Punjab National Bank (PNB) is a public sector bank owned by the Indian Government and headquartered in New Delhi. Established in May 1894, it is among the top 3 largest public sector banks in India. PNB also operates a banking subsidiary in the UK, along with branches in Hong Kong, Kowloon, Dubai, and Kabul. Furthermore, the bank has representative offices in Kazakhstan, United Arab Emirates, China, Norway, and Australia. In Bhutan, PNB holds a 51% stake in Druk PNB Bank, which operates five branches. Additionally, in Nepal, PNB has a 20% ownership in JSC (SB) PNB Bank in Kazakhstan, which has four branches.
Awards and Recognition in FY2023-24
- PNB secured 3rd position in Overall Performance in EASE 5.0 of PSBs Reforms Agenda.
- It was adjudged Best MSME Bank by ASSOCHAM.
- It was recognized for “Best Data Quality in Commercial Bureau Segment” for 2023-24 during the Annual Conference of General Managers of PSBs organized by IBA & TransUnion (TU) CIBIL and Data Excellence Award in Consumer Bureau segment by CRIF Highmark during CRIF InFocus Seminar.
Products and Services:
The bank offers various banking products and services which includes following:
Retail Banking: PNB accepts deposits like savings and current accounts, fixed deposits, and provides retail loans such as home, car, education, and personal loans. PNB also offers debit, credit, and prepaid cards, as well as digital banking services like internet and mobile banking. Additionally, PNB provides third-party products like mutual funds, demat services, and insurance plans to help customers grow wealth and safeguard assets.
Agriculture and Rural Banking: The bank offers tailored services for farmers and the agriculture sector, including crop loans, credit for agri-allied sectors, lending to SHGs, term loans, and working capital facilities for the Food & Agro processing sector. They also provide agriculture insurance schemes for crops, livestock, and farm infrastructure. Additionally, unbanked rural individuals can access Basic Savings Deposit Accounts, PMJDY Overdraft Facilities, Kisan Credit Card Scheme, Debt Swapping Scheme, SHG, and other credit products.
MSME Banking: PNB offers a variety of services tailored for MSMEs, including working capital loans, term loans, and trade finance. The bank supports entrepreneurship by providing aid to women and marginalized communities.
Corporate Banking: The bank offers a wide range of products and services for businesses, including working capital funding, term loans, corporate borrowing, treasury services, and more. It also supports international trade activities and helps businesses manage risks and make informed financial decisions.
Key Financials (FY2024)
PNB, with its extensive network of 12,248 branches and 13,000+ ATMs, caters to a vast customer base of over 180 million individuals. As of the conclusion of the financial year 2024, the bank's Total Assets amounted to Rs 1,161,835 Cr, with Deposits reaching Rs 1,369,712 Cr and Loans and Advances standing at Rs 934,430 Cr.
Over the course of the year, the Bank witnessed a notable 6.8% increase in Total Assets, showcasing a commendable growth rate of 7.4% over a span of 3 years on a CAGR basis. Furthermore, Deposits experienced a year-on-year growth of 6.9% and a substantial 11.5% growth over 3 years on a CAGR basis. In contrast, Loans and Advances exhibited an impressive year-on-year growth of 12.5% and a matching 11.5% growth over 3 years on a CAGR basis.
It is worth highlighting that the growth in Loans and Advances surpasses that of Deposits, indicating the Bank's ability to effectively manage this discrepancy. This can be attributed to the bank's significant proportion of high deposits, which serve as a cost-effective source of income, accounting for 85.46% of the total income at the end of FY2024. (Please refer the blog: Sources of Funds of Banking Business)
The Bank's Net Interest Income (NII) for FY2024 amounted to Rs 40,083 Cr, while the Net Profit reached Rs 8,245 Cr. The NII witnessed a growth of 16.2% year-on-year and a 9.6% increase over a span of 3 years on a CAGR basis. On the other hand, the Net Profit saw a significant rise of 228.9% year-on-year and 59.8% over 3 years on a CAGR basis.
Furthermore, the Bank's Capital Adequacy Ratio exceeded the mandated percentage set by the RBI, standing at 15%. The Gross NPA and Net NPA were recorded at 5.73% and 0.73% respectively. The Bank's Net Interest Margins stood at 2.56%, with the Net Profit Margin at 7.71%. Additionally, the CASA ratio was at 40.33%, which is approximately equal to the industry CASA average of 40%.
Future Plan:
PNB's growth strategy will focus on Retail, Agriculture, MSME, and Corporates, offering competitive credit products with a strong emphasis on Retail Credit. The Bank plans to increase its retail credit portfolio by using specialized loan processing and marketing techniques, partnering with Builders, Home Loan Counselors, Car Dealers, and NBFCs. Agriculture will also be a priority, with credit support for farmers through rural branches and digital agricultural products. PNB aims to collaborate with the State Rural Livelihood Mission to fund Self Help Groups and agricultural projects. It is well-positioned to capitalize on the growth in MSME loans and GDP, leveraging its credit culture and processing centers. By expanding its MSME portfolio through branch networks, specialized loan centers, and digital channels, PNB aims to tap into the segment's potential.
For Corporate Credit, dedicated branches and a centralized credit desk have been established to expedite proposals, focusing on core industries and sectors covered by the PLI scheme. PNB is committed to making a positive impact on society through CSR activities, training programs, and initiatives like Farmer Training Centres and Financial Literacy Centres.
PNB is dedicated to supporting ‘Viksit Bharat’ by extending credit to MSMEs, Agriculture, Women, and Youth, utilizing AI and predictive analytics for opportunities. It prioritizes digital platform security and customer experience, streamlining operations and investing in employee development through the UDAAN project. PNB aims to contribute to India's economic growth and ensure a positive impact on society for all citizens.
Go to Index page
Data Source
- PNB's website
- PNB Annual Report 2023-24
- Wikipedia
Disclaimer
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.