Punjab National Bank (PNB) stands as one of the prominent public sector banks in India. In the past year, the Bank's business has shown a notable growth of 8.6%, amounting to an increase of Rs 1,87,194 Cr. This expansion has enabled the Bank to exceed the remarkable business figure of Rs 23,53,038 Cr. Additionally, Global Advances witnessed a growth rate of 11.2%, while Domestic Advances recorded a growth rate of 10.9%. By the conclusion of FY 2024, Global Deposits reached Rs 13,69,713 Cr and Advances totaled Rs. 9,83,325 Cr.
In the fiscal year 2024, the Bank's cumulative Retail, Agriculture, and MSME (RAM) Advances reached a total of Rs 5,20,050 Cr, constituting 55.2% of the overall Domestic Advances. This signifies a growth rate of 10.7% when compared to the preceding year. Among the RAM category, the Retail Segment witnessed a growth of 12.6% and achieved a value of Rs 2,22,574 Cr in the previous financial year. The Agriculture segment experienced an 11.3% growth and reached Rs 1,58,188 Cr, while the MSME segment displayed a growth rate of 7.0% and amounted to Rs. 1,39,288 Cr as of March 31, 2024.
Retail:
The retail assets industry has seen significant growth in the last 2-3 years due to factors such as economic development, middle class expansion, urbanization, increased disposable income, technological advancements, and a competitive market environment. Delinquency rates in retail assets have been effectively managed and are decreasing. In the financial year 2023-24, the bank's total retail credit portfolio grew by 12.6% to Rs. 2,22,574 Crore, with core retail credit reaching Rs. 1,58,246 Crore. Housing loans, vehicle loans, and personal loans also experienced growth within the core retail credit portfolio.
PNB offers Digital Housing Loans to individuals regardless of their existing relationship with the bank. Additionally, the bank provides New to Bank Personal Loans (NTBPL) to those who are not currently registered with the bank or do not have any prior customer relationship. Moreover, PNB offers Digi Vehicle Loan API Integration to customers looking to purchase vehicles for personal use. The digital services provided by the bank encompass Digi Home, PNG Swagat, Digi Car, PNB Arambh, and more.
Agriculture:
Agriculture Advances witnessed a growth of 11.3% compared to the previous year, reaching Rs 1,58,188 Cr. The Indian government has been implementing a range of initiatives to support farmers over time. The KCC Saturation campaign was initiated in February 2020. Furthermore, in 2020, the government introduced several schemes as part of the Atma Nirbhar Bharat package. Schemes such as the Agriculture Infrastructure Fund (AIF), Animal Husbandry Infrastructure Development Fund (AHIDF), and Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME) have facilitated banks in directing financing towards various activities related to farm credit and pre & post-harvest management. Given that these schemes fall under the agriculture and priority sector, they have also contributed to meeting Priority Sector targets. Additionally, programs like the National Rural Livelihood Mission (NRLM), National Urban Livelihood Mission (NULM), among others, have played a role in boosting Priority sector advances.
The digital transformation of the PNB Krishi Tatkal Rin Yojana ensures a smooth and seamless digital experience for small farmers who borrow from the bank. Through the Jansamarth Portal, customers of the bank can now access Digital Kisan Credit Card (KCC) loans of up to Rs.1.60 Lakh. Additionally, PNB is offering KCC Review and Drawing Power (DP) Enhancement to existing KCC borrowers, allowing them to digitally review and improve their KCC accounts. This process is initiated by the customers themselves and is facilitated by the bank's APIs, which enable eligible borrowers to set review dates and request DP enhancements. The availability of Agriculture Investment Credit, Agriculture Gold Loan, and Self Help Group (SHG) Financing options has further expanded the opportunities for agricultural credit.
Micro, Small and Medium Enterprises (MSME):
The MSME sector plays a vital role in our economy, driving growth through entrepreneurship, innovation, and job creation. In the fiscal year ending on March 31, 2024, MSME Advances saw a 7.0% increase, reaching a total of Rs 1,39,288 Cr. Notably, loans given to Micro and Small Enterprises totaled Rs. 1,13,336 Cr.
The Bank has introduced the Pre-Approved Business Loan (PABL) for seamless digital lending services for business loans from Rs. 1-10 Lakh. They also offer digital renewal for eligible borrowers with exposure up to Rs. 10 Lakh. The Bank has launched the Digital Journey of App Based GST Sahay Scheme, providing loans up to Rs. 2.00 Lakh per invoice to GST registered MSMEs in manufacturing, trading, and services sectors. They have also introduced the e-GST EXPRESS scheme for loans above Rs. 10 Lakh up to Rs. 100 Lakh exclusively for Existing to Bank (ETB) customers. The Bank has launched "e-PM SVANidhi," offering collateral-free loans up to Rs. 50,000 to eligible urban street vendors. The Bank has implemented a Cluster-based lending strategy and partner with TReDS platforms for financing trade receivables of MSMEs. The PNB Tatkal scheme provides hassle-free credit from Rs. 1-25 Lakh for business needs.
The MSME Prime Plus scheme combines four previous MSME schemes and introduces the e-Mudra Scheme for loans up to Rs. 1 Lakh, operational since March 4, 2023. PNB LenS is the bank's IT solution for managing loans, while Psbloansin59minutes.com provides a contactless loan approval portal for MSME loans up to Rs. 5 Crore within 59 minutes.
Based on the historical performance of these three sectors, the Bank intends to maintain a focus on the high-yielding Retail, Agriculture, and MSME segments in order to enhance its loan growth and broaden its portfolio in the future.
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The content or analysis presented in the Blog is exclusively intended for educational purposes. It is important to note that this should not be considered as a suggestion for investing in stocks or as legal or medical advice. It is highly recommended to seek guidance from an expert before making any decisions.