Profile:

With over 56 million satisfied customers and 5002 offices including 5 overseas
branches, PNB has continued to retain its leadership position amongst the
nationalized banks. The bank enjoys strong fundamentals, large franchise value
and good brand image. Besides being ranked as one of India's top service
brands, PNB has remained fully committed to its guiding principles of sound
and prudent banking. Apart from offering banking products, the bank has also
entered the credit card, debit card; bullion business; life and non-life insurance;
Gold coins & asset management business, etc.

Since its humble beginning in 1895 with the distinction of being the first
Swadeshi Bank to have been started with Indian capital, PNB has achieved
significant growth in business which at the end of March 2010 amounted to Rs
435931 crore. PNB is ranked as the 2nd largest bank in the country after SBI in
terms of branch network, business and many other parameters. During the FY
2009-10, with 40.85% share of CASA deposits, the Bank achieved a net profit
of Rs 3905 crore. Bank has a strong capital base with capital adequacy ratio of
14.16% as on Mar’10 as per Basel II with Tier I and Tier II capital ratio at
9.15% and 5.01% respectively. As on March’10, the Bank has the Gross and
Net NPA ratio of 1.71% and 0.53% respectively. During the FY 2009-10, its
ratio of Priority Sector Credit to Adjusted Net Bank Credit at 40.5% &
Agriculture Credit to Adjusted Net Bank Credit at 19.7% was also higher than
the stipulated requirement of 40% & 18% respectively.

The Bank has been able to maintain its stakeholders’ interest by posting an
improved NIM of 3.57% in Mar’10 (3.52% Mar’09) and a Return on Assets of
1.44% (1.39% Mar’09). The Earning per Share improved to Rs 123.98 (Rs
98.03 Mar’09) while the Book value per share improved to Rs 514.77 (Rs
416.74 Mar’09). Punjab National Bank continues to maintain its frontline
position in the Indian banking industry. In particular, the bank has retained its
NUMBER ONE position among the nationalized banks in terms of number of
branches, Deposit, Advances, total Business, Assets, Operating and Net profit
in the year 2009-10. The impressive operational and financial performance has
been brought about by Bank’s focus on customer based business with thrust on
CASA deposits, Retail, SME & Agri Advances and with more inclusive
approach to banking; better asset liability management; improved margin
management, thrust on recovery and increased efficiency in core operations of
the Bank. The performance highlights of the bank in terms of business and
profit are shown below:

Rs in Crore

Parameters Mar'08 Mar'09 Mar'10 CAGR (%)

Operating Profit 4006 5690 7326 22.29
Net Profit 2049 3091 3905 23.98
Deposit 166457 209760 249330 14.42
Advance 119502 154703 186601 16.01
Total Business 285959 364463 435931 15.09
PNB has always looked at technology as a key facilitator to provide better
customer service and ensured that its ‘IT strategy’ follows the ‘Business
strategy’ so as to arrive at “Best Fit”. The Bank has made rapid strides in this
direction. All branches of the Bank are under Core Banking Solution (CBS)
since Dec’08, thus covering 100% of its business and providing ‘Anytime
Anywhere’ banking facility to all customers including customers of more than
3000 rural & semi urban branches. The Bank has also been offering Internet
banking services to its customers which also enables on line booking of rail
tickets, payment of utilities bills, purchase of airline tickets, etc. Towards
developing a cost effective alternative channels of delivery, the Bank with
more than 3700 ATMs has the largest ATM network amongst Nationalized
Banks.

With the help of advanced technology, the Bank has been a frontrunner in the
industry so far as the initiatives for Financial Inclusion is concerned. With its
policy of inclusive growth, the Bank’s mission is “Banking for Unbanked”. The
Bank has launched a drive for biometric smart card based technology enabled
Financial Inclusion with the help of Business Correspondents/Business
Facilitators (BC/BF) so as to reach out to the last mile customer. The Bank has
started several innovative initiatives for marginal groups like rickshaw pullers,
vegetable vendors, dairy farmers, construction workers, etc. Under Branchless
Banking model, the Bank is implementing 40 projects in 16 States. 

Backed by strong domestic performance, the Bank is planning to realize its

global aspirations. Bank continues its selective foray in international markets
with presence in 9 countries, with 2 branches at Hongkong, 1 each at Kabul and
Dubai; representative offices at Almaty, Dubai, Shanghai and Oslo; a wholly
owned subsidiary in UK; a joint venture with Everest Bank Ltd. Nepal and a JV
banking subsidiary “DRUK PNB Bank Ltd.” in Bhutan. Bank is pursuing
upgradation of its representative offices in China & Norway and is in the
process of setting up a representative office in Sydney, Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan.