Punjab National Bank Financial Results for the Quarter Ended 30thJune 2022

Key Highlights:

Global Gross Advances grew by 10.21% on YoY basis to ₹ 800177 Crore.

 Retail Credit increased by 10.77% on YoY basis to ₹ 146321 Crore as at the end of June’22.
 CASA share improved by 119 bps to 46.34%.
 Savings deposits grew by 6.61% to ₹ 447258 Crore.
 Net profit for Q1 FY’23 was at ₹ 308 Crore and grew 52.48% on QoQ.basis.
 Operating Profit was at ₹ 5379 Crore during Q1 FY’23.
 Net interest income increased by 4.27% YoY to ₹ 7543 Crore.
 Fee based income increased by 25.68% YoY to ₹ 2055 Crore.
 Global NIM improved by 5 bps to 2.79% in Q1 FY’23 from 2.74% in June’21.
 GNPA ratio improved by 306 bps to 11.27% in June’22 from 14.33% in June’21.
 NNPA ratio improved by 156 bps to 4.28% in June’22 from 5.84% in June’21.
 PCR including TWO improved by 278 bps to 83.04% in June’22 from 80.26 % in June’21.
 CRAR improved to 14.82% in June’22 from 14.50% in March’22.
 CD ratio improved by 425 bps on YoY basis to 70.39% in June’22 from 66.14% in June’21.

Business Performance in Key Parameters (as on 30.06.2022)

 Global Gross Business increased by 6.21% on YoY basis to ₹ 1936923 Crore as at the end of June’22 as against ₹ 1823685 Crore in June’21
 Global Gross Advances grew by 10.21% on YoY basis to ₹ 800177 Crore as at the end of June’22 as against ₹726036 Crore in June’21.
 Global Deposits grew by 3.56% on YoY basis to ₹ 1136747 Crore as at the end of June’22 as against ₹1097649 Crore in June’21.
 In Retail Segment,

o Core Retail Credit increased by 9.10% on YoY basis to ₹ 121349 Crore.
o Housing Loan increased by 5.25% on YoY basis to ₹ 74565 Crore.
o Vehicle loan increased by 34.25% on YoY basis to ₹ 13446 Crore.
o Personal Loan increased by 25.52% on YoY basis to ₹ 12938 Crore.

 MSME Advances increased by 3.15% to ₹ 124947 Crore.
 Agriculture Advances increased by 3.78% to ₹ 133237 Crore.
 Global Gross Advances grew by 10.21% on YoY basis to ₹ 800177 Crore.
 Retail Credit increased by 10.77% on YoY basis to ₹ 146321 Crore as at the end of June’22.
 CASA share improved by 119 bps to 46.34%.
 Savings deposits grew by 6.61% to ₹ 447258 Crore.
 Net profit for Q1 FY’23 was at ₹ 308 Crore and grew 52.48% on QoQ.basis.
 Operating Profit was at ₹ 5379 Crore during Q1 FY’23.
 Net interest income increased by 4.27% YoY to ₹ 7543 Crore.
 Fee based income increased by 25.68% YoY to ₹ 2055 Crore.
 Global NIM improved by 5 bps to 2.79% in Q1 FY’23 from 2.74% in June’21.
 GNPA ratio improved by 306 bps to 11.27% in June’22 from 14.33% in June’21.
 NNPA ratio improved by 156 bps to 4.28% in June’22 from 5.84% in June’21.
 PCR including TWO improved by 278 bps to 83.04% in June’22 from 80.26 % in June’21.
 CRAR improved to 14.82% in June’22 from 14.50% in March’22.
 CD ratio improved by 425 bps on YoY basis to 70.39% in June’22 from 66.14% in June’21.

 

PRIORITY SECTOR:

 Priority Sector Advances exceeded the National Goal of 40% and was at 41.85% of ANBC
 Agriculture advances exceeded the National Goal of 18% and was at 18.16% of ANBC
 Credit to Small and Marginal farmers exceeded the National Goal achievement of 9.5% and is at 9.78% of ANBC
 Credit to Weaker Sections exceeded the National Goal achievement of 11.5% and is at 13.42% of ANBC
 Credit to Micro Enterprises exceeded the National Goal achievement of 7.5% and is at 7.81% of ANBC.

 

PROFITABILITY:

Total Income of the Bank for Q1FY’23 was at ₹ 21294 Crore.
 Operating Income of the Bank for Q1FY’23 was at ₹ 10080 Crore.
 Total Interest Income of the Bank for Q1FY’23 was at ₹ 18757 Crore.
 Net Interest income grew by 4.27% in Q1FY’23 to ₹ 7543 Crore from ₹ 7234 Crore.
 Total Expenditure of the Bank for Q1FY’23 declined by 3.05% to ₹ 15915 Crore.
 Total interest Paid registered decline of 4.10% on YoY basis to ₹ 11214 Crore in Q1 FY’23 from ₹ 11694 Crore in Q1 FY’22.

EFFICIENCY RATIO:

Cost to income ratio for Q1 FY’23 was at 46.63%.
 Global Cost of Deposits improved to 3.79% in Q1 FY’23 from 4.08% in June’21.
 Yield on Advances at 6.49% in Q1 FY’23. Yield on Investment at 6.36% in Q1 FY’23.
 Business per employee improved to ₹ 1914 lacs in June’22 from ₹ 1854 lacs in June’21.

ASSET QUALITY:

Gross Non-Performing Assets (GNPA) were at ₹ 90167 Crore as on June’22 as against
₹ 104076 Crore as on June’21 declined by 13.36% on YoY basis and 2.46% on QoQ basis.
 Net Non-Performing Assets (NNPA) were at ₹31744 Crore as on June’22 as against
₹ 38581 Crore in as on June’21 declined by 17.72% YoY and 9.06% on QoQ basis.
 Provision Coverage Ratio excluding TWO improved by 186 bps to 64.79% in June’22.
 Slippage ratio declined by 192 bps to 3.75% in June’22.

CAPITAL ADEQUACY:

 CRAR improved to 14.82% in June’22 from 14.50% as at March’22. Tier-I is at 12.10%
(CET-1 was at 10.94%, AT1 was at 1.16%) and Tier-II is at 2.72% as at June’22.

DIGITALIZATION:

Internet Banking Services (IBS) users increased to 347 (32.44% YoY) Lakhs as at June’22
 Mobile Banking Services (MBS) users increased 38.24% YoY to 347 Lakhs as at June’22 from
251 Lakhs in June’21.
 UPI transactions increased by 106% to 74.97 Crore as at June’22.

FINANCIAL INCLUSION:

Amount mobilized under Pradhan Mantri Jan Dhan Yojana stood as below:
Particulars 30.06.2021 30.06.2022
Accounts opened under PMJDY (No. in Lakh) 395 429
Deposit mobilized by BCs –(Amt in ₹ Crore) 13487 17883
 Enrollment under PMJJBY, PMSBY & APY:-
(No. In Lacs)
JANSURAKSHA SCHEME ENROLLMENT UP TO 30.06.2021 30.06.2022
Pradhan Mantri Jeevan Jyoti Bima Yojana 34.61 45.36
Pradhan Mantri Suraksha Bima Yojana 149.32 187.03
Atal Pension Yojana 14.80 21.74

DISTRIBUTION NETWORK:

 As on 30th June’22, the Bank has 10058 number of Domestic branches. Rural: 3853 Semi-Urban: 2450, Urban: 2015 & Metro: 1740, International Branches 2, 13219 number of ATMs.

NEW INITIATIVES- Q1FY23:

PNB is the 2nd PSU Bank to go live on Account Aggregator System.
 Pre-approved personal loans in just 60 seconds through 4 clicks and 1 OTP.
 1st PSU Bank in loan repayment through Digital Platforms viz. Paytm, PhonePe, Google pay etc.
 Pre-approved e-Mudra loan through PNB Website.
 Bank has set up 8 Digital Banking Unit.
 Pivot towards tablet based a/c opening.
 Pensioner Life Certificate through Video KYC.
 Introduction of schedule call facility in Video calling.

AWARDS AND ACCOLADES:

 13th Annual Retail Banker International Trailblazer Awards under the category “Best Core Banking System Initiative.”
 13th Annual Retail Banker International Trailblazer Awards- “Highly Recommended” under the category “Most Innovative Branch Offerings”
 National MSME Awards 2022 (Third prize) for contribution towards the promotion and
development of the MSME sector
 Recognized by PFRDA for performance under National Pension System (NPS) in Quarterly.