by Suman Gupta
Mumbai, May 2023: Punjab National Bank announced their Annual Financial Results for the FY 2022-2023. Net profit for Q4 FY23 was at ₹1159 Crore and grew by 473.6% on YoY basis. Operating Profit was at ₹ 5866 Crore during Q4 FY23 grew by 11.4% on YoY basis. Net interest income increased by 30.05% YoY to ₹9499 Crore in Q4 FY’23. Global NIM improved by 48 bps on YoY basis to 3.24% in Q4 FY23 from 2.76% in Q4 FY’22. GNPA ratio improved by 304 bps on YoY basis to 8.74% as on March’23 from 11.78% as on March’22. NNPA ratio improved by 208 bps on YoY basis to 2.72% as on March’23 from 4.80% as on March’22. Provision Coverage Ratio (including TWO) improved by 530 bps on YoY basis to 86.90% as on March’23 from 81.60% as on March’22. Credit Cost declined by 73 bps on YoY basis to 1.72% in Q4 FY’23. Global Business increased by ₹234522 Crore (12.14%) on YoY basis to ₹2165844 Crore as on March’23 as against ₹1931322 Crore as on March’22. Global deposits grew by 11.77% on YoY basis to ₹1281163 Crore as on March’23. Global Advances grew by 12.68% on YoY basis to ₹884681 Crore as on March’23. RAM share improved by 408 bps on YoY basis to 55.31% as on March’23.
Business Performance in Key Parameters (March’23) were good. Savings deposits increased to ₹463987 Crore as on March’23 from ₹451680 Crore as on March’22. Current deposits were at ₹74028 Crore as on March’23. CASA Share (Domestic) stands at 43.0% as on March’23. Core Retail Advances grew YoY by 15.21% to ₹137335 Crore as on March’23. Within Core Retail Credit: Housing Loan increased by 10.92% on YoY basis to ₹81863 Crore. Vehicle loan increased by 30.62% on YoY basis to ₹16478 Crore. Personal Loan increased by 48.87% on YoY basis to ₹18152 Crore. Agriculture Advances grew by 14.34% on YoY basis to ₹142105 Crore in March’23. MSME Advances grew by 4.12% on YoY basis to ₹130178 Crore in March’23
Profitability witnessed a growth. Net interest income was at ₹ 9499 Crore for Q4 FY’23 recording growth of 30.0% on YoY basis and ₹34492 Crore for FY’23 recording growth of 20.2% on YoY basis. Total Income of the Bank for Q4 FY’23 was ₹27269 Crore and ₹97287 Crore for FY’23 recording growth of 29.3% and 11.6% respectively on YoY basis. Total Interest Income of the Bank for Q4 FY’23 was at ₹23849 Crore and ₹85144 Crore for FY’23 recording growth of 27.9% and 13.7% respectively on YoY basis. Non-interest income for Q4 FY’23 was at ₹3420 Crore and it grew by 39.6% on YoY basis. Total Interest Expenses of the Bank for Q4 FY’23 was at ₹14350 Crore and ₹50652 Crore for FY’23 recording growth of 26.5% and 9.7% respectively on YoY basis. Other Operating Expenses for Q4 FY’23 was at ₹2482 Crore and it grew by 6.5% on YoY basis.
Efficiency Ratio saw the Global Yield on Advances improved to 7.94% in Q4 FY’23 as compared to 6.64% in Q4 FY’22. Global Cost of Deposits increased to 4.54% in Q4 FY’23 as compared to 3.90% in Q4 FY’22. Business per employee improved to ₹ 21.64 Crore in March’23 from ₹19.41 Crore in March’22.. Business per branch improved to ₹ 209.53 Crore in March’23 from ₹187.73 Crore in March’22. Net profit per employee improved by 5.74 times to ₹4.82 lakh in Q4 FY’23 from ₹0.84 lakh in Q4 FY’22. Net profit per branch improved to ₹46.64 lakh in Q4 FY23 from ₹8.11 lakh in Q4 FY’22.
Asset Quality
Gross Non-Performing Assets (GNPA) were at ₹ 77328 Crore as on March’23 as against ₹ 92448 Crore as on March’22 declined by 16.36% on YoY basis. Net Non-Performing Assets (NNPA) were at ₹22585 Crore as on March’23 as against ₹34909 Crore as on March’22 declined by 35.30% YoY basis. Provision Coverage Ratio (PCR) Excluding TWO improved by 855 bps YoY to 70.79% in March’23. Slippage ratio improved to 2.10% in Q4 FY23 from 6.47% in Q4FY’22.
Capital Adequacy (CRAR) improved from 14.50% as on March’22 to 15.50% as on March’23. Tier-I is at 12.69% (CET-1 was at 11.22%, AT1 was at 1.47%) and Tier-II is at 2.81% as at March’23.
Financial Inclusion and Priority Sector
| Particulars | 31.03.2022 | 31.03.2023 |
| Accounts opened under PMJDY (No. in Lakh) | 418 | 459 |
| Deposit mobilized by BCs –(Amt in ₹ Crore) | 16445 | 21795 |
| JANSURAKSHA SCHEME ENROLLMENT UP TO | 31.03.2022 | 31.03.2023 |
| Pradhan Mantri Jeevan Jyoti Bima Yojana | 43.23 | 54.98 |
| Pradhan Mantri Suraksha Bima Yojana | 180.64 | 210.66 |
| Atal Pension Yojana | 20.10 | 28.11 |
| Sector | National Goal | Achievement as % of ANBC |
| Priority Sector | 40% | 41.25% |
| Agriculture (PS) | 18% | 18.16% |
| Small and Marginal farmers | 9.50% | 9.56% |
| Weaker Sections | 11.50% | 13.26% |
| Micro Enterprises | 7.50% | 7.67% |
PNB Digitalization showed an upward progress last fiscal. Share of Transaction through Alternate Delivery Channels increased to 92% in March’23 from 79% in March’22. Share of Digital Transactions increased to 85% in March’23 from 69% in March’22. Number of UPI Transactions increased YoY by 81% to 362 Crore during FY’22-23. Internet Banking users recorded 15% YoY Growth during FY’22-23.
PNB One App Adoption saw average daily downloads increased by 2.2 times from 14.6 thousand in March’22 to 32.2 thousand in March’23. Average daily active users increased from 3.3 Lakh in March’22 to 6.3 lakh in March’23. Daily login improved from 6 Lakh in March’22 to 12 Lakh in March’23. Daily Transactions improved from 76 thousand in March’22 to 135 thousand in March’23.
Digital Journey of the bank started more than 40 digital initiatives during FY’2023 such as PAPL, e-OTS, eOD against FD, e-Mudra, Pre approved business loan, Fresh Digital KCC, Digital collection of EMI’s-UPI apps etc. Bank has disbursed ₹4007 Crore through Pre Approved Personal Loan (PAPL).Turnaround time of personal loan has reduced to 4 clicks from 3 days due to introduction of PAPL.
As on March’23, the Bank has 10,076 number of Domestic branches, of which, 3895 (39%) are in Rural, 2454 (24%) in Semi-Urban, 1997 (20%) in Urban & 1730 (17%) in Metro. The bank has 2 branches at Dubai and Gift City, Gandhi Nagar for international business. In addition to the above, the bank has 12,898 ATMs and 24,227 Business Correspondents as part of banking outlets.
Comprehensive HR transformation process started in the bank to improve employee productivity in following ways:
- Market-linked targets for each branch and Clarity of roles & expectations from each employees with well-defined, measurable Key Responsibility Areas (KRA).
- Comprehensive leadership development program to prepare future Bank leaders on functional and behavioral aspects.
- Personalized, role-based training interventions to upskill functional capabilities and Performance- linked rewards to acknowledge & motivate contributors.
The bank won numerous awards & accolades last year such as MSME Banking Excellence Award 2022 by Chamber of Indian Micro, Small and Medium Enterprises (CIMSME) for Best MSME Friendly Bank, Govt. Schemes implementing Bank, Implementing COVID related scheme Bank. Punjab National Bank was felicitated with ET Best BFSI Brands. Best MSME Bank (Runner Up) at 9th MSME Excellence Awards and Summit by ASSOCHAM. Achievement award for “Excellent Guarantee Coverage (number)” FY’23 by “Ministry of MSME”. First prize for outstanding contribution under PMEGP in Uttar Pradesh. Bank was recognized in third NPS Reward Recognition Programme (Maximum number of fresh Subscriber Registration) for FY’2022-23.
