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SAURABH JAIN

08 BS 000 3005
IBS, CHENNAI
Overview of the Presentation

Overview of Bank

Profitability analysis and Industry Analysis

Share holding Patterns

Ratio Analysis

Future Plans

Conclusion
Punjab National Bank
 Started in May 19, 1894 in Lahore.
 Nationalized on July 19, 1969 with 13 other major
commercial banks.
 2nd largest network of branches
• 4668 branches including 238 extension counters
and 3 overseas offices.
 3rd largest bank in the country (after SBI and ICICI
Bank).
 38 million satisfied customers.
 Business grew to Rs 3,64,463 crore as March 2009.
Performance Analysis: FY’09
2009 2008 Growth(%)

NET PROFIT 3,091 2,049 50.87%


OPERATING 5,774 4,006 44.13%
PROFIT
DEPOSIT 2,09,760 1,66,457 26.01%
ADVANCES 1,54,703 1,19,502 29.46%

TOTAL 3,64,463 2,85,959 27.45%


BUSINESS
BALANACE SHEET

PROFIT & LOSS A/C


Ratio Analysis

Investment Valuation Ratio


Ratios…2
Profitability Ratios
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
Net Interest Margin 3.67 3.94 4.4 4.18 4.18
Adjusted Cash Margin(%) 15.64 16.35 14.1 13.72 14.6
Net Profit Margin 13.84 14.5 12.53 12.68 13.76
Return on Long Term 81 74.57 80.76 111.5 129.8
Fund(%) 2 3
Return on Net Worth(%) 22.49 17.01 16.03 19 23.52
Return on Assets Excluding 248.93 287.7 321.6 341.9 416.7
Revaluations 9 5 8 4
Return on Assets
Return on Equity
Yield on Advances
Ratios….3
Management Efficiency Ratios
Mar '05 Mar '06 Mar '07 Mar '08 Mar '09
Interest Income / Total 8.52 7.23 7.88 8.86 9.89
Funds
Non Interest Income / Total 0.41 0.1 0.12 0.13 0.25
Funds
Interest Expended / Total 3.91 3.63 3.92 4.86 5.55
Funds
Operating Expense / Total 2.7 2.27 2.43 2.08 2.18
Funds
Profit Before Provisions / 2.17 1.29 1.53 1.96 2.32
Total Funds
Net Profit / Total Funds 1.24 1.06 1 1.14 1.4
Loans Turnover 0.18 0.15 0.14 0.15 0.16
Total Income / Capital 8.94 7.33 8 8.99 10.14
Employed(%)
Interest Expended / Capital 3.91 3.63 3.92 4.86 5.55
Employed(%)
Total Assets Turnover 0.09 0.07 0.08 0.09 0.1
Ratios….4
Profit And Loss Account Ratios
Interest Expended / Interest 52.64 51.31 52.2 61.2 63.62
Earned
Other Income / Total 4.62 1.33 1.52 1.43 2.46
Income
Operating Expense / Total 30.19 31 30.36 23.1 21.53
Income
Selling Distribution Cost 0.19 0.2 0.14 0.14 0.14
Composition
Balance Sheet Ratios
Capital Adequacy Ratio 14.78 11.95 12.29 13.46 14.03
Advances / Loans Funds(%) 61.93 64.26 72.04 76.19 80.15
Debt Coverage Ratios
Credit Deposit Ratio 56.33 60.6 65.97 70.55 72.88
Investment Deposit Ratio 48.56 41.16 33.23 32.38 31.2
Cash Deposit Ratio 8.48 14.74 13.78 9.02 8.59
NPA Administration
 The gross NPA reduced by 552 crore to 2767 crore.
 NPA coverage Ratio increased to 90% compared to 77.3% in
March’ 08.
 Rs. 4074 crore were restructured.

March’ 09 March’ 08 Variation in 1 year

Gross NPA( Rs. Crore) 2767 3319 -552


Gross NPA as % to Gross Advances 1.77% 2.74% -0.97%
Net NPA( Rs. Crore) 263 754 -491
Net NPA as % to Gross Advances .17% .64% -0.47%
Share Holding Pattern

Holding in (%) as of 31, March 2009


1. Central Government/ State 57.80%
Government(s)

2.A Mutual Funds/ UTI 5.54%


2.B Financial Institutions/ Banks 0.23%
2.C Insurance Companies 15.28%
2.D Foreign Institutional Investors 14.86%
2 Institutions 35.91%
3 Others /Public 6.29%
New Initiatives
 To provide basic Financial Services to identified 34 Pilot
Projects like Richshaw Pullers, Vegetable Vendors, Women and
other unserved sections etc.
 Tie up with NGOs to enlarge Microfinance in North-Eastern
States.
 Launched PNB Global Credit Card.
 Associated with SMC Global Securities and NSBL to provide
Demat and Trading Account.
 Global Forays: Presence in 8 Countries.
 A subsidiary unit in UK with 4 branches(PNBIL).
 Coming soon……
 A Subsidiary in Canada.
 An Offshore Banking Unit in Singapore.
 A branch at DIFC, Dubai.
Upgraded Infrastructure/Hardware which can handle business
of 6000 branches and 1 lacs terminals.
“Project Namaskar” to cover villages by 2013 to create a
large customer base.
“Prepaid World Travel Card” in three currencies (USD, Euro,
GBP).
Conclusion