Punjab National Bank · NSE:PNB
Punjab National Bank — Q3 FY2024 Earnings Presentation
49 slides from Punjab National Bank's earnings presentation, Jan 25, 2024
Slide 1: Analyst Presentation exchange filing letter
ls ...the name you can BANK upon! /'·... 7/ . ..a Amrit Mahotsav pnb one #JustOncRpp 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 National Stock Exchange of India
Slide 2: Financial Results Q3 & 9M FY'24
FINANCIAL RESULTS Q3 & 9M FY’24 December’2023 25th January 2024 Follow our Official Page ‘pnbindia.in’ …the name you can BANK upon!!!
Slide 3: Content
Content 1 Performance Highlights 3-5 2 Business Performance 6-16 3 Financial Performance 17-23 4 Asset Quality 24-30 5 Shareholding & Capital 31-32 Digitalization, 6 33-39 Cyber Security 7 HR, Network, 40-43 Group Business & RRBs 8 ESG, Awards & Guidance 44-46 Page I 2
Slide 4: Performance Highlights: Q3 FY'24
Performance Highlights : Q3 FY’24 ₹ 2223 Cr ₹ 6331 Cr ₹ 10293 Cr 1.26% Profitability 253.41% YoY 10.75% YoY 12.13% YoY 61 bps YoY Net Profit Operating Profit Net Interest Income Credit Cost % 6.24% 0.96% 94.28% 0.81% Asset Quality 352 bps YoY 234 bps YoY 911 bps YoY 136 bps YoY GNPA % NNPA % PCR (In
Slide 5: Increasing Profitability
Increasing Profitability Amt ₹ in Crore Net Profit Return on Assets (%) (Annualized) Return on Equity (%) (Annualized) 2223 0.58% 1756 7.00% 14.00% 12.45% 0.55% 0.46% 6.00% 12.00% 10.15% 1159 1255 0.45% 0.32% 0.34% 5.00% 10.00% 7.50% 0.35% 4.00% 8.00% 7.11% 629 0.17% 3.00% 411 0.25% 6.00% 3.85% 202
Slide 6: Improving Asset Quality
Improving Asset Quality Amt ₹ in Crore Gross NPA% Net NPA% Net NPA Amount 11.78% 11.27% 4.80% 34909 4.28% 31744 10.48% 29348 3.80% 26363 9.76% 3.30% 22585 8.74% 2.72% 17129 1.98% 13114 7.73% 1.47% 6.96% 0.96% 8816 6.24% Mar’22 June'22 Sept'22 Dec'22 Mar'23 June'23 Sept'23 Dec'23 Mar’22 June'22 Sept'
Slide 7: Business Mix
Business Mix Growth % Sl. Parameters Dec’22 Mar’23 Sept’23 Dec’23 Business Mix QoQ YoY YoY Gr : 10.8% 1 Global Business 2067116 2165844 2251631 2290742 1.7% 10.8% 1a Overseas Business 64640 64369 69405 71129 2.5% 10.0% 1b Domestic Business 2002476 2101475 2182226 2219613 1.7% 10.8% 941721 967256 884
Slide 8: Deposits & CASA Mix
Deposits & CASA Mix Amt ₹ in Crore Global Deposits Growth % Sl. Parameters Dec’22 Mar’23 Sept’23 Dec’23 YoY Gr : 9.3% QoQ YoY 1 Global Deposits (2+3) 1210359 1281163 1309910 1323486 1.0% 9.3% 1309910 1323486 1281163 2 Overseas Deposits 28998 29455 32727 34216 4.5% 18.0% 1210359 3 Domestic Deposits 1
Slide 9: Advances Performance
Advances Performance Amt ₹ in Crore Growth % Domestic Advances Parameters Dec’22 Mar’23 Sept’23 Dec’23 YoY Gr : 13.3% QoQ YoY 1 Global Advances (2+3) 856757 884681 941721 967256 2.7% 12.9% 930343 905043 821115 849766 2 Overseas Advances 35642 34914 36678 36913 0.6% 3.6% 3 Domestic Advances 821115 84
Slide 10: Core Retail Advances
Core Retail Advances Amt ₹ in Crore Core Retail* Home Loan YoY Gr.: 17.6% YoY Gr.: 15.1% 90579 147247 153384 87430 130421 137335 QoQ Gr.: 81863 4.2% QoQ Gr.: 78684 3.6% Dec'22 Mar'23 Sept'23 Dec'23 Dec'22 Mar'23 Sept'23 Dec'23 Vehicle Loan Personal Loan YoY Gr.: 26.2% YoY Gr.: 30.9% 19868 20696 1944
Slide 11: Priority Sector Achievement
Priority Sector Achievement Amt ₹ in Crore TOTAL PRIORITY SECTOR ADVANCES Agriculture Gold Loan @43.45% of ANBC against norm of 40% QoQ Gr.: 32.65% 4757 AGRICULTURE (PS) ADVANCES 3586 @19.89% of ANBC against norm of 18% 1478 ACHIEVED ALL SMALL & MARGINAL FARMERS 760 MANDATED @11.03% of ANBC against
Slide 12: Financial Inclusion Performance
Financial Inclusion Performance 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 61.9 31.71 33.58 60.31 246.29 50.91 239.07 25.86 Rural Self 202.32 Employment Training Insti
Slide 13: External Rating (Std FB) 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 Dec’22 Sept’23 Dec’23 0.06% 0.02% 0.02% Sl Rating Grade 2.80% 2.64% Amt. % Share Amt. % Share Amt. % Share 3.50% 4.16% 3.89% 3.80% 1 AAA 137175 46.42% 144871 44.42% 14
Slide 14: Diversified Industry Portfolio & Key Sectors
Diversified Industry Portfolio & Key Sectors Amt ₹ in Crore Energy Sector Dec’22 Sept’23 Dec’23 External Rating Standard Portfolio Diversified Industry 31.12.2023 : ₹ 42562 Cr Sl. % to % to % to Portfolio O/s Domestic O/s Domestic O/s Domestic External Rating wise Portfolio Advances Advances Advance
Slide 15: NBFC Sector
NBFC Sector Key Sectors As on External Rating Wise Portfolio – As on 31.12.2023 Dec’22 Sept’23 Dec’23 NBFC-Housing Finance Companies NBFC-PSUs and PSU backed NBFC 127832 123843 127671 Out of which, A BBB Unrated 586 13 16 NBFC- HFC 46958 39687 36179 1.62% 0.04% 0.04% A, 1,651 , 5% NBFC- PSUs and PSU
Slide 16: Investment Portfolio
Investment Portfolio Amt ₹ in Crore YoY Variation Sl. Parameters Dec’22 Sept’23 Dec’23 Amt. % 1 Gross Domestic Investment 395674 423772 418301 22627 5.7% a SLR 292638 315604 310248 17610 6.0% SLR as % to Dom. Investment 73.96% 74.48% 74.17% b Non SLR 103036 108168 108053 5017 4.9% I Held To Maturity
Slide 17: Non SLR Investment
Non SLR Investment Amt ₹ in Crore Dec’22 Sept’23 Dec’23 Y-o-Y Variation Sl. Parameters O/S % Share O/S % Share O/S % Share Amt Gr. % 1 PSU Bonds 15873 15.41% 20371 18.83% 20466 18.94% 4593 28.9% 2 Corporate and Other Bonds & Debentures 15826 15.36% 15129 13.99% 17227 15.94% 1401 8.9% 3 Special Govt.
Slide 18: Balance Sheet - Liabilities & Assets
Balance Sheet-Liabilities & Assets Amt ₹ in Crore Sl. Parameters 31st Dec’22 30th Sep’23 31st Dec’23 CAPITAL & LIABILITIES 1 Capital 2202 2202 2202 2 Reserves and Surplus 97213 100671 102914 3 Deposits 1210359 1309910 1323485 4 Borrowings 65470 52927 61729 5 Other Liabilities and Provisions 26553 31
Slide 19: Income
Income Amt ₹ in Crore Q3 Q2 Q3 QoQ Variation YoY Variation Sl. Parameters 9M23 9M24 YoY Gr. % FY23 FY24 FY24 Amt. % Amt. % 1 Interest Income (2+3+4) 22384 26355 27288 933 3.5% 4904 21.9% 61295 78788 28.5% 2 Interest on Advances 14868 18464 19605 1141 6.2% 4737 31.9% 40676 55826 37.2% 3 Interest on I
Slide 20: Expenses
Expenses Amt ₹ in Crore Q3 Q2 Q3 QoQ Variation YoY Variation Sl. Parameters 9M23 9M24 YoY Gr. % FY23 FY24 FY24 Amt. % Amt. % 1 Total Interest Paid (2+3+4) 13205 16432 16995 563 3.4% 3790 28.7% 36303 49068 35.2% 2 Interest Paid on Deposits 12113 15319 15804 484 3.2% 3691 30.5% 33562 45699 36.2% 3 Int
Slide 21: Profit & Provisions
Profit & Provisions Amt ₹ in Crore Q3 Q2 Q3 QoQ Variation YoY Variation Sl. Parameters 9M23 9M24 YoY Gr. % FY23 FY24 FY24 Amt. % Amt. % 1 Net Interest Income 9179 9923 10293 370 3.7% 1114 12.1% 24993 29720 18.9% 2 Other Income 3338 3028 2674 -354 -11.7% -664 -19.9% 8722 9136 4.7% 3 Operating Income
Slide 22: Efficiency Ratios (Quarter)
Efficiency Ratios (Quarter) Cost of Deposits [%] (Annualized) Cost of Funds [%] NIM [%] 4.96% 4.94% 4.32%4.27% 4.42%4.37% 3.16%3.30% 3.11%3.24% 3.15%3.30% 4.86% 4.84% 4.15% 4.15% 3.66%3.65% Dec'22 Sept'23 Dec'23 Dec'22 Sept'23 Dec'23 Dec'22 Sept'23 Dec'23 (Q3) (Q2) (Q3) (Q3) (Q2) (Q3) (Q3) (Q2) (Q3)
Slide 23: Efficiency Ratios (9 Months)
Efficiency Ratios (9 Months) (Annualized) Cost of Deposits [%] Cost of Funds [%] NIM [%] 4.79% 4.78% 4.85% 4.83% 4.25% 4.21% 4.31% 4.26% 3.95% 3.98% 3.49% 3.52% 3.00% 3.12% 3.09% 3.22% 3.11% 3.25% Dec'22 Sep'23 Dec'23 Dec'22 Sep'23 Dec'23 Dec'22 Sep'23 Dec'23 (9M) (HY) (9M) (9M) (HY) (9M) (9M) (HY)
Slide 24: Key Ratios
Key Ratios (Annualized) Q3 Q2 Q3 9M 9M Sl. Profitability Ratios FY23 FY24 FY24 FY23 FY24 1 Return on Assets [%] 0.17% 0.46% 0.58% 0.13% 0.46% 2 Return on Equity [%] 3.85% 10.15% 12.45% 2.85% 10.01% 3 Net Profit Per Employee [₹ in Lacs] 2.54 7.20 9.16 1.82 7.21 4 Net Profit Per Branch [₹ in Lacs] 24.
Slide 25: 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 31.12.23 Provisions Position as on 31.12.23 Provisions Loan and aggregate under OTR 1 Made# Loan and aggregate under OTR 2 Made# Sl. Sl. ex
Slide 26: Improving Asset Quality - SMA 2 Accounts
Improving Asset Quality –SMA 2 Accounts ( > Rs.5.00 Crore) Amt ₹ in Crore Dec’22 Sept’23 Dec’23 CATEGORY % of Domestic % of Domestic % of Domestic SMA2 SMA2 SMA2 Advances Advances Advances RETAIL 46 0.01% 118 0.01% 86 0.01% AGRICULTURE 260 0.03% 360 0.04% 239 0.03% MSME 1107 0.13% 958 0.11% 852 0.09
Slide 27: Movement of NPA
Movement of NPA Amt ₹ in Crore Sl. Parameters Q3 FY’23 9M FY’23 Q2 FY’24 Q3 FY’24 9M FY’24 1 NPA as at the beginning of Year/Quarter 87035 92448 70899 65563 77328 2 -Cash Recovery 1820 7956 2179 1828 5656 3 -Up-gradation 1328 4399 1319 1217 3044 4 Cash Recovery & Up-gradation (2+3) 3148 12355 3498 3
Slide 28: Asset Classification & Recovery v/s Slippages
Asset Classification & Recovery v/s Slippages Amt ₹ in Crore Dec’22 Sept’23 Dec’23 YoY Variation Sl. Parameters O/S Share% O/S Share% O/S Share% Amt. Var. % 1 Standard 773173 90.24% 876158 93.04% 906885 93.76% 133712 17.29% Recovery v/s Slippages 2 Gross NPA 83584 9.76% 65563 6.96% 60371 6.24% -2321
Slide 29: NPA Classification - Sector Wise
NPA Classification - Sector Wise Amt ₹ in Crore Dec’22 Sept’23 Dec’23 Sl. Parameters Advances GNPA GNPA% Advances GNPA GNPA% Advances GNPA GNPA% 1 Retail Loans 179984 6088 3.38% 218230 5487 2.51% 214215 5254 2.45% 2 Agriculture 138201 26644 19.28% 146598 23904 16.31% 154129 23265 15.09% 3 MSME 12472
Slide 30: NPA Classification - Industry Wise
NPA Classification- Industry Wise Amt ₹ in Crore Dec’22 Sept’23 Dec’23 Sl. Diversified Industry Portfolio O/s GNPA GNPA % O/s GNPA GNPA % O/s GNPA GNPA % 1 Infrastructure 91831 5333 5.8% 96380 2517 2.6% 97570 3346 3.4% -Energy 38814 1144 2.9% 43437 450 1.0% 43862 1300 3.0% -Tele-Communication 9259 1
Slide 31: Exposure to NCLT (Admitted) Accounts
Exposure to NCLT (Admitted) Accounts As on 31.12.2023 Amt ₹ in Crore Sl. Parameters Accounts Balance Provision PCR% 1 RBI list 1 4 3554 3554 100.00% 2 RBI list 2 10 4705 4705 100.00% 3 Filed by PNB 122 7643 7603 99.47% 4 Filed by Other Lenders 417 43662 43598 99.85% 5 Total 553 59564 59460 99.83% 75
Slide 32: Share Holding and Ratings
Share Holding and Ratings Shareholding as on 31.12.2023 PNB’s Rating Moody’s Fitch PNB’s Rating- PNB’s Rating- Baa3/P-3/ Stable BBB-/F3/Stable Others: 1.26% FPIs: 3.10% PNB’s BOND RATING Resident Individuals: 8.76% Basel III S.N Rating Agency Additional Tier-1 Mutual Funds: 4.81% Tier-II Bonds Ratin
Slide 33: Capital Adequacy
Capital Adequacy Amt ₹ in Crore Risk Weighted Assets Capital & CRAR Sl. Parameters Dec’22 Mar’23 Sept’23 Dec’23 1 Total RWA 636099 658982 708086 737201 Sl. Parameters Dec’22 Mar’23 Sept’23 Dec’23 Out of Which, 1 Total Capital (Tier I+II) 96385 102157 106839 107886 a Credit RWA 527908 551575 585005 6
Slide 34: Augmenting Digital Base
Augmenting Digital Base No. of Digital Transactions Share of Digital Transactions –(9MFY24) 13.2% Numbers (in Crore) 461 86.8% 292 9MFY23 9MFY24 Share of Digital Txn Other Txns Internet Banking Users No. of UPI Transactions Numbers (In Crore) Numbers (in lakhs) 414 435 381 256 As on Dec'22 As on Dec
Slide 35: PNB ONE - Increasing Penetration
3 4 PNB ONE - INCREASING PENETRATION Dec’22 Dec’23 Dec’22 Dec’23 Avg Daily Avg Daily Activation Downloads 26K 37K (Quarter) 21K 38K (Quarter) Avg Daily Avg Daily 5.4 9.5 Login 11 19 Active Users Lakh Lakh (Quarter) Lakh Lakh (Quarter) No. of Avg Daily Activations 15 27 Transactions 92K 165K (Quarter
Slide 36: Diversified Digital Reach Across All Segments
Diversified Digital Reach Across All Segments MSME Liabilities Retail 1 Insta Saving Account 1 1 STP e-Mudra 1 Pre Approved Personal Loan 2 MSME Easy Renewal 2 SB through Tab for Existing Customers 2 Top-Up Pre Approved Personal Loan 3 Pre Approved Business Loan 3 Current A/c opening through Video-K
Slide 37: Customer Centric Major Digital Offerings
Customer Centric Major Digital Offerings Processes New Initiatives PNB One registration with Aadhaar Account Aggregator in PNB LenS Credit Card Saral App -Digital onboarding UPI 123 - Feature Phone Cash Withdrawal Through UPI UPI Global – International Transactions Waiver of OTP PMJJBY &
Slide 38: Turbocharging Digitalization Journey - Way Forward
Turbocharging Digitalization Journey-Way Forward Digital Business Next Gen Call Corporate CRM Center Platform Mobile App Portal which will utilize Use of Artificial Intelligence Dedicated Mobile Single Platform for all detailed information Customer Segmentation application for Digital Jour
Slide 39: Data Analytics - Insights Through Analytics
Data Analytics – Insights Through Analytics Collections & Risk Business Profitability NPA Management Mitigation Analytics Based Business Analytics based Machine Learning Proactive Augmentation leads across Based Optimization Analytics Based business segment. approach for (Amt ₹ in Crores) of
Slide 40: Cyber-Security - Keeping Cyber Threats at Bay
Cyber-Security – Keeping Cyber Threats at Bay MAJOR INITIATIVES CONTROLS ACROSS ALL LAYERS ISO 27001:2013 certification is implemented for data centers, Disaster Recovery Infrastructure Security Data Security Centers (DRC), and Network Operation Centers (NOC) Ensuring overall IT Data protection (r
Slide 41: HR Transformation Project
HR Transformation Project Comprehensive LDP to prepare future Bank leaders on behavioral aspects for 900+ Officers. Clarity of roles & LDP ongoing for Top expectations from Management Officials along each employees with Clear tracking, with One-to-One Coaching well-defined, measurement & vis
Slide 42: Distribution Network & Social Media Presence
Distribution Network & Social Media Presence As on 31.12.2023 Total Touch Points :- 52331 International Presence Branches ATM BCs Branches at:- Dubai and Gift City, Gandhinagar 115 7 (Domestic) 12455 Subsidiaries:-London(UK) and Bhutan 10108 29768 350 Joint Venture:- Nepal Delhi : 314 913 Representa
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 – 28.13% 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 Dec’23 (9M) 5585 3797 1788 1334 Consolidated Q3 FY’23 Q3 FY’24 YOY Position Dec’22 Dec
Slide 45: Bank's ESG Highlights
Bank’s ESG Highlights Environmental Social Governance • PNB Palaash – Go Green Initiate of PNB • 12 Farmer Training Centers imparted Well defined policies and SOPs such 21000+ employees trained over 128 sessions training to 24,840 persons during as - Planted more than 1 Lac trees. Q3’FY24. • Cyb
Slide 46: Awards & Accolades
Awards & Accolades 1 2 IBSi Global Fintech Innovation Awards SCOPE Meritorious Awards Best Digital Channel/Platform for the PNB ONE-Super App Innovative Practices in Women Empowerment 2016-17 Best Transaction Banking Commendation Certificate Implementation 3 In EASE Reform Index for Q2FY’24 4 PNB re
Slide 47: Guidance vs Actuals for December'23
Guidance vs Actuals for December’23 Actuals Actuals Actuals Parameters Guidance for FY’24 Jun’23 (3M) Sept’23 (HY) Dec’23 (9M) Credit Growth % (YoY) 12% - 13% 14.58% 13.43% 12.90% Deposit Growth % (YoY) 10% - 11% 14.18% 9.75% 9.35% CASA Share % 43% - 44% 41.90% 42.15% 42.47% Operating Profit (YOY) 1
Slide 48: 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 49: Thank You
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