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Punjab National Bank (BOM:532461) |
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WIKI ANALYSIS
Punjab National Bank (PNB) is India’s third largest bank with total assets of around Rs. 2,535.91 billion.The bank’s strategic business area covers the large Indo-Gangetic belt and the metropolitan centres. PNB has strong correspondent banking relationships with more than 217 international banks of the world. Over 50 renowned international banks maintain their Rupee Accounts with PNB. The bank has well equipped dealing rooms; 20 different foreign currency accounts are maintained at major centres across the globe.
For the fiscal year ending March 31, 2009, PNB reported stand-alone net profit of Rs. 30.91 billion, highest among the Nationalised banks. Also, the bank is ahead of the other nationalised bank in terms of Assets, Total Deposits, Advances, and Total Business. The bank is focused on margin management and asset liability management. Net Interest Income (NII) increased 27% during the year, reflecting better margin improvement. Despite aggressive rate cuts, PNB managed to expand its Net Interest Margin to 3.62% fro 3.58% last year, which speaks volumes of the quality of its assets. With its focus on asset management, PNB reduced its net NPA ratio to 0.17% at the end of FY09, compared to 0.64% a year ago.
PNB has taken several initiatives during fiscal 2009. The Bank launched a globally acceptable credit card with no annual charges. ‘PNB Global Credit Card’ has one of the lowest charges and interest rates in the industry. Further, the bank tied-up with M/s SMC Global Securities Ltd and M/s Networth Stock Broking Limited (NSBL) to offer “3-in-1 account” comprising of Savings account, Demat and Trading account to enable its customers to invest in equities, derivatives, commodities, Initial Public Offering (IPOs), and mutual funds using the online trading platform of SMC and NSBL.PNB is ranked as 248th biggest bank in the world by Bankers Almanac, London. It is ranked 1166th and is one among 48 Indian firms making it to a list of the world’s biggest companies compiled by the US magazine ‘Forbes’.
Business Overview
PNB was established in 1895 at Lahore, undivided India, and has the distinction of being the first Indian bank to have been started solely with Indian capital. The bank was nationalised in July 1969 along with 13 other banks. From its modest beginning, the bank has grown in size and stature to become a front-line banking institution in India at present.
PNB has 3 subsidiaries. PNB Gilts Ltd is a primary dealer in the Government Security market. PNB Housing Finance Ltd. provides housing loans for purchase, construction and up-gradation of a dwelling unit. PNB International Ltd. is the bank’s wholly owned subsidiary in U.K. (http://pnbindia.in/Analyst%20Final.pdf ) PNB has the second largest branch network in India with 4668 offices including 238 extension counters spread throughout the country. The bank has a wide net work of 2150 ATMs.
The bank has a strong presence in the domestic market. It is now looking at expanding its foot-print in the global markets. PNB is present in 8 countries, with branches in Kabul and Hong Kong and representative offices at Norway, Dubai, Shangai, and Kazakhstan. The bank has a subsidiary, PNB International Ltd., with 4 branches in U.K. Also, the bank has a joint-venture with equity and management participation with Everest Bank Ltd. in Nepal.PNB is in the process of expanding its presence to Bhutan, China, Canada, and Singapore.
Business and Financial Metrics
Business Segments
Key Trends and Forces
Competition
State Bank of India (BSE:SBI), a public sector bank, is the largest bank in India. Besides personal and corporate banking, SBI is also involved in NRI (Non Resident Indian) services through its network in India and overseas.
Bank of India (BANKINDIA.EQ-IN): Bank of India is a bank with headquarters in Mumbai. Government-owned since nationalization in 1969, it is one of India's leading banks, with about 2,884 branches including 27 branches outside India.
HDFC Bank: The Housing Development Finance Corporation (HDFC) Bank Limited (HDFCBANK.EQ-IN) is the second largest private sector bank in India by net profit.[30] Headquartered in Mumbai, the bank is one of the first private banks to be set up in India. With a network reach of 1412 branches spread over 528 cities across India and having over 2890 ATMs across these cities,[31]the bank is the largest private sector bank in terms of branch network in India.
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