Bank not acknowledged as debts |
1885.412 |
2500.064 |
|
Disputed income tax and interest tax demands under appeals, references, etc. |
8072.745 |
11608.700 |
|
Liability for partly paid investments |
0.115 |
0.115 |
|
Liability on account of outstanding forward exchange contracts |
1383479.570 |
1298150.508 |
|
Guarantees given on behalf of constituents: |
|
|
|
In India |
251736.852 |
242085.299 |
|
Outside India |
153991.101 |
180555.668 |
|
Acceptances, endorsements and other obligations |
337689.384 |
342678.091 |
|
Other items for which the Bank is contingently liable |
5936.046 |
2788.043 |
FIXED ASSETS
TANGIBLE ASSETS
· Premises
INTANGIBLE ASSETS
· Computer Software
FINANCIAL RESULTS
(REVIEWED) FOR THE QUARTER ENDED 30th JUNE, 2013
(Rs. In Millions)
|
S. No. |
Particulars |
Quarter Ended |
|
30.06.2013 |
||
|
Reviewed |
||
|
1. |
Interest Earned (
a+b+c+d ) |
104045.400 |
|
|
a) Interest/discount on advances/bills |
78747.300 |
|
|
b) Income on Investments |
24393.200 |
|
|
c) Interest on Balances with RBI & other Inter Bank Funds |
785.700 |
|
|
d) Others |
119.200 |
|
2. |
Other Income |
13420.500 |
|
3. |
TOTAL INCOME (1+2) |
117465.900 |
|
4. |
Interest Expended |
64970.300 |
|
5. |
Operating Expenses (i+ii) |
22757.600 |
|
|
(i) Employees' Cost |
16159.300 |
|
|
(ii) Other operating expenses |
6598.300 |
|
6. |
TOTAL EXPENSES (4+5) (excluding provisions & contingencies) |
87727.900 |
|
7. |
Operating Profit (3-6) (Profit before Provisions & Contingencies) |
29738.000 |
|
8. |
Provisions (other than tax) and contingencies |
10664.800 |
|
9. |
Exceptional items |
0.000 |
|
10. |
Profit (+)/Loss (-) from ordinary activities before tax (7-8+9) |
19073.200 |
|
11. |
Tax Expense |
6320.000 |
|
12. |
Net Profit (+)/Loss(-)
from ordinary activities after tax (10-11) |
12753.200 |
|
13. |
Extraordinary items (net of tax expense) |
0.000 |
|
14. |
Net Profit
(+)/Loss(-) for the period (12-13) |
12753.200 |
|
15. |
Paid up equity Share Capital (Face value Rs.10/-) |
3534.700 |
|
16. |
Reserves excluding revaluation reserves(As per Balance sheet of previous year) |
308945.800 |
|
17. |
Analytical Ratios |
|
|
|
(i) Share holding of Govt. of India (%) |
57.87 |
|
|
(iia) Capital Adequacy Ratio (%) as per Basel-II |
12.44 |
|
|
(iib) Capital Adequacy Ratio (%) as per Basel-III |
11.79 |
|
|
(iii) Earnings per Share (EPS) not annualized in Rs. |
|
|
|
(a) Basic & diluted EPS before extraordinary items |
36.08 |
|
|
(b) Basic & diluted EPS after extraordinary items |
36.08 |
|
|
(iv) NPA Ratios: |
|
|
|
(a) Amount of gross non-performing assets |
150906.300 |
|
|
(b) Amount of net non-performing assets |
90600.100 |
|
|
(c) % of gross NPAs |
4.84 |
|
|
(d) % of net NPAs |
2.98 |
|
|
(v) Return on Assets ( Annualised) % |
1.04 |
|
18. |
Public Shareholding |
|
|
|
(i) No. of Shares |
148901807 |
|
|
(ii) Percentage of Share holding |
42.13 |
|
19. |
Promoters and
Promoter Group Share Holding |
|
|
a) |
Pledged/Encumbered |
|
|
|
--Number of shares |
Nil |
|
|
--Percentage of shares(as % of the total shareholding of promoter & promoter group) |
Nil |
|
|
--Percentage of shares(as % of the total share capital of the bank) |
Nil |
|
b) |
Non-Encumbered |
|
|
|
--Number of shares |
204571589 |
|
|
--Percentage of shares(as % of the total shareholding of promoter & promoter group) |
100 |
|
|
--Percentage of shares(as % of the total share capital of the bank) |
57.87 |
SEGMENT REPORTING FOR THE QUARTER ENDED 30TH JUNE 2013
(Rs. In Millions)
|
Sr. No. |
Particulars |
Quarter Ended |
|
30.06.2013 |
||
|
Reviewed |
||
|
1 |
Segment Revenue |
|
|
|
(a) Treasury Operations |
28694.000 |
|
|
(b) Corporate/Wholesale Banking |
54979.600 |
|
|
(c) Retail Banking |
31812.200 |
|
|
(d) Other Banking Operations |
1980.100 |
|
|
Total Revenue |
117465.900 |
|
2 |
Segment Results |
|
|
|
(a) Treasury Operations |
4137.900 |
|
|
(b) Corporate/Wholesale Banking |
17535.100 |
|
|
(c) Retail Banking |
10146.200 |
|
|
(d) Other Banking Operations |
631.500 |
|
|
Total |
32450.700 |
|
3 |
Unallocated Expenditure |
2712.700 |
|
4 |
Operating Profit |
29738.000 |
|
5 |
Provision for Tax |
6320.000 |
|
6 |
Extraordinary items |
0.000 |
|
7 |
Net profit |
12753.200 |
|
8 |
Segment Assets |
|
|
|
(a) Treasury Operations |
1364757.700 |
|
|
(b) Corporate/Wholesale Banking |
2360898.400 |
|
|
(c) Retail Banking |
991959.800 |
|
|
(d) Other Banking Operations |
63963.700 |
|
|
(e) Unallocated |
29441.400 |
|
|
Total |
4811021.000 |
|
9 |
Segment Liabilities |
|
|
|
(a) Treasury Operations |
1275791.500 |
|
|
(b) Corporate/Wholesale Banking |
2206995.600 |
|
|
(c) Retail Banking |
927295.700 |
|
|
(d) Other Banking Operations |
59794.000 |
|
|
(e) Unallocated |
1633.000 |
|
|
Total |
4471509.800 |
|
10 |
Capital Employed |
|
|
|
(a) Treasury Operations |
88966.200 |
|
|
(b) Corporate/Wholesale Banking |
153902.800 |
|
|
(c) Retail Banking |
64664.100 |
|
|
(d) Other Banking Operations |
4169.700 |
|
|
(e) Unallocated |
27808.400 |
|
|
Total Capital
Employed |
339511.200 |
Note :
1. Segment Liabilities are distributed in the ratio of their respective Segment Assets.
2. As the operations outside India are less than the threshold limit of 10%, secondary segment information is not required to be furnished.
3. Figures of the previous period have been re-grouped/re-classified wherever necessary to make them comparable.
SUMMARISED BALANCE
SHEET
(Rs. In Millions)
|
Particulars |
As at Jun 2013 |
|
|
( Reviewed) |
|
Capital and Liabilities |
|
|
Capital |
35.347 |
|
Reserves and Surplus |
3359.765 |
|
Deposits |
39682.811 |
|
Borrowings |
3478.889 |
|
Other Liabilities and Provisions |
1553.398 |
|
Total |
48110.210 |
|
Assets |
|
|
Cash and Balances with Reserve Bank of India |
2012.941 |
|
Balances with bank and Money at call and short notice |
1056.067 |
|
Investments |
13298.155 |
|
Advances |
30506.556 |
|
Fixed Assets |
338.552 |
|
Other assets |
897.939 |
|
Total Assets |
48110.210 |
NOTES
1. The financial results for the quarter ended 30th Jun, 2013, have been prepared following the same accounting policies and practices as those followed in the annual financial statements for the year ended 31st March, 2013.
2. The above financial results have been reviewed by the Audit Committee and approved by the Board of Directors in the meeting held on 26.07.2013. The same have been subjected to a limited review by the Statutory Central Auditors of the bank, in line with the guidelines issued by the Reserve Bank of India and as per the requirement of Listing agreement with Stock Exchanges.
3. The figures of the last quarter of the FY 2012-13 are the balancing figures between audited figures in respect of the full financial year and the published year to date figures to the third quarter.
4. Banks are required to disclose capital adequacy ratio under Basel III capital regulations from the quarter ended Jun 30, 2013. Accordingly, comparative details for previous periods are not applicable.
5. The provision for non-performing assets, standard assets, standard derivative exposures and investment depreciation has been made on the basis of extant guidelines on prudential norms for income recognition, asset classification and provisioning issued by the Reserve Bank of India.
6. Gratuity, pension, leave encashment, income tax, wage revision and other usual and necessary provisions have been made on an estimated basis.
7. In accordance with guidelines issued by Reserve Bank of India vide Notification No. DBOD.No.BP.BC.80/21.04.018/2010- 11 dated February 09, 2011, an amount of Rs. 1661.800 Millions has been charged to Profit and Loss account during the current quarter towards the amortization relating to enhancement in Gratuity limit and re-opening of pension option for existing employees. Unamortized liability carried forward Rs.11632.800 Millions shall be charged proportionately in accordance with the said RBI guidelines.
8. The Provisioning Coverage Ratio as at 30th Jun 2013 works out to 54.67 %.
9. Position of complaints from investors as on 30.06.2013:
|
At the beginning |
Received |
Disposed off |
Pending |
|
02 |
19 |
18 |
03 |
10. Figures of the previous period have been regrouped / rearranged / re-classified wherever necessary to conform to current period's classification.
AS PER WEBSITE DETAILS
Press Releases
MOODY'S DOWNGRADES RATINGS FOR PNB, BOB AND CANARA BANK
Mumbai August 17, 2013
Moody’s, the global rating agency, has downgraded the baseline credit assessments (BCA) for three public sector banks (PSBs) – Punjab National Bank, Bank of Baroda and Canara Bank - on the adverse economic environment.
It says the challenges have been aggravated by the depreciating rupee and high levels of inflation. The Reserve Bank of India’s steps to support the rupee have not reversed its slide. As a consequence, interest rates might stay elevated for a longer period.
The rupee’s value against the dollar has slid by 11.2 per cent, from 55.48 (May 22) to 61.71 (August 16), according to Bloomberg data.
Moody’s cut its BCA rating for PNB by two notches, from ba3 to ba1. In the case of Bank of Baroda and Canara Bank, the cut was one notch, to ba1. It assigned a negative outlook to Union Bank of India’s BCA, while affirming its ba2 rating.
Banks, especially public sector ones, will face difficulty in dealing with slower economic growth, deteriorating asset quality and declining margins, went a Moody’s statement.
Meanwhile, global financial services firm Macquarie said recovery (of growth) in India was a mirage. Mere announcements or lip service from the government do not entail recovery. Cases being referred for corporate debt restructuring continue to remain very high. Also, most of the large assets restructured earlier aren’t performing well (implying larger defaults from these) and the “big names” in the business, amounting to close to Rs 2000000.000 Millions of debt (three per cent of system assets) are yet to be restructured; they’d come up over the course of the next few years.
The slippages are likely to entail more provisioning in banks’ balance sheets, said Moody’s. Stressed assets (unprovided) as a percentage of net worth is an alarming high of 100 per cent for state-owned banks, compared to six per cent for private banks, Macquarie added.
Moody’s noted PSBs continued to report a deterioration in asset quality. Their impaired loans ratio (of gross non-performing loans plus restructured loans, as a percentage of gross loans) was above eight per cent at the end of March. The loan loss reserves’ coverage for these impaired loans was under 25 per cent as of end-March.
Moody’s said the capital ratios would remain under pressure. The situation was compounded by the relatively low capacity for internal capital generation. It noted the government had injected capital many a time in PSBs, due to their weak financial performance. It has a plan to invest Rs 140000.000 Millions ($2.3 billion) during 2013-14 in these banks, to raise their capital levels.
Though these capital injections have not taken place under extreme conditions, they do point to business models that are not self-sustaining from a financial perspective, said Moody’s.
In June, the agency had placed Indian banks’ ratings (on subordinated and junior subordinated debt) on review for a downgrade. It was done due to a change in methodology, to assess systemic support for bank subordinated debt.
MOODY’S DOWNGRADES
BOB, CANARA BANK, PNB
Mumbai, Aug. 16:
Slower economic growth, deteriorating asset quality and declining margins have prompted Moody’s Investors Service to downgrade the ratings and credit assessments of three major public sector banks — Bank of Baroda, Canara Bank and Punjab National Bank.
The global credit rating agency also changed the financial strength ratings of Union Bank of India to negative.
“The downgrades for Bank of Baroda, Canara Bank and Punjab National Bank, and the negative outlook to Union Bank of India primarily reflect the challenges of the current macroeconomic environment, which have been exacerbated by the depreciating rupee and high levels of inflation,” Moody’s said.
According to the rating agency, the Reserve Bank of India’s measures to support the currency have not reversed its depreciation, implying that interest rates may remain elevated for a longer time.
The deteriorating macroeconomic situation apart, Moody’s pointed to the worsening asset quality at Indian banks, with total non-performing assets and restructured loans rising above 8 per cent of their loan book and loan loss reserves coverage for these impaired loans under 25 per cent as of end-March 2013.
“These problem assets indicate a risk that capital ratios will remain under pressure; a situation which is compounded by the relatively low capacity of the banks for internal capital generation.
“Therefore, given their weak financial performances, several public sector banks have received repeated capital injections from the government in past years,” Moody’s said.
Shares of the four banks fell sharply on Friday. Canara Bank shares ended at Rs. 224.15 per share on the BSE, down 9.96 per cent from the previous close, while Bank of Baroda fell 8.5 per cent at Rs. 479.10.
Union Bank of India shares fell 5.98 per cent to Rs. 112.35 and Punjab National Bank declined 7 per cent to Rs. 500.05. The BSE Bankex fell 5.55 per cent to 10,800.62 points.
The benchmark Sensex dropped 3.97 per cent to 18,598.18 points.
PERFORMANCE HIGHLIGHTS
FOR Ql FY 14
· TOTAL BUSINESS ABOVE RS. 7.00 LAC CRORE.
· DOMESTIC CASA SHARE 39.63%.
· NET INTEREST MARGIN REMAINS HIGH AT 3.52%.
· RETURN ON ASSETS STOOD AT 1.04%.
· BOOK VALUE PER SHARE INCREASES TO RS. 920
|
Business |
: |
Rs. 7.02 lac crore |
|
3.2% |
|
Deposits |
: |
Rs. 3.97 lac crore |
|
3.0% |
|
Credit |
: |
Rs. 3.05 lac crore |
|
3.6% |
|
Book Value per
Share |
: |
Rs. 920.22 |
|
13.0% |
Profit
· Net Profit of the Bank for the quarter ended June 2013 (Ql FY'14) amounted to Rs.. 12753.200 Millions as against Rs. 12456.700 Millions during Q1FY13, registering a YOY growth of 2.4 %.
· Operating Profit for Ql FY'14 stood at Rs. 29738.000 Millions as against Rs. 28408.900 Millions in Ql FY'13, registering a YOY growth of 4.7%
Income
· Total income during Ql FY'14 amounted to Rs. 117470.000 Millions.
· Net Interest Income for Ql FY'14 improved by 5.8 % to Rs. 39080.000 Millions.
· Non-Interest Income in Ql FY'14 amounted to Rs.13420.000 Millions.
Business
· Total Business of the Bank reached Rs. 7018940.000 Millions as against Rs. 6798230.000 Millions in June 2012, showing a y-o-y growth of 3.2 %.
· Deposits of the Bank rose to Rs..3968280.000 Millions as on 30.06.2013 from Rs. 3853550.000 Millions as on 30.06.2012, exhibiting a y-o-y growth of 3.0 %.
° CASA deposits increased to Rs. 1499470.000 Millions in June'13 from Rs. 1331490.000 Millions in June'12, recording a growth of 12.6 %. CASA share worked out to 39.63 %
° Saving deposits increased by 14.7% to Rs. 1232280.000 Millions.
· Advances of the Bank at Rs. 3050660.000 Millions, at the end of June'13 grew by 3.6%
· Credit Deposit Ratio works out to 76.88% as at June'13.
Important Ratios
· Gross NPA ratio stood at 4.84% as at June'13 whereas Net NPA ratio was 2.98%.
· Net Interest Margin (NIM) has been maintained at 3.52% for Q1 FY'14.
· Return on Assets stood at 1.04% in the Q1 FY'14.
· Cost of Deposit stood at 6.42% for Q1 FY'14.
· Cost to Income ratio stood at 43.35% in Q1 FY'14.
· Return on Equity stood at 15.68% in Q1 FY'14.
· Book Value per Share improved to Rs.920.22 in June'13 as against Rs. 814.14 in June'12.
Delivery Channels
· Bank has a strong pan India presence with wide network of 5929 branches
· Bank's ATM network reached 6460 and number of card holders increased to 216 lakh.
· PNBis Internet Banking Service is witnessing a steady increase in usage with more than 2.21 million internet banking users.
· More than 182 lac customers are availing SMS alert facility.
· Around 51.50% of transactions are being conducted through Alternate Delivery Channels.
Retail Credit
· Focus on Retail lending continued during the quarter and Retail loans outstanding grew by 7.83 % on YoY basis to Rs. 315730.000 Millions at end of June'13 as against Rs. 292800.000 Millions in corresponding period last year.
° Good y-o-y growth in Car/Vehicle loan (11.76%), Reverse Mortgage scheme (26.32%), Pensioners loan portfolio (18.75%), Housing loan (13.90%) and Education loan (7.49%).
° Gold loan portfolio rose by robust 72.89% to Rs.14880.000 Millions.
International Forays
· PNB has 5 representative offices in Dubai, Almaty (Kazakhstan), Shanghai (China), Oslo (Norway) and Sydney (Australia). Bank has got permission from RBI for opening of a Qualifying Full Bank (QFB) in Singapore and for opening of a Representative office in Yangon (Myanmar) and Bangladesh.
· Bank is looking forward to upgrade its representative office in Norway and Australia to full fledged branches, which would be in addition to existing 2 branches in Hong Kong and a branch each in DIFC, Dubai, Kabul (Afghanistan).
· Bank has 3 overseas subsidiaries viz. PNB International limited in UK with 7 branches, JSC SB PNB Kazakhstan with 4 branches and Druk PNB Bank Limited, Bhutan with 5 branches.
· Bank has a joint venture in Nepal with Everest Bank Limited
·
Bank is also exploring possibilities for presence in
Bangladesh, Pakistan, Maldives, Canada and Mozambique.
Priority Sector
· Due to the impact of revised priority sector classification guidelines by RBI in July 2012, outstanding credit under Priority Sector and Agriculture shows a decline.
· Issued 46.23 lac Kisan Credit Cards (KCC) till June 30th, 2013.
Micro, Small and
Medium Enterprises
· Credit to MSME sector rose to Rs. 594210.000 Millions as at end of June'13 from Rs. 563680.000 Millions last year, recording a growth of 5.42 %.
° Credit to Micro and Small Enterprises grew by 6.42% to Rs. 477480.000 Millions as on 30.06.2013.
° Credit to Micro enterprises grew by 0.96 % to Rs. 184580.000 Millions.
Financial Inclusion
· Under FI plan, the bank has engaged Technical Service Providers (TSPs) and the corporate Business Correspondents (BCs) for providing banking services in villages using ICT based BC model. The village level BC agents are using Hand Held Terminals/ POS machines and smart cards.
· The Bank has procured the Kiosk Banking Solution that would facilitate real-time on-line services at BC outlets. Transactions at online BC outlets would take place in the CBS system through a process of centralized biometric authentication. Under this revised process, customers enrolled at BC locations would be enabled to transact at any BC outlet / branch of the Bank. Additionally, customers of branches may also be enabled to obtain basic banking services at BC locations.
· We are in the process of setting up 7000+ on-line BC locations across the country.
· Electronic Benefit Transfer (EBT): The Bank is continuing with 5 projects under the EBT for payment of Social Security Benefits/NREGA payments.
CSR and Empowerment
initiatives
· Bank has adopted 124 villages under PNB VIKAS (village adoption scheme) with an objective to develop the identified villages in an integrated manner, which includes Human Development, Economic Development and other Infrastructure Development.
· Under the aegis of PNB Centenary Rural Development Trust (PNBCRDT), Bank has operationalised 44 PNB Rural Self Employment Training Institutes (PNBRSETIs) for providing training to the rural youth with focus on BPL families and women so that they can engage themselves in self employment or get wage employment and raise their income level. During the year upto June '13, 6131 persons have been trained in these centres out of which 2261 belonged to BPL families and 4729 were women.
· Bank has set up 100 Financial Literacy and Credit Counseling Centres to provide financial literacy and credit counseling, where knowledge about schemes of various Banks, and the benefits of becoming part of the banking system is disseminated through one-to-one discussion and seminars. Services provided are free of cost. During the year 2013-14, enquiries from 32295 persons were attended to and 43900 persons attended 867 seminars conducted by the FLCs.
· Under the aegis of the PNB Farmers' Welfare Trust, 10 Farmers' Training Centres are working which provide free of cost training on agriculture and allied activities, computers, cutting and tailoring / embroidery and conduct entrepreneurship development programs. These FTCs have imparted training to 28428 farmers and youth by conducting 921 training programmes during the year 2013-14.
Recent Awards and
Accolades
· Golden Peacock Business Excellence Award 2013 by Institute of Directors.
· Social and Corporate Governance Award - Best Corporate Social Responsibility Practices for the year 2011-12 by Bombay Stock Exchange and World CSR Day.
· Shri K.R. Kamath, CMD, PNB has been ranked 39 in 2013 amongst the Most Powerful CEOs by Economic Times. This rank has improved from 50 last year.
PERFORMANCE
HIGHLIGHTS FOR Q4 FY 13 AND FY 2013
· TOTAL BUSINESS CROSSES Rs. 7.00 LAC CRORE.
· DOMESTIC CASA SHARE ABOVE 40%.
· OPERATING PROFIT FOR FY ABOVE Rs. 10000 CRORE.
· NET INTEREST MARGIN CONTINUES TO BE ABOVE 3.50%.
· NET INTEREST INCOME FOR Q4 GROWS BY 14.2%.
· RETURN ON ASSETS STOOD AT 1.0%.
· GROSS AND NET NPAs SHOW DECLINE OVER PREVIOUS QUARTER
|
Business |
: |
Rs. 7002850.000 Millions |
|
4.0% |
|
Domestic CASA Share |
: |
40.86% |
|
|
|
Operating Profit
(FY) |
: |
Rs.109070.000 Millions |
|
2.8% |
|
Net Interest Margin
(FY) |
: |
3.52% |
|
|
|
Book Value per
Share |
: |
Rs. 884.03 |
|
13.7% |
|
Clientele base |
: |
80 million |
|
|
Profitability
Q4FY13
· Net Profit of the Bank for the quarter ended March 2013 (Q4 FY'13) amounted to Rs. 11310.000 Millions as against Rs. 14240.000 Millions last year. Net Profit from Core Operations (i.e. excluding treasury trading profit and depreciation on investments) at Rs. 10540.000 Millions for Q4FY13 was marginally lower than Rs. 10630.000 Millions in the corresponding period Q4FY12
· Operating Profit for Q4 FY'13 stood at Rs. 28520.000 Millions as against Rs. 29360.000 Millions in Q4 FY'12 and Rs. 26820.000 Millions in the previous quarter (Q3FY13).
· Total income during Q4 FY'13 rose by 5.5 % to Rs. 115530.000 Millions due to a growth of 7.2% in Interest Income.
· Net Interest Income during Q4 FY'13 rose by 14.2% to reach Rs. 37790.000 Millions as against Rs. 33100.000 Millions in Q4 FY'12.
FY13
· Net Profit of the Bank for Financial Year ended March 2013 amounted to Rs. 47480.000 Millions as compared to Rs. 48840.000 Millions last year.
· Operating profit of the Bank during the Financial Year ended March 2013 grew by 2.8% to reach Rs.109070.000 Millions from Rs. 106140.000 Millions in March'12.
· Total income during FY'13 rose by 13.3 % to Rs. 461090.000 Millions due to a growth of 14.9% in Interest Income.
· Net Interest Income during FY'13 rose by 10.8% to reach Rs. 148570.000 Millions as against Rs. 134140.000 Millions in FY'12.
Business
· Total Business of the Bank reached Rs.7002850.000 Millions as against Rs. 6733630.000 Millions in March 2012, showing a y-o-y growth of 4.0 %.
· Deposits of the Bank rose to Rs. 3915600.000 Millions as on 31.03.2013 from Rs. 3795880.000 Millions as on 31.03.2012, exhibiting a y-o-y growth of 3.2%.
· During FY13, Bank has shed around Rs 400000.000 Millions of high cost deposits, thus overall deposit growth appears to be lower.
° CASA deposits increased to Rs.1533440.000 Millions in March'13 from Rs. 1341290.000 Millions in March'12, recording a growth of 14.3 %. Domestic CASA share has improved to 40.86% from 36.20% in March'12.
° There was increased focus on Saving deposits and a successful campaign was organized during the year with active participation from employees resulting in increase in Saving deposit to Rs. 1234700.000 Millions showing a growth of 16.9%. Current deposits rose by 4.9% to Rs. 298740.000 Millions.
· Advances of the Bank at Rs.3087250.000 Millions at the end of March'13 grew by 5.1 % as against Rs 2937750.000 Millions at the end of March'12.
· Credit Deposit Ratio works out to 78.84% as at March'13.
· Market Share: Market share of the Bank in Deposits and Advances stood at 5.18% and 5.11% respectively as on March 2013.
Asset Quality
· Due to improved recovery effort, Bank has been able to bring down the Gross and Net NPA level on sequential quarter basis.
· Gross NPAs came down to Rs. 134660.000 Millions in Mar'13 from Rs. 139980.000 Millions in Dec'12 while Gross NPA ratio came down to 4.27% from 4.61% in the same period.
· Net NPAs declined to Rs 72370.000 Millions in Mar'13 from Rs. 75860.000 Millions in Dec'12 and Net NPA ratio declined to 2.35% from 2.56%.
· Provision Coverage ratio also improved to 58.83% in Mar'13 from 55.97% in Dec'12.
Important Ratios
· Net Interest Margin (NIM) for FY ended March'13 is 3.52% (Q4FY13: 3.51%).
· Return on Assets stood at 1.00% for FY'13.
· Cost of Deposit stood at 6.62% for Q4 FY'13 and 6.82% for FY ended March'13.
· Cost to Income ratio stood at42.42 % in Q4 FY'13 and 42.81% in FY ended March'13.
· Return on Average Equity stood at 15.70% in Q4 FY'13 and 16.48% in FY ended March'13.
· Earnings Per Share was Rs.131.63 for Q4 FY'13 and Rs.139.52 in FY ended Mach'13.
· Book Value per Share improved to Rs. 884.03 in March'13 as against Rs.777.35 in March'12.
· CRAR of the bank was comfortable at 12.72% under BASEL-II (Tier-I Capital: 9.76%; Tier-II
· Capital: 2.96%).
Delivery Channels
· Bank's branch network stands at 5874 (including extension counters).
· Bank's network of ATMs at 6313 is more than its number of branches.
· PNB Internet Banking Channels are witnessing an increase in usage with about 20 lac internet banking users.
· More than 156 lac customers are availing SMS alert facility.
· More than 51% of transactions are being conducted through Alternate Delivery Channels.
Retail Credit
· Retail loans outstanding grew by 7.2% on YoY basis to cross Rs.310000.000 Millions at end of March'13 as against Rs. 291960.000 Millions in corresponding period last year.
° Good y-o-y growth in Car/Vehicle loan (15.1%), Reverse Mortgage scheme (25.4%),
° Pensioners loan portfolio (17.5%), Housing loan (13.3%) and Education loan (8.4%). o Gold loan portfolio rose by robust 81.9% to Rs.14700.000 Millions.
Priority Sector and
Mb Mb Advances
· Priority Sector Advances reached Rs 914270.000 Millions.
· National goals in respect of financing to Weaker Sector have been surpassed besides meeting the target of 15% of Priority Sector advances to Minority communities.
° Outstanding Agricultural advances reached Rs. 380550.000 Millions.
° Issued 45.32 lac Kisan Credit Cards (KCC) till March 31st, 2013.
· Credit to MSME sector rose to Rs. 614780.000 Millions as at end of March'13 from Rs.56730.0008 Millions last year, recording a growth of 8.35%.
° Credit to Micro and Small Enterprises grew by over 9.58% to Rs.486810.000 Millions as on 31.03.2013, out of which credit to Micro enterprises amounted to Rs. 189050.000 Millions.
Financial Inclusion
· Under FI plan, Bank has covered all villages with population over 2000 as allocated by SLBCs for providing Banking services during FY 2012-13.
· The Bank has been continuing 39 Information and Communication Technology based projects in 16 States through the Business Correspondent Model.
· Under the Swabhiman campaign, Bank has covered all 4588 villages allotted to it and has provided 7256 banking outlets in these villages.
· Bank has opened 89 lac No frill accounts, out of which 48 lac accounts have been opened through BC outlets till March 2013.
CSR initiatives and
Empowerment Initiatives
· Ten "Farmers' Training Centres" working under the aegis of PNB Farmers Welfare Trust are providing free of cost training on agriculture and allied activities. More than 1 lac persons were provided training by these centres through 3409 training programmes during FY13.
· Under PNB VIKAS (village adoption scheme), Bank has adopted 120 villages to develop the identified villages in an integrated manner.
· Bank's 100 Financial Literacy and Credit Counseling Centers (FLCCs) attended to enquiries from more than 2.24 lakh people and another 2.64 lac persons attended 5084 seminars conducted by FLCCs;
International Forays
· Bank has established overseas footprints in 10 countries via 4 overseas branches and an offshore banking unit in Mumbai, wholly owned subsidiary in UK with 7 branches and a subsidiary each in Kazakhstan and Bhutan; 5 Representative offices in Australia, Norway, Dubai, China and Kazakhstan; and one joint venture with Everest Bank Limited, Nepal.
· PNB is also looking to upgrade its Representative Offices in Oslo in Norway and Sydney in Australia to full fledged branches.
· Bank has got permission from RBI for opening of a qualifying full bank (QFB) branch in Singapore and opening of a rep office in Yangon, Mynamar.
· Bank's future overseas forays include presence in Canada, Maldives, Mozambique, Bangladesh, Pakistan and Brazil.
New Initiatives
· Bank has embarked on an ambitious organizational restructuring exercise named "PNB Pragati". The programme is based on three pillars namely - HR Transformation, Operating Model Optimization and Alternate Channels and New Business Opportunities. It is aimed at moving the Bank into higher growth trajectory giving edge over its peers and new players.
· Cash Deposit Machines have been installed in the branches providing a self service terminal where customers can deposit cash which gets credited to their accounts on real time basis.
· Installed Self Service Pass Book Printer terminals in the branches and e-lobbies, which help the customers to get the passbooks updated at their convenience.
Recent Awards and
Accolades
· Golden Peacock Business Excellence Award 2013.
· Bank has conferred with National Award 2012 for North Zone under PMEGP Scheme.
· Indira Gandhi Rajbhasha Shield - a top most prize scheme of Govt. of India.
· Reserve Bank of India has declared first prize for our Bank's House Magazine "PNB Staff
· Journal" in the inter-bank bilingual house magazine competition
· Social and Corporate Governance Award - Best Corporate Social Responsibility by World
· CSR Day ( World CSR Congress) and BSE.
· Most Socially Responsive Bank 2012- Business world- PwC * Best Public Sector Bank by CNBC TV 18
· Organization with Innovative HR Practices by ASIA Pacific HRM Congress.
· Prestigious Awards by Indian Banks' Association:
° Best Use of Business intelligence - Winner
° Best Risk Management and Security Initiatives - Winner
° Best Bank Online - First Runner up
° Best financial Inclusion Initiatives - Second Runner up
· Best Banker Award under Agriculture Credit (Large Bank) by The Sunday Standard.
· Best Public Sector Bank under Priority Sector Lending by Dun and Bradstreet Polaris Financial Technology Banking Awards 2012
· CMO Asia Excellence for Branding and Marketing under BFSI category.
· 3rd Asia's Best Employer Brand Awards 2012-Excellence in Training by Employer Brand Awards and World HRD Congress.
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 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 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.64.69 |
|
|
1 |
Rs.100.80 |
|
Euro |
1 |
Rs.86.30 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
66 |
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.