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PNB’s Gross Domestic Business Crosses 10 lac Crore landmark

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PNB’s Gross Domestic Business Crosses 10 lac Crore landmark

Financial results for the quarter ended March 31, 2018, and FY ‘17-‘18

 

Key highlights:

  • CASA deposits increase to Rs. 2,63,247 Cr in March ‘18
  • Provisions for FY ‘18 amount to Rs. 22,577 Cr; provision coverage ratio: 58.42%
  • Operating profit for the FY ‘18 stood at Rs. 10,294 Cr
  • Net loss for FY ‘18 stood at Rs. 12,283 Cr; PNB makes higher than required provision amounting to Rs. 7178.42 Cr

 

New Delhi, May 15, 2018: Punjab National Bank announced its results for quarter ended March 31, 2018 and Financial year ‘17-‘18, today. In the fourth quarter, the bank’s gross domestic business grew 7.8% year-on-year over the corresponding period last year to Rs. 10.31 lakh crore. Total deposits of the bank recorded a growth of 3.3% year-on-year to reach Rs. 6,42,226 Cr as on March 2018. PNB’s CASA deposits increased to Rs. 2,63,247 Cr and CASA’s share in overall deposits was 43.85% in March 2018. Savings deposits increased to Rs. 2,22,873 Cr higher by Rs. 8711 Cr over March 2017.

The bank witnessed a decline in cost of deposits from 5.19% in Q4 FY ’17 to 4.84% in Q4 FY ’18. Cost of funds also came down from 4.46% in Q4 FY ’17 to 4.17% in Q4 FY ’18.

Operating profit for FY ’18 stood at Rs. 10,294 Cr while net loss for FY ’18 stood at Rs. 12,283 Cr. The provisions made by the bank amount to Rs. 22,577 Cr. The provision coverage ratio of the bank works out to be 58.42%. The bank has made higher than required provisions at the rate of 50% amounting to Rs. 7178.42 Cr and remaining provisions of Rs. 7178.42 Cr will be made during the first three quarters of the ensuing financial year in terms of RBI’s dispensation.

As on March 2018, Gross NPAs stood at Rs. 86,620 Cr (GNPA ratio 18.38%) while the Net NPA amount stood at Rs. 48,684 Cr (NNPA ratio 11.24%).

Several steps are in the pipeline or have already been initiated by the bank to reduce dependence on human intervention. The bank plans to rely on artificial intelligence (AI) for reconciliation of accounts and incorporate analytics for improving audit systems. Further, the internal audit process is also being augmented to give higher weight to the offsite monitoring mechanism and reduce dependence on physical inspection and audit to identify risks. To ensure proper checks and balances, Punjab National Bank has gone for a four-way split for loan operations and created a focused offsite centre for monitoring all foreign exchange businesses.  Sourcing and initial due diligence of loans will be done by one segment, processing and underwriting by a separate segment and monitoring, documentation to be yet another segment and recovery will be a separate vertical. Innovative steps have been taken by the bank to accelerate NPA recovery and a stressed asset vertical has been constituted for early identification of NPAs.

On the technology front, the bank has successfully upgraded to Finacle version 10.2.x. PNB has made great strides in encouraging its customers to use digital modes of payment. BHIM users have Crossed 9.5 lakhs, debit cards users were 6.6 Crores, internet banking users were 1.3 Crores and mobile banking customers were more than 1.1 Crore. The bank has added new applications to its digital product offerings such as pnb MobiEase, pnb Fin Literacy, pnb Yuva, pnb MBanking etc.

PNB has constantly been achieving National Goals and Targets allocated under flagship schemes of the nation for upliftment and employment of targeted groups. Achievement of Priority Sector is 40.9% against the target of 40%, Total Agriculture Advance is 18.5% against the target of 18%, Small and Marginal Farmers is 8.9% against the target of 8%, Micro Enterprises  accounts’ year-on-year growth is 12.8% against the target of 10% and Credit to Micro Enterprises is 7.6% of ANBC against the target of 7%.