Punjab National Bank · NSE:PNB
Punjab National Bank — FY2010 Earnings Presentation
46 slides from Punjab National Bank's earnings presentation, 2010
Slide 1: Presentation on Performance for the Quarter/Year ended March 2010
… the name you can BANK upon! Presentation on Performance for the Quarter/Year ended March March’10 10 IUS $= Rs. 44.9
Slide 2: We dare to dream, we strive to reach
as aii \" wi Ss t VWVe dare to dream We strive to reach punjab national bank .-.the name you can BANK upon!
Slide 3: PNB – An Introduction
PNB – An Introduction 115 years of sound and prudent banking Consistent Financial Performance: Bank has earned operating profit every year since i inception i pti Bank has the 2nd Highest business among Banks, constituting over 5.0% of the total business done by Scheduled Commercial Banks in I
Slide 4: Milestones of Progress
Milestones of Progress … 1895 First Bank fully owned, managed and administered by Indians founded by Nationalist visionaries at Lahore, undivided India 1947 Registered Office shifted to Delhi 1969 Bank Nationalized 1995 PNB Completes 100 years in April 2002 First branch migrates to Core Banking Solu
Slide 5: PNB - India's Leading Nationalised Bank
PNB - India’s Leading Nationalised Bank 166 Scheduled Commercial banks Among the Nationalised in the Indian Banking System Banks 100 27 Public 86 75 Sector Banks 50 31 20 22 Highest 25 7 Highest Total 0 Business Asset Largest ed/ Foreiign Prrivate Secttor Associattes ks ks Branch Rural Bank Bank Nat
Slide 6: A Profile
A Profile Subsidiaries : PNB International Ltd at UK with 4 branches PNB Housing Finance Ltd; PNB Gilts Ltd; PNB Investment Services Ltd Joint Ventures : Everest Bank Ltd., Nepal Druk PNB Bank Ltd in Bhutan; India Factoring & Finance Solutions Pvt. Ltd; Principal PNB Asset Management Co. PVT. Ltd.;
Slide 7: International Ratings
International Ratings Moody’s rating Global Credit Research ‐ 22 Feb 2010 Outlook Stable Bank Deposits p ‐Fgn g Curr Ba1/NP / Bank Deposits ‐Dom Curr Baa2/P‐2 Bank Financial Strength D+ Issuer Rating Baa2 Fitch Ratings‐Mumbai/Singapore‐09 March 2010: ( (PNB)) Long‐term g Issuer Default f Rating g ((
Slide 8: Domestic Network
Domestic Network Rural Semi-Urban Urban Metro Branches [LHS] Expansion [RHS] 5100 400 819 16.5% 5014 5000 350 1998 4900 40.2% 300 4800 250 4700 4665 4586 200 4600 349 1103 4538 22.2% 4509 150 4496 4500 79 1048 100 4400 21.7% 21 7% 29 48 Domestic Network 4300 13 50 Expansion 4200 0 FY'05 FY'06 FY'07
Slide 9: Overview of Performance
Overview of Performance Operating Profit : 1632 USD Mio Ï 28.80% Net Profit : 870 USD Mio Ï 26.40% Total Business : 97089 USD Mio Ï 19.60% Deposits : 55530 USD Mio Ï 18.90% Credit : 41559 USD Mio Ï 20.60% Total Assets : 66065 USD Mio Ï 20.10% 9
Slide 10: Profit
Profit (in USD Mio) Variation (Q4’10 Sl. Parameters over Q4’ Q4’ Q3’ Q4’09) FY’09 FY’10 FY’10 Amt. (%) 1 Interest Income 1140 1249 1200 109 9.6 9 6 2 Interest Expenses 743 693 708 ‐50 ‐6.8 3 NII (Spread) (1‐2) 397 556 493 160 40.3 4 Other Income 207 208 189 1 0.4 5 Operating Expenses 261 245 277 ‐16
Slide 11: Quarter Profit from Core Operations
Quarter Profit from Core Operations (In USD Mio) Variation Q4'10 over Q4' Q4' Q4'09 Particulars FY09 FY10 Growth Amt. (%) Net Profit Declared 193 253 60 31.1 Treasury Trading Profit 53 31 ‐22 ‐42.2 Depreciation ‐9 ‐1 8 ‐85.2 Nett P N Profit fit (E (Excluding l di TTrading di 130 221 90 69.4 Profit +
Slide 12: Provisions
Provisions (In USD Mio) Q4’ Q4’ Q3’ Sl. Particulars FY 2009 FY 2010 FY 2010 Net Provision towards NPAs (Net 1 31 103 73 of floating provisions) 2 Standard Advances 4 11 2 3 Standard Restructured 30 26 ‐18 4 Depreciation on Investment ‐9 ‐1 9 5 Income co e Tax a 101 128 117 6 Others ‐6 0 ‐3 7 Total P
Slide 13: Break-up: Income
Break-up : Income (In USD Mio) Variation (Q4’10 Qtr’4 Qtr’4 Qtr’3 Sl. Parameters over 2009 2010 2009 Q4’09) Amt. (%) 1 Interest on Advances 880 964 934 84 9.6 2 Interest on Investments 255 273 260 18 7.2 3 Other Interest Income 4 11 6 7 148.8 4 Interest Income (1+2+3) 1140 1249 1200 109 9.6 5 Other
Slide 14: Fee Based Income
Fee Based Income (In USD Mio) Q4 Q4’ Q4 Q4’ Q3 Q3’ Sl Sl. P ti l Particulars FY 2009 FY 2010 FY 2010 1 Bills 7 8 8 2 LC/LG 23 30 29 3 Locker Rent 3 3 3 4 P Processing i Fees F 28 34 26 5 Income from 3rd party prod. 0 1.3 0.7 6 E h Exchange Profit P fit 9 27 17 7 Others 62 43 53 Total 132 146 137 14
Slide 15: Break-up: Expenditure
Break-up : Expenditure (In USD Mio) Variation (Q4’10 Sl. Parameters over Q4’ Q4’ Q3’ Q4’09) FY’09 FY’10 FY’10 Amt. (%) 1 Intt. Paid on Deposits 695 635 650 ‐60 ‐8.7 2 Intt Paid on Borrowings Intt. 7 2 2 ‐5 5 ‐75.0 75 0 3 Others 41 56 55 15 37.4 4 Total Interest Paid (1+2+3) 743 693 707 ‐50 ‐6.8 5 Es
Slide 16: Cost & Yield Ratio
Cost & Yield Ratio (Annualised) Q4’ Q4’ Q3’ Sl. Particulars FY FY FY 2009 2010 2010 1 Cost of Deposit [%] 6.24 4.88 5.16 2 Cost of Fund [%] 5.53 4.44 4.72 3 Yield on Advances [%] 11 18 11.18 10 22 10.22 10 44 10.44 4 Yield on Investment [%] 6.92 6.63 6.36 5 Yield on Fund [%] 8.28 7.76 8.19 6 Net Int
Slide 17: Profitability Ratio
Profitability Ratio ( (Annualised) ) Q4’ Q4’ Q3’ Sl. Particulars FY 2009 FY 2010 FY 2010 1 Return on Assets [%] 1.44 1.58 1.51 2 Return on Net worth h [[%]] 26.35 27.31 26.03 3 Opt. Profit to AWF [%] 2.49 3.23 2.71 4 Cost to Income Ratio [%] 43.29 32.05 40.58 5 Estb. Exp. To Total Exp [%] 17.76 15.5
Slide 18: Quarterly Net Interest Margin
Quarterly Net Interest Margin 4.50 3.99 4.00 3 80 3.74 3.80 3.67 3.59 3.66 3.66 3.64 3.41 3.50 3.50 3.33 3.36 3.20 3.00 2.50 2.00 * Daily Average basis NIM for FY 2008‐09: 3.52% NIM for 2009‐10: 3.57% 18
Slide 19: Profit: Full Year
Profit: Full Year (In USD Mio) Variation Sl. Parameters Mar’08 Mar’09 Mar’10 Y‐O‐Y Amt. (%) 1 Interest Income 3177 4260 4781 521 12.2 2 Interest Expenses 1945 2738 2883 145 5.3 3 NII (Spread) (1‐2) 1233 1522 1898 377 24.8 4 Other Income 445 683 794 111 16 3 16.3 5 Operating Expenses 785 937 1061 124
Slide 20: Provisions: Full Year
Provisions: Full Year ((In US USD Mio) o) Particulars Mar’08 Mar’09 Mar’10 1 Provisions for Depreciation on 1. 23 ‐48 15 Investment (Net) 2. Net Provision towards NPAs 84 182 221 (Net of floating provisions) 3. Standard Assets 31 14 13 4. Standard Restructured 1 29 52 4. Others 19 28 16 5. Provision
Slide 21: Income: Full Year
Income : Full Year (In USD Mio) Variation Sl. Parameters Mar’08 Mar’09 Mar’10 Y‐O‐Y Amt. (%) 1 Interest on Advances 2325 3248 3720 471 14.5 2 Interest on Investments 804 950 1019 69 7.3 3 Other Interest Income 48 62 42 ‐20 ‐32.1 4 Interest Income (1+2+3) 3177 4260 4781 521 12.2 5 Other Income 445 68
Slide 22: Fee-Based Income: Full Year
Fee –Based Income: Full Year ( In USD Mio) Sl. Particulars Mar’08 Mar’09 Mar’10 1 Bills 29 31 30 2 LC/BG 58 84 106 3 Locker Rent 8 10 11 4 Processingg Fees 60 92 127 5 Income from 3rd party prod. ‐ 0.7 2.2 6 Others 126 176 200 7 Exchange Profit 47 65 70 8 Total 328 459 545 22
Slide 23: Expenditure: Full Year
Expenditure : Full Year (In USD Mio) Variation Sl. Parameters Mar’08 Mar’09 Mar’10 Y‐O‐Y Amt Amt. (%) 1 Interest Paid on Deposits 1841 2576 2665 90 3.5 2 Interest Paid on Borrowings 13 27 12 ‐14 ‐54.6 3 Others 91 136 206 70 51.2 4 Total Interest Paid (1+2+3) 1945 2738 2883 145 5.3 5 Establishment Ex
Slide 24: Cost & Yield Ratios: Full Year
Cost & Yield Ratios : Full Year Sl. Particulars Mar’08 Mar’09 Mar’10 1 Cost of Deposit [%] 5.59 6.25 5.38 2 C t off borrowings Cost b i [%] 7 98 7.98 7 52 7.52 8 04 8.04 3 Cost of Fund [%] 4.90 5.51 4.75 4 Yield on Advances [%] 10.36 11.41 10.37 5 Yield on Investment [%] 6.94 6.69 6.73 6 Yield on Fu
Slide 25: Profitability Ratios: Full Year
Profitability Ratios : Full Year Sl. Particulars Mar’08 Mar’09 Mar’10 1 Return on Assets[%] 1.15 1.39 1.44 2 Return on Net worth [[%]] 19 9 23.52 24.54 3 Operating Profit to AWF[%] 2.25 2.51 2.69 4 Cost to Income Ratio [%] 46 81 46.81 42 50 42.50 39 39 39.39 5 Estab. Exp. To Total Exp. [%] 20.09 17.
Slide 26: Business
Business (In USD Mio) Variation Sl. Parameters Mar’08 Mar’09 Mar’10 Mar’09‐Mar’10 Amt. (%) 1 Total Business 63688 81172 97089 15917 19.6 2 Total Deposit 37073 46717 55530 8813 18.9 3 Total Advances 26615 34455 41559 7104 20 6 20.6 4 CD Ratio [%] 71 79% 71.79% 73 75% 74.84% 73.75% 74 84% 26
Slide 27: Deposit
Deposit ((In US USD Mio) o) Variation Sl. Parameters Mar’08 Mar’09 Mar’ 10 Mar’09‐Mar’10 Amt. ( ) (%) 1 Total Deposit 37073 46717 55530 8813 18.9 2 Bulk + CD 7978 10033 10762 729 7.3 2a Bulk lk 5139 139 5567 6 4851 48 1 ‐716 16 ‐12.9 12 9 2b CD 2839 4466 5911 1445 32.3 3 Core Deposit p 28337 833 348
Slide 28: Advances
Advances ( In USD Mio) Share to Variation Gross Mar’09-Mar’09 Sl. Parameters Mar’08 Mar'09 Mar’10 Non-food Amt. (%) Credit 1 Gross Domestic Advances 26794 33938 40386 6448 19 1a Food Credit 699 719 728 9 1.2 1b Non-Food Gross Bank Credit 26094 33219 39658 6439 19.4 of Which 2 Agriculture & Allied 44
Slide 29: Advances - Sectoral Deployment
Advances- Sectoral Deployment (In USD Mio) Mar’08 Mar’09 Mar’10 Major Industry wise Industry Industry Industry Deployment Amt. Amt. Amt. Share (%) Share (%) Share (%) Mining @ Quarrying 153 1.4 168 1.17 243 1.2 Food Processing 1112 10 1136 7.89 740 3.7 Textiles 1257 11.3 960 6.67 1348 6.8 Ch i l & C
Slide 30: Investment
Investment (In USD Mio) Sl. Mar’08 Mar’09 Mar’10 1 Gross Investment 12230 14201 17385 2 Held To Maturity (HTM) 8780 10769 13589 3 Available For Sale (AFS) 3449 3384 3112 4 Held For trading (HFT) 47 684 5 Duration (AFS) 2.18 2.58 2.34 6 Modified Duration (AFS) 2.06 2.45 2.23 7 Duration Total Portfoli
Slide 31: Non-Performing Assets
Non-Performing Assets ( In USD Mio) Sl. Parameters Mar’08 Mar’09 Mar’10 1 NPA as at the beginning of Yr. 755 673 558 2 Cash Recovery 231 296 212 3 Upgradation 81 100 73 4 Write Off 138 104 190 5 Total Reduction (2+3+4) 451 500 475 6 Fresh Addition 435 386 632 7 Gross NPAs end period 673 558 716 8 El
Slide 32: NPA Ratios
NPA Ratios (In per cent) Sl. Parameters Mar’08 Mar’09 Mar’10 Mar’10 Excl Ag Debt Declared Relief NPA 1 Net NPA (%) 0.64 0.17 0.53 0.35 2 Gross NPA (%) 2.5 1.6 1.71 1.53 3 NPA Coverage Ratio (%) 83.53 93.51 81.17 86.80 # 75.3 USD Mio added to NPA on account of unrecovered amount of Debt Relief 32
Slide 33: Restructured Accounts
Restructured Accounts (In USD Mio) Sl. Particulars No. Amt. 1 Below Rs Rs. 1 Crore 14625 137 2 Rs. 1 Crore & above 582 2557 3 Total 15207 2694 3a of which up to Mar'09 12658 908 3b During April'09 to Mar’10 2549 1786 Of Total account restructured as at 3 above 4 Standard A/c restructured 14357 2613
Slide 34: Sectorwise Restructured Accounts
Sectorwise Restructured Accounts (In USD Mio) Sl. Particulars Mar'09 Mar’10 Total No. of Diminutio 1 Agriculture 7 14 21 Restructured Amt. Sl. Borrower n in Fair 2 Housing 4 1 5 Accounts Restrct Restrct. s Value 3 Real Estate 104 208 312 1 Under CDR 14 380 42 4 Industry 546 1459 2005 of which 2 Unde
Slide 35: Capital Adequacy (Basel II)
Capital Adequacy (Basel II) (In USD Mio) Sl. Particulars Mar’08 Mar’09 Mar’10 Capital Fund 1 Tier I 2552 3073 3837 2 Tier II 1278 1731 2124 3 Total ((Tier I+II)) 3830 4804 5961 4 Risk‐weighted Assets 28465 34230 42099 5 Capital Adequacy Ratio (%) 13 46 13.46 14 03 14.03 14 16 14.16 6 Tier I (%) 8.97
Slide 36: Ratios: Productivity & Market Share
Ratios: Productivity y & Market Share Sl. Parameters Mar’08 Mar 08 Mar’09 Mar 09 Mar’10 Mar 10 1 Deposit Market Share (%) 5.01 5.17 5.24 2 Credit Market Share (%) 5.04 5.31 5.33 3 Business Per Branch (in USD Mio) 1.48 1.80 1.94 4 B siness Per Emplo Business Employee ee (in USD Mio) 0 11 0.11 0 15 0.
Slide 37: Subsidiaries
Subsidiaries PNB Housing Finance Ltd PNB Gilts 74% subsidiary of bank PNB holds 74.07% of capital For financing housing/urban Leading Primary dealer in Govt. development. (USD Mio) securities (USD Mio) Mar’09 Mar’10 Mar’09 Mar’ 10 Net Worth 46.1 59.5 Net Worth 119.8 124.3 Total Loans 487.1 5
Slide 38: Value For Stakeholders
Value For Stakeholders Return on Equity Return on Assets 30% 2.0% 23.52% 24.54% 25% 1.39% 1.44% 19% 1 5% 1.5% 20% 1.15% 15.19% 1.03% 15% 1.0% 10% 0.5% 5% % 0% 0.0% Mar'07 Mar'08 Mar'09 Mar'10 Mar'07 Mar'08 Mar'09 Mar'10 (US $) (US $) Book B kV Value l per share h Earning per Share 2.76 12 11.5 3.00
Slide 39: Shareholding Pattern
Shareholding g Pattern MF & UTI (As on 31st March’10) 3.03% Insurance Co. 13.30% FII 19.10% Gov. 57 80% 57.80% Non Non- Institutions 4.83% FIs/Banks 1.94% 39
Slide 40: Robust Technology Platform
Robust Technology gy Platform All branches networked with Core Banking Solution (CBS). CBS platform upgraded with Oracle RAC (Real Application Cluster) to meet scalability and availability. availability First Finacle CBS setup to have RAC 5116 Service Outlets (SOLs) at 2694 centers across the
Slide 41: Current Overseas Presence
Current Overseas Presence Date of Commencement Type of office Destination of operations Offshore Banking Unit, 1 25th September, 2003 M Mumbai b i Branch 2 Kabul, Afghanistan 26th July 2004 3 Hong Kong Main 17th December 2007 4 Kowloon 2nd April 2009 5 DIFC, Dubai 20th December 2009 Subsidiary 1 UK,
Slide 42: Increasing Global Footprints
Increasing g Global Footprints… p Bank is in the process of : ¾ Upgrading its Representative Offices in China and Norway to branch . ¾ Setting up of representative office in Sydney, Australia.. Australia ¾ Acquiring 63 63..64% 64% stake with management control in JSC Dana Bank in Kazakhstan ¾ Settin
Slide 43: Recognitions
Recognitions… Golden Peacock Innovative Product/Service Award 2010. Golden Peacock Award for Excellence in Corporate Governance (2009). “Best Corporate Social Responsibility Practice” 2010 awarded by Bombay Stock Exchange. Gold trophy of SCOPE Meritorious Award for ‘Excellence in Corporate G
Slide 44: Recognitions
Recognitions….. Recognitions As A per Financial Fi i l Express‐Ernest E E t & Young Y India’s best Bank’s Survey , PNB is identified as the th Best B t Bank B k among the th nationalised ti li d banks in terms of overall ranking. As per ET Corporate Dossier survey CEO of PNB has been ranked as t
Slide 45: Going Ahead
Going Ahead Ahead….. Leverage on Technology & franchise to offer excellent •Leverage customer service & diversify income streams. •Remain proactive in the emerging dynamic financial situation and strive to maintain the margins through variety of products & services. •Selectively advancing Global foo
Slide 46: Thank You
Th k You Thank Y 46