Punjab National Bank · NSE:PNB
Punjab National Bank — Q2 FY25 Earnings Presentation
50 slides from Punjab National Bank's earnings presentation, Oct 28, 2024
Slide 1: Analyst Presentation filing cover letter
Jess /'+.. 7/ A .:..,; za d I Ka - Amrit Mahotsav .·:1, ■ ■ ... ···· • pnb one ... the name you can BANK upon! #JustOneApp Share Department, Board & Coordination Division, HO Plot No.4 Sector 10, Dwarka, New Delhi-110075 Tel No.: 011-28044857, E-mail: hosd@pnb.co.in Scrip Code: PNB Scrip Code : 5324
Slide 2: Financial Results Q2/HY1 FY'25 September'24
FINANCIAL RESULTS Q2/HY1 FY’25 September’24 28th October 2024 Follow our Official Page ‘pnbindia.in’ …the name you can BANK upon!!!
Slide 3: Content
Content 1 Performance Highlights 3-7 2 Business Performance 8-18 3 Financial Performance 19-25 4 Asset Quality 26-33 5 Shareholding & Capital 34-35 6 Digitalization 36-38 HR, Network, 7 39-43 Group Business & RRBs 8 ESG, Awards & Guidance 44-47 Page I 2
Slide 4: Performance Highlights: Q2 FY'25
Performance Highlights : Q2 FY’25 ₹ 4,303 Cr 1.02% ₹ 10,517 Cr ₹ 6,853 Cr Profitability 145.0% YoY 56 bps YoY 6.0% YoY 10.3% YoY Net Profit ROA% Net Interest Income Operating Profit 4.48% 0.46% 96.67% 0.08% Asset Quality 248 bps YoY 101 bps YoY 476 bps YoY 123 bps YoY GNPA % NNPA % PCR (Inc.Two) % C
Slide 5: Increasing Profitability
Increasing Profitability Amt ₹ in Crore Net Profit Return on Assets (%) (Annualized) 4303 1.02% 1.05% 3252 0.82% 3010 0.85% 0.77% 2223 0.65% 0.58% 1756 0.46% 1159 1255 0.45% 0.32% 0.34% 411 629 0.12% 0.17% 202 308 0.25% 0.06% 0.09% 0.05% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 6: Increasing Profitability
Increasing Profitability Return on Equity (%) (Annualized) Earning Per Share (₹) 19.91% 3.90 16.48% 16.82% 12.45% 2.73 2.95 10.15% 2.02 7.11% 7.50% 1.59 1.05 1.14 3.85% 2.01% 2.56% 0.37 0.57 1.35% 0.28 0.18 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY'22 FY'23 FY'23 FY'23 FY'
Slide 7: Improving Asset Quality
Improving Asset Quality Gross NPA% Net NPA% 11.78% 11.27% 4.80% 10.48% 4.28% 9.76% 3.80% 8.74% 3.30% 7.73% 2.72% 6.96% 1.98% 6.24% 1.47% 5.73% 4.98% 0.96% 4.48% 0.73% 0.60% 0.46% Mar’22 June'22 Sept'22 Dec'22 Mar'23 June'23 Sept'23 Dec'23 Mar'24 June'24 Sept'24 Mar’22 June'22 Sept'22 Dec'22 Mar'23 J
Slide 8: Improving Asset Quality
Improving Asset Quality PCR%- (Incl. TWO) PCR%- (excl TWO) Credit Cost 95.9% 96.7% 2.45% 2.46% 94.3% 95.4% 91.9% 89.8% 90.2% 1.99% 87.9% 88.4% 1.76% 1.87% 1.72% 86.9% 84.0% 85.2% 85.4% 83.0% 81.6% 80.0% 1.31% 1.26% 75.8% 0.81% 70.8% 68.5% 0.32% 66.3% 64.8% 0.08% 62.2% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 9: Business Mix
Business Mix Amt ₹ in Crore Global Gross Business 11.9% YoY Gr 2520246 Growth %/bps 2436929 S.N. Parameters Sept’23 Mar’24 June’24 Sept’24 2353038 QoQ YoY 2251631 1 Global Business 2251631 2353038 2436929 2520246 3.4% 11.9% Global Deposits 1a Overseas Business 69405 77282 82606 92492 12.0% 33.3% 11.
Slide 10: Deposits
Deposits Amt ₹ in Crore Growth % Sl. Parameters Sept’23 Mar’24 June’24 Sept’24 Deposit Mix - Sept’24 QoQ YoY 68104 1 Global Deposits (2+3) 1309910 1369713 1408247 1458342 3.6% 11.3% 4.7% 2 Overseas Deposits 32727 36348 38331 41953 9.4% 28.2% 488635 3 Domestic Deposits 1277183 1333365 1369916 1416389
Slide 11: Advances
Advances Amt ₹ in Crore Growth % Parameters Sept’23 Mar’24 June’24 Sept’24 QoQ YoY Credit Mix – Sept’24 1 Global Advances (2+3) 941721 983325 1028682 1061904 3.2% 12.8% 2 Overseas Advances 36678 40934 44275 50539 14.1% 37.8% 3 Domestic Advances 905043 942391 984407 1011365 2.7% 11.7% Out of which 25
Slide 12: Core Retail Advances
Core Retail Advances Amt ₹ in Crore Core Retail* Home Loan* YoY Gr.: 19.0% YoY Gr.: 19.5% 185400 109948 168265 173040 155837 101796 98293 QoQ Gr.: 91973 7.1% QoQ Gr.: 8.0% Sept'23 Mar'24 June'24 Sept'24 Sept'23 Mar'24 June'24 Sept'24 Vehicle Loan* Education Loan > 7.5 lacs YoY Gr.: 25.0% YoY Gr.: 12
Slide 13: Priority Sector Achievement & Flagship Govt Schemes
Priority Sector Achievement & Flagship Govt Schemes Amt ₹ in Crore TOTAL PRIORITY SECTOR ADVANCES @41.10% of ANBC against norm of 40% As on As on Amt in Crores Growth % AGRICULTURE (PS) ADVANCES Sept’23 Sept’24 @18.58% of ANBC against norm of 18% Outstanding 216 236 9.25% ACHIEVED ALL SMALL & MARGIN
Slide 14: Financial Inclusion Performance
Financial Inclusion Performance Nos in lakhs Nos in lakhs Nos in lakhs SLBC- 5 Pradhan Mantri Jeevan Pradhan Mantri Suraksha Atal Pension Yojana (APY) Jyoti Bima Yojana (PMJJBY) Bima Yojana (PMSBY) UTLBC-1 39.80 41.86 67.26 38.53 65.39 272.63 31.71 LDMO- 116 63.82 261.68 254.54 Rural Self 60
Slide 15: External Rating Portfolio & Advances on Benchmark Rates
External Rating (Std FB) Portfolio & Adv. on Benchmark Rates Amt ₹ in Crore Portfolio > Rs.25 Crore Advances Mix of Benchmark rate Sept’23 June’24 Sept’24 Sl Rating Grade Amt. % Share Amt. % Share Amt. % Share 2.80% 1.95% 3.91% 4.93% 1 AAA 144996 41.00% 168768 42.72% 188920 46.24% 9.84% 10.04% 2 AA
Slide 16: Diversified Industry Portfolio & Energy Sector
Diversified Industry Portfolio & Energy Sector Amt ₹ in Crore Sept’23 Mar’24 June’24 Sept’24 Energy Sector Diversified Industry % to % to % to % to Sl. Portfolio O/s Domestic O/s Domestic O/s Domestic O/s Domestic External Rating Standard Portfolio Advances Advances Advances Advances 30.09.2024 : ₹
Slide 17: NBFC Sector
NBFC Sector Key Sectors As on External Rating Wise Portfolio – As on 30.09.2024 Sept’23 June’24 Sept’24 NBFC 123843 148157 153069 Housing Finance Companies PSUs & PSU backed Out of which, A BBB & Below 594 10 A NBFC- HFC 39687 46667 49818 1.19% 0.02% 2,276 6.30% NBFC- PSUs and PSU backed 29327 36464
Slide 18: Investment Portfolio
Investment Portfolio Amt ₹ in Crore Sl. Parameters Sept’23 Mar’24 June’24 Sept’24 1 Gross Domestic Investment 423772 423305 422822 470391 2 SLR 315604 316061 316414 348490 2a SLR as % to Dom. Investment (2/1) 74.48% 74.67% 74.83% 74.09% 3 Non SLR 108168 107244 106408 121901 4 Held To Maturity (HTM)
Slide 19: Non SLR Investment
Non SLR Investment Amt ₹ in Crore Sept’23 Mar’24 June’24 Sept’24 Sl. Parameters O/S % Share O/S % Share O/S % Share O/S % Share 1 PSU Bonds 20371 18.83% 19212 17.91% 18968 17.83% 20747 17.02% 2 Corporate and Other Bonds & Debentures 15129 13.99% 16691 15.56% 14398 13.53% 16194 13.28% 3 Special Govt.
Slide 20: Balance Sheet - Liabilities & Assets
Balance Sheet-Liabilities & Assets Amt ₹ in Crore Sl. Parameters 30th Sept’23 31st Mar’24 30th June’24 30th Sept’24 CAPITAL & LIABILITIES 1 Capital 2202 2202 2202 2299 2 Reserves and Surplus 100671 104274 109658 119335 3 Deposits 1309910 1369713 1408247 1458342 4 Borrowings 52927 50430 51223 73794 5
Slide 21: Income
Income Amt ₹ in Crore Q2 Q1 Q2 YoY Variation HY1 HY1 YoY Variation Sl. Parameters FY24 FY25 FY25 Amt. % FY24 FY25 Amt. % 1 Interest Income (2+3+4) 26355 28556 29875 3520 13.4% 51500 58431 6931 13.5% 2 Interest on Advances 18464 20452 21184 2720 14.7% 36221 41636 5415 15.0% 3 Interest on Investments
Slide 22: Expenses
Expenses Amt ₹ in Crore Q2 Q1 Q2 YoY Variation HY1 HY1 YoY Variation Sl. Parameters FY24 FY25 FY25 Amt. % FY24 FY25 Amt. % 1 Total Interest Paid (2+3+4) 16432 18080 19358 2926 17.8% 32073 37439 5366 16.7% 2 Interest Paid on Deposits 15319 16896 18240 2921 19.1% 29896 35137 5241 17.5% 3 Interest Paid
Slide 23: Profit & Provisions
Profit & Provisions Amt ₹ in Crore Q2 Q1 Q2 YoY Variation HY1 HY1 YoY Variation Sl. Parameters FY24 FY25 FY25 Amt. % FY24 FY25 Amt. % 1 Net Interest Income 9923 10476 10517 594 6.0% 19427 20993 1566 8.1% 2 Other Income 3028 3610 4572 1544 51.0% 6462 8182 1720 26.6% 3 Operating Income (1+2) 12951 140
Slide 24: Efficiency Ratios (Quarter)
Efficiency Ratios (Quarter) Cost of Deposits [%] (Annualized) Cost of Funds [%] NIM [%] 5.10% 5.08% 5.18% 5.16% 4.54% 4.49% 4.57% 4.53% 3.11%3.24% 3.07% 3.21% 2.92% 3.06% 4.86% 4.84% 4.32% 4.27% Sept'23 Jun'24 Sept'24 Sept'23 Jun'24 Sept'24 Sept'23 Jun'24 Sept'24 (Q2) (Q1) (Q2) (Q2) (Q1) (Q2) (Q2) (
Slide 25: Efficiency Ratios (HY1)
Efficiency Ratios (HY1) (Annualized) Cost of Deposits [%] Cost of Funds [%] NIM [%] 4.91% 4.89% 5.14% 5.12% 4.36% 4.31% 4.56% 4.51% 4.79% 4.78% 4.25% 4.21% 3.09% 3.22% 3.09% 3.23% 2.99% 3.14% Sep'23 Mar'24 Sep'24 Sep'23 Mar'24 Sep'24 Sep'23 Mar'24 Sep'24 (HY) (FY) (HY) (HY) (FY) (HY) (HY) (FY) (HY)
Slide 26: Profitability/Productivity Ratios
Profitability/Productivity Ratios (Annualized) Q2 Q4 Q1 Q2 HY1 HY1 Sl. Key Ratios FY24 FY24 FY25 FY25 FY24 FY25 1 Return on Assets [%] 0.46% 0.77% 0.82% 1.02% 0.40% 0.92% 2 Return on Equity [%] 10.15% 16.48% 16.82% 19.91% 8.82% 18.20% 3 Book Value per Share [₹] 85.26 88.59 93.87 98.47 85.26 98.47 4
Slide 27: One Time Restructuring (OTR 1 & 2)
One Time Restructuring (OTR 1 & 2) Amt ₹ in Crore OTR 1 OTR 2 As per RBI's guidelines dated As per RBI's guidelines dated Aug 06,2020 May 05,2021 Position as on 30.09.24 Provisions Position as on 30.09.24 Provisions Loan and aggregate under OTR 1 Made# Loan and aggregate under OTR 2 Made# Sl. Sl. ex
Slide 28: Asset Quality - SMA 2 Accounts
Asset Quality –SMA 2 Accounts ( > Rs 5.00 Crore) Amt ₹ in Crore Sept’23 Mar’24 June’24 Sept’24 CATEGORY % of % of % of % of S. N. SMA2 Domestic SMA2 Domestic SMA2 Domestic SMA2 Domestic Advances Advances Advances Advances 1 RETAIL 118 0.01% 93 0.01% 90 0.01% 90 0.01% 2 AGRICULTURE 360 0.04% 210 0.02
Slide 29: Movement of NPA
Movement of NPA Amt ₹ in Crore Sl. Parameters Q2 FY’24 Q1 FY’25 Q2 FY’25 HY1 FY’24 HY1 FY’25 1 NPA at the beginning of Year/Quarter 70899 56343 51263 77328 56343 2 Cash Recovery & Up-gradation (2a+2b) 3498 1721 2915 6311 4021 2a -Cash Recovery 2179 1196 1508 3892 2580 2b -Up-gradation 1319 524 1407
Slide 30: Asset Classification
Asset Classification Amt ₹ in Crore Sept’23 Mar’24 June’24 Sept’24 YoY Variation Sl. Parameters O/S Share% O/S Share% O/S Share% O/S Share% Amt. Var. % 1 Standard 876158 93.04% 926982 94.27% 977419 95.02% 1014322 95.52% 138164 15.8% 2 Gross NPA 65563 6.96% 56343 5.73% 51263 4.98% 47582 4.48% -17981
Slide 31: Slippages & Recoveries
Slippages & Recoveries Amt ₹ in Crore Recovery v/s Slippages Sector wise Fresh Slippage Q2 Q1 Q2 11167 Period FY 23-24 FY 24-25 FY 24-25 Total Recovery 5532 3249 4891 Total Slippage 1826 1755 2181 Recovery v/s 3.0x 1.9x 2.2x Slippage 5103 4008 3723 HY1 HY1 3310 Period FY 23-24 FY 24-25 1562 Net Reco
Slide 32: NPA Classification - Sector Wise
NPA Classification - Sector Wise Amt ₹ in Crore Sept’23 Mar’24 June’24 Sept’24 Sl. Parameters Advances GNPA GNPA% Advances GNPA GNPA% Advances GNPA GNPA% Advances GNPA GNPA% 1 Retail Loans 218230 5487 2.51% 222574 5060 2.27% 234564 3340 1.42% 250149 3290 1.32% 2 Agriculture 146598 23904 16.31% 15818
Slide 33: NPA Classification - Industry Wise
NPA Classification- Industry Wise Amt ₹ in Crore Diversified Industry Sept’23 Mar’24 June’24 Sept’24 Sl. Portfolio O/s GNPA GNPA % O/s GNPA GNPA % O/s GNPA GNPA % O/s GNPA GNPA % 1 Infrastructure 96380 2517 2.6% 98494 2792 2.8% 97279 2298 2.4% 99547 2264 2.3% -Energy 43437 450 1.0% 42789 1236 2.9% 4
Slide 34: Exposure to NCLT Accounts & NARCL
Exposure to NCLT (Admitted) Accounts & NARCL Amt ₹ in Crore NCLT Sl. Parameters Accounts Balance Provision PCR% 1 RBI list 1 3 3539 3539 100.00% NARCL 2 RBI list 2 10 4402 4402 100.00% No of Balance 3 Filed by PNB 111 6973 6943 99.57% S.No Position of accounts with PNB Accounts Outstanding Filed by
Slide 35: Share Holding, QIP and Ratings
Share Holding, QIP and Ratings Shareholding as on 30.09.2024 Core Capital Raising of Rs 5000 Crores through Total No. of Shares: 1149.29 Crores Qualified Institutional Placement (QIP) - Highlights 16.6 times subscription - Green Shoe (Rs. 2,500 crore) 1.35% 1.12% 1.51% 1.25% 2.65% 4.82% 68% of t
Slide 36: Capital Adequacy
Capital Adequacy Amt ₹ in Crore Capital & CRAR Sl. Parameters Sept’23 Mar’24 June’24 Sept’24 1 Total Capital (Tier I+II) 106839 117466 118834 125633 Risk Weighted Assets CRAR % 15.09% 15.97% 15.79% 16.36% Sl. Parameters Sept’23 Mar’24 June’24 Sept’24 Out of Which, 1 Total RWA 708086 735435 752450 76
Slide 37: Digital Adoption
Digital Adoption Share of Digital Txn (%) 90.0% Digital Acceleration Through 89.0% 86.0% Sep’23 Sep’24 Average Daily 32K 1.3x 40K Downloads Sep’23 (HY) Mar’24 (HY) Sep’24 (HY) Average Daily 16 29.3 1.8x Lac Logins Lac PNB One Activated Users WhatsApp Banking Users Numbers (In Lakh) Average Daily 1.5
Slide 38: Progress under Digital Journeys and Initiatives Undertaken
Progress under Digital Journeys and Initiatives Undertaken Progress under Digital Journeys Corporate M - Banking App Key Initiatives Undertaken Sanctions under Rs. Digi Lending 17500+ Journeys Crore Digital 2 Lakh+ Renewals A/cs Disbursement of Unblocking of Loan under e-PM EFRM check Vishwakarma th
Slide 39: Upcoming Digital Initiatives
Upcoming Digital Initiatives Digital Business Platform (DBP) Other Upcoming Major Initiatives PNB One Demat & Trading A/c Unified Solution to Streamline all Opening of Demat and • Opening of Sukanya Digital Journeys Samriddhi A/c Trading Account from PNB • MPIN Removal from One Pre-Login Scan n Pay
Slide 40: HR Transformation
HR Transformation Successful Implementation of Digital PMS Role Clarity Tool Profiler Allocation of Unique Roles More objectivity & transparently and measurable KRAs to through maximizing measurable all officers KRAs and cohorting approach. Target Setting Performance Dashboard Scientific & Data driv
Slide 41: Transformation of Learning & Development System
Transformation of Learning & Development System Journey of transforming our Learning & Development system across key Facets Key Implementations Journey Ahead Infrastructure Next-Gen LMS Employee Skill Assessment Vast Network of Training Infra with 14 New and improved LMS deployment Staff Training Co
Slide 42: Distribution Network
As on 30.09.2024 Distribution Network Total Touch Points :- 55209 International Presence Branches at:- Dubai and Gift City, Gandhinagar Branches Subsidiaries:-London(UK) and Bhutan ATM BCs Joint Venture:- Nepal 119 8 (Domestic) 12040 33010 Representative Offices:- Myanmar and Bangladesh 10159 354 De
Slide 43: Group Structure of the Bank
Group Structure of the Bank PNB Subsidiaries Associates & Joint Venture Domestic Foreign RRB Domestic Foreign 1. PNBIL, London - 1. PNB Housing Finance Ltd – 28.11% 35% stake in each one:- 1. PNB Cards & Services 100% Ltd. – 100% 2. PNB MetLife India Insurance Co. Ltd - Everest Bank, 1. Dakshin Biha
Slide 44: Performance of Subsidiaries, Associates, Joint Venture & RRBs
Performance of Subsidiaries, Associates, Joint Venture & RRB’s Amt ₹ in Crore Name of the entity Results Total Total Gross Net Performance of RRBs (3/6/9/12 M) Income Expenses Profit Profit PNB Housing Finance Ltd Sept’24 (6M) 3901 2689 1212 903 Consolidated HY1 FY’24 HY1 FY’25 Sept’23 Sept’24 YOY%
Slide 45: Environment, Social and Governance (ESG) - Highlights
Environment, Social and Governance (ESG) -Highlights E S G Environmental Initiatives for F.Y. 2024-25- Policies covering core elements of the “PNB PALAASH 2.0” Gender Diversity Policy for employees NGRBCs eg. Whistle Blower Policy, Tree Plantation Drive - Planted 2.5 lac tree Financed 4.35
Slide 46: Glimpses of Recent Events
Glimpses of Recent Events Handing Over of Cheque for Payment of Dividend to Inauguration of Digital Experience Centre at Head Conference on Technological Initiatives to Hon. Finance Minister Mrs. Nirmala Sitharaman Office, Dwarka by Secretary (FS), Mr. M Nagaraju Prevent by CVC attended by Chief Vig
Slide 47: Awards & Accolades
Awards & Accolades 1 2 Rajbhasha Kirti Puruskar for 2023-24 Rajbhasha Kirti Puruskar for 2023-24 - Ministry of Home Affairs, GOI - Ministry of Home Affairs, GOI First Prize - PNB Pratibha Magazine Second Prize – Overall Category 3 4 Global Fintech Awards 2024 Recognition for Contribution to 200 GW -
Slide 48: Guidance for FY'25 vs Actuals for September'24
Guidance for FY’25 vs Actuals for September’24 Parameters Guidance for FY’25 Sep’24 (Q2) HY1 FY’25 Credit Growth % (YoY) 11% - 12% 12.76% 12.76% Deposit Growth % (YoY) 9% - 10% 11.33% 11.33% CASA Share % Around 42% 39.31% 39.31% Operating Profit Gr % (YOY) 10% - 12% 10.25% 10.26% Net Interest Income
Slide 49: Disclaimer
Disclaimer "This presentation has been prepared by Punjab National Bank (the “Bank”), solely for general information purposes, without regard to any specific objectives, financial situations or informational needs of any particular person. Except for the historical information contained herein, stat
Slide 50: Thank you
2,18,941 Thank you 23,85,727 1,51,272 35,007 4,62,803 5,64,191