Punjab National Bank
Punjab National Bank (PNB)

Punjab National Bank (PNB)

₹29.451.55%

Key Stats

₹28.75
Day's Price Range
₹29.6
₹28.05
52-Week Price Range
₹48.2
1 Month Return-9.38 %
3 Month Return-20.23 %
1 Year Return-31.53 %

Company Financials

  • Quarterly
  • Annual
Value in ₹ crore

Peer Comparsion

PE
Rank 5
8.19
EPS
Rank 6
₹3.54
BVPS
Rank 6
₹81.44
Dividend Yield
Rank 4
ROE
Rank 9
2.67%
Price To Book Ratio
Rank 1
0.35

Company Information

Punjab National Bank PNB is a stateowned commercial bank located in New Delhi. PNB is one of the leading commercial banks in India. They offer banking products and also operate credit card and debit card business bullion business life and nonlife insurance business and gold coins and asset management business. They are recognized as the bank offering highest levels of customer satisfaction in Delhi and Chennai. As on 31 December 2020 PNBs domestic branch network stood at 10925 along with 13914ATMs. The bank has four overseas branches in Hong Kong Dubai and Offshore Banking Unit in Mumbai and Representative Offices RO at Dubai UAE Shanghai China Sydney Australia and Dhaka Bangladesh. The bank has two overseas subsidiaries viz. PNB International Ltd. UK and Druk PNB Bank Ltd Bhutan. The bank also has one associate company viz. JSC Tengri Bank Kazakhstan and one Joint Venture Bank in Nepal i.e. Everest Bank Ltd. The bank has got permission from RBI for opening Representative office in Yangon Mynamar. Punjab National Bank was incorporated in the year 1895 at Lahore undivided India. The Bank has the distinction of being the first Indian bank to have been started solely with Indian capital. In the year 1940 the Bank absorbed Bhagwan Dass Bank a scheduled bank located in Delhi circle. In the year 1951 they acquired the 39 branches of Bharat Bank and in the year 1961 they acquired Universal Bank of India.Punjab National Bank was nationalised in July 1969 along with 13 other banks. In the year 1986 they acquired Hindustan Commercial which added Hindustans 142 branches to the Banks network. In the year 1993 they acquired New Bank of India which the GOI. During the year 1996 they developed a packaged for corporate customers for fast remittance of funds from different upcountry branches. In the year they set up a representative office in Almaty Kazakhstan.In the year 2000 the Bank has introduced a scheme for providing finance against mortgage of immovable property. In September 2000 they commenced their gold business in the form of Gold Import Scheme. In November 2000 they launched an International Cobranded Credit Card of Punjab National Bank and Hong Kong Shanghai Banking Corporation HSBC in New Delhi. In March 2002 the Bank came out with their first Initial public offer IPO for 53060700 equity shares of Rs 10 each which resulted in the reduction of the governments shareholding in the Bank. During the year 2002 they started their branch in M.G. Road Bangalore named as MidCorporate Branch MCD to provide their corporate clients with a credit limit of Rs 3.5 crore and above. They made joint venture with Infosys for the implementation of a Centralized Banking Solution for them. Also they made a tie up with Cisco Systems for networking 3870 branches as part of their Rs 150 crore plan.In the year 2003 the Bank took over Kozhikodebased Nedungadi Bank Ltd NBL. The Bank entered into an alliance with New India Assurance for selling their general insurance products. Also they opened a representative office in London. During the year PNB Capital Service Ltd was amalgamated with the Bank.In June 2003 the Bank entered into an MoU with Principal Financial Services Inc USA and Vijaya Bank for joint venture partnership in Life Insurance Pensions and Asset Management MF business. Also they formed a strategic alliance with Infrastructure Leasing and Financial Services Ltd ILFS for setting up a private equity fund for investing in domestic companies.In the year 2004 the Bank acquired the assets of Hindustan Transmission Product Ltd. They signed a corporate agency agreement with Export Credit Guarantee Corporation of India Ltd ECGC for marketing ECGCs export credit insurance products through the network of the banks branches. Also an MoU was signed with Intel for the deployment of various ITrelated solutions. During the year the Bank signed an MoU with ICICI Bank for ATM network sharing. They awarded a project to Tata Consultancy Services TCS for implementing human capital management and payroll solution. They established a branch office in Kabul Afghanistan. Also they opened a representative office in Shanghai. The bank established an alliance with Everest Bank in Nepal that permits migrants to transfer funds easily between India and Everest Banks 12 branches in Nepal. In the year 2005 the Bank unveiled ATM at Edappal. Also they opened a representative office in Dubai. In the year 2006 the Bank made a tie up with MasterCard International to launch a signaturebased debit card. Also they made a tie up with Indian Airlines for online booking of air tickets. They opened a new branch in Uttarakhand. In October 2007 the Bank entered into MoU with India Infrastructure Finance Company with an aim to extend their cooperation and support to IIFC in areas of creating a deal flow of infrastructure projects. In January 2008 the Bank commenced commercial banking operations in Hong Kong. During the year 200809 the Bank opened 168 branches out of which 90 are new branches and 78 branches was added through upgradation of Extension Counters. They made collaboration with LIC for selling insurance policies and also made a tie up with Oriental Insurance for selling nonlife policies on a referral basis. In June 2008 they entered into a MoU with ILFS Cluster Development Initiative Ltd for providing finance for various industrial infrastructure projects in the country. In September 2008 they signed an MoU with SMC Global Securities Ltd and Networth Stock Broking Ltd for providing online trading facility to Companys customers. They offered a unique 3 in 1 account comprising of Saving Demat and trading account. In February 2009 they commercially launched their credit cards with 2 types of consumer credit cards namely Gold and Classic. Also they entered into an agreement with Oriental Insurance Company to market insurance products a practice also known as bancassurance. In March 2009 the Bank entered into an understanding with Tata Motors for financing entire range of passenger cars. Also they executed an agreement with The Life Insurance Corporation of India for bancassurance life insurance under the provisions of IRDAs Referral Arrangement. During the year 200910 the Bank opened 524 domestic branches out of which 347 are at new locations while 177 branches was added through upgradation of existing Extension Counters. They deployed 1400 ATMs taking the total count of ATMs to more than 3500 Nos. They opened two overseas branches 1 in Hong Kong and another at DIFC Dubai and started a JV banking subsidiary DRUK PNB Bank Ltd in Bhutan. Also they opened a representative office in Oslo Norway.During the year the Bank sold 6.5 of their stake in UTI Assets Management Co Ltd and UTI Trustee Pvt Ltd thus bringing down their stake in both these companies to 18.5. They launched Corporate Credit Card with Individual liability. Also they launched Merchant Acquiring Business through installation of Point of Sale PoS Terminals at Merchant Establishments and Internet Payment Gateway by integrating through Merchant Website with Brand Name PNB Biz.In May 2009 the Bank incorporated a subsidiary company namely PNB Investment Services Ltd. In November 2009 they entered into an agreement with FIM Bank Malta Banca IFIS Italy and Blend Financial Services Ltd Mumbai for setting up a joint venture company for providing factoring forfeiting and trade finance related business.During the year 201011 the Bank introduced new set of products and services such as PNB Uphaar PNB Suvidha and World Travel Card. In December 13 2010 they acquired 63.64 stake in JSC Dana Bank of Kazakhstan. In January 12 2011 the Banks joint venture India factoring and Finance Solutions Pvt Ltd started its commercial operations from Delhi Mumbai Chennai.The total number of branches at the end of March 2011 rose to 5189. The branch network comprises 2047 Rural 1154 Semi Urban 1111 Urban and 877 Metropolitan branches. During the review period 210 domestic branches were opened. With 5189 branches including 28 Extension Counters the Bank has the largest network amongst the nationalized banks. As part of customer segmentation Bank has opened specialized Branches that include 6 Micro Finance branches 59 SME branches 11 International Banking Branches 17 Asset Recovery Management Branches 13 Mid Corporate Branches 11 Large Corporate Branches 73 Retail Asset Branches 11 Agriculture Finance Branches 3 hightech agriculture branches 1 Capital Market Services Branch and 1 International Service Branch. Besides 41 Back Offices 2 Special Foreign Exchange Offices 17 Special MICR Centres 41 Service Regional Clearing Centre centres 4 Financial Inclusion Service Centres 3 Centralised Draft Payable Centres 1 Central Clearing Service Centre and 1 Depository Back Office are established to reduce delivery time and improve response time.On 5 March 2010 PNB announced that the bank has received permission from RBI for setting up a representative office in Sydney Australia.On 13 December 2010 PNB announced that the bank has completed the transaction for acquisition of 63.64 stake in JSC Dana Bank Kazakhstan. PNB has acquired 35 million shares of 1000 Tenge each at par for 3.5 Bn Tenge USD 23.765 million approx. which has raised the capital of JSC Dana Bank to the level of 5.5 Bn Tenge from the existing 2 Bn. Tenge. On 12 January 2011 PNB announced that it has bought Principal Financial Group of Mauritius PFG and U K Paints stake of 26 and 32 respectively in Principal PNB Life Insurance Company Ltd. After the transaction the banks stake in Principal PNB Life Insurance Company Ltd stands at 88. PNB also said at that time that it would continue to support Principal PNB Asset Management Company Pvt Ltd for a period of three years. On 15 February 2011 PNB announced that the bank has entered into an arrangement with Weizmann Forex Ltd. Mumbai Principal Agent for handling inward remittances under MTSS Money Transfer Service Scheme through Western Union. The bank also entered into an arrangement with BFC Forex Financial Services Ltd. Thane Maharashtra for handling inward remittances under MTSS Money Transfer Service Scheme through the web based product EzRemit.On 28 April 2011 PNB announced the issue and allotment of 15.09 lakh equity share at issue price of Rs 1218.82 per equity share to Government of India on preferential basis aggregating Rs 184 crore.On 28 March 2012 PNB announced that upon receipt of allotment money of Rs 1589.90 crore from Life Insurance Corporation of India LIC the bank has allotted 1.58 crore equity shares at issue price of Rs 1003.69 per share to LIC on preferential basis. On 2 April 2012 PNB announced that upon receipt of allotment money of Rs 654.99 crore from Government of India the bank has allotted 65.25 lakh equity shares at issue price of Rs 1003.69 per share to Government of India on preferential basis.On 16 January 2013 PNB announced that the bank has acquired 30 stake in Metlife India Insurance Co. Ltd.On 6 March 2013 PNB announced that upon receipt of allotment money of Rs 1247.99 crore from Government of India on 4 March 2013 the bank has allotted 1.42 crore equity shares at issue price of Rs 873.05 per share on preferential basis to Government of India.On 28 October 2013 PNB announced that the Chairman Managing Director of the bank as per authority delegated by the Board has approved issuance of equity shares of face value of Rs 10 each for an amount upto Rs. 500 crore at such price as may be decided as per SEBI ICDR Regulations 2009 on preferential basis in favour of Government of India subject to necessary approvals. On 4 March 2014 PNB announced that the bank has sold its entire stake in Credit Information Bureau India Ltd. CIBIL to TransUnion International Inc. FII. On 1 April 2014 PNB announced that it has sold its entire 30 stake in India Factoring Financial Solutions Ltd. IFFSL to parent promoter FII FIM Bank Malta and realized Rs 107.83 crore. On 4 July 2014 PNB announced that it has sold 41 stake in High Mark Credit Information Services Ltd. High Mark to CRIF and realized Rs 4.15 crore.The Board of Directors of PNB at its meeting held on 19 September 2014 granted inprinciple approval for subdivision of existing equity shares of face value of Rs 10 each into 5 equity shares of face value of Rs 2 each.On 1 April 2015 PNB announced that capital funds to the tune of Rs 870 crore have been received from the Government of India on 31 March 2015 for issue and allotment of 4.42 crore equity shares at a price of Rs 196.80 per equity share to Government of India on preferential basis in accordance with Regulation 761 of SEBI ICDR Regulations.The Bank made Tie ups with the leading manufacturers of agriculture implements tractors irrigation solutions etc. during FY 2015. During the year the Bank also laid focus on increasing livestock advance portfolio by financing through tieups with dairy companies/cooperatives. Further the Bank focused on financing to Agri logistics like Rural Godown/ Cold Storage Agri Transport.On 30 September 2015 PNB announced that consequent upon receipt of capital funds to the tune of Rs 1732 crore from the Government of India on 29 September 2015 the bank has issued and allotted 10.9 crore equity shares at a price of Rs 158.84 per equity share on preferential basis to Government of India in accordance with Regulation 761 of SEBI ICDR Regulations.During FY 2015 the Bank entered into a tie up with National Small Industries Corporation NSIC. In this NSIC would source the applications to the Bank with sharing of processing fee. Besides the Bank also formulated Scheme for financing Business Correspondents.The Bank signed a MOU with vehicle manufacturers like Ashok Leyland Tata Motors Asia Motors Works Hindustan Motors Mahindra Mahindra Piaggio ICM Ltd. Eicher Volvo Atul Auto Bajaj Motors and J S Auto P Ltd. and MOU had also been signed with Escorts for financing transport dealers.In FY 2015 to expand the presence of the Bank an exclusive scheme for issuing credit cards to employees of PNBs sponsored RRBs was launched apart from liberalizing the terms for issuance of credit cards against fixed deposit.In FY 2015 PUNGRAIN a food grains procurement agency of Punjab Government has launched Kisan Arhtiyas Information Remittance Online Network KAIRON project whereby they are making payments to the farmers through Arhtiyas using RuPay Debit cards with the help of National Payment Corporation of India NPCI. The Bank was actively participating in the project and brought a business of Rs 4038 crore as Acquiring bank and Rs.1997 crore as Issuing bank during FY 2015.During FY 2016157 new branches were opened by RRBs taking the total network of Branches to 2301 with all being on CBS and total numbers of employees were 8714.On 15 September 2016 PNB announced that consequent upon receipt of capital funds to the tune of Rs 2112 crore from the Government of India on 14 September 2016 the bank has issued and allotted 16.43 crore equity shares at a price of Rs 128.49 per equity share on preferential basis to the Government of India in accordance with Regulation 761 of SEBI ICDR Regulations.Punjab National Bank PNB and India Post Payments Bank IPPB signed a memorandum of understanding on 17 January 2017 wherein PNB shall provide technology platform for pilot launch of IPPB on receipt of regulatory approval from Reserve Bank of India. The Board of Directors of PNB at its meeting held on 2 November 2017 authorized the management to partially sell its stake in PNB Housing Finance Ltd. Further consequent upon the exercise of call option by the Principal Group the Board has approved to offload PNBs entire stake in Principal PNB Asset Management Company and Principal trustee Company Pvt Ltd to the Principal group.On 5 December 2017 PNB announced that the bank successfully sold 98.15 lakh equity shares of PNB Housing Finance Ltd PNBHFL to different investors Non Retail and retail at above the floor price /cut off price with gross sales consideration of Rs 1315.33 crore.During FY 2017 1218 new ATMs were installed and as an outcome the total ATM network reached 10681. ESurveillance systems were installed at ATM sites. Solar UPS were installed to decrease the downtime of ATMs on account of electricity failure. ESQ ATM Monitoring System was installed for on line ATM monitoring and to take prompt corrective/preventive actions in case ATM gets down.Business Debit Card was launched with enhanced transaction limit permitting withdrawal up to Rs 1 lakh from ATMs and ecommerce transaction up to Rs 3 lakh in FY 2017.On 18 December 2017 PNB announced allotment of 29.76 crore equity shares to successful eligible qualified institutional buyers at a price of Rs 168 per share. Earlier PNB on 14 December 2017 announced the closure of the qualified institutions placement QIP of equity share. The bank raised Rs 5000 crore from the QIP.The Board of Directors of PNB at its meeting held on 6 February 2018 accorded approval for Capital Infusion by Government of India up to Rs 5473 crore.During FY 2017 the Bank mobilized total amount of Rs 4545 crore Asset under Management AUM stood at Rs 814 crore and brokerage earned was Rs 4 crore.The Bank has one of the largest branch networks of 6937 as on 31st March 2017. To fulfill the banking needs of unbanked areas 178 new branches were added to the vast network of branches during the year. On 14 February 2018 PNB informed the stock exchanges of detection of a massive fraud of Rs 11394.02 crore. On 12 February 2018 on the basis of investigation report total fraud of Rs 11394.02 crore about USD 1771.69 million in case of unauthorized issuance of Letters of Undertakings Foreign Letter of Credits and Inland Letter of Guarantees in the group accounts of Nirav Modi Group and M/s Gitanjali Group and in the account of M/s. Chandri Paper Allied Products Pvt. Ltd. was reported to RBI. Later on 26 February 2018 PNB informed the stock exchanges that the quantum of reported unauthorized transactions could increase by about USD 204.25 million.During the FY2019 the bank has allotted 312993219 equity shares at a price of Rs 89.97 per share to GOI on preferential basis. Further the bank also made another preferential allotment of 638190364 equity shares at a price of Rs 85.10 per share to GOI. Also third time during the FY2019 the bank made another preferential allotment of 802063535 equity shares at a price of Rs 73.66 per share to GOI.The Bank has one of the largest networks of 6989 branches and 9255 ATMs as on 31.03.2019 comprising of 1280 Metropolitan 1387 Urban 1727 Semi Urban and 2595 Rural branches. During the FY2020 the bank made a preferential allotment of 2133518960 equity shares at a price of Rs 75.42 per share to GOI. The Bank has one of the largest networks of 7041 branches and 9168 ATMs as on 31.03.2020 comprising of 1259 Metropolitan 1430 Urban 1753 Semi Urban and 2599 Rural branches. PNB won IBA Banking Technology Awards 2020 for Most Innovate Project using Technology for PNBOne and also Runners Up in Best Use of Data and Analytics for Business Outcome in the Large Bank Category. The Bank won BFSI Digital Innovation Awards in the category of Robotic Process Automation. The bank was also adjudged Bank of the year by IndoAmerican Chamber Of Commerce IACC. The Government of India Gol Ministry of Finance Department of Financial Services has issued Gazette Notification no. CGDLE 04032020216535 dated 4th March 2020 approving the scheme of Amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank in exercise of the powers conferred by section 9 of the Banking Companies Acquisition and Transfer of Undertaking Act 1970 and section 9 of the Banking Companies Acquisition and Transfer of Undertaking Act 1980. The amalgamation has come into effect from 01 April 2020. On 05.03.2020 the Board of Directors of the Bank and the Board of Directors of Oriental Bank of Commerce and United Bank of India at their respective meetings approved amalgamation. The Boards of respective banks have also approved the swap ratio of 1150 equity shares of Face Value Rs 2/ each of Punjab National Bank for every 1000 equity shares of Face Value Rs 10/ each of Oriental Bank of Commerce and the swap ratio of 121 equity shares of Face Value Rs 2/ each of Punjab National Bank for every 1000 shares of Face Value Rs 101 each of United Bank of India. The bank has Made investment in JSC Tengri Bank previously known as Bank of Kazakhstan of Rs.300 crores which is an associate of our bank Consequent to the study conducted by the independent agency Whereby the associate Bank has to create certain provisions towards NPAs because of which the networth of the bank has diminished as on 31.03.2020.During the quarter ended 31 December 2020 the Bank has issued 1067052910 equity shares having Face Value of Rs.2 each for cash to Qualified Eligible Buyers pursuant to Qualified Institutional Placement QIP in accordance with the provisions of SEBI Issue of Capital and Disclosure Requirements Regulations 2018 at a premium of Rs.33.50 per share aggregating Rs. 3788.04 Crore.During the quarter ended on 31 December 2020 Bank has issued TierII Bonds aggregating to Rs.3000 Crore.
OrganisationPunjab National Bank
HeadquartersNew Delhi
IndustryBanks