Punjab National Bank · NSE:PNB
Punjab National Bank — FY2016 Earnings Presentation
29 slides from Punjab National Bank's earnings presentation, March 2016
Slide 1: Presentation on Financial Performance for the Quarter/FY March 2016
RETAIL PNB - DIGITAL PNB Presentation on Financial Performance for the Quarter/FY March 2016 1 Sl. Contents Slide No. 1 Landmarks 3 2 Key Strengths 4 3 Business 5-11 4 Credit 12-17 5 Investment 18-20 6 Profitability 21-31 7 Asset Quality 32-41 8 Capital Adequacy 42-44 9 Network 45-47 10 Share holdin
Slide 2: PNB – Key Strengths
Operating Profit of the Bank crosses landmark of Rs. 12000 cr. (Over Rs. 10000 cr. for consecutive 5 years ). Domestic Business has crossed Rs. 8.50 Lac Crore. Global Deposits has crossed Rs. 5.50 Lac Crore. CASA Deposits has crossed Rs. 2.00 Lac Crore, with CASA share in Total Deposit cross
Slide 3: Business Performance of the Bank during Q4 & FY'16
Business Performance of the Bank- during Q4 & FY’16 5 Business Performance–various component (Terminal level) (Rs. Cr.) Mar’16/Mar’15 Sl. Parameters Mar'15 Dec'15 Mar'16 Amt. (%) 1 Global Business 881913 941468 965377 83464 9.5 Domestic Business 781128 827201 853254 72126 9.2 Overseas Business 10078
Slide 4: Business Performance – Daily Average / Approach for Deposits Growth
Business Performance–various component (Daily Average basis) (Rs. Cr.) Mar’16/Mar’15 Sl. Parameters Mar'15 Dec'15 Mar'16 Amt. % 1 Global Business 795314 865586 876676 81362 10.2 Domestic Business 710078 762524 772672 62594 8.8 Overseas Business 85236 103062 104004 18768 22.0 Share of Overseas Busine
Slide 5: Constantly Growing CASA / Business Performance - Deposits
CONSTANTLY GROWING CASA (Rs. Cr.) Increasing CASA –Amt. in Cr. (yoy gr. %) % Share of CASA to Dom. Deposits 205583 36.16% 40.86% 41.31% 40.57% 41.63% 183781 (11.9%) 172872 (6.3%) (12.7%) 7.32% 153344 36157 7.96% 7.53% 7.41% 134129 (14.3%) 7.68% 33581 (11.5%) 31499 29874 28472 33.79% 33.15% 34.31% 32
Slide 6: Reducing Dependence on Bulk/High Cost Deposits
Reducing Dependence on Bulk/High Cost Deposits Share of High Cost Dep. to Total Deposits 0.1 12.49% 0.1 0.1 0.1 0.1 4.99% 0.0 2.42% 0.0 1.20% 0.59% 0.53% 0.24% 0.0 Mar'13 Mar'14 Mar'15 Jun'15 Sep'15 Dec'15 Mar'16 11 Business Performance of the Bank CREDIT 12 6
Slide 7: Approach for Credit Growth
Approach for Credit Growth Shift in focus during last 5 quarters Shift in focus from Corporate to Retail/MSME/Agriculture Credit De-risking of credit portfolio by focusing on growth of Small Ticket Advances Engagement of each business unit in contributing towards qualitative credit Profitable
Slide 8: Advances - Sectoral Classification
Advances - Sectoral Classification (Rs. Cr.) YoY Variation Sl. Parameters Mar'15 Dec'15 Mar'16 % Share Amt. (%) 1 Global Gross Advances 392422 405210 432775 100.0 40353 10.3 2 Overseas Advances 52435 55830 52926 12.2 491 0.9 3 Domestic Gross Advances 339987 349380 379849 87.8 39862 11.7 3a Large Ind
Slide 9: Advances to Infrastructure Sector / Investment
Advances to Infrastructure Sector- Breakup (Rs. Cr.) Variation Mar'15 Dec’ 15 Mar’16 Mar'16/Mar'15 Share % Share % Share % Amt. Amt. Amt. Amt. (%) to NFC to NFC to NFC Advances to Infrastructure 57023 17.1 61764 18.0 55106 14.7 -1917 -3.4 - Power 34620 10.4 37443 10.9 32582 8.7 -2038 -5.9 - Telecom
Slide 10: Domestic Treasury Operations - Highlights
Domestic Treasury Operations - Highlights (As on 31st Mar’16) Domestic Investment Book at Rs. 154727 Crore. Yield on Investment at 7.95% during Q4 FY 16. Share of SLR Securities in Total Investment at 77.14%. 64.9% of Total Domestic Investment in HTM. SLR as percentage to NDTL as on Mar’16
Slide 11: Profitability - Performance during Q4 & FY Mar'16
Profitability- Performance during Q4 & FY Mar’16 21 Profitability –Performance Highlights Operating Profit of the Bank crosses landmark of Rs. 12000 cr. (Over Rs. 10000 cr. for consecutive 5 years ). Consistently high Net Interest Margin at 2.60%. Decreasing Cost of Deposits (5.85%) / Funds (4
Slide 12: Consistently higher Operating Profit & Operating Income
Consistently higher Operating Profit & Operating Income (Rs. Cr.) Operating Profit 11384 11955 12216 10614 10907 9056 7326 5690 3617 4006 2917 Mar'06 Mar'07 Mar'08 Mar'09 Mar'10 Mar'11 Mar'12 Mar'13 Mar'14 Mar'15 Mar'16 Operating Income = Net Intt. Income +Non Intt. Income 22446 22189 20723 19072 17
Slide 13: Provisions / Income - head wise break up
(Rs. Cr.) Provisions Q4’ Q4’ YoY YoY Sl. Parameters FY 15 FY 16 FY 15 FY 16 Gr. % Gr. % 1 Provision towards NPAs 3281 11380 246.8 7979 18469 131.5 Standard Advances incl. 2 324 -1019 -414.3 491 -1385 -381.9 Standard Restructured 3 Depreciation on Investment 286 -80 -127.8 -567 345 -161.0 4 Income Ta
Slide 14: Fee Based Income / Expenditure - head wise break up
(Rs. Cr.) Fee Based Income-head wise break up Q4’ Q4’ Sl. Parameters FY 15 FY 16 FY 15 FY 16 1 Processing Fees 124 133 577 606 2 LC/LG Income 198 197 796 727 3 Bills & Remittance 120 110 483 473 4 Incidental Charges 52 53 201 194 5 Inc from ATM operations 93 118 384 402 6 Income from Ins & MF 30 42
Slide 15: Cost & Yield Ratios / Net Interest Margin
Cost & Yield Ratios (Annualized) FY FY Sl. Particulars Mar’15 Mar’16 1 Cost of Deposit [%] 6.09 5.85 2 Cost of Fund [%] 5.14 4.93 3 Yield on Advances [%] 9.88 9.10 4 Yield on Investment [%] 7.99 7.94 5 Yield on Fund [%] 8.00 7.28 6 Net Interest Margin [%] -Global 3.15 2.60 -Domestic 3.55 2.95 29 Net
Slide 16: Profitability Ratios / Asset Quality
Profitability Ratios (Annualized) FY FY Sl. Particulars Mar’15 Mar’16 1 Return on Assets [%] 0.53 Negative 2 Return on Net worth [%] 8.12 Negative 3 Opt. Profit to AWF [%] 2.06 1.88 4 Cost to Income Ratio [%] 46.74 44.94 5 Estb. Exp. To Total Exp. [%] 18.23 15.27 6 Opt. Exp. To AWF [%] 1.81 1.53 7 B
Slide 17: Eight months of war on Non Performing Assets
Eight months of war on Non Performing Assets Creation of ‘War Room’ at HO – real time monitoring of NPA recovery / reduction across Pan India. Minimum target of Rs. 50 lac per day per circle Increase in pace of growth in up gradation/recovery in NPA a/cs Cash recovery & Recovery in written off
Slide 18: Break up of Gross Credit as per Asset Class
Break up of Gross Credit as per Asset Class (Rs. Cr.) Standard Restructured Stressed Gross Year GNPA Adv. Standard (O/S) Advances Advances 1 2 3 4 (2+3) 5 (1+4) Mar’ 15 328412 38315 25695 64010 392422 % Share 83.69 9.76 6.55 16.31 100.00 Mar’ 16 356813 20144 55818 75962 432775 % Share 82.45 4.65 12.
Slide 19: Non-Performing Assets
Non-Performing Assets (Rs. Cr.) Sl. Parameters Mar'15 Mar'16 1 NPA as at the beginning of Yr. 18880 25695 2 Cash Recovery 2925 4262 3 Up-gradation 1000 1381 4 Write Off 5920 6485 5 Total Reduction (2+3+4) 9845 12128 6 Fresh Addition 16660 42252 -Fresh slippages 15692 41060 -Debits in existing NPA A/
Slide 20: Industry wise NPA & Slippages
(Rs. Cr.) Industry wise NPA & Slippages SLIPPAGE SLIPPAG Total Gross GNPA Standard Total Sl. INDUSTRY GNPAs E Q-4, Stressed Advances Ratio 2015-16 Restructured Stressed 15-16 Ratio 1 IRON AND STEEL 27666 14103 50.97 12820 7591 2562 16665 60.23 2 INFRASTRUCTURE 55106 8945 16.23 7311 4788 8777 17722 3
Slide 21: Reducing Restructured Advances / Capital Adequacy
Reducing Restructured Adv – Increasing Reduction Standard Restructured Total NPA Reduction (Rs. Cr.) 31.03.2016 20144 12128 (FY) 31.12.2015 35004 10064 (9M) 6745 38261 30.09.2015 (HY) 3680 39969 (Qtr) 30.06.2015 41 Capital Adequacy 42 21
Slide 22: Capital Conservation / Capital Adequacy (Basel III)
Capital Conservation/ new initiatives Diversification of loan portfolio towards low risk sectors & borrowers requiring lower RWAs Emphasis on better quality collaterals while taking fresh exposure to ensure capital conservation Efforts for sale of non-core assets to ensure release of capital 4
Slide 23: Expanding Network
Expanding Network 45 Branches ATM network 6200 6559 6759 9463 8348 6940 16% 16% 16% 21% 21% 21% Mar'14 Mar'15 Mar'16 24% 24% 24% Geographical Distribution of Branches 6% 39% 40% 39% 9% 37% 30% Mar'14 Mar'15 Mar'16 17% Rural Semi-Urban Urban Metro 1% NORTHERN NORTH-EASTERN EASTERN CENTRAL WESTERN SOU
Slide 24: Overseas Network / Shareholding Pattern
Overseas Network Bank has overseas presence in 9 countries i.e. Hong Kong, Dubai, UK, Bhutan, Kazakhstan, Australia, China, Nepal and Bangladesh. 4 Overseas branches, 2 in Hong Kong, 1 in Dubai and 1 Offshore Banking Unit at Mumbai. 2 subsidiaries viz. UK (Punjab National Bank International Lt
Slide 25: Way Forward
Way Forward 49 PNB Indradhanush Retail PNB Digital PNB 25
Slide 26: People before the Numbers / Digital PNB
People before the Numbers PNB UNIV: An online learning platform, available on all major Mobile Platforms. Provide quick access to quality curriculum and training 24x7 right on the palm top. ‘PNB Univ” will bring learning to people instead of people to learning’. PNB NAVODAYA: On-boarding & Mentoring
Slide 27: Digital PNB for Customer Convenience
DIGITAL PNB FOR CUSTOMER CONVENIENCE PNB Mobi-ease an android mobile app, introduced to facilitate SMS Banking customers execute their Banking operations through single touch. Mobile App namely “ATM Assist” launched to meet twin objectives of assisting and resolving ATM problems of the customers and
Slide 28: Growth in Rural & Semi-Urban areas where risk is lower
Growth in Rural & Semi-Urban areas where risk is lower Credit % Share GNPA % Share 4.35 4.61 15.27 10.95 22.67 53.86 19.92 68.37 Rural Semi-Urban Urban Metro Rural Semi-Urban Urban Metro • More than 60% of branches of the Bank are in Rural & Semi Urban area • These areas have low concentration of NP
Slide 29: Awards & Accolades
Awards & Accolades During FY’16, in recognition of its performance and initiatives in multifarious areas, PNB received various awards, some of the notable are: Golden Peacock National Training Award 2016 by Institute of Directors. Social Banking Excellence Awards 2015 under Rural Banking Category (L