Introduction
- The idea for the inception of Punjab National Bank was initially mooted by Arya Samaj’s Rai Mool Raj.
- Also known as PNB, the bank came into existence on 19 May 1894 in the current city of Lahore, Pakistan.
- The visionaries who brought this bank into existence include Babu Kali Prasono Roy, Lala Lajpat Rai, Lala Harikishan Lal, Sardar Dyal Singh Majithia, and Mr. E.C. Jessawala.
- It was Rai Mool Raj’s idea to provide Indians with their very own national bank.
- PNB currently employs 70,801 professionals as of March 2016.
- Owned by the government of India, Punjab National Bank is currently managed by Sunil Mehta (Chairman & M.D.).
- The bank flaunts the tagline “The Name You Can Bank Upon”.
Note : As per [latex]{2}^{nd}[/latex] October 2018 FY report, Punjab National Bank flaunts 80 million+ customers 7000 branches all over India, and 10681 ATMs in 764 different cities.
Positions
Punjab National Bank - Key Financial Position of Global Business
Punjab National Bank - Key Financial Position of Gross Domestic Business
Punjab National Bank - Key Financial Position of Global Deposit
Punjab National Bank - Key Financial Position of Gross Advances
| Financial Year | Global Business (INR Lakh Cr) |
|---|---|
| March 2018 | 10.76 |
| March 2017 | 10.41 |
| March 2016 | 9.65 |
| Financial Year | Gross Domestic Business (INR Lakh Cr) |
|---|---|
| March 2018 | 10.31 |
| March 2017 | 9.57 |
| March 2016 | 8.74 |
| Financial Year | Global Deposit (INR Lakh Cr) |
|---|---|
| March 2018 | 6.42 |
| March 2017 | 6.22 |
| March 2016 | 5.53 |
| Financial Year | Gross Advances (INR Lakh Cr) |
|---|---|
| March 2018 | 4.71 |
| March 2017 | 4.42 |
| March 2016 | 4.33 |
Performance
Punjab National Bank - Financial Performance
- Punjab National Bank experienced an increase in the percentage of assets by 6.32 percent from INR 7,20,331 Crore on 31st March 2017 to INR 7,65,830 Crore as of 31st March 2018.
- During the same period, the bank’s loan portfolio increased by a mark of 3.39 percent from INR 4,19,493 crore to INR 4,33,735 crore.
- Aggregate liabilities for the bank rose by a mark of 6.86 percent to INR 7,24,755 crore as of 31st March 2018.
- Deposits in the bank rose by a mark of 3.3 percent from INR 6,21,704 crore to INR 6,42,226 crore in the same time period.
- PNB achieved a whole new landmark that came with the Domestic Business surpassing INR 10 Lakh crore.
- Retail Advances increased by 15.5 percent for the Financial Year 2018 with a 16.6 percent growth in the Housing Loan Segment.
- Deposit costs by Punjab National Bank declined from the 5.33 percent mark to 4.96 percent.
Branches
Punjab National Bank - Banking Subsidiary & Branches
- PNB houses a banking subsidiary located in the UK named PNB International Bank along with 7 other branches in the country.
- PNB also has branches in cities such as Kowloon, Kabul, Dubai, and Hong Kong.
- The bank also has representative headquarters at Dubai (UAE), Almaty (Kazakhstan), Oslo (Norway), Sydney (Australia), and Shanghai (China).
| Types of Users | 2016 (in lakh) | 2017 (in lakh) | 2018 (in lakh) |
|---|---|---|---|
| Internet Banking Users | 53.25 | 95.46 | 130.07 |
| Mobile Banking Users | 32.96 | 83.24 | 121.61 |
Developments
Punjab National Bank - Important Developments
- The bank recently initiated development of paperless Green PIN to replace the printed ATM PIN.
- Apart from Green PIN, PNB has also opted for Instant Hot-Listing for Debit Cards via SMS, IVRS, and Internet Banking.
- The bank also launched the IFP (Integrated Fee Portal) with which the bank’s customers can be on-boarded for payment of fees via Internet Banking Gateway. The payment can be made via internet banking, credit card, and Debit card.
- Punjab National Bank also integrated with the NPCI to serve as a functional unit under the Bharat Bill Payment Operating Unit, which came live in 2017 September.
- The bank also facilitated Micro ATMs at the BC locations meant for both Off-US and On-US transactions.
- Punjab National Bank has a newly developed Cyber Crisis Management Plan in place to handle incidents related to cyber security crimes.
- The bank promoted digital usage via several digital campaigns in the past few years.
- Punjab National Bank also officially launched its first proof for Digital Branch with the PNB DIGIHUT with Head Office located at Dwarka.
Achievement
Punjab National Bank -National Goals Achievement (Quarterly Annual Average Basis)
The priority sector credit is comprised of the following segment:
| Percentage to ANBC | Target | 31 March 2016 | 31 March 2017 | 31 March 2018 |
|---|---|---|---|---|
| Priority Sector Credit | 40 | 40.75 | 40.35 | 40.94 |
| Credit Section | Target | 31 March 2016 | 31 March 2017 | 31 March 2018 |
|---|---|---|---|---|
| Agriculture Sector | 18 | 18.32 | 18.64 | 18.49 |
| Credit to Weaker Sections | 10 | 10.08 | 10.64 | 11.26 |
| Credit to Women Beneficiaries | 5 | 5.86 | 6.38 | 6.78 |
| Loan to Small & Marginal Farmers | 8 | 8.49 | 8.96 | 8.86 |
| Loan to Micro Enterprises | 7.5 | 6.50 | 6.37 | 7.65 |
Highlights
Punjab National Bank Performance Highlights (FY 2018)
- PNB launched the Utkarsh Scheme for efficient financing of the Small Food Processing Units with Working Capital Loan or Term Loan up to INR 20 Lakh.
- The rate of interest revision for Agriculture Advances with a sanctioned limit of INR 20 Lakh for KCC, Crop Loans, and similar agriculture loans.
- Concession provision in performance for BG commission shifted from 0.50 percent per quarter- 0.30 percent per quarter in the Food and Agro Industries in Chhattisgarh.
- In order to promote an alternative energy source in the Agriculture Industry, PNB waived the requirement for a land mortgage for loans up to INR 5 Lakh.
- OTP based authentication and seeding of customer’s Aadhaar account.
- Biometric Aadhaar Seeding & Authentication for PNB’s existing customers.
- Aadhar Seeding facilities operational at the BC locations apart from ATM, Branches, or Internet Banking.
- APY or Atal Pension Yojana’s registration facility included at the BC locations.
Fraud Case
Nirav Modi: PNB Fraud Case
- Following the official announcement of the unauthorized fraudulent transactions, the PNB share prices plunged by a whopping 10 percent.
- The fraud scam was a development by Nirav Modi who is a luxury designer for diamond jewelery with the 57th rank in Forbes List for Top Ranking Indian Billionaires for 2017.
- The fraudulent transactions alleged by PNB were worth INR 11,400 crore in addition to another INR 280 crore scam filed by PNB itself.
- Nirav Modi’s designs have made way to the closets of popular artists and actors such as Taraji P. Henson, Dakota Johnson, etc.
- Nirav Modi Chain has Priyanka Chopra as the brand Ambassador.
- The initiation of this fraud case was located at PNB’s Brady House Branch located at Fort, Mumbai in conjunction with a fraudulent letter that made Nirav Modi eligible for the loan.
- He is currently seeking political asylum in the U.K. even after being asked for extradition by the Indian Government.