2

Flow of Presentation

• History • Origin• Vision and Mission Statement • Organizational Structure, Hierarchy and Key

People • Joint Venture and Subsidiaries • Competitors • Financials or Ratio Analysis

3

History of PnB

• Punjab National Bank, India’s first Swadeshi Bank, commenced its

operations on April 12, 1895 from Lahore, with an authorized

capital of Rs.2 lakh and working capital of Rs.20,000.

• The far-sighted visionaries and patriots like Lala Lajpat Rai, Mr. E

C Jessawala, Babu Kali Prasono Roy, Lala Harkishan Lal and

Sardar Dyal Singh Majithia displayed courage in giving expression

to the spirit of nationalism.

• They successed by establishing the first bank purely managed by

the Indians with Indian Capital.

4

Continued..

• During the long history of over 121 years of the Bank, 7 banks have merged with PNB.

• It has become stronger and stronger with a network of 6864 branches and 9669 ATMs as on 30th June’16.

• Today the Bank stands tall amongst nationalized banks in major financial parameters i.e., Global Business, Domestic Business, Domestic Deposits, Net Advances, CASA Deposits Savings Deposits and Operating Profit.

5

Origin of Punjab National Bank:• In 1849, Punjab under the British witnessed a period of development

giving rise to a new educated class fired with a desire for freedom from slavery.

• Amongst the cherished desires of this new class was also an overriding ambition to start a SWADESHI BANK with the Indian Capital and Management representing all sections of the Indian community.

• The idea was first mooted by Rai Mool Raj, who had a long cherished idea that Indians should have a national bank of their own.

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•On May 23, 1894, the efforts materialized. The bank opened for business on 12th April 1895.

•A maiden dividend of 4% was declared after ONLY 7 months of operation.

•In 1951, the bank took over Bharat Bank Ltd. and became the 2nd largest bank in the private sector. In 1969 Government of India Nationalized PNB.

•1986 witnessed another acquisition, Hindustan Commercial Bank which added 142 branches to PNB’s network.

•Forbes Global 2000 Ranking – PNB was ranked #1243 in 2006.

• Fortune India 500 Ranking- PNB was ranked #26 in 2011

7

Vision & Mission Statements

Vision

"To position PNB as the `Most Preferred Bank` for customers, the `Best Place to Work In` for employees and a `Benchmark of

Excellence` for the industry

Mission

"Creating Value for all its customers, Investors and Employees for being the first choice for all stakeholders"

8

Organization Structure

Head office

Zonal offices(13)

Circle offices(76)

Branches(6864)

• Head office is located at Delhi.• Powers in the organizational hierarchy are

decentralized for making decisions regarding any business for the bank by Authorized people like c-class employee (CEO,CFO,COO..) in the organization.

• Information may flow like decisions are taken on both Top-Down and Bottom-Up approach.

9

Managing Director & CEO• Executive Directors• General managers • Deputy GM• Assistant GM• Chief Manager • Senior Manager • Manager• Officers • Subordinate/Clerical Staff

Organizational Hierarchy

10

Key People in Punjab National Bank

Managing director & CEO: Smt. Usha Ananthasubramanian

• Born on 1st October 1958, Smt. Usha Ananthasubramanian holds a Master’s Degree in Statistics from the University of Madras and a Master’s Degree in Ancient Indian Culture from University of Mumbai.

• She started her banking career as specialist officer.• Taken charge of Managing Director & CEO of Punjab

National Bank on 14th August, 2015.• Before Joining PnB, she was Chairman & Managing

Director of Bharatiya Mahila Bank. During the period from July 2011 to November 2013, she was the Executive Director of Punjab National Bank. 

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Continued…Executive Directors1. Sh K V Brahmaji Rao2. Dr. RAM S. SANGAPURE3. Sh. Sanjiv SharanDirectors4. Shri. Anil Kumar Khachi, 

Govt. Of India Nominee Director5. Dr. Rabi. N. Mishra, 

Reserve Bank Of India Nominee Director6. Shri Mahesh Baboo Gupta, 

Part-Time Non-Official Director Under Chartered Accountant Category

7. Ms. Hiroo Mirchandani, Shareholder Director

8. Shri. Sudhir Nayar. Shareholder Director

12

Subsidiaries and Joint ventures

Subsidiaries:

S No. Name of the Entity Country of Incorporation

Proportion of ownership %

i. PNB Gilts Ltd. India 74.07ii. PNB Investment

Services Ltd.India 100

iii. PNB Insurance Broking Pvt. Ltd.

India 81

iv. Punjab National Bank (Internatioanl) Ltd.

United Kingdom 100%

v. Druck PNB Bank ltd. Bhutan 51%

13

Joint ventures:

S No. Name of Regional Rural Banks / Other Associates

Proportion ofownership

1 Madhya Bihar Gramin Bank, Patna 35%2 Sarva Haryana Gramin Bank, Rohtak 35%3 Himachal Gramin Bank, Mandi 35%4 Punjab Gramin Bank, Kapurthala 35%5 Sarva UP Gramin Bank, Meerut 35%6 Principal PNB Asset Management Co. Pvt. Ltd. 21.38%7 Principal Trustee Co. Pvt. Ltd. 30%8 PNB Metlife India Insurance Company Ltd. 30%9 PNB Housing Finance Ltd. 39.08%10 Everest Bank Ltd. 20%11 JSC PNB Kazakhstan 40%

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Competitors of Punjab National Bank

• Canara Bank • State Bank of India • Bank of Baroda • Union Bank of India • Oriental Bank of Commerce • Bank of India • Indian Bank

Financial performance over the years to till date

Parameters Mar`12 Mar`13 Mar`14 Mar`15 Mar`16 June`16 YoY Growth

Deposits 379588

391560

451397

501379

553051

553952

7.0

Advances 293775

308796

349269

380534

412326

391574

2.8

Total Business 673363

700356

800666

881913

965377

945526

5.2

Operating Profit 10614 10907 11384 11955 12216 3275 4.6

Net Profit 4884 4748 3343 3062 -3974 306 -57.5

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RATIO ANALYSIS or FINANCIALS OF PNB

1)Liquidity Ratio

• Current ratio

• Quick ratio

2)Capital Structure or Leverage Ratio

• Debt-Equity ratio

3)Turnover Ratio

• Assets Turnover ratio

• Current asset Turnover ratio

4)Profitability Ratio

• Return on Equity

• Return on Assets and Profit Margin

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1)Liquidity Ratio

a)CURRENT RATIO = CURRENT ASSETS

CURRENT LIABILITIES Meaning:It establishes the short term solvency of a firm. It means how much cashMoney or easily convertible cash assets the company has to pay back theCurrent Liabilities.

Rs (Crs.) / YEAR MAR 16 MAR 15 MAR 14 MAR 13 MAR 12

CURRENT ASSETS 231,468.98 207,216.53 197,729.6 157,011.38 182,228.02

CURRENT LIABILITIES 552,806.37 547,049.19 499,431.16 431,180.98 393,112.66

CURRENT RATIO 0.41 0.378 0.395 0.364 0.46

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•For financial institutions like banks , current liability mainly consists of the term deposits, savings accounts, current account of its customers compared to which its current assets consisting of cash in hand, bank balances, and Over draft facility given is very low.• Over the years upto FY15 it continuously reducing and tend to increase

from FY16 and it indicates 0.46:1(Currents Assets are 46 of every 100)

12-Mar 13-Mar 14-Mar 15-Mar 16-Mar

0.410.3780.3950.3640.46

CURRENT RATIO

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b)Quick Ratio

Quick ratio = (Current ssets – Inventories) / Current liabilities= Quick Assets / Current liabilities

Rs (Crs.) / YEAR MAR 16 MAR 15 MAR 14 MAR 13 MAR 12

Quick Assets

205,940.86

190,849.34

165,073.02

143,521.75

169,068

Current liabilities 552,806.37 547,049.19 499,431.16 431,180.98 393,112.66

Quick ratio

0.37 0.34 0.33 0.346 0.43

The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio  measures a company’s ability to meet its short-term obligations with its most liquid assets

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Its states that bank requires (37 out of 100) of quick assets in FY16 to meet its current liabilities that helps to fulfill its short term obligations

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2)Capital Structure or Leverage Ratios

Debt to Equity ratio= Total Liabilities / Shareholders Equity

Debt/Equity Ratio is a debt ratio used to measure a company's financial leverage, calculated by dividing a company’s total liabilities by its stockholders' equity.

Rs (Crs.) / YEAR MAR 16 MAR 15 MAR 14 MAR 13 MAR 12

Total liabilities

6,67,390.4 6,03,333.60 5,50,419.92 478,877.04 458,194.00

Shareholders equity

39,27,195 37,09,114 36,20,712 35,34,765 33,91,845

Debt to Equity ratio

0.169 0.162 0.152 0.135 0.138

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In debt-equity ratio we can observe that company is more concentrating on Equity capital than other Sources.

12-Mar 13-Mar 14-Mar 15-Mar 16-Mar0

0.020.040.060.080.1

0.120.140.160.18 0.1690.1620.152

0.1350.138

Debt to Equity ratio

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3)Turnover Ratios

• Assets Turnover ratio = Sales or revenues Total Assets

The Asset Turnover ratio can often be used as an indicator of the efficiency with which a company is deploying its assets in generating revenue.

Rs (Crs.) / YEAR MAR 16 MAR 15 MAR 14 MAR 13 MAR 12

Sales 53,163 48,155 49,411 42,970 41,107

Total Assets

664,545.67

601,946.05 549,011.74 477,448.19 456,744.48

Assets Turnover ratio

0.08 0.08 0.09 0.09 0.09

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• The value of assets of the bank(as its Loans and Advances are high) during FY12,FY13 &FY14.

• But the sales and revenue creation is part reduced to bank thus it gave a negative impact on its sales-Total assets

12-Mar 13-Mar 14-Mar 15-Mar 16-Mar0.0740.0760.078

0.080.0820.0840.0860.088

0.090.092

0.080.08

0.090.090.09

Assets Turnover ratio

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• Current asset Turnover ratio =Net sales/ current assets

It signifies the total sales done by the company with an investment in the current asset. 

Rs (Crs.) / YEAR MAR 16 MAR 15 MAR 14 MAR 13 MAR 12

Sales 53,163 48,155 49,411 42,970 41,107Current Assets 231,468.98 207,216.53 197,729.6 157,011.38 182,228.02

Current asset Turnover ratio

0.22967656 0.23238976 0.24989177 0.27367443 0.22558001

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• As the bank maintains same level of current assets for every financial then, here there are only small changes are observed in sales.

• Current asset turnover ratios are almost have small difference, so the bank maintains same adequate level of Current assets to meet sales

12-Mar 13-Mar 14-Mar 15-Mar 16-Mar0

0.05

0.1

0.15

0.2

0.25

0.3

0.229676560.232389760.24989177

0.27367443

0.22558001

Current asset Turnover ratio

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4)Profitability Ratios

• Return on Equity = Net Income/Shareholder's Equity

• Return on Assets =Net income/Total Assets

• EPS= Net income-Preferred dividend

Outstanding number of Shares

RATIOS 16-Mar 15-Mar 14-Mar 13-Mar 12-Mar

Cash EPS (Rs.) -18.23 18.5 102.05 143.33 152.62

Return on Assets (%) -0.59 0.5 0.6 0.99 1.06

Return on Equity /

Networth (%) 0 8.12 9.69 15.19 18.52

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EPS has high growth and Return on Assets is growing quite slow due to asset allocation problem over the year which is growing at constant growth

12-Mar 13-Mar 14-Mar 15-Mar 16-Mar-50

050

100150200

Profitability Ratios

Cash EPS (Rs.) Return on Assets (%)

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NPA- Non Performing Assets

•An asset is classified as non-performing asset (NPAs) if dues in the form of principal and interest are not paid by the borrower for a period of 90 days.

•Increasing NPAs have a direct impact on banks profitability as legally banks are not allowed to book income on such accounts and at the same time banks are forced to make provision on such assets as per the Reserve Bank of India (RBI) guidelines.

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•Gross NPA: The amount of principal + interest outstanding is the gross NPA of the bank. •Net NPA: The amount of principal of loan due is the net NPA of the bank. Interest is deducted from the gross NPA to take out the NET NPA

20122011

2010Rs(Crs.)

0100020003000400050006000700080009000 8719

4379

3214

4454

2038

981

GROSS NPA NET NPA

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Conclusion

32 Thank you !