Close
x
  • SMC open account icon Open an A/C
    • Open an A/C
    • CHOOSE YOUR OPTION(S)
    • Trading A/c
    • Mutual Fund A/c
    • NBFC A/c
    • NPS A/c
  • SENSEX May 07 2021 12:00
    49,206.47 +256.71 ( +0.52%)
  • NIFTY May 07 2021 12:00
    14,823.15 +98.35 ( +0.67%)
  • SENSEX May 07 2021 12:00
    49,206.47 +256.71 ( +0.52%)
  • NIFTY May 07 2021 12:00
    14,823.15 +98.35 ( +0.67%)
  • Nasdaq May 08 2021 04:30
    13,752.24 +119.40 ( +0.88%)
  • DJIA May 08 2021 04:30
    34,777.76 +229.23 ( +0.66%)
  • S&P 500 May 08 2021 04:30
    4,232.60 +30.98 ( +0.74%)
  • Hang Seng May 07 2021 02:10
    28,610.65 -26.81 (-0.09%)
  • Crude Oil May 07 2021 11:29
    4,760.00 -30.00 (-0.63%)
  • Gold May 07 2021 11:29
    47,760.00 +165.00 ( +0.35%)
  • Silver May 07 2021 11:29
    71,500.00 -181.00 (-0.25%)
  • Copper May 07 2021 11:29
    786.15 +15.50 ( +2.01%)
  • Pound / Rupee Dec 23 2016 22:30
    102.48 -0.33 (-0.32%)
  • Dollar / Rupee Dec 23 2016 22:30
    73.74 -0.21 (-0.28%)
  • Euro / Rupee Dec 23 2016 22:30
    88.77 -0.01 (-0.02%)
  • Yen / Rupee Dec 23 2016 22:30
    0.68 0.00 (-0.20%)

Punjab National Bank

BSE Code : 532461 | NSE Symbol : PNB | ISIN:INE160A01022| SECTOR : Banks |

NSE BSE
 
SMC down arrow

36.25

-0.15 (-0.41%) Volume 280564

07-May-2021 EOD

Prev. Close

36.40

Open Price

36.65

Bid Price (QTY)

36.25(2139)

Offer Price (QTY)

0.00(0)

 

Today’s High/Low 36.95 - 35.95

52 wk High/Low 46.35 - 26.30

Key Stats

MARKET CAP (RS CR) 37929.21
P/E 51.71
BOOK VALUE (RS) 82.5310054
DIV (%) 0
MARKET LOT 1
EPS (TTM) 0.7
PRICE/BOOK 0.438623034150024
DIV YIELD.(%) 0
FACE VALUE (RS) 2
DELIVERABLES (%) 23.07
4

News & Announcements

03-May-2021

Punjab National Bank - Punjab National Bank - Change in Director(s)

01-May-2021

Punjab National Bank announces cessation of executive director

27-Apr-2021

Punjab National Bank spurts 1.74%, up for five straight sessions

23-Apr-2021

Punjab National Bank gains for third straight session

01-May-2021

Punjab National Bank announces cessation of executive director

17-Mar-2021

Punjab National Bank incorporates wholly owned subsidiary - PNB Cards & Services

06-Feb-2021

Punjab National Bank EGM scheduled

30-Jan-2021

Punjab National Bank schedules board meeting

Corporate Actions

Bonus
Splits
Dividends
Rights
Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
Allahabad Bank(Merged) 532480 ALBK
Andhra Bank(Merged) 532418 ANDHRABANK
Bank of Baroda 532134 BANKBARODA
Bank of India 532149 BANKINDIA
Bank of Maharashtra 532525 MAHABANK
Canara Bank 532483 CANBK
Central Bank of India 532885 CENTRALBK
Corporation Bank(Merged) 532179 CORPBANK
Dena Bank(Merged) 532121 DENABANK
Indian Bank 532814 INDIANB
Indian Overseas Bank 532388 IOB
Oriental Bank of Commerce(Merged 500315 ORIENTBANK
Punjab & Sind Bank 533295 PSB
State Bank of Bikaner and Jaipur(Merged) 501061 SBBJ
State Bank of India 500112 SBIN
State Bank of Mysore(Merged) 532200 MYSOREBANK
State Bank of Travancore(Merged) 532191 SBT
Syndicate Bank(Merged) 532276 SYNDIBANK
UCO Bank 532505 UCOBANK
Union Bank of India 532477 UNIONBANK
United Bank of India(Merged) 533171 UNITEDBNK
Vijaya Bank(Merged) 532401 VIJAYABANK

Share Holding

Category No. of shares Percentage
Total Foreign 329025313 3.14
Total Institutions 950570913 9.07
Total Govt Holding 649597 0.01
Total Non Promoter Corporate Holding 74521297 0.71
Total Promoters 8054125685 76.87
Total Public & others 1068789420 10.21
Total 10477682225 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About Punjab National Bank

Punjab National Bank (PNB) is a state-owned commercial bank located in New Delhi. PNB is one of the leading commercial banks in India. They offer banking products, and also operate credit card and debit card business, bullion business, life and non-life insurance business, and gold coins and asset management business. They are recognized as the bank offering highest levels of customer satisfaction in Delhi and Chennai. As on 31 December 2020, PNB's domestic branch network stood at 10,925 along with 13,914ATMs. The bank has four overseas branches in Hong Kong, Dubai and Offshore Banking Unit in Mumbai and Representative Offices (RO) at Dubai (UAE), Shanghai (China), Sydney (Australia) and Dhaka (Bangladesh). The bank has two overseas subsidiaries viz. PNB International Ltd. (UK) and Druk PNB Bank Ltd (Bhutan). The bank also has one associate company viz. JSC Tengri Bank (Kazakhstan) and one Joint Venture Bank in Nepal i.e. Everest Bank Ltd. The bank has got permission from RBI for opening Representative office in Yangon (Mynamar). Punjab National Bank was incorporated in the year 1895 at Lahore, undivided India. The Bank has the distinction of being the first Indian bank to have been started solely with Indian capital. In the year 1940, the Bank absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi circle. In the year 1951, they acquired the 39 branches of Bharat Bank and in the year 1961, they acquired Universal Bank of India. Punjab National Bank was nationalised in July 1969 along with 13 other banks. In the year 1986, they acquired Hindustan Commercial, which added Hindustan's 142 branches to the Bank's network. In the year 1993, they acquired New Bank of India which the GOI. During the year 1996, they developed a packaged for corporate customers for fast remittance of funds from different up-country branches. In the year, they set up a representative office in Almaty, Kazakhstan. In the year 2000, the Bank has introduced a scheme for providing finance against mortgage of immovable property. In September 2000, they commenced their gold business in the form of Gold Import Scheme. In November 2000, they launched an International Co-branded Credit Card of Punjab National Bank and Hong Kong & Shanghai Banking Corporation (HSBC) in New Delhi. In March 2002, the Bank came out with their first Initial public offer (IPO) for 5,30,60,700 equity shares of Rs 10 each which resulted in the reduction of the government's shareholding in the Bank. During the year 2002, they started their branch in M.G. Road, Bangalore named as Mid-Corporate Branch (MCD) to provide their corporate clients with a credit limit of Rs 3.5 crore and above. They made joint venture with Infosys for the implementation of a Centralized Banking Solution for them. Also, they made a tie up with Cisco Systems for networking 3,870 branches as part of their Rs 150 crore plan. In the year 2003, the Bank took over Kozhikode-based Nedungadi Bank Ltd (NBL). The Bank entered into an alliance with New India Assurance for selling their general insurance products. Also, they opened a representative office in London. During the year, PNB Capital Service Ltd was amalgamated with the Bank. In June 2003, the Bank entered into an MoU with Principal Financial Services Inc (USA) and Vijaya Bank for joint venture partnership in Life Insurance, Pensions and Asset Management (MF) business. Also, they formed a strategic alliance with Infrastructure Leasing and Financial Services Ltd (IL&FS) for setting up a private equity fund for investing in domestic companies. In the year 2004, the Bank acquired the assets of Hindustan Transmission Product Ltd. They signed a corporate agency agreement with Export Credit Guarantee Corporation of India Ltd (ECGC) for marketing ECGC's export credit insurance products through the network of the bank's branches. Also, an MoU was signed with Intel for the deployment of various IT-related solutions. During the year, the Bank signed an MoU with ICICI Bank for ATM network sharing. They awarded a project to Tata Consultancy Services (TCS) for implementing human capital management and payroll solution. They established a branch office in Kabul, Afghanistan. Also, they opened a representative office in Shanghai. The bank established an alliance with Everest Bank in Nepal that permits migrants to transfer funds easily between India and Everest Bank's 12 branches in Nepal. In the year 2005, the Bank unveiled ATM at Edappal. Also, they opened a representative office in Dubai. In the year 2006, the Bank made a tie up with MasterCard International to launch a signature-based debit card. Also, they made a tie up with Indian Airlines for online booking of air tickets. They opened a new branch in Uttarakhand. In October 2007, the Bank entered into MoU with India Infrastructure Finance Company with an aim to extend their cooperation and support to IIFC in areas of creating a deal flow of infrastructure projects. In January 2008, the Bank commenced commercial banking operations in Hong Kong. During the year 2008-09, the Bank opened 168 branches, out of which 90 are new branches and 78 branches was added through upgradation of Extension Counters. They made collaboration with LIC for selling insurance policies and also made a tie up with Oriental Insurance for selling non-life policies on a referral basis. In June 2008, they entered into a MoU with ILFS Cluster Development Initiative Ltd for providing finance for various industrial infrastructure projects in the country. In September 2008, they signed an MoU with SMC Global Securities Ltd and Networth Stock Broking Ltd for providing online trading facility to Company's customers. They offered a unique '3 in 1 account' comprising of Saving, Demat and trading account. In February 2009, they commercially launched their credit cards with 2 types of consumer credit cards, namely Gold and Classic. Also, they entered into an agreement with Oriental Insurance Company to market insurance products, a practice also known as bancassurance. In March 2009, the Bank entered into an understanding with Tata Motors for financing entire range of passenger cars. Also, they executed an agreement with The Life Insurance Corporation of India for bancassurance, life insurance under the provisions of IRDA's Referral Arrangement. During the year 2009-10, the Bank opened 524 domestic branches, out of which 347 are at new locations while 177 branches was added through upgradation of existing Extension Counters. They deployed 1400 ATMs taking the total count of ATMs to more than 3500 Nos. They opened two overseas branches 1 in Hong Kong and another at DIFC Dubai and started a JV banking subsidiary 'DRUK PNB Bank Ltd' in Bhutan. Also, they opened a representative office in Oslo, Norway. During the year, the Bank sold 6.5% of their stake in UTI Assets Management Co Ltd and UTI Trustee Pvt Ltd, thus bringing down their stake in both these companies to 18.5%. They launched Corporate Credit Card with Individual liability. Also they launched Merchant Acquiring Business through installation of Point of Sale (PoS) Terminals at Merchant Establishments and Internet Payment Gateway by integrating through Merchant Website, with Brand Name PNB Biz. In May 2009, the Bank incorporated a subsidiary company namely PNB Investment Services Ltd. In November 2009, they entered into an agreement with FIM Bank (Malta), Banca IFIS, Italy and Blend Financial Services Ltd, Mumbai for setting up a joint venture company for providing factoring, forfeiting and trade finance related business. During the year 2010-11, the Bank introduced new set of products and services such as PNB Uphaar, PNB Suvidha and World Travel Card. In December 13, 2010, they acquired 63.64% stake in JSC Dana Bank of Kazakhstan. In January 12, 2011, the Bank's joint venture India factoring and Finance Solutions Pvt Ltd started its commercial operations from Delhi, Mumbai & Chennai. The total number of branches at the end of March 2011 rose to 5189. The branch network comprises 2047 Rural, 1154 Semi Urban, 1111 Urban and 877 Metropolitan branches. During the review period 210 domestic branches were opened. With 5189 branches, including 28 Extension Counters, the Bank has the largest network amongst the nationalized banks. As part of customer segmentation, Bank has opened specialized Branches that include 6 Micro Finance branches, 59 SME branches, 11 International Banking Branches, 17 Asset Recovery Management Branches, 13 Mid Corporate Branches, 11 Large Corporate Branches, 73 Retail Asset Branches, 11 Agriculture Finance Branches, 3 high-tech agriculture branches, 1 Capital Market Services Branch and 1 International Service Branch. Besides, 41 Back Offices, 2 Special Foreign Exchange Offices, 17 Special MICR Centres, 41 Service (Regional Clearing Centre) centres, 4 Financial Inclusion Service Centres, 3 Centralised Draft Payable Centres, 1 Central Clearing Service Centre and 1 Depository Back Office are established to reduce delivery time and improve response time. On 5 March 2010, PNB announced that the bank has received permission from RBI for setting up a representative office in Sydney, Australia. On 13 December 2010, PNB announced that the bank has completed the transaction for acquisition of 63.64% stake in JSC Dana Bank Kazakhstan. PNB has acquired 35 million shares of 1000 Tenge each, at par, for 3.5 Bn Tenge (USD 23.765 million approx.), which has raised the capital of JSC Dana Bank to the level of 5.5 Bn Tenge from the existing 2 Bn. Tenge. On 12 January 2011, PNB announced that it has bought Principal Financial Group of Mauritius (PFG) and U K Paints stake of 26% and 32% respectively in Principal PNB Life Insurance Company Ltd. After the transaction, the bank's stake in Principal PNB Life Insurance Company Ltd stands at 88%. PNB also said at that time that it would continue to support Principal PNB Asset Management Company Pvt Ltd for a period of three years. On 15 February 2011, PNB announced that the bank has entered into an arrangement with Weizmann Forex Ltd., Mumbai (Principal Agent) for handling inward remittances under MTSS (Money Transfer Service Scheme) through Western Union. The bank also entered into an arrangement with BFC Forex & Financial Services Ltd., Thane (Maharashtra) for handling inward remittances under MTSS (Money Transfer Service Scheme) through the web based product EzRemit. On 28 April 2011, PNB announced the issue and allotment of 15.09 lakh equity share at issue price of Rs 1218.82 per equity share to Government of India on preferential basis aggregating Rs 184 crore. On 28 March 2012, PNB announced that upon receipt of allotment money of Rs 1589.90 crore from Life Insurance Corporation of India (LIC), the bank has allotted 1.58 crore equity shares at issue price of Rs 1003.69 per share to LIC on preferential basis. On 2 April 2012, PNB announced that upon receipt of allotment money of Rs 654.99 crore from Government of India, the bank has allotted 65.25 lakh equity shares at issue price of Rs 1003.69 per share to Government of India on preferential basis. On 16 January 2013, PNB announced that the bank has acquired 30% stake in Metlife India Insurance Co. Ltd. On 6 March 2013, PNB announced that upon receipt of allotment money of Rs 1247.99 crore from Government of India on 4 March 2013, the bank has allotted 1.42 crore equity shares at issue price of Rs 873.05 per share on preferential basis to Government of India. On 28 October 2013, PNB announced that the Chairman & Managing Director of the bank, as per authority delegated by the Board, has approved issuance of equity shares of face value of Rs 10 each for an amount upto Rs. 500 crore, at such price as may be decided as per SEBI (ICDR) Regulations, 2009, on preferential basis in favour of Government of India, subject to necessary approvals. On 4 March 2014, PNB announced that the bank has sold its entire stake in Credit Information Bureau India Ltd. (CIBIL) to TransUnion International Inc. (FII). On 1 April 2014, PNB announced that it has sold its entire 30% stake in India Factoring & Financial Solutions Ltd. (IFFSL) to parent promoter FII (FIM Bank (Malta) and realized Rs 107.83 crore. On 4 July 2014, PNB announced that it has sold 41% stake in High Mark Credit Information Services Ltd. (High Mark) to CRIF and realized Rs 4.15 crore. The Board of Directors of PNB at its meeting held on 19 September 2014 granted in-principle approval for sub-division of existing equity shares of face value of Rs 10 each into 5 equity shares of face value of Rs 2 each. On 1 April 2015, PNB announced that capital funds to the tune of Rs 870 crore have been received from the Government of India on 31 March 2015 for issue and allotment of 4.42 crore equity shares at a price of Rs 196.80 per equity share to Government of India on preferential basis in accordance with Regulation 76(1) of SEBI ICDR Regulations. The Bank made Tie ups with the leading manufacturers of agriculture implements & tractors, irrigation solutions, etc. during FY 2015. During the year, the Bank also laid focus on increasing livestock advance portfolio by financing through tie-ups with dairy companies/cooperatives. Further, the Bank focused on financing to Agri logistics like Rural Godown/ Cold Storage & Agri Transport. On 30 September 2015, PNB announced that consequent upon receipt of capital funds to the tune of Rs 1732 crore from the Government of India on 29 September 2015, the bank has issued and allotted 10.9 crore equity shares at a price of Rs 158.84 per equity share on preferential basis to Government of India in accordance with Regulation 76(1) of SEBI ICDR Regulations. During FY 2015, the Bank entered into a tie up with National Small Industries Corporation (NSIC). In this, NSIC would source the applications to the Bank with sharing of processing fee. Besides, the Bank also formulated Scheme for financing Business Correspondents. The Bank signed a MOU with vehicle manufacturers like Ashok Leyland, Tata Motors, Asia Motors Works, Hindustan Motors, Mahindra & Mahindra, Piaggio, ICM Ltd., Eicher Volvo, Atul Auto, Bajaj Motors and J S Auto P Ltd. and MOU had also been signed with Escorts for financing transport dealers. In FY 2015, to expand the presence of the Bank, an exclusive scheme for issuing credit cards to employees of PNB's sponsored RRBs was launched apart from liberalizing the terms for issuance of credit cards against fixed deposit. In FY 2015, PUNGRAIN, a food grains procurement agency of Punjab Government has launched Kisan Arhtiyas Information & Remittance Online Network (KAIRON) project whereby they are making payments to the farmers through Arhtiyas using RuPay Debit cards with the help of National Payment Corporation of India (NPCI). The Bank was actively participating in the project and brought a business of Rs 4038 crore as Acquiring bank and Rs.1997 crore as Issuing bank during FY 2015. During FY 2016,157 new branches were opened by RRBs, taking the total network of Branches to 2301 with all being on CBS and total numbers of employees were 8714. On 15 September 2016, PNB announced that consequent upon receipt of capital funds to the tune of Rs 2112 crore from the Government of India on 14 September 2016, the bank has issued and allotted 16.43 crore equity shares at a price of Rs 128.49 per equity share on preferential basis to the Government of India in accordance with Regulation 76(1) of SEBI ICDR Regulations. Punjab National Bank (PNB) and India Post Payments Bank (IPPB) signed a memorandum of understanding on 17 January 2017 wherein PNB shall provide technology platform for pilot launch of IPPB on receipt of regulatory approval from Reserve Bank of India. The Board of Directors of PNB at its meeting held on 2 November 2017 authorized the management to partially sell its stake in PNB Housing Finance Ltd. Further, consequent upon the exercise of call option by the Principal Group, the Board has approved to offload PNB's entire stake in Principal PNB Asset Management Company and Principal trustee Company Pvt Ltd to the Principal group. On 5 December 2017, PNB announced that the bank successfully sold 98.15 lakh equity shares of PNB Housing Finance Ltd (PNBHFL) to different investors (Non Retail and retail) at above the floor price /cut off price, with gross sales consideration of Rs 1315.33 crore. During FY 2017, 1218 new ATMs were installed and as an outcome, the total ATM network reached 10681. E-Surveillance systems were installed at ATM sites. Solar UPS were installed to decrease the downtime of ATMs on account of electricity failure. ESQ ATM Monitoring System was installed for on line ATM monitoring and to take prompt corrective/preventive actions in case ATM gets down. Business Debit Card was launched with enhanced transaction limit permitting withdrawal up to Rs 1 lakh from ATMs and e-commerce transaction up to Rs 3 lakh in FY 2017. On 18 December 2017, PNB announced allotment of 29.76 crore equity shares to successful eligible qualified institutional buyers at a price of Rs 168 per share. Earlier, PNB on 14 December 2017 announced the closure of the qualified institutions placement (QIP) of equity share. The bank raised Rs 5000 crore from the QIP. The Board of Directors of PNB at its meeting held on 6 February 2018 accorded approval for Capital Infusion by Government of India up to Rs 5473 crore. During FY 2017, the Bank mobilized total amount of Rs 4545 crore, Asset under Management (AUM) stood at Rs 814 crore and brokerage earned was Rs 4 crore. The Bank has one of the largest branch networks of 6937 as on 31st March 2017. To fulfill the banking needs of unbanked areas, 178 new branches were added to the vast network of branches during the year. On 14 February 2018, PNB informed the stock exchanges of detection of a massive fraud of Rs 11394.02 crore. On 12 February 2018, on the basis of investigation report, total fraud of Rs 11394.02 crore (about USD 1771.69 million) in case of unauthorized issuance of Letters of Undertakings, Foreign Letter of Credits and Inland Letter of Guarantees in the group accounts of Nirav Modi Group and M/s Gitanjali Group and in the account of M/s. Chandri Paper & Allied Products Pvt. Ltd. was reported to RBI. Later, on 26 February 2018, PNB informed the stock exchanges that the quantum of reported unauthorized transactions could increase by about USD 204.25 million. During the FY2019, the bank has allotted 31,29,93,219 equity shares at a price of Rs 89.97 per share to GOI on preferential basis. Further the bank also made another preferential allotment of 63,81,90,364 equity shares at a price of Rs 85.10 per share to GOI. Also third time during the FY2019, the bank made another preferential allotment of 80,20,63,535 equity shares at a price of Rs 73.66 per share to GOI. The Bank has one of the largest networks of 6989 branches and 9255 ATMs as on 31.03.2019 comprising of 1280 Metropolitan, 1387 Urban, 1727 Semi Urban and 2595 Rural branches. During the FY2020, the bank made a preferential allotment of 213,35,18,960 equity shares at a price of Rs 75.42 per share to GOI. The Bank has one of the largest networks of 7041 branches and 9168 ATMs as on 31.03.2020 comprising of 1259 Metropolitan, 1430 Urban, 1753 Semi Urban and 2599 Rural branches. PNB won IBA Banking Technology Awards 2020 for Most Innovate Project using Technology for PNBOne and also Runners Up in Best Use of Data and Analytics for Business Outcome in the Large Bank Category. The Bank won BFSI Digital Innovation Awards in the category of Robotic Process Automation. The bank was also adjudged Bank of the year' by Indo-American Chamber Of Commerce (IACC). The Government of India (Gol), Ministry of Finance, Department of Financial Services has issued Gazette Notification no. CG-DL-E- 04032020-216535 dated 4th March, 2020, approving the scheme of Amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank in exercise of the powers conferred by section 9 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 and section 9 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1980. The amalgamation has come into effect from 01 April 2020. On 05.03.2020 the Board of Directors of the Bank and the Board of Directors of Oriental Bank of Commerce and United Bank of India at their respective meetings, approved amalgamation. The Boards of respective banks have also approved the swap ratio of 1150 equity shares of Face Value Rs 2/- each of Punjab National Bank for every 1000 equity shares of Face Value Rs 10/- each of Oriental Bank of Commerce and the swap ratio of 121 equity shares of Face Value Rs 2/- each of Punjab National Bank for every 1000 shares of Face Value Rs 101- each of United Bank of India. The bank has Made investment in JSC Tengri Bank (previously known as Bank of Kazakhstan) of Rs.300 crores which is an associate of our bank Consequent to the study conducted by the independent agency, Whereby the associate Bank has to create certain provisions towards NPA's because of which the networth of the bank has diminished as on 31.03.2020. During the quarter ended 31 December 2020, the Bank has issued 1,06,70,52,910 equity shares having Face Value of Rs.2 each for cash to Qualified Eligible Buyers pursuant to Qualified Institutional Placement (QIP) in accordance with the provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 at a premium of Rs.33.50 per share aggregating Rs. 3,788.04 Crore. During the quarter ended on 31 December 2020, Bank has issued Tier-II Bonds aggregating to Rs.3,000 Crore.

Punjab National Bank Chairman Speech

Dear Shareholders,

II is my pleasure to write to you as the Chairman of PNB and share the Annual Report of the Bank's performance and initiatives forthe financial year 2018-19 At the outset, my special greetings to all our stakeholders as your Bank continues to make admirable progress in its 125th year of a very momentous journey. During this125 years exciting voyage, your Bank has transformed into one of the largest and most prominent bank's of the country from its humble origin in Lahore during 1894. In this eventful period, the Bank had many successes and faced multiple challenges which covered the great depression of 1930's and partition upheaval in 1947, amongst others.

Your Bank came out unscathed from many tumultuous events and truly earned the distinction of a bank with "resilience". We owe our gratitude, in large measure to past and present employees for their remarkable vision, unstinted commitment and unwavering enthusiasm towards building this very fine institution They were"real heroes" who left indelible footprints. We salute the legendary leadership of the Bank that built our robust foundations and applaud present custodians who continue to responsibly augment the edifice left by theirworthy predecessors.

We take pride in our rich heritage which reflects our belief that Punjab National Bank is built on the strength of "valuable customer relationships'. The Bank has upheld its "Core Values" and its spirit of "Pursuing Excellence" throughout this historic journey. With devotion to the nation in its soul, integrity as its backbone, customer delight as its purpose and continued innovation as its promise, your Bank has built a unique brand that is widely recognized and consistently espouses trust amongst its customers. This journey of 125 years has enabled your Bank to evolve into a large and robust institution with over 6980 branches diligently servingl 10 million valued customers.

ECONOMIC REVIEW

The Global economy

Global growth slowed down during second half of Calendar Year 2018 due to decelerated economic activity in almost all developed economies. The confluence of factors, such as US-China trade tension, weakening business confidence in Eurozone, reining in shadow banking in China, rising borrowing cost due to the normalization of monetary policy, amongst others have contributed to softening global growth. Inflation continues to remain subdued in major developed and emerging economies, despite volatility in crude oil prices which rose on production cuts by major producers and supply disruptions among some exporters.

Global growth which softened in 2018 is projected to decline further to 3.2% in 2019 as per the Organization for Economic Co-operation and Development (OECD). The China-US trade war threatens to further crimp global growth. United Nations has also lowered its forecasts for global economic growth in 2019 to 2.7% with marginal projected increase in 2020 to 2.9% as a consequence of high trade tensions, uncertainty over economic policies and softening business confidence.

Growth outlook in all major developed economies and most developing regions has weakened due to both domestic and external factors necessitating more comprehensive and well-targeted policy response.

The Indian Economy

In the GDP data number released for fourth quarter of F Y 2018-19, the growth has slowed down to a five year low of 5.8% in 4th quarter bringing down full year growth to 6.8% from earlier projected 7.2%.This has necessitated striding up efforts on policy changes and major reforms to maintain India's position of the fastest growing significant economy in the world. The reasons for slower growth are weaker domestic consumption, slower global growth and trade tensions with higher government spending driving the economy. On government finances, fiscal deficit for 2018-19 has remained within the revised budget target of 3.4% of the GDP. The Government will be hard pressed to preserve fiscal discipline and spur growth. Government's continued commitment to maintain course on fiscal discipline instills strong confidence amongst global investors. There is scope for improvement of credit flows to micro, small and medium industries which will revive broad based growth. It is incumbent on the domestic banking sector to support good quality credit growth across sectors to ensure strong and sustainable growth.

In FY 2019-20, the moderation of global growth and the weakening of investment in capital goods is expected to be countered by higherfinanciai flow to commercial sector and rising private consumption, especially in the rural sector thereby accelerating economic momentum. RBI in its monetary policy statement of 6th June 2019 has projected a GDP growth of 7.0% with risks evenly balanced. Going forward, in context of the Indian Economy, there will be a judicious mix of fiscal prudence and monetary stimulus to resurrect the growth momentum.

I strongly believe that increasing the pace of policy reforms, address pending banking and financial sector issues, removing structural rigidities and easing of supply-side bottlenecks through stepping up private investment would pave the way for the Indian economy to achieve its true potential. With the new government in place with a clear majority and strong mandate, there are high expectations of a significant momentum in reforms that will develop a strong banking and financial sector providing necessary boost lo economic growth. Banking Sector in India

Although, FY 2018-19 continued to remain a challenging year for the banking sector, it provided renewed optimism. The year marked a steady beginning towards faster resolution of corporate stressed asset on account of landmark regulatory reforms like implementation of Insolvency and Bankruptcy code (IBC), Sashakt Committee recommendations and major banks signing the Inter Creditor Agreement for bank led resolution of stressed assts. Although the challenges on asset quality front remain but the positive developments including capital support by Government has generated an air of positivity and a strong belief that the worst is over for PSBs. Strong regulatory action, recognition of the issues and consequent corrective measures taken by banks have stabilized further slippages, including at your Bank. Deleveraging and restructuring of the corporate sector, as currently in progress, will provide further stability. It is imperative for the banking sector to expeditiously deal with the legacy issues and resolution of remaining stressed assets and more importantly prevent further accumulation.

Going ahead, re-capitalisation of Public Sector Banks, resolution of stressed assets under the IBC and consequent improvement in financials are expected to further improve capacity of the banks to support investment and aggregate demand of the economy. Greater adoption of technology in the banking sector is likely to see fall in intermediation costs and increased competition will impinge on margins. Business growth and profitability are increasingly going to be driven by restructuring of operating costs, wider outreach and greater brand positioning by going deeper into customer life cycle needs. Therefore, to remain competitive and stimulate business growth, it would be important to continue focus on change and progress through product development and continuous innovation. The future depends on successful management of transitions, building greater operational efficiencies and remaining updated with the latest trends in technology and future demand.

Today, we are witnessing a period of intense change, economic cycles are shorter and markets more volatile with growing intensity of risks leading to more rigorous governance standards. Impact of evolving technology, data analytics and artificial intelligence on financial markets will be enormous. These developments present new and exciting opportunities for your Bank to serve its fast growing rural and urban customers and deliver to a "new India". Banks in India have also taken the lead in the transformation process. Some banks are ahead of others in embracing these changes. Risk-based pricing of products and optimum Risk Adjusted Return on Capital (RAROC) are fast gaining ground as key determinants for quality credit growth Improved corporate governance, compliance and more stringent credit / risk processes are imperatives for healthy growth and stability of the banking sector.

It is the best time for transformation in the Banking industry as the economic fundamentals are strong, regulatory climate is favorable and transformation technologies are more readily accessible, powerful, and economical than ever before. The banks which adopt contemporary governance structures, become regulatory compliant, continually re-engineer risk processes, preserve capital through risk adjusted returns, reskill employees, adopt technological innovation, consistently develop new products and become nimble- footed will be in a position to differentiate, grow exponentially and gain market share

Developments and Progress of the Bank

The beginning of FY 2018-19 saw Bank addressing multifarious challenges including the onetime financial setback, high NPAand weak capital position. However, in to its spirit of resilience, your Bank employees rose to the occasion and undertook a series of strategic measures to ensure early rebound, with least disruption to business and growth. I commend their commitment and tireless efforts during this very difficult and challenging period.

Strengthening of systems and control were undertaken with measures like integration of the SWIFT system with the Bank's CBS strengthening of monitoring mechanism including off site audit system and strict compliance of bank's rotational policy.

Stressed Asset Monitoring Vertical, with three verticals namely Monitoring. Resolution and Recovery was set up for focused recovery efforts through a dedicated specialized and motivated team of around 2700 officials spread across the country.

"Mission Parivartan" the ongoing process aimed at implementing structural changes in the Bank through the three Ps i.e People, Processes and Products (PPP) is providing the directional inputs to transform the Bank into a "Future Ready Bank'. In order to strengthen the credit processes. Centralized Loan Processing Centers (CLPC) have been opened to ensure Improved Turn Around Time, Segregation of Pre & Post Sanction Responsibilities, Qualitative Credit Assessment and Efficient Monitoring. Similarly, Marketing Structure has been revamped moving from Product Centric to Customer Centric Marketing. End to End Digitalization of Trade Finance Operations has also been undertaken with centralized risk controls.

In order to ensure business growth under capital constraints, churning of the portfolio was undertaken towards better rated borrowers and low risk profile. The strategic approach ensured a strengthened balance sheet with capital conservation. It resulted in significant reduction in Risk Weighted Assets (RWAs).

The Bank also continued to adopt the Customer-Centric approach by way of enhancing the digital platforms to serve the customers more conveniently and the bank's digital footprint expanded significantly. The Bank initiated process for setting up an in-house Big Data Analytics Centre based on its Enterprisewide Data Warehouse to focus on using data for business development and sustainability. The Bank came out with all in one app for Digital Banking, i.e. PNBONE which is a Unified Mobile application with advanced features.

The Bank's performance and improvement on several fronts has earned PNB the prestigious EASE Excellency Award from Shri Arun Jaitley, Former Hon'ble Finance Minister as the Best Public Sector Bank. This well-deserved recognition was received on 28th February 2019, the milestone year as we celebrated our 125th foundation day on 12th April 2019.

Bank's Performance

The Bank's Financial Year 2018-19 started off on a tepid note. With the biggest financial incident in terms of severity and enormity, the Bank had a huge task before it to overcome the crisis and turnaround. The strength of performance was possible due to Bank's strategic rationalization of the product portfolio mix to conserve capital, focus on improving the asset quality, credit growth with rationalization of risk weighted assets and increased operational efficiency.

I am happy to share that in spite of the challenges, the Bank crossed various milestones and registered improvement in key parameters. Gross Domestic Business reached the level of Rs. 11.45 lakh crore as at 31st March 2019 and CASA Deposits reached the level of Rs. 2.85 crore. Domestic CASA share stood at 43.51% of total deposits. More than 3.2 million new accounts were added in Saving Deposits during the financial year ending March 2019 which is a reinforcement of continued customer confidence in your Bank In FY'19, the Bank was able to narrow down its Net Loss to Rs. 9975 crore against the Loss of Rs. 12283 crore during FY'18. Total provisions stood at Rs 22971 crore in FY'19 including a provision of Rs. 7167 crore for the one off incident.

High level of Net NPAs, which had been a major concern, saw a sequential reduction from quarter to quarter and Net NPA reduced from Rs. 48684 crore in Mar'ISto Rs. 30038 crore in MarHO. The Recovery momentum has continued with a Gross Recovery of more than Rs. 20,000 crore upto Mar' 19 as compared to Recovery of Rs. 9666 crore during Mar'18. GNPAand NNPAhave reduced to 15.50% and 6.56% in Mar'19 from a level of 18.38 & 11.24% respectively in Mar'18 Provision Coverage Ratio improved from 58.42% in Mar'18 to 74.50 % as on March'19.

On capital adequacy front, the position of the Bank improved from 9.20% in FY'18 to 9.73% in FY'19 which constituted Tier I ratio of 7.49 % and Tier II ratio of 2.24%. I am delighted to report that the Bank's Employee Share Purchase Scheme (ESPS) which was implemented to shore up the capital achieved 90% subscription by your Bank employees.

The Bank monetized non-core assets of more than Rs. 300 crore during the year and has also identified other non core assets which will be sold at an opportune time.

Apart from this, the Bank has also been able to bring about changes in risk management and compliance processes. Your Bank overhauled its Reputational Risk Management by introducing trigger events in Reputational Risk management Policy and is also updating its reputational Risk Assessment framework for more robust risk capturing.

The Bank faced an extraordinary condition during FY'18 and was able to come out with sheer grit and determination of your Bank employees. The Bank made various structural changes to regain the lost growth momentum as evident in the FY'19 results.

Way Forward

The environment in which we operate has become increasingly dynamic and less predictable because of macro-economic uncertainties, overall operating conditions and regulatory & technological changes. Global growth is expected to remain subdued. Escalation of trade disputes among the world's largest economies poses a significant risk for both short and medium-term global growth prospects.

On domestic front, policy reforms and execution will not only set the pace of GDP growth but also affect the scale and contours of private investments and FDI.

Banking landscape has undergone paradigm shift over the years in terms of new entrants, technology, consumer expectations and competition and this trend is likely to continue. The key to success would be to align strategies for business growth with fast emerging opportunities, meet customers evolving expectations, proactively anticipate new technological trends with ability to quickly imbibe new technologies, ramp up outreach and institutionalize operational efficiency.

Despite your Bank's success in navigating challenges, a lot remains to be done and it is important for the Bank to broad-base performance on multiple fronts. A robust balance sheet, strong capital base and growth in quality revenues is critical for your Bank to achieve its rightful position in the Indian banking sector. The Board and Bank's leadership are engaged in developing the Bank's strategy that ensures quality credit growth, rationalize high risk exposure and right-sizing the Bank's Balance Sheet to ensure strong capital formation for sustainable growth. Your Bank sees its vast geographical presence as an advantage to harness business opportunities in its Financial Inclusion drive. Your Bank will continue to employ cutting edge digital know-how, enhance IT capabilities to meet customer expectations across customer segments, sustain its market leadership and significantly strengthen internal systems and processes.

People development and skill enhancement will remain a focus area for the Bank. Empowering our dedicated employees will be a critical enabler of our business strategy and fundamental in delivering better results. The Bank will further strengthen its compliance culture and risk management processes. There is a special emphasis on dealing with cyber-security risks and developing awareness amongst all employees. Your Bank will ensure adoption of best-in-class technology, ensure rapid digitalization and embrace innovation. It is imperative for your Bank to change with changing times!

Amidst the back drop of fast paced changes and very severe challenges, it is gratifying that the performance of your Bank in the last financial year has moved in the right direction. On behalf of the Board, I take this opportunity to thank all employees for their outstanding efforts. The Bank will continue in its journey to drive for business excellence, overcome all challenges, maximize potential to capitalize on growing opportunities to achieve its true potential.

To conclude, I would like to thank you for your unwavering confidence in the Bank. I thank the Regulators for their continued guidance and the Government of India for their unstinted support and capital in a difficult period. I also extend my gratitude and appreciation to my esteemed Board colleagues, the Bank leadership and our employees for their support and commitment The continued passion of our 70000 employees will enable your Bank to continue its march towards achieving many new milestones, as it has in its glorious past. I strongly believe that your Bank's future is very bright and with your continued support, the best is yet to come.

Thank you.
Your sincerely.
(SUNIL MEHTA)

   

Punjab National Bank Company History

Punjab National Bank (PNB) is a state-owned commercial bank located in New Delhi. PNB is one of the leading commercial banks in India. They offer banking products, and also operate credit card and debit card business, bullion business, life and non-life insurance business, and gold coins and asset management business. They are recognized as the bank offering highest levels of customer satisfaction in Delhi and Chennai. As on 31 December 2020, PNB's domestic branch network stood at 10,925 along with 13,914ATMs. The bank has four overseas branches in Hong Kong, Dubai and Offshore Banking Unit in Mumbai and Representative Offices (RO) at Dubai (UAE), Shanghai (China), Sydney (Australia) and Dhaka (Bangladesh). The bank has two overseas subsidiaries viz. PNB International Ltd. (UK) and Druk PNB Bank Ltd (Bhutan). The bank also has one associate company viz. JSC Tengri Bank (Kazakhstan) and one Joint Venture Bank in Nepal i.e. Everest Bank Ltd. The bank has got permission from RBI for opening Representative office in Yangon (Mynamar). Punjab National Bank was incorporated in the year 1895 at Lahore, undivided India. The Bank has the distinction of being the first Indian bank to have been started solely with Indian capital. In the year 1940, the Bank absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi circle. In the year 1951, they acquired the 39 branches of Bharat Bank and in the year 1961, they acquired Universal Bank of India. Punjab National Bank was nationalised in July 1969 along with 13 other banks. In the year 1986, they acquired Hindustan Commercial, which added Hindustan's 142 branches to the Bank's network. In the year 1993, they acquired New Bank of India which the GOI. During the year 1996, they developed a packaged for corporate customers for fast remittance of funds from different up-country branches. In the year, they set up a representative office in Almaty, Kazakhstan. In the year 2000, the Bank has introduced a scheme for providing finance against mortgage of immovable property. In September 2000, they commenced their gold business in the form of Gold Import Scheme. In November 2000, they launched an International Co-branded Credit Card of Punjab National Bank and Hong Kong & Shanghai Banking Corporation (HSBC) in New Delhi. In March 2002, the Bank came out with their first Initial public offer (IPO) for 5,30,60,700 equity shares of Rs 10 each which resulted in the reduction of the government's shareholding in the Bank. During the year 2002, they started their branch in M.G. Road, Bangalore named as Mid-Corporate Branch (MCD) to provide their corporate clients with a credit limit of Rs 3.5 crore and above. They made joint venture with Infosys for the implementation of a Centralized Banking Solution for them. Also, they made a tie up with Cisco Systems for networking 3,870 branches as part of their Rs 150 crore plan. In the year 2003, the Bank took over Kozhikode-based Nedungadi Bank Ltd (NBL). The Bank entered into an alliance with New India Assurance for selling their general insurance products. Also, they opened a representative office in London. During the year, PNB Capital Service Ltd was amalgamated with the Bank. In June 2003, the Bank entered into an MoU with Principal Financial Services Inc (USA) and Vijaya Bank for joint venture partnership in Life Insurance, Pensions and Asset Management (MF) business. Also, they formed a strategic alliance with Infrastructure Leasing and Financial Services Ltd (IL&FS) for setting up a private equity fund for investing in domestic companies. In the year 2004, the Bank acquired the assets of Hindustan Transmission Product Ltd. They signed a corporate agency agreement with Export Credit Guarantee Corporation of India Ltd (ECGC) for marketing ECGC's export credit insurance products through the network of the bank's branches. Also, an MoU was signed with Intel for the deployment of various IT-related solutions. During the year, the Bank signed an MoU with ICICI Bank for ATM network sharing. They awarded a project to Tata Consultancy Services (TCS) for implementing human capital management and payroll solution. They established a branch office in Kabul, Afghanistan. Also, they opened a representative office in Shanghai. The bank established an alliance with Everest Bank in Nepal that permits migrants to transfer funds easily between India and Everest Bank's 12 branches in Nepal. In the year 2005, the Bank unveiled ATM at Edappal. Also, they opened a representative office in Dubai. In the year 2006, the Bank made a tie up with MasterCard International to launch a signature-based debit card. Also, they made a tie up with Indian Airlines for online booking of air tickets. They opened a new branch in Uttarakhand. In October 2007, the Bank entered into MoU with India Infrastructure Finance Company with an aim to extend their cooperation and support to IIFC in areas of creating a deal flow of infrastructure projects. In January 2008, the Bank commenced commercial banking operations in Hong Kong. During the year 2008-09, the Bank opened 168 branches, out of which 90 are new branches and 78 branches was added through upgradation of Extension Counters. They made collaboration with LIC for selling insurance policies and also made a tie up with Oriental Insurance for selling non-life policies on a referral basis. In June 2008, they entered into a MoU with ILFS Cluster Development Initiative Ltd for providing finance for various industrial infrastructure projects in the country. In September 2008, they signed an MoU with SMC Global Securities Ltd and Networth Stock Broking Ltd for providing online trading facility to Company's customers. They offered a unique '3 in 1 account' comprising of Saving, Demat and trading account. In February 2009, they commercially launched their credit cards with 2 types of consumer credit cards, namely Gold and Classic. Also, they entered into an agreement with Oriental Insurance Company to market insurance products, a practice also known as bancassurance. In March 2009, the Bank entered into an understanding with Tata Motors for financing entire range of passenger cars. Also, they executed an agreement with The Life Insurance Corporation of India for bancassurance, life insurance under the provisions of IRDA's Referral Arrangement. During the year 2009-10, the Bank opened 524 domestic branches, out of which 347 are at new locations while 177 branches was added through upgradation of existing Extension Counters. They deployed 1400 ATMs taking the total count of ATMs to more than 3500 Nos. They opened two overseas branches 1 in Hong Kong and another at DIFC Dubai and started a JV banking subsidiary 'DRUK PNB Bank Ltd' in Bhutan. Also, they opened a representative office in Oslo, Norway. During the year, the Bank sold 6.5% of their stake in UTI Assets Management Co Ltd and UTI Trustee Pvt Ltd, thus bringing down their stake in both these companies to 18.5%. They launched Corporate Credit Card with Individual liability. Also they launched Merchant Acquiring Business through installation of Point of Sale (PoS) Terminals at Merchant Establishments and Internet Payment Gateway by integrating through Merchant Website, with Brand Name PNB Biz. In May 2009, the Bank incorporated a subsidiary company namely PNB Investment Services Ltd. In November 2009, they entered into an agreement with FIM Bank (Malta), Banca IFIS, Italy and Blend Financial Services Ltd, Mumbai for setting up a joint venture company for providing factoring, forfeiting and trade finance related business. During the year 2010-11, the Bank introduced new set of products and services such as PNB Uphaar, PNB Suvidha and World Travel Card. In December 13, 2010, they acquired 63.64% stake in JSC Dana Bank of Kazakhstan. In January 12, 2011, the Bank's joint venture India factoring and Finance Solutions Pvt Ltd started its commercial operations from Delhi, Mumbai & Chennai. The total number of branches at the end of March 2011 rose to 5189. The branch network comprises 2047 Rural, 1154 Semi Urban, 1111 Urban and 877 Metropolitan branches. During the review period 210 domestic branches were opened. With 5189 branches, including 28 Extension Counters, the Bank has the largest network amongst the nationalized banks. As part of customer segmentation, Bank has opened specialized Branches that include 6 Micro Finance branches, 59 SME branches, 11 International Banking Branches, 17 Asset Recovery Management Branches, 13 Mid Corporate Branches, 11 Large Corporate Branches, 73 Retail Asset Branches, 11 Agriculture Finance Branches, 3 high-tech agriculture branches, 1 Capital Market Services Branch and 1 International Service Branch. Besides, 41 Back Offices, 2 Special Foreign Exchange Offices, 17 Special MICR Centres, 41 Service (Regional Clearing Centre) centres, 4 Financial Inclusion Service Centres, 3 Centralised Draft Payable Centres, 1 Central Clearing Service Centre and 1 Depository Back Office are established to reduce delivery time and improve response time. On 5 March 2010, PNB announced that the bank has received permission from RBI for setting up a representative office in Sydney, Australia. On 13 December 2010, PNB announced that the bank has completed the transaction for acquisition of 63.64% stake in JSC Dana Bank Kazakhstan. PNB has acquired 35 million shares of 1000 Tenge each, at par, for 3.5 Bn Tenge (USD 23.765 million approx.), which has raised the capital of JSC Dana Bank to the level of 5.5 Bn Tenge from the existing 2 Bn. Tenge. On 12 January 2011, PNB announced that it has bought Principal Financial Group of Mauritius (PFG) and U K Paints stake of 26% and 32% respectively in Principal PNB Life Insurance Company Ltd. After the transaction, the bank's stake in Principal PNB Life Insurance Company Ltd stands at 88%. PNB also said at that time that it would continue to support Principal PNB Asset Management Company Pvt Ltd for a period of three years. On 15 February 2011, PNB announced that the bank has entered into an arrangement with Weizmann Forex Ltd., Mumbai (Principal Agent) for handling inward remittances under MTSS (Money Transfer Service Scheme) through Western Union. The bank also entered into an arrangement with BFC Forex & Financial Services Ltd., Thane (Maharashtra) for handling inward remittances under MTSS (Money Transfer Service Scheme) through the web based product EzRemit. On 28 April 2011, PNB announced the issue and allotment of 15.09 lakh equity share at issue price of Rs 1218.82 per equity share to Government of India on preferential basis aggregating Rs 184 crore. On 28 March 2012, PNB announced that upon receipt of allotment money of Rs 1589.90 crore from Life Insurance Corporation of India (LIC), the bank has allotted 1.58 crore equity shares at issue price of Rs 1003.69 per share to LIC on preferential basis. On 2 April 2012, PNB announced that upon receipt of allotment money of Rs 654.99 crore from Government of India, the bank has allotted 65.25 lakh equity shares at issue price of Rs 1003.69 per share to Government of India on preferential basis. On 16 January 2013, PNB announced that the bank has acquired 30% stake in Metlife India Insurance Co. Ltd. On 6 March 2013, PNB announced that upon receipt of allotment money of Rs 1247.99 crore from Government of India on 4 March 2013, the bank has allotted 1.42 crore equity shares at issue price of Rs 873.05 per share on preferential basis to Government of India. On 28 October 2013, PNB announced that the Chairman & Managing Director of the bank, as per authority delegated by the Board, has approved issuance of equity shares of face value of Rs 10 each for an amount upto Rs. 500 crore, at such price as may be decided as per SEBI (ICDR) Regulations, 2009, on preferential basis in favour of Government of India, subject to necessary approvals. On 4 March 2014, PNB announced that the bank has sold its entire stake in Credit Information Bureau India Ltd. (CIBIL) to TransUnion International Inc. (FII). On 1 April 2014, PNB announced that it has sold its entire 30% stake in India Factoring & Financial Solutions Ltd. (IFFSL) to parent promoter FII (FIM Bank (Malta) and realized Rs 107.83 crore. On 4 July 2014, PNB announced that it has sold 41% stake in High Mark Credit Information Services Ltd. (High Mark) to CRIF and realized Rs 4.15 crore. The Board of Directors of PNB at its meeting held on 19 September 2014 granted in-principle approval for sub-division of existing equity shares of face value of Rs 10 each into 5 equity shares of face value of Rs 2 each. On 1 April 2015, PNB announced that capital funds to the tune of Rs 870 crore have been received from the Government of India on 31 March 2015 for issue and allotment of 4.42 crore equity shares at a price of Rs 196.80 per equity share to Government of India on preferential basis in accordance with Regulation 76(1) of SEBI ICDR Regulations. The Bank made Tie ups with the leading manufacturers of agriculture implements & tractors, irrigation solutions, etc. during FY 2015. During the year, the Bank also laid focus on increasing livestock advance portfolio by financing through tie-ups with dairy companies/cooperatives. Further, the Bank focused on financing to Agri logistics like Rural Godown/ Cold Storage & Agri Transport. On 30 September 2015, PNB announced that consequent upon receipt of capital funds to the tune of Rs 1732 crore from the Government of India on 29 September 2015, the bank has issued and allotted 10.9 crore equity shares at a price of Rs 158.84 per equity share on preferential basis to Government of India in accordance with Regulation 76(1) of SEBI ICDR Regulations. During FY 2015, the Bank entered into a tie up with National Small Industries Corporation (NSIC). In this, NSIC would source the applications to the Bank with sharing of processing fee. Besides, the Bank also formulated Scheme for financing Business Correspondents. The Bank signed a MOU with vehicle manufacturers like Ashok Leyland, Tata Motors, Asia Motors Works, Hindustan Motors, Mahindra & Mahindra, Piaggio, ICM Ltd., Eicher Volvo, Atul Auto, Bajaj Motors and J S Auto P Ltd. and MOU had also been signed with Escorts for financing transport dealers. In FY 2015, to expand the presence of the Bank, an exclusive scheme for issuing credit cards to employees of PNB's sponsored RRBs was launched apart from liberalizing the terms for issuance of credit cards against fixed deposit. In FY 2015, PUNGRAIN, a food grains procurement agency of Punjab Government has launched Kisan Arhtiyas Information & Remittance Online Network (KAIRON) project whereby they are making payments to the farmers through Arhtiyas using RuPay Debit cards with the help of National Payment Corporation of India (NPCI). The Bank was actively participating in the project and brought a business of Rs 4038 crore as Acquiring bank and Rs.1997 crore as Issuing bank during FY 2015. During FY 2016,157 new branches were opened by RRBs, taking the total network of Branches to 2301 with all being on CBS and total numbers of employees were 8714. On 15 September 2016, PNB announced that consequent upon receipt of capital funds to the tune of Rs 2112 crore from the Government of India on 14 September 2016, the bank has issued and allotted 16.43 crore equity shares at a price of Rs 128.49 per equity share on preferential basis to the Government of India in accordance with Regulation 76(1) of SEBI ICDR Regulations. Punjab National Bank (PNB) and India Post Payments Bank (IPPB) signed a memorandum of understanding on 17 January 2017 wherein PNB shall provide technology platform for pilot launch of IPPB on receipt of regulatory approval from Reserve Bank of India. The Board of Directors of PNB at its meeting held on 2 November 2017 authorized the management to partially sell its stake in PNB Housing Finance Ltd. Further, consequent upon the exercise of call option by the Principal Group, the Board has approved to offload PNB's entire stake in Principal PNB Asset Management Company and Principal trustee Company Pvt Ltd to the Principal group. On 5 December 2017, PNB announced that the bank successfully sold 98.15 lakh equity shares of PNB Housing Finance Ltd (PNBHFL) to different investors (Non Retail and retail) at above the floor price /cut off price, with gross sales consideration of Rs 1315.33 crore. During FY 2017, 1218 new ATMs were installed and as an outcome, the total ATM network reached 10681. E-Surveillance systems were installed at ATM sites. Solar UPS were installed to decrease the downtime of ATMs on account of electricity failure. ESQ ATM Monitoring System was installed for on line ATM monitoring and to take prompt corrective/preventive actions in case ATM gets down. Business Debit Card was launched with enhanced transaction limit permitting withdrawal up to Rs 1 lakh from ATMs and e-commerce transaction up to Rs 3 lakh in FY 2017. On 18 December 2017, PNB announced allotment of 29.76 crore equity shares to successful eligible qualified institutional buyers at a price of Rs 168 per share. Earlier, PNB on 14 December 2017 announced the closure of the qualified institutions placement (QIP) of equity share. The bank raised Rs 5000 crore from the QIP. The Board of Directors of PNB at its meeting held on 6 February 2018 accorded approval for Capital Infusion by Government of India up to Rs 5473 crore. During FY 2017, the Bank mobilized total amount of Rs 4545 crore, Asset under Management (AUM) stood at Rs 814 crore and brokerage earned was Rs 4 crore. The Bank has one of the largest branch networks of 6937 as on 31st March 2017. To fulfill the banking needs of unbanked areas, 178 new branches were added to the vast network of branches during the year. On 14 February 2018, PNB informed the stock exchanges of detection of a massive fraud of Rs 11394.02 crore. On 12 February 2018, on the basis of investigation report, total fraud of Rs 11394.02 crore (about USD 1771.69 million) in case of unauthorized issuance of Letters of Undertakings, Foreign Letter of Credits and Inland Letter of Guarantees in the group accounts of Nirav Modi Group and M/s Gitanjali Group and in the account of M/s. Chandri Paper & Allied Products Pvt. Ltd. was reported to RBI. Later, on 26 February 2018, PNB informed the stock exchanges that the quantum of reported unauthorized transactions could increase by about USD 204.25 million. During the FY2019, the bank has allotted 31,29,93,219 equity shares at a price of Rs 89.97 per share to GOI on preferential basis. Further the bank also made another preferential allotment of 63,81,90,364 equity shares at a price of Rs 85.10 per share to GOI. Also third time during the FY2019, the bank made another preferential allotment of 80,20,63,535 equity shares at a price of Rs 73.66 per share to GOI. The Bank has one of the largest networks of 6989 branches and 9255 ATMs as on 31.03.2019 comprising of 1280 Metropolitan, 1387 Urban, 1727 Semi Urban and 2595 Rural branches. During the FY2020, the bank made a preferential allotment of 213,35,18,960 equity shares at a price of Rs 75.42 per share to GOI. The Bank has one of the largest networks of 7041 branches and 9168 ATMs as on 31.03.2020 comprising of 1259 Metropolitan, 1430 Urban, 1753 Semi Urban and 2599 Rural branches. PNB won IBA Banking Technology Awards 2020 for Most Innovate Project using Technology for PNBOne and also Runners Up in Best Use of Data and Analytics for Business Outcome in the Large Bank Category. The Bank won BFSI Digital Innovation Awards in the category of Robotic Process Automation. The bank was also adjudged Bank of the year' by Indo-American Chamber Of Commerce (IACC). The Government of India (Gol), Ministry of Finance, Department of Financial Services has issued Gazette Notification no. CG-DL-E- 04032020-216535 dated 4th March, 2020, approving the scheme of Amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank in exercise of the powers conferred by section 9 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 and section 9 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1980. The amalgamation has come into effect from 01 April 2020. On 05.03.2020 the Board of Directors of the Bank and the Board of Directors of Oriental Bank of Commerce and United Bank of India at their respective meetings, approved amalgamation. The Boards of respective banks have also approved the swap ratio of 1150 equity shares of Face Value Rs 2/- each of Punjab National Bank for every 1000 equity shares of Face Value Rs 10/- each of Oriental Bank of Commerce and the swap ratio of 121 equity shares of Face Value Rs 2/- each of Punjab National Bank for every 1000 shares of Face Value Rs 101- each of United Bank of India. The bank has Made investment in JSC Tengri Bank (previously known as Bank of Kazakhstan) of Rs.300 crores which is an associate of our bank Consequent to the study conducted by the independent agency, Whereby the associate Bank has to create certain provisions towards NPA's because of which the networth of the bank has diminished as on 31.03.2020. During the quarter ended 31 December 2020, the Bank has issued 1,06,70,52,910 equity shares having Face Value of Rs.2 each for cash to Qualified Eligible Buyers pursuant to Qualified Institutional Placement (QIP) in accordance with the provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 at a premium of Rs.33.50 per share aggregating Rs. 3,788.04 Crore. During the quarter ended on 31 December 2020, Bank has issued Tier-II Bonds aggregating to Rs.3,000 Crore.

Punjab National Bank Directors Reports

Backed by its 125 years banking experience, resilience and intrinsic strengths, Punjab National Bank(PNB) continued its growth story during the financial Year 2020. During the year,

Indian economy faced headwinds on account of slowdown in global growth, volatility in international crude oil price, muted demand and sluggish private investments. Despite challenging economic conditions, Bank's business improved and core operations have remained profitable. The highlight of the performance was improvement in asset quality, increased core operating profit and the strengthened capital position. In addition,

Bank under took various initiatives in the areas of the three Ps i.e. People, Processes and Products in order to transform and align with the changing financial environment and customer needs.

The second half of the year marked the onset of PNB's mega journey towards becoming the second largest public sector bank in the country. The announcement and initiation of the process of amalgamation of Oriental Bank of Commerce (OBC) and United Bank of India (UNI) into PNB, has been a part of Government's larger vision of making the Indian banking sector more resilient, stronger and globally competitive. Concurrently with the process of amalgamation, Bank continued focus on business growth.

The Bank's Gross Domestic Business increased to `11,81,538 crore as at the end of March '20. While Gross Domestic Advances stood at ` 4,95,045 crore, Domestic Deposits were at ,86,493 crore. The Bank's CASA Deposits stood at `3,02,475 crore and the domestic CASA share was at 44.05% as at the end of March '20. There has been decline in Gross Non

Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) helped by Recovery of more than `12,380 crore in

FY' 20. In addition, there has been YOY increase of 13.4% in Bank's Operating Profit to`14,739 crore, Net Profit `336 crore and improvement in CRAR to 14.14% during FY '20.

Bank's multifarious achievements have been acknowledged at diverse prestigious national and international platforms. Among other accolades, your Bank won the IBA Banking Technology

Awards 2020 in the category of most Innovate Project using

Technology for PNBOne. For the second year in a row, Bank was recognized as "The Best Bank for Corporate Social

Responsibility" by the Asiamoney Banking Awards 2020.

The Bank was also adjudged ‘Bank of the year' by Indo-American Chamber Of Commerce (IACC) and recognized as the Best State

Nodal Bank Award 2018-19 by Ministry of Rural Development.

Besides, your Bank has been ranked 3rd among all Public Sector

Banks in India in the recent Forbes magazine's annual ranking of the world's 2000 largest public companies.

Against this backdrop, your Directors have pleasure in presenting the Annual Report of your Bank for the year ended March 31, 2020 (FY 2019-20) along with its audited Annual Financial Statements. OUR PERFORMANCE

A. FINANCIAL PERFORMANCE Assets and Liabilities

Total Assets of the Bank increased YoY by 7.2 % to

Rs 8,30,666 crore as at 31st March 2020 from Rs 7,74,949 crore as at 31st March 2019. During the period, the Net

Advances of the Bank increased by 3.0% to Rs 4,71,828 crore from Rs 4,58,249 crore.

Investment increased YoY by 19% to Rs. 2,40,466 crore from Rs. 2,02,128 crore as at 31st March 2019.

On the Liabilities side, Deposits rose by 4.1% YoY from

Rs 6,76,030 crore to Rs 7,03,846 crore during this period.

Borrowings increased YoY by 27.7% to Rs 50,225 crore from Rs 39,326 crore in March 2019.

Net Interest Income

The Net Interest Income of your Bank increased YoY by 1.6% to Rs 17,438 crore during FY'20. While Interest Income grew 4.9% YoY to Rs 53,800 crore, Interest Expenses growth was at 6.5% to Rs. 36,362 crore.

Operating Profit

Operating Profit of your Bank grew by 13.4% YoY during the FY to Rs 14,739 crore. Total Income of your Bank increased by 7.5% YoY from Rs. 58,688 crore in FY'19 to Rs. 63,074 crore during FY'20. Total Expenses increased from Rs. 45,692 crore in FY'19 to Rs. 48,336 crore in FY'20.

Net Profit

Bank has earned a Net Profit of Rs. 336 crore in FY'20 against a Net Loss of Rs.9,975 crore during FY '19.

Provisions and Contingencies

Total provision declined YoY by 37.3% to Rs. 14,402 crore in FY'20 from Rs. 22,971 in FY ‘19. Provision for NPA stood at Rs 14,464 crore in FY' 20 and Provision for Income Tax was at Rs. 403 crore. Provision Coverage Ratio of the

Bank improved to a robust 77.79% as at Mar '20 from 74.50% in Mar '19.

B. OPERATIONAL HIGHLIGHTS

Despite challenging economic conditions, the Bank performed creditably. Some of the operational highlights of FY ‘20 are listed below:

Financial

? Bank's Global Business reached the mark of Rs 12,20,775 crore in 31.03.2020.

? CASA Deposits at Rs. 3,02,475 crore remained one of the highest amongst nationalized banks with 44.05% share in Domestic Deposits.

? Retail Advances grew by 6.1% YoY to Rs. 83,479 during the year with 14.2% growth in Housing Loan Segment.

? Domestic Cost of Funds declined from 4.29% in March 2019 to 4.25% in March 2020.

? Bank registered a Net profit of Rs. 336 crore during FY '20 after a gap of 2 financial years.

Capital

The capital adequacy of the Bank improved during the financial year on account of Capital infusion by Government of India (GOI). The Bank continued with its focus on sustainable business growth by targeting better rated borrowers with low risk profile. Going forward, following the amalgamation, the Bank is strategically well placed to meet the growing credit needs of the economy.

Key Highlights

? Capital Position of the Bank has improved with the

Capital infusion of Rs. 16,091 crore by the GOI. The Capital Adequacy ratio of the Bank stood at 14.14 %, as of March 31, 2020 , with Tier-1 capital at 11.90% and Common Equity Tier-1 (CET-1) at 10.69%.

? Bank raised Tier-II Bonds of Rs.1500 Crore during the year and Tier II capital stood at 2.24 % as on March

31, 2020 .

? The Credit Risk Weighted Assets (RWA) density of the Bank stands at 46.8% in March 2020 on account of focus on better rated accounts and churning of portfolio of the Bank.

IT and Digital Initiatives

? Your bank believes in leveraging technology for delivering best customer experience. Bank continues to invest in automation of our internal processes to improve efficiency, risk management and reduce cost of operations. For instance, Artificial Intelligence powered software solution, "PIHU" the PNB Chatbot was introduced for enhanced customer experience.

? The PNB ONE application, Bank's unified mobile banking application crossed more than 30 lakh users as at the end of 31st March 2020 with total transactions during the financial year at 96.23 lacs. During the financial year, Bank has added several new functionalities like Premature FD Closure, implementation of PPF Services, On line RD Opening etc. in PNB ONE for greater customer convenience.

? The Bank is focusing on harnessing the power of both big data and small data not only to drive decision-making and operational excellence but also to provide personalized experiences to increase customer delight. Bank has a large Database and is using advanced Enterprise Data Warehouse Technology for leveraging smart data mining for reporting and taking informed decision for enhanced business decision support. To augment Bank's analytics capabilities, a

Centre of Excellence (CoE) with analytics technology platform has been set up using emerging technologies like Machine Learning and Artificial Intelligence

Transformation Exercise

? The Bank has been taking initiatives and steps to transform and align with the changing financial environment and customer needs. Under the comprehensive in-house transformational exercise, various initiatives were taken as per the ideas received from the field on three Ps i.e. People, Processes and

Products.

? Various transformational activities like strengthening of the Stressed asset Management Vertical through automation, revamping of inland trade finance, marketing structure, strengthening Inspection and Audit function etc. were undertaken.

? The Integrated Management Office (IMO) was established for managing and co-ordinating the overall process of amalgamation of erstwhile Oriental Bank of Commerce, erstwhile United Bank of India with Punjab National Bank. Following transformational activities, considering the present scenarios and industry's best practices have been undertaken to strengthen the control mechanism for increasing size of the bank:

? All the products and policies across PNB, erstwhile OBC & erstwhile UNI have been harmonized and the best products and policies across the three banks have been adopted taking into account customer and employee needs along with the business interests.

? Revamping of Organisation Structure for the amalgamated entity.

? Verticals for various workflows to have specialized and effective processing, are operational and equipped with skilled staff, like – Credit

Processing Offices PNB Loan Point (PLP),

Mid Corporate Centers (MCC), Large Corporate Branches (LCB) & Zonal Risk Management Cells

(ZRMC), Trade Finance Centers (TFC), CASA Back Offices.

C. ASSET QUALITY

Improvement in asset quality continues to be one of the top priorities for the Bank. As a result of focused efforts in this direction, Gross NPA ratio of the Bank declined to 14.21% as at 31st March 2020 from `15.50% in 31st March 2019. Similarly, Net NPA ratio has declined to 5.78% in Mar '20 from 6.56 % in Mar '19. Provision Coverage Ratio (PCR) improved to 77.79% as on 31st March 2020 from 74.50% as on 31st March 2019.

Cash Recoveries

Total Cash Recovery for the FY 19-20 have been

`10,782 crore.

Upgradation

Upgradation for FY 19-20 have been at `1,598 crore.

Upgradation Through Resolution Mechanism

The Resolution Cell was created to exclusively deal with

Restructuring/Resolution of NPA accounts and recovery in NCLT cases. The details regarding the same are as under:

(Amount in Rs. Crore)

Restructured Accounts No. of A/c Total Sanctioned Amount
FY 2019-20 5 1668

Further, a sum of ` 3,754 crore was recovered in NPA accounts under IBC in NCLT.

E-auctions

Total Number of Auctions held during 01.04.2019 to

31.03.2020 were at 12,499 (including 2,036 auctions held through e-Bikray Portal). No. of Successful

Auctions during 01.04.2019 to 31.03.2020 stood at 859 (including 103 successful auctions through e-Bikray Portal).

Sale of Assets to ARC

Details of financial assets sold to Securitization/ Reconstruction Company (SC/RC) for Asset Reconstruction is as under:

(Amount Rs.in crore)
Items FY 19-20
i. No. of Accounts sold to ARCs 3
ii. Book Outstanding of Accounts Sold 37.56
iii. Aggregate consideration received (100% cash) 19.48

Initiatives taken to Improve Asset Quality during FY '20

? A Digital Web Application & Mobile App (M-Touch) has been developed to capture the records of all field visits made by the Branch Officials for recovery in NPA accounts. This is based on reference received from field functionaries and need to develop a proper system of documentation / record of the field visits made by the officials for recovery in NPA accounts.

? Bank devised two Special One Time Settlement (OTS) Schemes during FY 19-20:

1. Non-Discriminatory and Non-Discretionary Special OTS Scheme 2019: For NPA Accounts upto Rs 5.00 crore.

2. Scheme for Resolution of Stressed MSME Assets (SASHAKT):- For assets with outstanding above

Rs. 5.00 crore. and upto Rs 50.00 crores.

3. Under special OTS scheme(s), 70929 OTS were approved involving balance outstanding of Rs 1469 crores and total OTS amount of Rs 1052 crores.

? During FY 2019-20, more than 8000 recovery camps were conducted.

? Bank's E-auction portal was integrated with IBA's

E-auction portal "E-BIKRAY" and Bank moved all its auctions for immovable properties on that platform.

D. INFORMATION TECHNOLOGY AND DIGITALIZATION

? Digitalization

Keeping in view the Government of India initiative of a

Digital India, PNB has incorporated Digitalization at all levels and across all sections of customers. Owing to these efforts, Bank has registered 49.35% YoY growth in digital transactions.

? Alternative Delivery Channels a) Internet Banking: Bank has shown a growth of 13.5% in respect of IBS users in its retail and corporate segments as on 31st March 2020. In order to further promote digitization and make Internet banking services more secure and useful to the customers, Bank has introduced many features during FY 19-20 such as Applying for Initial Public Offer(IPO), PNB VERIFY, Debit

Card On/Off facility, Facility of Destroying cheques, Updating Limits of Debit cards etc. Besides, many more features are under customisation such as its integration with Bharat Bill Payment System of NPCI, Insta Demat Account opening, Cardless Cash withdrawal from ATMs and online submission of Form 15G/H. b) PNB ONE: Users of Bank's unified mobile banking application, PNB ONE increased to 33 lakh as on 31st March 2020 with total 96.23 lacs transactions during this financial year. Launched in December 2018, this all in one application allows transfer of funds, viewing account statement, managing debit card & credit card and many other value added services at customer's features have been added fingertips. during the year to make it more useful to the customers such as Pay to contacts, its availability in 7 major Regional Languages, View holding details and value of holding in linked Demat account, Link and Pay to

Sukanya Samridhi Account(SSA) and Set debit card limit. Many more features are in the pipeline such as its integration with Bharat Bill Payment System, Cardless

Cash withdrawal and Blocking of UPI services etc. c) BHIM PNB (UPI): As on 31st March 2020, there has been around 30% increase in users of BHIM PNB, that allows easy and seamless transfer of money between any two parties via smart phone through virtual address or Account number and IFSC. d) ATMs: The Bank has a vast Network of 9,168 ATMs with a strong card base of more than 2.44 crore. During the year 2019-20 the total average Uptime and availability for the financial year was 95% and 88% respectively, with average monthly hits of 148.

? Digital Initiatives during the Year a) PIHU (PNB's Instant Help for You): PNB's Chatbot,

"PIHU" is an artificial intelligence (AI) powered software solution for enhanced customer experience which facilitates instant help to customers. PIHU instantly responds to user queries using natural learning processing and AI. b) PNB Verify: PNB-Verify is a device binding solution for Retail Internet Banking users, in which the transactions can be authenticated using the Mobile application in

App notification instead of using the SMS based OTP.

c) New cards launched:

? Rupay JCB Debit Card - With an objective to reduce the dependency on well-established card network service providers and to provide benefits to customers through exclusive offers and lowest interchange fee at international locations, NPCI has tied up with Japan Credit Bureau (JCB). In order to provide increased convenience to the customers, PNB started the issuance of Rupay JCB Platinum International Debit Cards.

? Rupay Select Debit Card - PNB is one of the to launch Rupay Select Debit first Card during the year. The Debit Card has been designed for ultra HNI customers & the theme of the card is FITNESS.

? NCMC Debit Card - PNB has launched its Classic, Platinum & International variants of National Common Mobility Card (NCMC) Debit Cards, which is an inter-operable transport card conceived by the Ministry of Housing and Urban

Affairs of the Government of India.

? Rakshak Plus Debit Card - Rakshak Debit Cards in both Classic as well as Platinum variant have been launched with additional features to serve customers in Indian Army/Navy/Air Force & Indian Coast Guard. d) In order to promote digital transactions and to bring maximum customers to digital fold, Bank is providing various promotional offers wherein Cash Back, Gift Vouchers etc. will be given to the customers for performing digital transactions.

e) Bharat Bill Payment System(BBPS): Bharat Bill

Payment System is an integrated bill payment system in

India offering interoperable and accessible bill payment service to customers. Under Bharat Bill Payment system introduced by NPCI, Bank has gone live on Internet Banking (pre-login), Business Correspondent Channel and NPCI BHIM App. Bank has also successfully onboarded HUDA as a biller in Biller Operating

Unit (BOU) category in January 2020. In Customer Operating Unit (COU) category, the bank is working on making Internet Banking (Post Login), Mobile Banking

(PNBONE) & Regional Rural Bank(RRB) live on BBPS. f) PNB has been the pioneer Bank in upgrading the Core

Banking Solutions to the latest Version i.e. Finacle 10.

All the bank's service outlets/centers are working under

CBS thereby extending convenient "anywhere anytime banking" to all customers.

g) Few of the latest features introduced during the year are enlisted below:

? Implementation of PPF Services in PNB One:

Customers can avail following PPF services from Mobile Banking application-PNB One.

? Linking of PPF accounts.

? Viewing of PPF account statement.

? Transfer to PPF account.

? Implementation of Premature FD Closure functionality in PNB ONE

? On line RD Opening in PNB ONE: Customers can now open Recurring deposit account by using Mobile Banking channel.

? E-Interest Certificate

Interest certificateboth provisional and final for the following can be generated from Mobile Banking

Services.

- Deposits

- Housing Loans

- Education Loans

? Chatbot - PIHU in PNBONE: The Chatbot PIHU is available to customers for their queries related to App on Pre-log in page of PNB ONE.

? PNB Suraksha in PNB ONE: Additional cheque authentication feature has been added for the safety of cheques issued by customers.

? Online Opening of PNB Sugam and Uttam Plus (111/222/333/444/555 days) FDs: The facility for opening PNB Sugam and Uttam Plus FDs with

(111/222/333/444/555 days) period was made available in Retail Internet Banking.

? ASBA Submission, Revision and Withdrawal Request: A new feature of ASBA has been introduced in Retail Internet Banking Services post login. The customer can now submit, revise and withdraw the ASBA applications inside the login of Retail Internet Banking Services.

? Functionality to view Cheque Image: Integration has been done with NPCI to fetch the image and display the same to customer in Retail IBS.

? Opening of Sukanya Samridhi Account has been enabled through Retail Internet Banking Services.

? Facility to capture request for Locker through Website was enabled.

? Issuance of TDS/Form 16 certificate:Customer can generate TDS/Form 16 certificate pre-login page in PNB ONE.

? Tax Credit statement/ Regenerate tax challans:

User can generate duplicate tax challans through pre-login page in PNB ONE.

? Currency Denomination Selection in ATMs:

Customer using ATM can select the denomination of currency to be dispensed, while doing cash withdrawal transaction.

? Implementation of PNB VERIFY in Retail Internet Banking: PNB VERIFY is integrated with Internet Banking Services as an alternative option to SMS OTP for all financial and certain non-financial transactions.

E. MANAGEMENT INFORMATION SYSTEM

The Bank believes in harnessing the power of both big data and small data not only to drive decision-making and operational excellence but also to provide personalized experiences to increase customer delight.

Enterprise-Wide Data Warehouse (EDW): Bank has large Database and using advanced Enterprise Data

Warehouse Technology for leveraging smart data mining for reporting and taking informed decision by management. It is single source of structured Data that enables reporting for enhanced business decision support across the Bank. Enterprise Data Warehouse working as downstream for various applications like CRM, AML, Risk Solution, Analytics and many more. It also plays an important role in complying with regulatory reporting requirements.

Data Analytics: The Bank has set up a Centre of Excellence

(CoE) with analytics technology platform with scalable to the

Big Data Lake to augment our capabilities. The CoE using emerging technologies like Machine Learning and Artificial

Intelligence and working with multiple lines of businesses to identify and realize new value-creation and cross-sell opportunity and to build the Bank's capability in leveraging analytics to increase revenue, reduce costs and improve risk profiling of the customer base.

Bank is utilizing internal as well as external data to prepare long term insights and actions. By using Data analytics tool, Bank is practicing to maximize its digital impact in terms of context and targeting.

Bank has been awarded on 6th February 2020 as ‘Runner Up' with IBA award for FY 2018-19 for "Best use of Data

Analytics for Business outcome" in Large Bank category.

F. BRANCH NETWORK

Domestic Presence

The Bank has one of the largest networks of 7041 branches as on 31.03.2020 comprising of 1259 Metropolitan, 1430

Urban, 1753 Semi Urban and 2599 Rural branches. Rural and Semi Urban Branches (RUSU) comprise around 62% of the Total Branch Network. International Presence

At present Bank has its overseas presence in 6 Countries by way of 2 branches(1 at Hong Kong and 1 at Dubai),

2 Subsidiaries (London and Bhutan), 1 Associate (Kazakhstan), 1 Joint Venture(Nepal).

G. INTERNATIONAL BANKING

As on 31.03.2020, there were 146 branches authorised

(Standalone PNB) to handle Foreign Exchange Business and 3 Trade Finance Centers (TFC) functioning at New Delhi, Chennai & Kolkata specialized for centralized handling of trade transactions. Bank has 9 Exchange Bureaus at important tourist centres to facilitate encashment of Foreign Exchange Currency Notes by foreign tourists/NRIs.

Domestic Forex Business (Pnb Stand Alone As On 31.03.2020)

Bank has registered a Foreign Exchange Business

Turnover of Rs.80,068 crore (Exports and Imports together) for the FY 2019-20. There is an International Service Branch (ISB) functioning at New Delhi for handling Inward Remittances of the Bank as a whole. During FY 2019-20,

Bank has handled remittance business of Rs.51,433 crore. Bank Rupee Drawing Arrangements (RDA) with 32 exchange Houses (24 in the Gulf, 2 in Singapore, 2 in the USA, 1 each in UK, Australia, Canada and Japan) to facilitate remittance from NRIs. The Bank also has remittance arrangement under Money Transfer Service Scheme (MTSS) with Transfast Worldwide.

Overseas Business

Overseas business of the Bank is USD 5.05 Billion*

(equivalent to Rs.38179 Crore) as at March 2020 (@

FEDAI rate of USD INR 75.6650 as at 31.03.20). Overseas branches are focusing on High Quality Medium/ Long term loan portfolio with Assetstobuildadiversified low Credit Risk Weight to improve profitability and Introduction of Trade Credit Framework will help the business growth of the branches in the next financial year.

Bank has procured additional funding support of

USD 1.7 Billion from RBI for Oil Marketing Companies to be disbursed from overseas branches of our bank. Overseas

Branches have augmented their Treasury operations as reflected in Trading Profit which increased from USD 1.01 Mio in 2018-19 to USD 3.33 Mio in 2019-2020.

Steps Initiated for Forex Business growth:

? Two new Trade Finance Centres (TFCs) have been formed, one at Kolkata (started functioning w.e.f

02.03.2020) and other at Mumbai which will start functioning after lifting of lockdown to deliver quick and best services besides existing TFCs already functioning at Delhi and Chennai.

? Service Charges on Foreign Exchange transactions have been rationalized among the amalgamated Banks and conveyed.

? Bank has proposed Robotic Process for corporate customers wherein forex related documents may directly be submitted from their office to TFCs, thus providing great comfort to them and helps in increasing

Forex business. The work is in progress at IT and TFC level for making it LIVE.

? An online application facility is provided for prospective export credit customers on Bank's corporate website

(www.pnbindia.in -> Online Services ->Export Credit

Online App), Net Banking at Internet Banking (www. netpnb.com->Online application ->Export Finance) and Mobile Banking platforms (PNBONE App -> More -> export Finance) to enable the exporters to apply online. Efforts are being made to popularize the facility among prospective customers.

? A separate desk has been designated at TFC, Delhi with a motive to complete the forex transactions with a Turnaround Time (TAT) of H+2 for HNI customers of

Mumbai and Ludhiana zones and all LCB/IBB clients exclusively.

? 100% implementation of foreign exchange transactions at TFC's to T+0 in order to deliver quick and best services as well as to mobilize optimum business.

H. BUSINESS DIVERSIFICATION

Insurance Business:

? Life Insurance:

The Bank mobilized premium of Rs 2,445 crore from

1,43,640 policies during 2019-20, as against total premium of Rs2,226 crore mobilized during FY 2018-19. The Bank's earnings from Life-Insurance business grew by 9.29% during FY 2019-20 to Rs181.25 crore from Rs165.84 crore during FY 2018-19.

Total business mobilized under Life Insurance business since inception is Rs.10,553 crore, from 9,56,708 policies and total earning amounted to Rs. 860 crore.

? Non-Life Insurance:

Under the Non-Life Insurance, the Bank has tie-up with The Oriental Insurance Company Limited, The

New India Assurance Company Limited (Arrangement discontinued since 01.04.2020), Bajaj Allianz General

Insurance Company Limited & Religare Health Insurance Company Limited (Stand-alone Health

Insurance).

The Bank's gross written premium stood at Rs. 371 crore from 9.13 lakh policies for FY 2019-20 vis--vis Rs.357 crore from 8.30 lakh policies for

FY 2018-19. Further, the revenue earned during FY 2019-20 grew by 29% to Rs. 62 crore from Rs. 48 crore during FY 2018-19. 2,62,315 Health insurance policies were sourced in FY 2019-20 as against 2,17,355 policies sourced in FY 2018-19 showing a YoY growth of 20.68%.

? Mutual Funds:

The Bank is distributing and marketing Mutual Fund products of M/s Principal Asset Management Pvt. Ltd.,

M/s Nippon Life Asset Management Ltd., M/s UTI As- set Management Company Ltd., M/s Aditya Birla Sun- life Asset Management Company Ltd., M/s LIC Mutual

Fund Asset Management Ltd and M/s Tata Asset Management Ltd.

During FY 2019-20, Bank sourced 31,283 fresh

Systematic Investment Plans (SIPs) as compared to 20,370 SIPs in FY 2018-19 showing a YoY growth of 53.57%.

? Depository Services:

The Bank was awarded "Best Performer in Account Growth Rate (Top DPs)" and "Top Performer in New Accounts opened" under Bank category from NSDL as Depository Participant. As a Depository Participant, bank opened 1,046 Demat accounts and 7,582

Online Trading Accounts in FY 2019-20. Income from Depository Business showed a YoY growth of 11%.

? Merchant Banking:

Bank has license to act as a Banker to Issue, Debenture

Trustee and Merchant Banker. During FY 2019-

20, only 99 IPOs were launched whereas 139 IPOs were launched in FY 2018-19. However, the amount blocked in ASBA increased from `736.37 crores during FY 2018-19 to `1,420.34 crores during FY 2019-20 showing 92.88% YoY growth.

? Credit Card Business

The Bank's Card Base is approximately 3.5 Lac with portfolio size of approximately `300 Crore. The Cards are issued on VISA & Rupay platforms. The Credit Card Business has contributed to the Profits during FYs 2017-18, 18-19 & 19-20 at `24.56 Crore, `47.33 Crore and `59.97 Crore respectively.

Merchant Acquiring Business (MAB):

The Bank offers various Merchant Acquiring Platforms such as:

• Point of Sale (PoS)

• BHIM & Bharat QR Code-Scan & Pay

• BHIM Aadhaar Pay

• Internet Payment Gateway (IPG)

Bank's total Merchant Acquisition base among all platforms stands at 2,94,043 as on 31.03.2020.

? Personal Executive (PE) Model:

In order to maintain long term relationship with High Net worth Individuals (HNIs), PE Model was introduced. The same is now stabilized. There are 238 Marketing Team Members (MTMs) who report their progress daily on Performance Mirror Portal (PMP).

The following new initiatives have been taken for effective monitoring:

? Weekly authentication by Circle Marketing Heads (CMHs) on PMP.

? The report of Digital Products sourced by marketing teams has been customized in Enterprise Data Warehouse (EDW).

? Functionality of marking Attendance of MTMs by respective Circle Marketing Heads (CMHs) has been enabled in PMP.

? Reporting of new products enabled in PMP like Digital Products, Govt. Business and Retail products.

? New Initiatives during FY '20

Digital Initiatives for Solicitation of Life Insurance

Business has been taken. Interested customers may renew their policy/raise other service related requests by using PNB ONE mobile app and PNB Net banking services.

In order to maximise the Business potential, ASBA functionality has been introduced through Core Bank

Solution (CBS), Internet Banking Services (IBS) and Unified Payment Interface (UPI).

I. GOVERNMENT BUSINESS

With a view to playing a more proactive role in the transfer of funds from Centre and States to various beneficiaries,

Bank has been making efforts to have a sizeable number of Public Financial Management System (PFMS) agency accounts. As on 31.3.2020, there were 2.14 lakh agency accounts PAN India. Bank is also accredited banker to nine different Central government departments post amalgamation. These numbers will further rise. Bank has been increasing tie-ups with various State governments to cater to their specific needs.

Some of the initiatives taken up by the Bank under Govt. Business during the year are given as under:

? Fastag: National Electronic Toll Collection Project has been implemented and all branches have been enabled for issuance of Fastags.

? National Pension System (NPS): Four Regional Rural

Banks sponsored by our bank have been on-boarded for NPS remittance.

? Govt. E-Market Place (GeM): Bank is the first among nationalized banks to be available on GeM portal for providing our services to vendors, i.e. sellers and purchasers. These services include GeM pool account, e-PBG (Performance Bank Guarantee) & e-EMD(Earnest Money Deposit).

? Public Financial Management System (PFMS) : Bank has timely disbursed funds of approximately Rs. 400 crores to about 46 lakh beneficiaries under PM Kisan Samman Nidhi.

? Integration with Cochin Port Trust through Payment gateway has been carried out.

? Commemorative Postage Stamp of the bank was released by the Hon'ble Vice President, on the 125th

Foundation Day Anniversary.

? The account of Rural Electrification Corporation

Ltd. has been sourced for the government scheme

SAHYOG and PFMS integration implemented.

? The government account for Deen Dayal Upadhyaya Grameen Jyoti Yojna has been sourced.

? Through active marketing, more than 1.48 lakh PPF and more than 77000 Sukanya Samridhi accounts were opened during the FY 2019-2020.

? Series of Sovereign Gold Bond subscription launched by Govt of India were marketed by our branches and 178 Kgs were sold.

J. TREASURY OPERATIONS

Gross Investment as on 31st March 2020 grew YoY by 18.0% to Rs 2,36,670 crore from Rs 2,00,632 crore as on 31st March 2019. The average investments for FY '20 were

Rs.2,26,060 crore as against Rs. 2,02,924 cr. in FY '19. The Interest income from investment portfolio increased from Rs. 14,106 Crore as on 31.03.2019 to Rs. 15,333 Crore as on 31.03.2020.

The Bank actively traded in sovereign bonds, Non-SLR bonds and equity throughout the financial year. Total Trading profit for FY '20 is Rs. 1632 crore as against Rs. 1,093 crore for FY ‘19 with 49.30% YoY growth. The liquidity position of the bank remained surplus during FY'20. Bank managed the funds by availing RBI LAF facility as well as deploying in various money market instruments like Call, Triparty Repo Order Matching Platform (TREPS) and Clear Corp Repo Order Matching System (CROMS). The Bank complied with all the requirements of CRR/SLR as stipulated by the regulator. From June '19 onwards there has been a surplus liquidity in the Banking system which has continued till Mar '20 quarter with average daily of Rs. 3.03 lac crore. It was higher at Rs 4.89 lac crore on 31.03.2020. RBI took steps such as LTRO of Rs 1.25 Lac crore, OMOs of Rs 40,000 Crore, sell-buy swap auctions for US dollar liquidity into the forex market to the tune of $ 2.71 billion, TLTRO of Rs 25,000 crore and reduction of the CRR of all banks by 100 bps to 3.0% of NDTL. This collectively infused Rs 1.37 lac crore more liquidity which was warranted since the domestic financial conditions tightened with equity and bonds market facing massive sell-offs by FPI during Feb '20 and Mar '20 on account of COVID-19 pandemic.

? Fixed Income (SLR/NSLR)

During FY '2020, Bank booked trading profit of Rs 1,560 crore from sale of investments against Rs 747 Crore during FY '19 showing a YoY growth of 109%. Debt market witnessed volatility in the financial year. Declining trend was seen till July '19 due to RBI capital transfer to the Govt., which could improve its fiscal situation and the

Government's announcement of Rs. 7.10 trillion of gross borrowing and sovereign bonds in the interim budget. In August 2019, though larger rate cut of 35 bps was provided by RBI monetary policy, bond yield started increasing on escalating Indo-Pak tension, rollback of an enhanced surcharge and expectations of stimulus measures from the Government. High bond yields continued in Sep'19 due to corporate tax cut announcement, hardening of

US Treasury yields and demand of gold in international markets amid US-China trade tensions. RBI intervention through ‘Operation Twist' i.e. simultaneous purchase and sale of Govt. securities under OMOs, brought the yields down which continued following RBI's interest rate cuts towards the close of the fiscal year. Rupee depreciated to its lower level, fall in crude oil prices and US 10-yr Treasury yields also weighed positively on the yields.

Crude oil prices were impacted because of on-going price war and weak demand outlook amid spreading of coronavirus across the globe.

? Equity

Bank earned a Gross profit of Rs 94 crore (including profit of Rs 25.66 crore and ` 32.17 crore arising from sale of

CDR and Preference shares respectively) in the FY'20 as compared to previous year's figure of `204 crore

(including profit of`107 crore arising from stake sale in

ICRA).The dividend income for FY'20 was Rs154 crore.

Returns for both benchmark indices were positive till Jan '20; thereafter it was in negative territory amid COVID-19 pandemic. Global markets also witnessed volatility, due to US-China tradewarandfluctuatingcrude oil prices due to operational disruptions in the Gulf of Mexico and on-going geopolitical tensions between Iran with UK and Saudi Arabia. Most global stocks were severely down at the close of the financial year.

? Forex

Net forex income has declined to ` 1,433 crore for the FY ended March 2020 from `1881 crore during FY 2019. Exchange profit also declined from `455

Crore in March 2019 to `378 Crore in March 2020 due to reduction in merchant business volume. However, forex trading profit increased from`74.0 Crore in FY'19 to Rs 96.5 Crore in FY'20 showing 30.4% YoY growth. The Rupee went downwards when the WHO declared

Covid-19 as a pandemic and market was expecting a global economic slowdown due to extensive lockdown worldwide.

K. CUSTOMER CARE

The Bank fully realizes the importance of customer service and continues to lay utmost priority to rendering prompt and efficient service to customers. In order to achieve the desired objective, the Bank has formulated a robust Grievance Redressal Policy.

Initiatives undertaken during the year for improvement in customer service:

? The Bank has an On-line Grievance Redressal

Management Portal called (Centralized Grievance

Redressal Management System (CGRMS).

? Customers can lodge their requests/ complaints in the CGRMS through Bank's website, Internet Banking Service, Mobile Banking Service and Mobile App.

? The same has been upgraded during the period and added new features as per EASE Index like auto-escalation of complaint, feedback from complainant, proactive communication to customers & tracking of complaint by complainants. Further,

CGRMS now has different resolution time for different types of complaints.

? Complaints are also received at Head Office, all the ZOs/COs and branches. These are entered in CGRMS Portal. Through this system, the customer gets an immediate automatic acknowledgement of the complaint and can keep a track on the complaint also.

There are 1,856 SAP-CRM enabled branches on PAN

India basis in the Bank.

? The Bank has state-of-the-art Contact Centers at

Gurgaon and Noida to provide tele-banking services to its customers on 24 x 7 x 365 basis through two leading Service Providers. In addition to these two Primary Sites, the Bank has also established two Secondary Contact Centers at Bhopal & Hyderabad to provide tele-banking services to its customers in 11 languages. Bank has replaced one vendor during the period and secondary Contact Centre is proposed at Dehradun in place of Hyderabad. The number of services extended by Contact Centre through Tele

Banking increased from existing 25 to 31 during the period thereby making them more customers friendly.

? The Bank has constituted teams of officials at Customer Care Centre at Head Office, Zonal Offices and Circle Offices to pay incognito visit to branches to assess standard of Customer Service in the branches.

? During FY 2019-20, officials of the Bank made 8997 incognito visits to the branches on Pan India basis and deficiencies pointed out were taken up for taking corrective steps to improve customer service.

? The status of complaints received by the Bank is reviewed by "Customer Service Committee of the Board" a Sub-Committee of the Board, on quarterly basis. The meetings of the Sub-Committee are presided over by the MD & CEO.

? The Bank has a "Standing Committee on Customer Service", which also reviews customer service of the Bank on quarterly basis.

? The Bank has in place an Internal Ombudsman as per the recommendations of the Damodaran Committee.

The system ensures greater transparency in the redressal of grievances by the Bank.

? Customer Service Committees in all the branches and Circle Offices look into the quality of customer service rendered and examine the feedback/suggestions for improvement in customer service. These committees meet once in a month where staff and the invited customers interact freely on Customer Service related issues of the Bank.

? Theme Based Meetings are conducted at monthly intervals in all the branches on a pre-decided latest topic/changes on the latest products & services. Main objective of the Theme Based Meeting is to make awareness among the field staff about Bank's new products and services and to sensitize them about the current issues of maximum importance.

Out of a total number of 45,365 complaints (i.e. 966 complaints outstanding as on 01.04.2019 and 44,399 complaints received during FY 2019-20), 44,418 complaints were resolved up to the satisfaction of the complainant, till 31st March, 2020.

L. IMPLEMENTATION OF OFFICIAL LANGUAGE

Punjab National Bank has always been a pioneer in the implementation of the Official Language. Your bank has ensured compliance with the instructions received by the

Government of India, Ministry of Home Affairs, Department of Official Language, Parliamentary Official Language

Committee and Ministry of Finance, Department of Financial

Services. Your bank has achieved most of the targets set for the financial year 2019-20 by the Government of India, Ministry of Home Affairs, Department of Official Language. During the financial year 2019-20, Punjab National Bank has made overall efforts to promote the progressive use of Official Language Hindi as per the instructions of the

Government of India and to ensure compliance with the

Official Language Policy and Rules. Effective steps were taken during the financial year 2019-20 to provide in-depth information about your Bank's products and schemes in Hindi on the Bank's website. All mobile applications like PNB One, Bhim PNB, Internet Banking etc. of the bank have been provided with Hindi and other regional language facility. Various promotional materials related to micro, small and medium enterprises and digital banking are prepared by the bank in Hindi and regional languages also. Hindi and regional languages have been used in all promotional campaigns related to all government schemes like ‘Atal Pension Yojana', ‘Pradhan Mantri Jeevan Jyoti Bima Yojana', ‘Pradhan Mantri Suraksha Bima Yojana', ‘Sukanya Samriddhi Yojana' etc. During the financial year2019-20, the bank has received several awards for outstanding performance in the use of Hindi. The Bank has received the first prize under the

Government of India's highest "Rajbhasha Kirti" award for ‘A' region. Out of a total of 24 awards in the Bank category announced by the eight Regional Implementation

Offices of the Ministry of Home Affairs, Department of Official Language, 14 awards were won by your bank and an award has been received by Chandigarh Tolic (Town official language implementing committee) where our bank is convener bank, which is the highest record of awards received. Apart from this, your bank has also been awarded 150 awards in Region ‘A', 71 awards in Region ‘B' and

31 in Region ‘C' by Official Language Implementation

Committees and NGOs located in different regions of the country. Total 252 awards have been received by our

Bank. Our staff members have also received 174 awards at the individual level.

During the financial year 2019-20, the bank celebrated September 2019 as Hindi month and on 14 September 2019, a grand function of Hindi Diwas was also organized in the Head office. Various programs / competitions were organized during this period and the winners were awarded prizes by the Managing Director and Chief Executive

Officer.

M. PNB'S SUBSIDIARIES AND REGIONAL RURAL BANKS

DOMESTIC

PNB Gilts Ltd: During the year 2019-20, debt market remained volatile amidst positive factors such as successive policy rate cuts by RBI on account of growth concerns and adverse factors like, fiscal deficit concerns, defaults by NBFCs and sharp increase in CPI inflation.The 10-yr benchmark yield touched a high and low of 7.47% and 5.98% respectively during the year and closed at 6.14 % as on 31.03.20.

Against the backdrop of volatile market conditions, PNB

Gilts Ltd continued to fulfill all its obligations as a Primary Dealer mandated by RBI both in Primary and Secondary market. Alongside, the major focus of the company remained on enhancing the scale of operations and also undertaking new activities so as to utilise capital efficiently.

Balance sheet size increased considerably. Marketing and sales functions were strengthened. Company also forayed into Debt capital market (DCM) business as arrangers to Corporate Primary Issuances and entered into the top ten ranking (7th rank) in the prime ranking league table. As a result of all the above, despite volatility, Company posted a Profit Before Tax of`249.81 Crores during FY'20 vis-a-vis PBT of Rs. 83 Crores during FY'19. Profit after tax (PAT) amounted to `186.35 Crores during FY'20 as against `52.86 crore in the previous FY'19. This is the highest PAT achieved by the Company since inception.

Capital adequacy remains strong with its capital to risk weighted assets ratio (CRAR) at 32.47% as on March 31, 2020 (36.58% as on March 31, 2019), well above the regulatory minimum of 15% for PDs.

PNB Investment Services Ltd: The Company is a profit making company from the first year of its operations.

During the year ended March 2020, the Company earned fee based income of `4.65 crore with total income of `7.46 crore as against fee of `5.80 crore and total income of Rs. 8.70 crore respectively for the year ending March 2019.

Profit before Tax, during the period ending March 2020 was `0.76 crore as against `2.41 crore for the period ending March 2019.

In debt syndication, PNBISL could bring quality clients to the fold of PNB. During the year, the Company, along with

SBI, could assess, finalize and arrange debt requirements of Patanjali Group for acquisition of Ruchi Soya under NCLT.

Further, JV of the Ministry of Railways and Govt. of

Maharashtra has selected PNBISL as sole arranger for

PNBISL as debt arranger for their City Gas Distribution projects, road construction projects under HAM model. As its core business, PNBISL conducted viability studies and assessed sustainable debt requirements of stressed assets.

In Trusteeship business, market is undergoing a pricing change and a cyclical decline in fee. The company has been able to record a steady growth in its trustee business but at a reduced fee level. The company continues to build on its aim to be a trusted partner of leading banks and corporates.

The company plans to expand its business operations synergistically with the business of parent bank particularly in Corporate Advisory Vertical as multiple business opportunities emerge in expanded business horizon of amalgamated bank.

INTERNATIONAL

PNB International Limited (PNBIL): PNBIL is focusing on

UK based loan book through high quality assets backed loans. PNBIL has also upgraded its technology bouquet to customers by offering Mobile Banking Services; in addition to exiting Internet Banking and Debit Card facilities. PNBIL has strengthened its risk management policies and governance practices in the Bank. PNBIL is having customer deposit of $677mn and advances of $846mn as on March'20. The Operating Profit before provision, tax and dividends for FY'20 stood at $16.77 mn, which is higher from $16.42 mn in FY'19. Total income for FY'20 stood at $46.85 mn and net interest Income was at $ 30.62 mn. Net profit (after tax) for FY'20 was $ 2.76 mn. Brexit uncertainties impacted the UK economy during 2019-20 and COVID19 Pandemic also significantly curtailed business activities in first quarter of 2020. PNBIL expects economic recovery and improved business sentiment in

2nd quarter onward during FY 2020-21.

Druk PNB Bank Ltd: Druk PNB Bank Ltd, Bhutan, Banking

Company having its corporate office at Thimphu, Bhutan started its operation on 27th January 2010, in Bhutan as the country's third commercial Bank, with a component of both FDI and joint venture in the Banking Sector. Punjab

National Bank (PNB) India came in as the foreign investor, injecting 51 percent of its paid up Capital. Presently Bank has 8 branches and 30 ATMs spread across the country. Total Business of the DPNBL increased to `2534.39 Crore as on 31.03.2020 from `2141.19 Crore as on 31.03.2019 showing YOY growth of 18.36%. CASA Ratio of the Bank stood at 33.14 % as on 31.03.2020. The Bank is currently operating with a network of 8 Branches and 30 ATMs. Profit of the Bank has decreased to`18.48 Crore as on 31st March, 2020 from `27.54 Crore as on March 31, 2019. Paid up capital of the Bank as on 31st March, 2020 is `70 Crore.

i) REGIONAL RURAL BANKS (RRBs) beenAssponsored 31.03.2020,five by the

Bank, operating in five States, namely, Bihar, Haryana, Himachal Pradesh, Punjab and Uttar Pradesh covering 96 districts with a network of 3,354 branches.

Total Business of sponsored RRBs as on 31.03.2020 was

`1,13,694 crore. Deposits of RRBs are `69,452 crore and advances are `44,242 crore as on 31.03.2020. All the Sponsored RRBs (except DBGB, Patna) are in Profit and combined Net Profit of RRBs during the Financial Year ended Mar ‘20 was `141.34 crore. The RRBs have cumulatively opened 70,15,562 accounts under Pradhan

Mantri Jan Dhan Yojana (PMJDY) as on 31.03.2020 with RuPay ATM card issued to 37,14,685 account holders. The gross NPAs (%) of all RRBs have declined from 13.49% on 31.03.2019 to 12.20% as on 31.03.2020.

Financial Performance of RRBs as on 31.03.2020

(Amt. in Rs. Crore)

Performance of SI. 31st Mar'19 31st Mar '20 YoY
RRBs (Audited) (Audited) Growth%
1 Aggregate Deposits 63774.04 69451.82 8.90
2 Aggregate Advances 41683.33 44241.99 6.14
3 Aggregate Net Profit -433.06 141.34 132.64
4 Branches under CBS 100% 100%
5Profit Per Employee -0.03 0.02 163.60
(` lakh)
No. of Loss Making
6 Branches (being 12 month old or more) 169 58

N. AWARDS AND ACCOLADES

Bank's effort have been recognized at various platforms.

The Bank has been conferred the following awards for initiatives taken in the field of Information & Technology for the year 2019-20:

? PNB won IBA Banking Technology Awards 2020 in the following categories –i. Winner in the Most Innovate Project using Technology for PNBOne. ii. Runners Up in Best Use of Data and Analytics for

Business Outcome in the Large Bank Category.

? Bank won BFSI Digital Innovation Awards in the category of

Robotic Process Automation.

PNB was adjudged ‘Bank of the year' by Indo-American Chamber Of Commerce (IACC). Bank has also been recognized as the Best State Nodal Bank Award 2018-19 by Ministry of Rural Development Government of India.

Bank has received award of Governance Now BFSI Awards 2019- Mobile App and SME Connect. In addition to the above, the Bank has received 1st prize in Rajbhasha Kirti Award by Govt. of India (Home Ministry). Further, the ASIA Money has recognized Bank as the Best Bank in terms of CSR activities. The Bank has also been bestowed with third prize in the Scope Excellence Award 2019 in the category of ‘Crisis Handling'. The Bank has been recognized as the Star performer Award in Account Growth Rate and Top performer in New Account opened (Bank Category) by NSDL.

O. FUTURE BUSINESS PLAN OF THE BANK

Currently, the world is facing an unprecedented situation on account of Covid 19 pandemic, which has compelled the Governments across the globe to enforce extraordinary measures of lockdowns. Govt. and the RBI have also announced slew of measures for various sectors impacted due to the crisis. While the threat of recession and uncertainty looms large over the economy, your Bank has been in forefront in providing uninterrupted services to the customers in these testing times.

Though challenges are many, this crisis also provides us an opportunity to ramp up our technology initiatives and engage customers through digital channels. Going forward, enhanced digital capabilities will be indispensable amidst limited human interactions. Post-crisis, in the long run, all organizations will strive to minimize loss of productivity and trends like online functioning and remote working is gaining momentum with focus on enabling technologies like cloud and cyber security. Recognizing this, Bank aspires to be digitally well-equipped to face the emerging situation. Bank will strive to engage customers through digital channels, encourage automation and digitalization of processes.

Post amalgamation, as the second largest PSB in India,

PNB will have new opportunities due to wider customer base and their credit demands. With 125 years of banking experience, Bank will be an enlarged, global sized institution well positioned to devise better risk management and corporate governance practices. In addition, the Bank is more strengthened with the Government of India's

Capital infusion of over Rs.16,091 crore. This will enable us to enhance our stressed assets' provisions as also meet the growing credit needs of the economy. The Bank of the future will hinge on the pillars of 1) Customer Centricity

2) Verticalisation and Segmentation 3) Technology and Digital Delivery and 4) Human Resources. We have changesimplemented in the significant organization structure in sync with the increased number of branches and service centres. New Verticals have been introduced while some existing ones have been merged. Bank is always committed to make optimum use of our resources to the benefit of all our stakeholders. Above all, in these challenging times, employee well-being and safety will always be our topmost priority.

We shall continue to significantprogress make in transforming the bank through new products and processes. Our realigned business models will enable us to implement innovative ideas in our drive towards a vibrant PNB 2.0.

P. BOARD OF DIRECTORS

As on 31st March 2020, the Bank's Board comprised of

7 Directors including 3 whole time Directors i.e. One Managing Director & CEO and two Executive Directors as on 31.03.2020.

During FY'20, the following changes took place in the composition of Board of Directors:

? Dr. R. K. Yaduvanshi has been appointed Executive

Director on the Board of Bank w.e.f. 15.04.2019.

? Dr Rabi N. Mishra, Director under RBI Nominee Director category ceased to be a Director on Bank's Board w.e.f. 24.07.2019.

? Shri Vivek Aggarwal has been appointed as

RBI Nominee Director on the Board of Bank w.e.f. 24.07.2019 as per DFS notification.

? Shri Mahesh Baboo Gupta, Director under CA Category

Director completed his tenure on 25.07.2019.

? Shri Ravi Mittal, Director under Govt. Nominee Director category ceased to be a Director on Bank's Board w.e.f. 08.08.2019.

? Shri Pankaj Jain has been appointed as Govt. Nominee

Director on the Board of Bank w.e.f. 08.08.2019 as per

DFS notification.

? Shri Sunil Mehta, Managing Director & CEO completed his tenure on 30.09.2019.

? Shri CH. S. S. Mallikarjuna Rao has been appointed as

Managing Director & CEO of the Bank w.e.f. 01.10.2019 as per DFS notification.

? Shri L. V. Prabhakar, Executive Director has been elevated as Managing Director and CEO of the Canara

Bank w.e.f. 01.02.2020 as per DFS notification.

? Shri Sunil Mehta, Non-Executive Chairman of the Bank completed his tenure on 15.02.2020.

? The Board wishes to place on record its appreciation for the valuable contribution made by Shri Rabi N. Mishra, Shri Mahesh Baboo Gupta, Shri Ravi Mittal, Shri Sunil Mehta (MD & CEO), Shri L. V. Prabhakar and Shri Sunil

Mehta (Non Executive Chairman).

Q. DIRECTORS' RESPONSIBILITY STATEMENT

The Directors confirm that in the preparation of the annual accounts for the year ended 31st March 2020:

? The applicable Accounting Standards have been followed along with proper explanation relating to material departures, if any;

? The accounting policies, framed in accordance with the guidelines of the Reserve Bank of India, were consistently applied;

? Reasonable and prudent judgment and estimates were made so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of theprofitof the Bank for the year ended 31 st March '20.

? Proper and sufficientcare was taken for the maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks in India, and;

? The accounts have been prepared based on the principle of "going concern".

R. ACKNOWLEDGEMENT

The Board expresses its thanks to the Government of India, Reserve Bank of India, Securities and Exchange Board of India, Stock Exchanges, Bank's customers, Public and the Stakeholders for valuable support, continued patronage and confidence reposed in the Bank.

The Board wishes to place on record its appreciation for the valuable contribution made by the Bank's staff at all levels and looks forward to their continued involvement in achieving the future goals.

For and on behalf of Board of Directors

CH. S. S. Mallikarjuna Rao Managing Director & CEO

   

Punjab National Bank Company Background

S S Mallikarjuna Rao
Incorporation Year1895
Registered OfficePlot No 4 Sector 10,Dwarka
New Delhi,New Delhi-110075
Telephone91-11-28075000/28045000/28044866,Managing Director
Fax
Company SecretaryEkta Pasricha
AuditorM K Aggarwal & Co/A John Moris & Co/S R Goyal & Co
Face Value2
Market Lot1
ListingBSE,MSEI ,NSE,
RegistrarBeetal Fin.&Computer Ser.P Ltd
Beetal House 3rd Flr,Behind Local Shp Cen,Nr Dada Harsukh Das ,New Delhi - 110062

Punjab National Bank Company Management

Director NameDirector DesignationYear
Asha Bhandarker Independent Director 2020
Vivek Aggarwal Nominee (RBI) 2020
S S Mallikarjuna Rao Managing Director & CEO 2020
Vijay Dube Executive Director 2020
Sanjay Kumar Executive Director 2020
Ekta Pasricha Company Secretary 2020
Swarup Kumar Saha Executive Director 2020
Gautam Guha Director (Shareholder) 2020

Punjab National Bank Listing Information

Listing Information
BSE_500
BSE_200
BSEDOLLEX
BSE_PSU
NIFTYJR
CNX500
BANKNIFTY
CNX100
PSUBANK
CNX200
NFT100EQWT
BSEALLCAP
BSELARGECA
BSEFINANCE
LMI250
BSEEVI
BSE100LTMC

Punjab National Bank Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Interest/Discount on Adv/BillsRs.00035814.9621
Income on investments Rs.00015332.6015
Interest on Balances with RBI Rs.0002510.2217
Others Rs.000142.2484

Contact us Contact us