### **Overview** Punjab National Bank (PNB), established in 1894, is the second-largest nationalized bank in India by assets, business volume, and outreach. With a legacy spanning over 131 years as of 2025, PNB has evolved into a digitally driven, customer-centric financial institution. It serves over **18 crore customers** through a vast network of **10,930 domestic branches**, **13,878 ATMs**, **12,756 business correspondents**, and two overseas branches. The bank continues to leverage its institutional strength, robust physical presence, and rapid digital transformation to maintain leadership across key banking segments. --- ### **Strategic Focus Areas (2025 Outlook)** #### **1. Digital Transformation & Data Analytics** - **Analytics Centre of Excellence**: Established in 2018, the Data Analytics Team drives AI and machine learning capabilities across retail, corporate, risk, and support functions. - The team identifies high-propensity customers using demographic, transactional, digital behavior, and relationship data to boost cross-sell and up-sell opportunities. - Recognized as a top performer under the **EASE 6.0 Reform Index** in *Tech & Data Capability Building* and *Digital & Analytics Enabled Business Improvement*. - The bank has integrated **AI/ML into digital lending platforms** for flagship government schemes like **PM Vishwakarma, SVANidhi, PM Surya Ghar**, enabling automation and faster credit delivery. #### **2. Financial Inclusion & Digital Public Infrastructure (DPI)** - Leveraging India’s **Digital Public Infrastructure (DPI)** — including **Aadhaar, Jan Dhan, Mobile (JAM)**, **UPI**, and **Account Aggregator (AA) framework** — to expand banking access in underserved and remote areas. - Aims to offer seamless, secure digital platforms aligned with best practices while maintaining a **customer-first approach**. #### **3. Retail & MSME Banking Leadership** - Targets **sunrise sectors, infrastructure, and MSMEs** with specialized credit delivery teams. - Operates **57 Customer Acquisition Centers (CACs)** and plans expansion beyond 58 identified **MSME clusters** with cluster-based financing and competitive interest rates. - Digital initiatives such as the **PNB e-Mudra (Shishu) Scheme** provide fully automated digital loans up to ₹50,000 to micro-entrepreneurs. - Focus on increasing formal credit access in the MSME sector, where only ~15% currently have access. #### **4. Agriculture & Rural Banking** - Offers **tailored credit solutions** to agri-ancillary and agri-infrastructure sectors with benefits like **lower interest rates**, **waived processing fees**, and **relaxed collateral norms**. - Uses **agri-tech partnerships** and **Kisan Credit Card (KCC) to Kisan Gold Card** conversion to enhance rural credit outreach. - Runs the **PNB Vikas initiative** for integrated rural development through financial access, digitalization, and infrastructure partnerships. - Maintains **175 Financial Literacy Centers (FLCs)**, conducting awareness programs for financial inclusion. #### **5. Government & Defence Banking** - **Government Banking Segment (GBS)**: - Opened **8,731 new government accounts** and **54,455 savings accounts** in the reporting period. - Facilitated **₹30,829 crore in loans to government departments** and disbursed **₹1,033 crore** in direct benefit transfers (pensions & welfare). - **Defence Business Cell**: - Dedicated vertical serving the **Armed Forces, paramilitary, and police**. - Plans to expand **Rakshak Plus** product offerings via MOUs with **Indian Air Force** and **Assam Rifles**, building on existing partnerships with Army, Navy, and Coast Guard. #### **6. Corporate & Wholesale Banking** - Serves clients with exposures above ₹7.5 million through a two-tier structure: 2 **Extra Large Corporate Branches (Delhi, Mumbai)** and 13 **Large Corporate Branches**, managing ~50% of domestic credit. - Focused on **debt syndication, credit appraisal, and project financing**, including **Hybrid Annuity Model (HAM)** projects in highways and city gas distribution. - Strong performance in **Equity Capital Markets (ECM)**: successfully executed **IPO of Pyramid Technoplast Ltd. (₹153 crore)** and participated in QIPs, rights issues, and open offers. #### **7. Merchant Banking & Trusteeship Services** - **Beetal Financial & Computer Services (BFCSL)** and **PNB Investment Services Ltd. (PNBISL)** provide end-to-end services in: - Debt syndication (70+ UPSIDA assignments; 4 major syndications in FY24–25) - Debt resolution (4 projects under Swiss Challenge in FY24–25) - Techno-Economic Viability (TEV) assessments (~30 assignments) - Security trusteeship and escrow services - Trusteeship division diversified into **escrow services for NBFCs** amid competitive fee pressures. - Focus on becoming a **trusted partner** for banks and corporates through quality service and strategic fee realignment. #### **8. International & Treasury Operations** - Global business portfolio reached **₹2.44 lakh crore** in June 2024, up **10% YoY**, driven by domestic growth and strong overseas performance. - **Overseas business** grew **37% YoY** to ₹64,440 crore (Mar 2023), rising further to **₹82,606 crore** (Advances + Deposits) by June 2024. - Foreign exchange turnover: **₹1.3999 lakh crore** in FY22–23 (+11% YoY). - International Service Branch (New Delhi) handled **₹67,805 crore** in inward remittances with **Rupee Drawing Arrangements (RDAs)** with 13 exchange houses and **MTSS partnerships** with **Ria** and **Transfast**. - **USD-denominated liabilities** at **9.48%** — considered material but well-managed under centralized liquidity framework. - HQLA composition meets Basel II and RBI standards: **64.12% under FALLCR**, **22.39% in government securities**. #### **9. Regional Rural Banks (RRBs) Sponsorship** - PNB sponsors **9 RRBs** across **Bihar, Haryana, HP, Punjab, UP, WB, Assam, Manipur, Tripura**, covering **162 districts** with **4,709 branches**. - **Total RRB Business**: ₹2.45 lakh crore (Mar 2025), up **9.52% YoY**. - **Deposits**: ₹1.52 lakh crore (+8.06%) - **Advances**: ₹92,447 crore (+12.04%) - Plays a pivotal role in rural financial inclusion through its RRB network. #### **10. CSR & Innovation Initiatives** - Developing a **CSR-funded Gen-AI chatbot** for **Kumbh Mela 2025**, offering multilingual support for tourists and devotees. - Features: Real-time info on **transport, accommodation, parking, weather, emergency helplines, lost & found**. - Expanding digital services: **CBDC adoption** at scale — **4.29 lakh users**, **62.93 lakh transactions** processed. - **Corporate mobile banking app** adopted by **99,000+ business customers**. --- ### **Financial & Operational Highlights (Latest as of Jun 2024 / Mar 2025)** | Metric | Value | |-------|-------| | **Total Business (Advances + Deposits)** | ₹2.45 Lakh Crore (RRBs, Mar 2025) | | **Domestic Business** | ₹2.35 Lakh Crore (Jun 2024) | | **Overseas Business** | ₹82,606 Crore (Jun 2024) | | **Net NPA Ratio** | **0.60%** (as of Jun 2024) | | **CD Ratio** | **73.05%** (improved by 341 bps YoY) | | **CASA Ratio** | **44.1%** (low-cost funding advantage) | | **Market Share** | 7.10% (deposits), 6.53% (advances) | | **Capital Adequacy Ratio** | 33.14% (Mar 2020) | | **Business per Employee** | ₹18.95 Crore | | **Business per Branch** | ₹163.43 Crore | --- ### **Subsidiaries & Associates** - **PNBISL**: 100% subsidiary, focused on investment banking, debt syndication, project finance. - **Beetal Financial & Computer Services (BFCSL)**: Key player in credit evaluation, debt resolution, TEV, and trusteeship. - **Regional Rural Banks**: PNB holds **35% stake** in four RRBs — Prathama UP Gramin Bank, Assam Gramin Vikas Bank, Bangiya Gramin Vikas Bank, Manipur Rural Bank. - **Associate Bank**: **OSB Bank** (20.90% stake in PNB SOJIT). --- ### **EASE Reforms & Recognition** - Top performer in **EASE 6.0 Index** in: - *Tech & Data Capability Building* - *Digital & Analytics Enabled Business Improvement* - Recognized by **Department of Financial Services (DFS)** and **CMDs of Public Sector Banks** for excellence in **IT & digital transformation**. --- ### **Insurance & Bancassurance** - Co-branded products with **SBI Health, Max Life, Cholamandalam, LIC, PNB MetLife, Canara HSBC OBC**. - Launched **"Group Care 360 – Rural"**, an affordable rural health insurance product. - Life insurance revenue: **₹276.22 crore (FY2020–21)**. - Focus on **activating branches** to boost insurance penetration. --- ### **Digital & Customer Service Platforms** - **PNB One App**: Revamped mobile banking platform integrating multiple services. - **Centralized Liquidity Management**: Group-wide stress-tested system ensures stability. - **24/7 Contact Centers** in Gurugram, Noida, Dehradun, and Bhopal; support in **13 languages**. - Complaint resolution via **CGRMS** (non-digital) and **CRM Portal** (digital).