Punjab National Bank · NSE:PNB
Punjab National Bank — Q2 FY2024 Earnings Presentation
51 slides from Punjab National Bank's earnings presentation, Oct 26, 2023
Slide 1: Exchange filing cover letter: Analyst Presentation
.... .. ... Jess /..-- 7/ . Aza d-- I Ka Amrit Mahotsav • ■ . _ pnb one ... the name you can BANK upon! #JustOneRpp 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 : 532461 Na
Slide 2: Financial Results Q2 FY'24 September 2023
FINANCIAL RESULTS Q2 FY’24 September’2023 26th October 2023 Follow our Official Page ‘pnbindia.in’ …the name you can BANK upon!!!
Slide 3: Content
Content 1 Performance Highlights 3-5 2 Business Performance 6-17 3 Financial Performance 18-24 4 Asset Quality 25-31 5 Shareholding & Capital 32-33 6 Digitalization 34-40 7 HR, Network, 41-44 Group Business & RRBs 8 ESG, Awards & Guidance 45-48 Page I 2
Slide 4: Performance Highlights: Q2 FY'24
Performance Highlights : Q2 FY’24 ₹ 1756 Cr ₹ 6216 Cr ₹ 9923 Cr 3.11% Profitability 327.14% YoY 11.67% YoY 19.97% YoY 11 bps YoY Net Profit Operating Profit Net Interest Income Global NIM 6.96% 1.47% 91.91% 1.31% Asset Quality 352 bps YoY 232 bps YoY 795 bps YoY 45 bps YoY GNPA % NNPA % PCR (Inc.Two
Slide 5: Increasing Profitability
Increasing Profitability Amt ₹ in Crore Net Profit Return on Assets (%) (Annualized) Return on Equity (%) (Annualized) 1756 0.50% 0.46% 7.00% 0.45% 10.15% 0.32% 0.34% 6.00% 0.01% 1159 1255 0.40% 10.00% 0.35% 5.00% 0.01% 7.50% 0.30% 4.00% 7.11% 8.00% 629 0.25% 0.17% 3.00% 0.01% 6.00% 308 411 0.20% 0.
Slide 6: Improving Asset Quality
Improving Asset Quality Amt ₹ in Crore Gross NPA% Net NPA% Net NPA Amount 11.78% 34909 11.27% 4.80% 31744 10.48% 4.28% 29348 3.80% 26363 9.76% 3.30% 22585 8.74% 2.72% 17129 7.73% 1.98% 13114 1.47% 6.96% Mar’22 June'22 Sept'22 Dec'22 Mar'23 June'23 Sept'23 Mar’22 June'22 Sept'22 Dec'22 Mar'23 June'23
Slide 7: Business Mix
Business Mix Global Gross Business YoY Gr : 11.26% Growth % Sl. Parameters Sept’22 Mar’23 June’23 Sept’23 2251631 2214741 QoQ YoY 2165844 1 Global Gross Business 2023713 2165844 2214741 2251631 1.67% 11.26% 2023713 1a Overseas Gross Business 59002 64369 65341 69405 6.22% 17.63% 1b Domestic Gross Bus
Slide 8: Deposits & CASA Mix
Deposits & CASA Mix Amt ₹ in Crore Global Deposits Growth % Sl. Parameters Sept’22 Mar’23 June’23 Sept’23 YoY Gr : 9.75% QoQ YoY 1281163 1297905 1309910 1 Global Deposits 1193501 1281163 1297905 1309910 0.92% 9.75% 1193501 2 Overseas Deposits 25629 29455 30903 32727 5.90% 27.69% 3 Domestic Deposits
Slide 9: Advances Performance
Advances Performance Amt ₹ in Crore Gross Global Advances Growth % YoY Gr : 13.43% Parameters Sept’22 Mar’23 June’23 Sept’23 QoQ YoY 941721 Gross Global Advances 916836 1 830212 884681 916836 941721 2.71% 13.43% (2+3) 830212 2 Gross Overseas Advances 33373 34914 34438 36678 6.50% 9.90% Gross Domesti
Slide 10: Core Retail Advances
Core Retail Advances Amt ₹ in Crore Core Retail Home Loan YoY Gr.: 16.5% YoY Gr.: 13.7% 141040 147247 87430 126359 137335 83893 81863 QoQ Gr.: 4.4% QoQ Gr.: 76877 4.2% Sept'22 Mar'23 June'23 Sept'23 Sept'22 Mar'23 June'23 Sept'23 Vehicle Loan Personal Loan YoY Gr.: 28.3% YoY Gr.: 39.0% 17093 18010 1
Slide 11: Priority Sector Achievement
Priority Sector Achievement Amt ₹ in Crore TOTAL PRIORITY SECTOR ADVANCES Agriculture Gold Loan QoQ Gr.: 46.19% @41.60% of ANBC against norm of 40% 3586 2453 AGRICULTURE (PS) ADVANCES @18.70% of ANBC against norm of 18% 1478 441 SMALL & MARGINAL FARMERS Sept'22 Mar'23 June'23 Sept'23 ACHIEVED ALL @1
Slide 12: MSME Portfolio Mix
MSME Portfolio Mix Amt ₹ in Crore MSME Segment Mix PM SVANidhi Q1 FY24 Q2 FY24 Growth % Total as on Sept’23 :- Rs 138661 Crores Position- as on 30.09.23 Application Sanctioned 52955 158787 200% Disbursed out of Sanctioned 43550 149833 244% Performance under PMMY Mudra Loans HY1 FY23 HY1 FY24 21.2% 2
Slide 13: Driving Financial Inclusion
Driving Financial Inclusion Nos in lakhs Nos in lakhs Nos in lakhs SLBC- 6 Pradhan Mantri Jeevan Pradhan Mantri Suraksha Atal Pension Yojana Jyoti Bima Yojana (PMJJBY) Bima Yojana (PMSBY) LDMO- 112 30.12 31.71 58.99 60.31 28.11 54.98 239.07 23.76 Rural Self 48.46 210.66 221.73 194.61 Employmen
Slide 14: External Rating Portfolio & Advances on Benchmark Rates
External Rating (Std FB) Portfolio & Adv. on Benchmark Rates Amt ₹ in Crore Advances Mix of Benchmark rate Portfolio > Rs. 100 Crore Sep’22 June’23 Sept’23 Sl Rating Grade 0.07% 0.03% 2.00% Amt. % Share Amt. % Share Amt. % Share 3.91% 3.18% 2.80% 4.98% 3.99% 3.89% 1 AAA 134250 47.29% 152365 45.60% 1
Slide 15: Diversified Industry Portfolio & Key Sectors
Diversified Industry Portfolio & Key Sectors Amt ₹ in Crore Sept’22 June’23 Sept’23 Diversified Industry % to % to % to Sl. Portfolio O/s Domestic O/s Domestic O/s Domestic Advances Advances Advances 1 Infrastructure 103133 12.9% 89619 10.2% 96380 10.6% -Energy 45365 5.7% 40223 4.6% 43437 4.8% Sept’
Slide 16: NBFC & Energy Sector
NBFC & Energy Sector Amt ₹ in Crore NBFC Sector Energy Sector Outstanding as on External Rating Standard Portfolio 30.09.2023 : ₹ 123843 Cr 30.09.2023 : ₹ 42987 Cr External Rating wise Portfolio 330 38 External Rating wise Portfolio 0.3% 0.0% 111 2818 0.1% 2.3% 5085 2951 11.8% 6.9% 5743 37681 13.4%
Slide 17: Investment Portfolio
Investment Portfolio Amt ₹ in Crore YoY Variation Sl. Parameters Sept’22 June’23 Sept’23 Amt. % 1 Gross Domestic Investment 397962 410600 423772 25810 6.5% a SLR 293179 307457 315604 22425 7.6% SLR as % to Dom. Investment 73.67% 74.88% 74.48% b Non SLR 104783 103143 108168 3385 3.2% I Held To Maturi
Slide 18: Non SLR Investment
Non SLR Investment Amt ₹ in Crore Sept’22 June’23 Sept’23 Y-o-Y Variation Sl. Parameters O/S % Share O/S % Share O/S % Share Amt Gr. % 1 PSU Bonds 16373 15.6% 20435 19.81% 20371 18.83% 3998 24.42% 2 Corporate and Other Bonds & Debentures 15857 15.1% 13586 13.17% 15129 13.99% -728 -4.59% 3 Special Go
Slide 19: Balance Sheet - Liabilities & Assets
Balance Sheet-Liabilities & Assets Amt ₹ in Crore YoY Variation Sl. Parameters 30th Sep’22 30th Jun’23 30th Sep’23 Amt. % CAPITAL & LIABILITIES 1 Capital 2202 2202 2202 2 Reserves and Surplus 96554 98908 100671 4117 4.3% 3 Deposits 1193501 1297905 1309910 116409 9.8% 4 Borrowings 58660 54203 52927 -
Slide 20: Income
Income Amt ₹ in Crore Q2 Q1 Q2 YoY Variation QoQ Variation HY1 HY1 YoY Variation Sl. Parameters FY23 FY24 FY24 Amt. % Amt. % FY23 FY24 Amt. % 1 Interest Income (2+3+4) 20154 25145 26355 6201 30.8% 1209 4.8% 38911 51500 12589 32.4% 2 Interest on Advances 13550 17756 18464 4914 36.3% 708 4.0% 25808 36
Slide 21: Expenses
Expenses Amt ₹ in Crore Q2 Q1 Q2 YoY Variation QoQ Variation HY1 HY1 YoY Variation Sl. Parameters FY23 FY24 FY24 Amt. % Amt. % FY23 FY24 Amt. % 1 Total Interest Paid (2+3+4) 11883 15641 16432 4549 38.3% 791 5.1% 23098 32073 8975 38.9% 2 Interest Paid on Deposits 11022 14577 15319 4297 39.0% 743 5.1%
Slide 22: Profit & Provisions
Profit & Provisions Amt ₹ in Crore Q2 Q1 Q2 YoY Variation QoQ Variation HY1 HY1 YoY Variation Sl. Parameters FY23 FY24 FY24 Amt. % Amt. % FY23 FY24 Amt. % 1 Net Interest Income 8271 9504 9923 1652 20.0% 419 4.4% 15814 19427 3613 22.8% 2 Other Income 2847 3434 3028 181 6.4% -406 -11.8% 5384 6462 1078
Slide 23: Efficiency Ratios (Quarter)
Efficiency Ratios (Quarter) Cost of Deposits [%] (Annualized) Cost of Funds [%] NIM [%] 4.32%4.21% 4.19%4.09% 3.00% 3.11% 3.08% 3.21% 3.11% 3.24% 4.72% 4.71% 4.86% 4.84% 3.40%3.39% 3.90% 3.93% Sept'22 Jun'23 Sept'23 Sept'22 Jun'23 Sept'23 Sept'22 Jun'23 Sept'23 (Q2) (Q1) (Q2) (Q2) (Q1) (Q2) (Q2) (Q1
Slide 24: Efficiency Ratios (HY1)
(Annualized) Efficiency Ratios (HY1) Cost of Deposits [%] Cost of Funds [%] NIM [%] 4.79% 4.78% 4.25% 4.15% 3.85% 3.89% 4.10% 4.12% 3.40% 3.41% 3.61% 3.58% 3.06% 3.19% 3.09% 3.22% 2.91% 3.00% Sep'22 Mar'23 Sep'23 Sep'22 Mar'23 Sep'23 Sep'22 Mar'23 Sep'23 (HY) (FY) (HY) (HY) (FY) (HY) (HY) (FY) (HY)
Slide 25: Key Ratios
Key Ratios (Annualized) Q2 Q1 Q2 HY1 HY1 Sl. Profitability Ratios FY23 FY24 FY24 FY23 FY24 1 Return on Assets [%] 0.12% 0.34% 0.46% 0.11% 0.40% 2 Return on Equity [%] 2.56% 7.50% 10.15% 2.30% 8.82% 3 Net Profit Per Employee [₹ in Lacs] 1.65 5.18 7.20 1.45 6.21 4 Net Profit Per Branch [₹ in Lacs] 16.
Slide 26: 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 30.09.23 Provisions Position as on 30.09.23 Provisions Loan and aggregate under OTR 1 Made# Loan and aggregate under OTR 2 Made# Sl. Sl. ex
Slide 27: Improving Asset Quality - SMA 2 Accounts
Improving Asset Quality –SMA 2 Accounts ( > Rs.5.00 Crore) Amt ₹ in Crore Sept’22 June’23 Sept’23 CATEGORY % of Domestic % of Domestic % of Domestic SMA2 SMA2 SMA2 Advances Advances Advances RETAIL 82 0.01% 83 0.01% 118 0.01% AGRICULTURE 332 0.04% 348 0.04% 360 0.04% MSME 1277 0.16% 917 0.10% 958 0.
Slide 28: Movement of NPA
Movement of NPA Amt ₹ in Crore Sl. Parameters Q2 FY’23 HY1 FY’23 Q1 FY’24 Q2 FY’24 HY1 FY’24 1 NPA as at the beginning of Year/Quarter 90167 92448 77328 70899 77328 2 -Cash Recovery 3989 6478 1923 2179 3892 3 -Up-gradation 2508 4085 1672 1319 2419 4 Cash Recovery & Up-gradation (2+3) 6497 10563 3595
Slide 29: Asset Classification & Recovery v/s Slippages
Asset Classification & Recovery v/s Slippages Amt ₹ in Crore Sept’22 June’23 Sept’23 YoY Variation Sl. Parameters O/S Share% O/S Share% O/S Share% Amt. Var. % Recovery v/s Slippages 1 Standard 743177 89.52% 845936 92.27% 876158 93.04% 132981 17.89% Q1 Q2 Period FY 22-23 FY 23-24 FY 23-24 2 Gross NPA
Slide 30: NPA Classification - Sector Wise
NPA Classification - Sector Wise Amt ₹ in Crore Sept’22 June’23 Sept’23 Sl. Parameters Advances GNPA GNPA% Advances GNPA GNPA% Advances GNPA GNPA% 1 Retail Loans 155409 6118 3.94% 205058 5859 2.86% 218230 5487 2.51% 2 Agriculture 140303 27019 19.26% 145572 24826 17.05% 146598 23904 16.31% 3 MSME 130
Slide 31: NPA Classification - Industry Wise
NPA Classification- Industry Wise Amt ₹ in Crore Sept’22 June’23 Sept’23 Sl. Diversified Industry Portfolio O/s GNPA GNPA % O/s GNPA GNPA % O/s GNPA GNPA % 1 Infrastructure 103133 7654 7.4% 89619 2600 2.9% 96380 2517 2.6% -Energy 45365 3273 7.2% 40223 473 1.2% 43437 450 1.0% -Tele-Communication 1018
Slide 32: Exposure to NCLT (Admitted) accounts
Exposure to NCLT (Admitted) accounts As on 30.09.2023 Amt ₹ in Crore Sl. Parameters Accounts Balance Provision PCR% 1 RBI list 1 4 3599 3599 100.00% 2 RBI list 2 10 4705 4705 100.00% 3 Filed by PNB 122 7805 7765 99.49% 4 Filed by Other Lenders 408 45814 45686 99.72% 5 Total 544 61923 61755 99.73% 75
Slide 33: Share Holding and Ratings
Share Holding and Ratings Shareholding as on 30.09.2023 PNB’s Rating FPIs, 2.65% Others, 1.35% Moody’s Fitch PNB’s Rating- PNB’s Rating- Resident Individual , Baa3/P-3/ Stable BBB-/F3/Stable Mutual Funds, 4.85% 9.06% PNB’s BOND RATING FIs/Banks/ Basel III Insurance, S.N Rating Agency Additional Tier
Slide 34: Capital Adequacy
Capital Adequacy Amt ₹ in Crore Capital & CRAR Risk Weighted Assets Sl. Parameters Sept’22 Mar’23 June’23 Sept’23 Sl. Parameters Sept’22 Mar’23 June’23 Sept’23 1 Total Capital (Tier I+II) 91859 102157 104119 106839 1 Total RWA 623392 658982 669813 708086 Out of Which, CRAR % 14.74% 15.50% 15.54% 15.
Slide 35: New Digital Offerings - 36 Products
New digital offerings – 36 Products MSME Retail Liabilities 1 1 e-Mudra 1 Pre Approved Personal Loan 1 Insta Saving Account 2 MSME Easy Renewal 2 Top-Up Pre Approved Personal Loan SB through Tab for Existing Customers 2 3 Pre Approved Business Loan 3 Pre Qualified Credit Card 4 GST Sahay 3 Current A
Slide 36: New Digital Offerings - 30 Processes & Portals
New Digital Offerings – 30 Processes & Portals 16 Processes 14 Portals 1 PNB One registration with Aadhaar 1 Fintech Portal 2 Digital Document Execution (NeSL) Lens 2 Rinn Setu Portal for Co-Lending 3 Account Aggregator in PNB LenS 3 Claim Settlement Portal 4 Credit Card Saral App -Digital onboardin
Slide 37: Augmenting Digital Base
Augmenting Digital Base 53% Y-o-Y Growth in No of Sept’2023 (HY) Digital Transactions Numbers (in lakhs) 14.04 Share of Digital Txn (%) 287 Share of Other 187 85.96 Txns (%) H1FY23 H1FY24 Numbers of UPI Txn 10 % Y-o-Y Growth in Internet 18 % Y-o-Y Growth in Mobile (in Crore) HY1FY24 Banking Users Ba
Slide 38: PNB ONE - Increasing Penetration
7 PNB ONE - Increasing penetration Sept’22 Sept’23 Sept’22 Sept’23 Avg Daily Downloads Avg Daily 24K 36K Activation (Quarter) (Quarter) 20K 34K Avg Daily 4.5 7.7 Avg Daily Active Users Login 9 15 Lakh Lakh (Quarter) (Quarter) Lakh Lakh Play Store Avg Daily Ratings 4.1 4.3 Transactions 76K 143K (Quar
Slide 39: Digital Offerings
P3 a8 g DIGITAL OFFERINGS e I Pre-Approved PNB Krishi Pre-Approved eOD Against FD Personal Loan Tatkal Rin Business Loan Launched on Launched on Launched on Launched on 21.07.2022 22.03.2023 12.04.2023 12.08.2022 1.21 449 Cr 201 Cr 1064 Cr Lakh 750 Cr 777 Cr 3609 0.92 344 Cr 29K 143 Cr Lakh 2574 42K
Slide 40: New Digital Initiatives
New Digital Initiatives RUPAY CREDIT CARD ON UPI INTERNATIONAL on Integrated Payments and Collection BHIM PNB CASH WITHDRAWAL USING UPI Services for Corporate and BHIM PNB APP Institutional Customers SHOPPING MADE EASY WITH PNB DISABLE/BLOCK DEBIT CARD & UPI THROUGH WHATSAPP Business Asset Share/ ES
Slide 41: Data Analytics - The Future of Banking
Data Analytics – The Future of Banking Amt ₹ in Crore VALUE ADDITION ACROSS BUSINESS VERTICALS Business Generated in RAM BUSINESS PROFITABILITY Use of analytics to increase product ML based Cash Retention Limit through Analytical Leads penetration. Customer profiling Revenue Gap Identification
Slide 42: HR Transformation Project
HR Transformation Project Comprehensive LDP to prepare future Bank leaders Clear tracking, on behavioral aspects for measurement & visibility of 900+ Officers. performance metrics to LDP ongoing for Top identify improvement areas Management Officials along Performance Dashboard & with One-to
Slide 43: Distribution Network
Distribution Network As on 30.09.2023 Total Touch Points :- 43184 Branches ATM BCs 115 7 (Domestic) 20,48,067 1,22,519 4,36,060 10092 12645 20447 YoY : 24.57% YoY : 21.01% YoY : 32.15% 350 Delhi : 316 912 39 294 718 10 9 729 297 1659 5 1,56,000 1,74,708 46585 704 26 23 YoY : 64.21% YoY : 70.06% YoY
Slide 44: 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 – 28.14% 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 45: 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’23 (6M) 3734 2454 1281 955 Consolidated Q2 FY’23 Q2 FY’24 YOY Position Sept’22 Se
Slide 46: Bank's ESG Highlights
Bank’s ESG Highlights Environmental Social Governance • PNB Palaash – Go Green Initiative of • 12 FTCs imparted training to 17.77 lakh Well defined policies and SOPs such as - PNB persons till 30th Sept 2023 . • Whistle Blower Policy • Focus on Digital products • 175 FLCs conducted 1999 seminars • C
Slide 47: PNB Palaash - Go Green Initiative of PNB
PNB Palaash – Go Green Initiative of PNB Awareness Programs Collective Efforts Tree Plantation Digital Onboarding Online Quiz for Trainings all Employees 116 sessions Drive of Customers, 1 lakh+ Saplings eliminating Paper 14 Training Centers 12000+ Employees planted by Bank Documentation Newsletters
Slide 48: Awards & Accolades
Awards & Accolades PNB felicitated with ‘Green Ribbon Punjab National Bank was honoured with the Rajbhasha Kirti First Prize for the year 2022-23 Champions’ award under the category- at the Hindi Diwas Celebrations held during ‘CSR Green Initiative of the Year’ for Third All India Official Language
Slide 49: Guidance vs Actuals for September'23
Guidance vs Actuals for September’23 Parameters Guidance for FY’24 Actuals – June’23 Actuals – Sept’23 (HY) Credit Growth % (YoY) 12% - 13% 14.6% 13.8% Deposit Growth % (YoY) 10% - 11% 14.2% 9.7% CASA Share % 43% - 44% 41.9% 42.2% Operating Profit (YOY) 10% - 12% 10.9% 11.3% Net Interest Income (YOY
Slide 50: 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 51: Thank You
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