Punjab National Bank · NSE:PNB
Punjab National Bank — FY2010 Earnings Presentation
40 slides from Punjab National Bank's earnings presentation, March 2010
Slide 1: Presentation on Performance for the Quarter/Year ended March'10
… the name you can BANK upon! Presentation on Performance for the Q Quarter/Year t /Y ended d dMMarch’10 h’10
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: Overview of Performance
Overview of Performance Operating Profit : Rs. 7326 Cr Ï 28.80% Net Profit : Rs. 3905 Cr Ï 26.40% Total Business : Rs. 435931 Cr Ï 19.60% Deposits : Rs. 249330 Cr Ï 18.90% Credit : Rs. 186601 Cr Ï 20.60% Total Assets : Rs. 296633 Cr Ï 20.10% 3
Slide 4: Profit
Profit (Rs. Crore) Variation (Q4’10 over Q4’ Q4’ Q3’ Q4’09) Sl. Parameters FY’09 FY’10 FY’10 Amt. (%) 1 I Interest Income I 5117 5608 5389 491 96 9.6 2 Interest Expenses 3336 3110 3177 ‐226 ‐6.8 3 NII (Spread) (1‐2) 1781 2498 2212 717 40.3 4 Other Income 931 935 848 4 0.4 5 Operating Expenses 1174 1
Slide 5: Quarter Profit from Core Operations
Quarter Profit from Core Operations (Rs crore) (Rs. Variation Q4'10 over Q4'09 Q4' Q4' Growth Particulars FY09 FY10 Amt. (%) Net Profit f Declared l d 866 1135 269 31.1 Treasury Trading Profit 238 138 ‐101 ‐42.2 Depreciation ep ec at o oon Investments est e ts ‐42 ‐6 6 36 ‐85.2 85 Net Profit (Exclud
Slide 6: Provisions
Provisions ((Rs. Crore)) Q4’ Q4’ Q3’ Sl. Particulars FY 2009 FY 2010 FY 2010 Net Provision towards NPAs (Net 1 of floating provisions) 139 462 326 2 Standard Advances 16 49 10 3 Standard Restructured 134 115 ‐82 82 4 Depreciation on Investment ‐42 ‐6 42 5 Income co e Tax a 455 576 525 6 Others ‐29 1
Slide 7: Break-up: Income
Break-up : Income (Rs. Crore) Variation (Q4’10 Qtr’4 Qtr’4 Qtr’3 over 2009 2010 2009 Q4’09) Sl. Parameters Amt. (%) 1 Interest on Advances 3951 4330 4194 379 9.6 2 Interest on Investments 1146 1228 1167 82 7.2 3 Other Interest Income 20 50 28 30 148.8 4 Interest Income (1+2+3) (1 2 3) 5117 5 5608 53
Slide 8: Fee Based Income
Fee Based Income ((Rs. Crore)) Q4 Q4’ Q4 Q4’ Q3 Q3’ Sl. Particulars FY 2009 FY 2010 FY 2010 1 Bills 32 35 37 2 LC/LG 103 134 132 3 Locker Rent 12 13 12 4 Processing Fees 125 153 115 5 Income from 3rd party prod. 0 6 3 6 Exchange h Profit fi 42 2 122 75 7 Others 277 194 240 Total 591 657 614 8
Slide 9: Break-up: Expenditure
Break-up : Expenditure (Rs. Crore) Variation (Q4’10 over Q4’’ Q4’’ Q3’’ Q4’09) ’ ) Sl. Parameters FY’09 FY’10 FY’10 Amt. (%) 1 Intt. Paid on Deposits 3122 2852 2920 ‐270 ‐8.65 2 Intt. Intt Paid on Borrowings 32 8 8 ‐24 24 ‐75.00 75 00 3 Others 182 250 248 68 37.36 4 Total Interest Paid (1+2+3) 3336
Slide 10: Cost & Yield Ratio
Cost & Yield Ratio ((Annualized)) Q4’ Q3’ Q4’ Sl. Particulars FY FY FY 2010 2009 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 I
Slide 11: 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 15.52
Slide 12: 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% 12
Slide 13: Profit: Full Year
Profit: Full Year (Rs. Crore) Variation Sl. Parameters Mar’08 Mar’09 Mar’10 Y‐O‐Y Amt. (%) 1 Interest Income 14265 19127 21467 2340 12.2 2 Interest Expenses 8731 12295 12944 649 5.3 3 NII (Spread) (1‐2) 5534 6832 8523 1691 24.8 4 Other Income 1998 3065 3565 500 16.3 5 Operating Expenses 3525 4206 47
Slide 14: Provisions: Full Year
Provisions: Full Year ((Rs. s CCrore) o e) Particulars Mar’08 Mar’09 Mar’10 1 Provisions for Depreciation on 1. Investment (Net) 104 ‐216 68 2. Net Provision towards NPAs (Net of floating provisions) 377 816 992 3. Standard Assets 139 65 59 4. Standard Restructured 4 132 233 4. Others 87 127 70 5. P
Slide 15: Income: Full Year
Income : Full Year (Rs. Crore) Variation Y‐O‐Y Sl. Parameters Mar’08 Mar’09 Mar’10 Amt. (%) 1 Interest on Advances 10439 14584 16701 2117 14.5 2 Interest on Investments 3611 4265 4577 312 7.3 3 Other Interest Income 215 278 189 ‐89 ‐32.1 4 Interest Income (1+2+3) 14265 19127 21467 2340 12.2 5 Other
Slide 16: Fee-Based Income: Full Year
Fee –Based Income: Full Year (Rs. Crore) Sl.No. Particulars Mar’08 Mar’09 Mar’10 1 Bill Bills 131 137 134 2 LC/BG 260 378 474 3 Locker Rent 35 44 48 4 Processing Fees 270 413 570 5 Income from 3rd party prod. ‐ 3 10 6 Others 566 792 896 7 Exchange Profit 211 294 314 8 Total 1473 2061 2446 16
Slide 17: Expenditure: Full Year
Expenditure : Full Year (Rs. Crore) Variation Sl. Parameters Mar’08 Mar’09 Mar’10 Y‐O‐Y Amt Amt. (%) 1 Interest Paid on Deposits 8265 11564 11966 402 3.5 2 Interest Paid on Borrowings g 59 119 54 ‐65 ‐54.6 3 Others 407 611 924 313 51.2 4 Total Interest Paid (1+2+3) 8731 12295 12944 649 5.3 5 Establi
Slide 18: 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 19: 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 23.52 24.06 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 17.72
Slide 20: Business
Business (Rs. Crore) Variation Sl. Parameters Mar’08 Mar’09 Mar’10 Mar’09‐Mar’10 Amt. (%) 1 Total Business 285959 364463 435931 71468 19.6 2 Total Deposit 166457 209760 249330 39570 18.9 3 Net Advances 119502 154703 186601 31898 20.6 4 CD Ratio [[%]] 71.79% 73.75% 74.84% 20
Slide 21: Deposit
Deposit (Rs. Crore) Variation Sl. Parameters Mar’08 Mar’09 Mar’ 10 Mar’09‐Mar’10 Amt. ( ) (%) 1 Total Deposit 166457 209760 249330 39570 18.9 2 Bulk + CD 35821 45050 48322 3272 7.3 2a Bulk lk 23072 24996 21782 ‐3214 ‐12.9 2b CD 12749 20054 26540 6486 32.3 p 3 Core Deposit 127232 156267 192297 36030
Slide 22: Advances
( Rs. Crore) Advances Share to Variation Sl. Parameters Mar’08 Mar'09 Mar’10 Gross Non‐ Mar’09‐Mar’09 food Credit Amt. (%) Gross Global Advances 120336 156207 188306 32099 20.6 International Credit 33 3825 6973 3148 82 3 82.3 1 Gross Domestic Advances 120303 152382 181333 ‐ 28951 19.0 1a Food Credit
Slide 23: Advances - Sectoral Deployment
Advances- Sectoral Deployment (Rs. Crore) Mar’08 Mar’09 Mar’10 Major Industry wise Industry Industry Industry Deployment Amt. Amt. Amt. Share (%) Share (%) Share (%) Mining @ Quarrying 685 14 1.4 754 1 17 1.17 1093 12 1.2 Food Processing 4993 10.0 5100 7.89 3324 3.7 Textiles 5645 11.3 4310 6.67 6054
Slide 24: Investment
Investment (Rs. Crore) M ’08 Mar’08 M ’09 Mar’09 M ’10 Mar’10 1 Gross Investment 54912 63761 78058 2 Held To Maturity (HTM) 39424 48355 61013 3 Available For Sale (AFS) 15487 15195 13973 4 Held For trading (HFT) ‐ 211 3072 5 Duration (AFS) 2.18 2.58 2.34 6 Modified Duration (AFS) 2.06 2.45 2.23 7 Du
Slide 25: Non-Performing Assets
Non-Performing Assets ( Rs. Crore) Sl. Parameters Mar’08 Mar’09 Mar’10 1 NPA as at the beginning of Yr. 3391 3021 2507 2 Cash Recovery 1039 1331 950 3 Upgradation 365 448 328 4 Write i Off ff 621 466 853 5 Total Reduction (2+3+4) 2025 2245 2131 6 Fresh Addition 1953 1731 2838 7 Gross NPAs end period
Slide 26: NPA Ratios
NPA Ratios (In per cent) Sl. Parameters Mar’08 Mar’09 Mar’10 Mar’10 Excll Ag Debt Relief Declared NPA Net NPA (%) 0.64 0.17 0.53 0.35 1 Gross NPA (%) 2.5 1.6 1.71 1.53 2 NPA Coverage Ratio (%) 83.53 93.51 81.17 86.80 3 # Rs Rs..338 cr cr.. added to NPA on account of unrecovered amount of Debt Relief
Slide 27: Restructured Accounts
Restructured Accounts (Rs. Crore) Sl. Particulars No. Amt. 1 Below Rs. 1 Crore 14625 613 2 Rs. 1 Crore & above 582 11482 3 Total 15207 12096 3a of which up to Mar'09 12658 4075 3b During April'09 to Mar’10 2549 8021 Of Total account restructured as at 3 above 4 Standard A/c restructured 14357 11732
Slide 28: Sectorwise Restructured Accounts
Sectorwise Restructured Accounts (Rs. Crore) Sl. Particulars Mar'09 Mar’10 Total Amt. Diminutio 1 Agriculture 31 63 94 Restructured No. of Sl. Restrct n in Fair 2 Housing 17 5 22 Accounts Borrowers . Value 3 Real Estate 467 935 1402 1 Under CDR 14 1706 187 4 Industry 2452 6550 9002 of which 2 Under
Slide 29: Capital Adequacy (Basel II)
Capital Adequacy (Basel II) (Rs. Crore) Sl. Particulars Mar’08 Mar’09 Mar’10 Capital Fund 1 Tier I 11460 13800 17400 2 Tier II 5738 7770 9536 3 Total ((Tier I+II)) 17197 21570 26937 4 Risk‐weighted Assets 127809 153692 190233 5 Capital Adequacy Ratio (%) 13.46 14.03 14.16 6 Tier I (%) 8.97 8.97 9.15
Slide 30: 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 (Rs. Cr.) 66.29 81.04 87.17 4 B siness Per Emplo Business Employee ee (Rs (Rs. Cr Cr.)) 5 05 5.05 6
Slide 31: 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. (Rs. crore) securities (Rs. Crore) Mar’09 Mar’10 Mar’09 Mar’ 10 Net Worth 207 267 Net Worth 538 558 Total Loans 2187 2508
Slide 32: 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 E Earning i per Share Sh B kV Book Value l per share h 600 515 140 123.86 120 50
Slide 33: Shareholding Pattern
Shareholding g Pattern (As on 31st March’10) MF & UTI 3.03% Insurance Co. 13.30% FII 19.10% Gov. 57.80% Non- Institutions 4.83% FIs/Banks 1.94% 33
Slide 34: 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 35: 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 36: 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 37: 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 38: 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 39: 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 40: Thank You
Th k You Thank Y 40