Académique Documents
Professionnel Documents
Culture Documents
INTRODUCTION
The focus of financial management was mainly on certain episodic events like
formation, issuance of capital, major expansion, merger, reorganization and liquidation in the
life cycle of the firm. The approach was mainly descriptive and institutional. The instruments
of financing, the institutions and procedures used in capital markets, and the legal aspects of
financial events formed the core of financial management. The outsider’s point of view was
dominant. Financial management was viewed mainly from the point of the investment
bankers, lenders and other outsider interests.
Every business organization has to maintain appropriate funds to meet the long term
as well short term needs irrespective of nature and size and kind of the firm. Proper funds
maintaining in an enterprise increase the value of the firm.
In business organization basis for financial analysis and decision making in financial
information is required financial information is needed to predict compare and evaluate the
firms earning ability and aid in economic decision making and investment and finance
decision making .
Finance is nothing but drafts currency notes and coins and short-term financial
instruments, which are acquiring the funds in business and their effective utilization.
MEANING OF THE FINANCIAL MANAGEMENT:
FAVORABLE ARGUMENT:
Every financial decision should be based on cost benefit analysis. If the benefit is
more than the cost, the decision will help in maximizing the wealth.
UNFAVORABLE ARGUMENT :
The objective of wealth maximization may also face difficulties when ownership and
management are separated.
The first task of financial management is to estimation of the short term and long term
financial requirements. It is based on the proper financial plan. It may be either long period of
time or short period of time.
Capital structure means build up off a funds in an organization. These funds are
receiving from long-term sources. If we want to purchase fixed assets there is a need of
determination of capital structure.
After receiving the funds from various sources the next step in invest the amount
either fixed assets or working capital with the help of capital budgeting techniques and
working capital analysis we have to make the investment in a profitable line.
In effective system if financial management how to use various control devices like
ratio analysis budgetary control and B.E.P. analysis etc..,
Investment decisions
Financial decisions
Dividend decisions
INVESTMENT DECISIONS:
These decisions to deal with the capital budgeting analysis. Capital budgeting is the
process of making investment for long period of time. That is return are received more than
one year for
EX:
It refers the working capital analysis. It relates to the allocation of funds for cash
receivable and the trade off between liquidity and profitability influences an inventory such
decisions.
FINANCIAL DECISIONS:
The financial decision is not only concerned with how to finance new assets but also
concerned with the best overall mix of financing for the firm. The financing manager has to
select best source of finance, which will make optimum capital structure. It means where
maximizing the profits and minimizing the risk increasing the value of the firm that is called
as optimum capital structure.
DIVIDEND DECISIONS:
Dividend is nothing but simply we can say that profit. The third major financial
decision relates to the distribution of profit. The term dividend refers “TO THAT PART OF
PROFITS OF A COMPANY WHICH IS DISTRIBUTED AMONG ITS SHARE
HOLDERS.” The higher rate of dividend may raise the market price of the share and thus
maximize the wealth of share holders.
FINANCIAL ANALYSIS:
In the words of MYER “Financial statement analysis largely a study of relationship among
the various financial factors in a business disclosed by a single set statements and study of
these factors as shown in a series of statements.”
RATIO ANALYSIS:
Ratio analysis is the most widely used tool of analysis. A ratio is a “quotient to two
numbers and is an expression of relationship between the two amounts”. It indicates a
quantitative relationship, which is used for a qualified judgment and decision-making. The
ratios may be compared with the previous year or base year ratios of the same firm.
British Institute of management has classified the ratios into two categories.
Primary ratios
Secondary ratios
PRIMARY RATIOS:
Ratio indicating the relationship between profits and capital employed area primary ratio.
SECONDARY RATIO:
These ratios give the information about the financial position and capital structure of the
company.
OBJECTIVES OF RATIO:
The objectives of working out ratios and consequential analysis are :
Such as
The essence of the financial soundness of a company lies in balancing its goal
commercial strategy product, market choice and resultant financial needs. The company
should have financial capability and flexibility to purpose its commercial strategy.
b. Return on investment
c. Financing Mix
d. Capitalization of Resource
The answer for all these questions can be known through the care
observation of company’s financial position through ratios.
STANDARDS OF COMPARISON:
The ratio analysis involves comparison for a useful interpretation of the financial
statements. A single ratio in itself does not indicate favorable or unfavorable condition. It
should be compared with some standards of comparison may consists of
• Ratio calculated from the past financial statements of the some firm.
• Ratio developed using the projected or performed financial statements of
the same firm.
• Ratios of some selected firms especially most progressive and successful
at the same point in time.
• Ratios of the industry to which the firm belongs some times future ratios
are used as the standard of comparison ratio can be developed from the
projected or performed financial statements. The comparison of past
ratios with future ratios shows the firm’s relative strength and weakness in
the past and future.
This kind of a comparison indicates the relative financial position and performance of
the firm can easily resort such a comparison and it is not difficult to get the published
financial statements of the similar firm.
The ratio analysis is on of the most powerful tools of financial Analysis. It is used as a
device to analysis and inter-prate the financial health of an enterprise.
1. Managers :
These are the persons who among the business. Financial ratios are important to
managers for evaluating the results of their decisions. Financial ratio also helps the managers
in decision forecasting and planning co-ordination and control of business activities.
2. Shareholders/Investors:
Those who are interested in buying and selling the shares of a company
are naturally interested in the financial ratios. These ratios are helps in knowing
the safety of their investment. This ratios tells that the position of the firm
whether it is good or not.
3. Creditors:
The creditors are interested to know whether their loan principal and
interest will be paid when due suppliers and other creditors are also interested to
know their dues in time.
4. Workers:
5. Government:
6. Researchers:
Ratio analysis stands for the process of determining and presenting the relationship
items and groups of items in the financial statements. It is an important technique of financial
analysis. It is a way by which financial stability and health of a concern can be judged. The
following are the main points of importance of ratio analysis.
USEFUL IN FINANCIAL POSITION ANALYSIS:
Accounting ratios reveal the financial position of the concern. This helps the banks,
insurance companies and other financial institution in lending and making investment
decisions.
Accounting ratios helps to have an idea of the working of a concern. The efficiency of
the firm becomes evident when analysis is based on accounting ratio. They diagnose the
financial health by evaluating liquidity, solvency profitability the capabilities of various
units.
If accounting ratios are calculated for a number of years, then a trend is established.
This trend in setting up of future plans and forecasting. For Example: expenses as a
percentage of sales can be easily forecasted on the basis of sales and expenses of the past
years.
Accounting ratios are of great assistance in locating the weak spots in the business
even though the overall performance may be efficient weakness in financial structure due to
in correct policies in past are reveals through accounting ratios. If a firm finds that increase in
distribution expenses is more than proportionate to the results expected for achieved it can be
remedial measures to overcome this adverse situation.
Management has to protect the interest of all concerned parties. Their survival
depends on their operating performance from time to time. Management uses ratios analysis
to determine the firm’s financial strength and weakness and according takes actions to
improve the firm’s position.
The various concerned parties include the owners, investors, creditors, customers,
consumers etc…, they are interested to know the firms operating performance to get their
expected returns.
The owners of the company will observe the profitability of the firm and the effective
utilization of the assets of the firm. The investors can observe about the net profit tax, which
can be available for them to get the desired, dividends;
The creditors will think about the debt payment capacity of the firm. Ratio analysis is
very useful yardstick to determine the financial position of the firm and it will protect the
interest of the parties, through careful security of financial statements.
1. Liquidity ratios
2. Leverage ratios
3. Activity ratios
4. Profitability ratios
1. LIQUIDITY RATIOS:
Liquidity ratios are measures the firm’s ability to meet current obligations. It is
externally essential for a firm to be able to meet preparation of cash budgets and cash flow
and find flow statements. It’s establishing a relationship between cash and current assets to
current obligations. The failure of a company to meet its obligations due to lack of sufficient
liquidity will result in poor credit worthiness cost of creditors confidence a very high degree
of liquidity is also bad idle assets earn nothing.
a. Current ratio.
b. Quick ratio or Acid test or liquid ratio.
c. Absolute liquid ratio or cash position. Ratio
Current ratio may be defined as the relationship between the current assets and
liabilities. This ratio is also known as working capital ratio. It is most widely used to make
the analysis of a short-term financial position. It is calculated by dividing the total of current
assets by the total current liabilities.
Current assets include cash and those assets that can be converted into
cash within a year such as marketable securities debtors and inventories and
prepaid expenses also considered as current assets.
Current liabilities are those obligations which are payable within a short period generally
within a year.
Quick ratio may be defined as the relationship between quick/liquid assets and current
liabilities. An asset is liquid if it can be converted into cash immediately or reasonably soon
without a loss of value and Inventories are considered to be less liquid.
Receivables, debtors and bills receivable are generally more liquid then inventories
yet there may be doubts regarding their realization into cash immediately or in time.
LEVERAGERATIOS:
The company’s ability to cover all its obligations including short term
and long term obligations
The margin of safety afforded to the creditors by the equity
The extent of control of share holders over the enterprise
The potential ratio earnings from the long term funds
The ratio relates to all the creditors on assets to the owners funds. It is
computed by dividing the total debt, both the current and long term by it’s
tangible net worth consisting of common stock and invested more in the
business than the owners.
In order to know the long term solvency of the firm we may know by
computing several debt ratios. Total debt ratios show the relation between total
debt to net assets or capital or capital employed.
This ratio indicates the extent of fixed assets the firm employed in the
total capital employed during the period. It is calculated by dividing fixed assets
by capital employed.
ACTIVITY RATIOS:
Activity ratios reflect how effectively the company is managing its resources. These
ratios express the relationship between the level of sales and the investment assets like
inventory receivable fixed assets etc.
A ratio showing how many times the company’s inventory is soled and
replaced over a period. It is calculated as.
This ratio ensures whether the capital employed has been effectively used
or not. This is also the test of managerial efficiency and business performance.
Higher total capital turnover ratio is always required in the interest of the
company. This ratio is measured on the basis of the following formula.
This ratio expresses the number of times fixed assets are being over in a
given period and how well the fixed assets are being used in the business.
Fixed assets turnover ratio= sales/ Net fixed assets
This ratio shows the number of timers capital is turned over in a stated period. It
is calculated as follows. The higher is the ratio is lower is the investment in
working capital and greater are the profits.
The firm may wish to know its efficiency of utilizing currents in organization.
A high gross profit margin ratio is assign of good management. A gross profit margin
ratio may increase due to any of these factors.
PROFITABILITY RATIOS:
PROFITABILITY RATIOS:
Profit is the main objective of the every organization. A company should earn profits
to serve and grow over a long period of time. It is a fact that sufficient profits must be earned
to sustain the operations of the business to be able to obtain funds from investors for
expansion and growth and to contribute towards the social overheads for the welfare of the
society.
The profitability ratios are calculated to measure the operating efficiency of the
company. Creditors and owners are also interested to know the profitability of the firm.
Creditors want to get interest and repayment of principal regularly and return on investment
to investors. This is possible only when the company earn the enough profits.
The gross profit margin reflected the efficiency with which management produces
each unit of product. The high gross profit margin relative to the industry average implies that
the firm is able to produce at relatively lower cost.
A high gross profit margin ratio is assign of good management. A gross profit margin
ratio may increase due to any of these factors.
The operating expense ratio explains the changes in the profit margin ratio. The ratio
is computed by dividing operating expenses by net sales. The operating expense ratios a
yardstick of operating efficiency but it should be used cautiously. It is affected by a number
of factors such as external uncontrollable factors and internal factors and managerial
efficiency.
EXPENSES RATIO:
Expenses ratio indicate the relationship of various expenses to net sales. The
operating ratio reveals the average total variations in expenses. But some of the expenses may
be increasing while some may be falling. Expense ratios are calculated by dividing each item
of expenses or group of expenses with the net sales to analysis the causes of variation of the
operating ratio. The lower the ratio the greater is the profitability and higher the ratio and
lower the profitability.
This ratio shows the relationship between gross profits with sales to measure the
relative operating efficiency of the company. It also reflects its pricing policies. It is
computed by dividing sales minus the cost of goods sold by sales sometimes, it is calculated
by taking cost of goods sold instead of sales. It indicates the position of trading result.
Gross profit can be measure by deducting the “Cost of Goods Sold” from
the net sales. Gross profit is the relationship between prices, sales volume and
costs. The Gross profit margin reflects the efficiency of the management.
Net profit to sales is also called net profit margin ratio. It is calculated by dividing net
incomes by net sales. This ratio provides good insight into the overall efficiency of the
business. A higher ratio shows the higher overall efficiency of the business and better
utilization of the total resources and at the same time the ratio indicates poor financial
planning and low efficiency also.
Net profit is obtained by deducting operating expenses, interest and taxes
from the gross profit. This ratio indicates the firm’s capacity to withstand adverse
economic conditions.
This ratio explains the relationship between net profit after tax and capital employed.
This ratio explains about the amount of return that was attained through the
investment of capital. Net profit after tax is the profit that was available after the deduction of
all operating expenses. This ratio reveals the earnings and earning capacity of the capital
employed in the business.
The returns on shareholders funds explain the relationship between profit after tax and the
total shareholders funds. Shareholders equity consists of performance share capital ordinary
share capital and reserves and surplus. This ratio shows the owners funds have been used by
the firm and may be used in comparing the profitability of similar firms.
The ratio carries the relationships of return to the sources of funds provided by the owners
of the firm. This measures the rate of return on shareholders funds. The higher the ratio, the
safer an and advantage the financial position.
Earning per share= (profit after tax-preference share)/number of equity shares
Chapter-2
Methodology:
Primary sources:
Interaction with guide to understand the general and specific aspects of
the problem, executives to understand the implication of the ratios, the
perspective measures to rehabilitate the bank and employees of the company to
know cost reduction possibilities.
Secondary sources:
Data collection:
Data analysis:
The collected data are analyzed by applying ratio analysis, break even and
indexed analysis.
VISION
“To be a Leading Global Bank with Pan India footprints and become a household
brand in the Indo-Gangetic Plains, providing entire range of financial products
and services under one roof.”
MISSION
1940: PNB absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi circle.
1947: Partition of India and Pakistan at Independence. PNB lost its premises in Lahore, but
continued to operate in Pakistan.
1951: PNB acquired the 39 branches of Bharat Bank (est. 1942), Bharat Bank became Bharat
Nidhi Ltd.
2003: PNB took over Nedungadi Bank, the oldest private sector bank in Kerala. Rao Bahadur
T.M. Appu Nedungadi, author of Kundalatha, one of the earliest novels in Malayalam, had
established the bank in 1899. It was incorporated in 1913, and in 1965 had acquired selected
assets and deposits of the Coimbatore National Bank. At the time of the merger with PNB,
Nedungadi Bank's shares had zero value, with the result that its shareholders received no
payment for their shares. PNB also opened a representative office in London.
2004: PNB established a branch in Kabul, Afghanistan. PNB also opened a representative
office in Shanghai. PNB established an alliance with Everest Bank in Nepal that permits
migrants to transfer funds easily between India and Everest Bank's 12 branches in Nepal.
2007: PNB established PNBIL - Punjab National Bank (International) - in the UK, with two
offices, one in London, and one in South Hall, Middlesex. Since then it has opened a third
branch in Leicester, and is planning a fourth in Birmingham.
Profit Per Employee (in lac) 1.88 2.42 2.48 2.68 3.66 5.38
Having taken aggressive IT initiatives, 100% CBS enabled Bank to centralize many activities
thereby increasing the efficiency and productivity across the Bank. The activities are being
centralized to transform the branches as points of sales for customer acquisitions, customer
retention and better customer service.
Bank proposes to set up one lac touch point to realize the target of 15 crore customers and 10 lac
crore business figures by extensive deployment of technology. We expect to increase our branch
network to 5000, Number of ATMs to 8000. The bank will engage 12,000 Business
correspondents for existing branches; four such BCs will be attached to one branch (25000 touch
points). Bank will set up 15,000 kiosks in branchless location with CBS and internet facility each
kiosk will have four business correspondent attached to it (75,000 touch points).
To further improve the customer service alternate delivery channels like ATMs and Internet
banking are promoted and are enabled for Transfer of funds, bill payments, ticket booking, tax
payment and donations to charitable organizations. E-bays have been set up for faster customer
service.
The Bank has been giving greater thrust towards Financial Inclusion, SME Business and
Agriculture lending. The Bank has achieved 100% Financial Inclusion in 11,043 villages. The
Bank is gearing up for Metro/Urban Financial Inclusion in a big way and is committed to cover
unbanked rural & urban areas under its commitment to Financial Inclusion, both at geographical
and functional levels. Rajasthan Govt. Financial Inclusion project has brought in more than 25
lakhs customers in our fold. Several other Special Schemes have been launched for BPL
Customers including a Micro Finance Branch in Mukundpur, Delhi; 9 Financial Literacy &
Education Counselling Centres in Punjab & Haryana; Scheme for Rickshaw Pullers launched at
Varanasi, Allahabad, Lucknow & Patna; Common Service Centre at Village Panapur Bihar. For
Agriculture Sector we have introduced PNB Krishak Saathi Scheme, increased limit of loans
without collateral to 1 lakh and introduced several other facilities to promote rural development.
New products have been launched like MIBOR linked deposit schemes, Depository services,
Gold Coin business; CMS, Score Based Lending Schemes, Centralization of backend activities
etc.
For faster processing of retail loans, separate Retail Processing Hubs have been set-up
at centralized locations. Facility of submission of online application for Car,
Education, Personal & Pension Loans is provided.
The Bank has launched two variants of Consumer credit card i.e. Gold and Classic.
For customer convenience, host of features like photo card, SMS alerts and interface
with PNB’s Internet Banking are being offered. The credit card will be globally
accepted. This card will be accepted at over 3.5 Lac merchant establishments and
30,000 ATMs in India as well as at over 29 million merchants establishments and
over 1 million ATMs throughout the world who are linked to Visa Payment system.
For faster processing of retail loans, separate Retail Processing Hubs have been set-up
at centralized locations. Facility of submission of online application for Car,
Education, Personal & Pension Loans is provided.
The Bank has launched two variants of Consumer credit card i.e. Gold and Classic.
For customer convenience, host of features like photo card, SMS alerts and interface
with PNB’s Internet Banking are being offered. The credit card will be globally
accepted. This card will be accepted at over 3.5 Lac merchant establishments and
30,000 ATMs in India as well as at over 29 million merchants establishments and
over 1 million ATMs throughout the world who are linked to Visa Payment system.
SWOT ANALYSIS OF THE BANK
Strength Weaknesses
�Aggressive marketing by competitor banks �Rural India is the next growth horizon
with an opportunity 3 times the size of
Urban India
�Expansion of peer Banks/Private Sector Banks in Indo-
Gangetic belt eroding our dominance
�Financial Inclusion is a clear-cut
opportunity with overall exposure to
�Loss of savings business to Mutual Fund/ Insurance formal services of finance being about
Products which are aggressively marketed as being more 20%
remunerative
Threats have since been converted into Opportunities. opportunity to go beyond the Brick &
Mortar
�Bank has a visionary leadership
which can transform the bank
a) QUANTITATIVE DIMENSIONS
• Total business to increase from Rs.285959 Crore in March 2008 to Rs.1000000 Crore
in March 2013, at an average growth of 28%.
• Operating Profit to increase from Rs.4006 Crore in March 2008 to Rs.15000 Crore in
March 2013 with a CAGR of 30.2%.
• Net Profit to increase from Rs.2049 Crore in March 2008 to Rs.7500 Crore in March
2013, at an average growth of 30%.
• The Return on Assets [RoA] to increase from 1.15% in March 2008 to 1.30% in March
2013 [This ratio is comparable to the RoA of the Peer Banks and is also better than
all bank’s ratio of 1% as on March 08].
• The Return on Equity [RoE] to increase from 19% in March 2008 to 21% in March
2013.
• Customer base to increase from 3.7 Crore in March 2008 to 15 Crore in March 2013.
QUALITATIVE DIMENSIONS
�In adopting global best practices in Corporate Governance & Corporate Social
Responsibility
�Among the top 3 Indian banks with global presence in Middle East, South East
Asia, China, UK, Australia, Canada, etc.
�Bring best global practices to effectively compete with global players in India.
�Expenditure Control
�Capitalize on IT initiatives
�Provide more value added services
Liquidity Ratios
Leverage Ratios
Activity Ratios
Profitability Ratios
I. LIQUIDITY RATIOS
Common liquidity ratios include the current ratio, the quick ratio and
operating cash flow ratio. Different analysts will calculate only the sum of the
cash and equivalents divided by current liabilities because they feel that they are
the most liquid assets, and would be the most likely to be used to cover short-
term debts is of utmost importance when creditors are seeking payment.
Bankruptcy analysts and mortgage originators frequently use the liquidity ratios
to determine whether the company will be able to continue as going concern.
The ratio is mainly used to give an idea of the company’s ability to pay
back its short-term liabilities (debt and payables) with its short-term assets
(cash, inventory, receivables). The higher the current ratio, the more capable the
company is paying its obligations. A ratio under 1 suggests that the company
would be unable to pay off its obligations if they came due at that point. While
this shows the company is not in good financial health, it does not necessarily
mean that it will go bankrupt as there are many ways to access financing – but it
is definitely not a good sign. The current ratio can give a sense of the efficiency
of a company’s operating cycle or its ability to turn its product into cash.
Companies that have trouble getting paid on their receivables or have long
inventory turnover can run into liquidity problems because they are unable to
alleviate their obligations.
The current ratio for the last five years is almost exceeds 1.1 except 2009.
That means the company is in a better position to pay its current liabilities which
are
Interpretation:
Generally for Quick Ratio 1:1 is taken to be ideal.
In the above calculations for the years 2004-05 and 2005-06 the quick
ratio is less than 1. That is the current liabilities exceed the quick assets.
And for the last three years the quick ratio exceeds 1. That means the
company is concentrating in increasing its quick assets.
3.Solvency ratio
Generally the best solvency ratio to any firm is 1:1 .in the year 2006 the ratio is
less than 1, after that the bank’s solvency ratio is exceeds & equal to 1 by this
we can say that the bank is having a good solvency ratio and performing well.
NP ratio is used to measure the overall profitability and hence it is very useful to proprietors.
The ratio is very useful as if the net profit is not sufficient, the firm shall not be able to
achieve a satisfactory return on its investment.
This ratio also indicates the firm's capacity to face adverse economic conditions such as price
competition, low demand, etc. Obviously, higher the ratio the better is the profitability. But
while interpreting the ratio it should be kept in mind that the performance of profits also be
seen in relation to investments or capital of the firm and not only in relation to sales
9.Epense Ratio
Expense ratio=expense/net sales *100
The ratio can be calculated for individual items of expense or a group of items of a particular
type of expense like cost of sales ratio, administrative expense ratio, selling expense ratio,
materials consumed ratio, etc. The lower the operating ratio, the larger is the profitability and
higher the operating ratio, lower is the profitability.
While interpreting expense ratio, it must be remembered that for a fixed expense like rent,
the ratio will fall if the sales increase and for a variable expense, the ratio in proportion to
sales shall remain nearly the same
This ratio indicates the relationship between operating profit and sales. It
is worked out by dividing the operating profit by net sales. This enables to
judge the material efficiency which may not be declared in net profit ratio.
INTERPRETATION
The operating profit to sales ratio of P.N.B for the year 2006 is
10.84. It was increased to 24.41 for the next year 2007. This means the
company possessed high operating efficiency in this year. After that it was
decreased until the year 2010. That is the company is concentrating on
minimizing its costs.
This ratio shows the number of timers capital is turned over in a stated period. It is
calculated as follows. The higher is the ratio is lower is the investment in working capital and
greater are the profits.
Working capital turnover ratio=sales/net working capital
Interpretation:
In the year 2006, the working capital results 18.33 times in the sales. After that it was
decreased for the next two years continuously. Then after that it was increased to 2.88 times
in the sales for that year. Again it was increased in the year 2010. That means the company is
concentrating on decreasing cost of production
Interpretation:
The fixed assets turnover ratio of P.N.B for the year 2006 was 21.82 and it was for 2007was
18.82. There is highest fixed asset turnover ratio for the year 2007. For this year the cost of
production is higher than the remaining years because fixed assets. And for the last year the
company utilized high amount of fixed assets. That is the company is maintaining high rate of
production with lower rate of cost of production at presently.
Chapter-5
INTRODUCTION:
Secondary data:
Findings
The Bank in the recent past has moved away from a hybrid 4 tier to a 3 tier structure
with a nomenclature of Circle Offices for the intermediate tier. The objective was to
have a cost effective delayer structure to expedite decision making at all levels.
Having taken aggressive IT initiatives, 100% CBS enabled Bank to centralize many
activities thereby increasing the efficiency and productivity across the Bank. The
activities are being centralized to transform the branches as points of sales for
customer acquisitions, customer retention and better customer service
Bank proposes to set up one lac touch point to realize the target of 15 crore customers
and 10 lac crore business figures by extensive deployment of technology. We expect
to increase our branch network to 5000, Number of ATMs to 8000. The bank will
engage 12,000 Business correspondents for existing branches; four such BCs will be
attached to one branch (25000 touch points). Bank will set up 15,000 kiosks in
branchless location with CBS and internet facility each kiosk will have four business
correspondent attached to it (75,000 touch points).
To further improve the customer service alternate delivery channels like ATMs and
Internet banking are promoted and are enabled for Transfer of funds, bill payments,
ticket booking, tax payment and donations to charitable organizations. E-bays have
been set up for faster customer service.
The Bank has been giving greater thrust towards Financial Inclusion, SME Business
and Agriculture lending. The Bank has achieved 100% Financial Inclusion in 11,043
villages. The Bank is gearing up for Metro/Urban Financial Inclusion in a big way
and is committed to cover unbanked rural & urban areas under its commitment to
Financial Inclusion, both at geographical and functional levels. Rajasthan Govt.
Financial Inclusion project has brought in more than 25 lakhs customers in our fold.
Several other Special Schemes have been launched for BPL Customers including a
Micro Finance Branch in Mukundpur, Delhi; 9 Financial Literacy & Education
Counselling Centres in Punjab & Haryana; Scheme for Rickshaw Pullers launched at
Varanasi, Allahabad, Lucknow & Patna; Common Service Centre at Village Panapur
Bihar. For Agriculture Sector we have introduced PNB Krishak Saathi Scheme,
increased limit of loans without collateral to 1 lakh and introduced several other
facilities to promote rural development.
The Bank has launched two variants of Consumer credit card i.e. Gold and Classic.
For customer convenience, host of features like photo card, SMS alerts and interface
with PNB’s Internet Banking are being offered. The credit card will be globally
accepted. This card will be accepted at over 3.5 Lac merchant establishments and
30,000 ATMs in India as well as at over 29 million merchants establishments and
over 1 million ATMs throughout the world who are linked to Visa Payment system
CASA Deposits as percentage to the Total Deposits of the Bank is higher at 40.85%
Total Business of the Bank crossed the landmark of Rs 4 lakh crore to reachRs
435,931 crore as against Rs. 3,64,463 crore in March 2009, showing a y‐o‐y growth
of 19.6%.
Excluding agricultural advances eligible for debt relief, net NPA ratio
improves to 0.35%.
Provision Coverage Ratio is at 81.17% compared to RBI’s stipulation of 70%.
Excluding amount provided for debt waiver, the ratio is higher at 86.80%.
Net Interest Margin (NIM) has improved to 3.99% for the quarter 31.03.2010
from 3.33% in corresponding quarter of last year.
NIM rose to 3.57% for FY ended March 2010 from 3.52% in FY ended
March’09.
March 2010 as against 43.29% last year (FY 10 : 39.39% against 42.50% last
year).
BIBLIOGRAPHY