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#1FINANCIAL RESULTS Q4 & FY 2020 Follow our Official Page pnbindia f in 4 pnb#2pnb Core Strengths of the Bank Core Operations Profitable 125+ Years of banking Experience 125 SERVICE TO THE NATION 1195-2019 pnb High CASA Share 44.05% % Dedicated Workforce 68000 + (Amalgamated entity: Dedicated Workforce 103000+) ܠܰܐ: PAN India Presence Trust of 11.8 crore + customers (Amalgamated entity: 18 crore + customers) Resilient Business Model 23231 Touch Points: 6563 Branches, 9168 ATMs, 7500 BCs (Amalgamated entity: 37440 Touch Points: 10910 Branches, 13797 ATMs, 12733 BCs) Page 2#3O pnb Key Financial Highlights Q4 FY'20 1 Domestic Deposit 4.9% YoY Gr CASA Deposit 6.1% YoY Gr Gross Credit 516929 Crore ₹ Do Retail Loans 6.1% YoY Gr Operating Profit % + 37.4% YoY Gr % CASA Share 44.05 % NNPA 5.78% QoQ: 140 bps decline 啊 Housing Loans 14.2% YoY Gr R PCR 77.79% Page 3#4pnb Content Slide No 1 Business Performance 5-23 2 Profitability 24-32 3 Asset Quality 33-47 4 Capital & Share Holding 48-50 5 Digitalization & Financial Inclusion 51-57 6 Way Forward 58-61 7 Subsidiaries, JVs, Associates & RRBs 62-71 8 Summary of Amalgamation Entity 72-82 Page 4#5pnb sl. Business Performance As at 31st Mar 20 Parameters Mar'18 1 Domestic Deposits Overseas Deposits Global Deposits YoY variation Mar'19 Mar'20 Amount % 600387 654536 41839 21494 642226 676030 686493 31957 17353 -4141 -19.3 703846 27816 4.9 4.1 2 Gross Domestic Advances 428466 489812 495045 5233 1.1 Gross Overseas Advances 42831 16382 Gross Global Advances 471297 506194 21883 516929 5501 33.6 10735 2.1 3 Gross Domestic Business 1028852 1144348 Gross Overseas Business 84670 37876 Gross Global Business 1113523 1182224 1181538 37190 39237 1361 1220775 38551 3.2 3.6 3.3 1 Business Performance Crore Page 5#6pnb Business Performance (Daily Average Basis) YoY Variation SI. Parameters Mar'18 Mar'19 Mar'20 Amt. % 1 Domestic Deposits 561391 601091 645421 44330 7.4 Overseas Deposits 52538 26053 20785 -5268 -20.2 Global Deposits 613929 627144 666206 39062 6.2 CASA Deposits 241559 251311 268102 16791 6.7 Saving Deposits 212606 223419 239516 16097 7.2 2 Gross Domestic Advances 372525 427101 440828 13727 3.2 Gross Overseas Advances 52538 27270 17165 -10105 -37.1 Gross Global Advances 425063 454371 457993 3622 0.8 3 Gross Domestic Business 933916 1028192 1086249 58057 5.6 Gross Overseas Business 105076 53323 37950 -15373 -28.8 Gross Global Business 1038992 1081515 1124199 42684 3.9 1 Business Performance Crore Page 6#7pnb SI. Deposit Mix Parameters Mar'18 Mar'19 Mar'20 YoY variation Amount % 600387 654536 686493 31957 4.9 1 Domestic Deposit 2 Overseas Deposit 3 Global Deposit 4 CASA Deposit 5 Current Deposit 6 Saving Deposit CASA Share Domestic (%) 1 41839 21494 17353 -4141 -19.3 642226 676030 703846 27816 4.1 263247 285040 302475 17434 6.1 40374 44375 45714 1339 3.0 222873 240665 256760 16095 6.7 43.80 43.51 44.05 Business Performance Crore Page 7#8pnb Saving Deposit (* Crore) 222873 Mar'18 240665 Mar'19 Current Deposits (Crore) 40374 44375 256760 Mar' 20 45714 Mar'18 Mar'19 Mar' 20 1 CASA Share CASA Share % Crore 43.80% 44.05% 43.51% Mar'18 Mar'19 Mar' 20 Business Performance Page 8#9O |თის SI. Parameters 1 Global Gross Advances 2 Overseas Advances 3 Domestic Advances Advances Composition YoY variation Mar'18 Mar'19 Mar'20 Amount % 471297 506194 516929 10735 2.1 42831 16382 21883 5501 33.6 428466 489812 495045 5233 1.1 Crore За Retail Loans 62336 78656 83479 4824 6.1 Of which Regulatory Retail 57005 64891 70780 5889 9.1 Others 5331 13765 12699 -1066 -7.7 3b Agriculture & Allied 90009 100120 86121 -13999 -14.0 3c MSME 81502 79037 70541 -8497 -10.7 RAM (3a+3b+3c) 233847 257813 240141 -17672 -6.9 RAM as % to total Dom advances 54.58 52.64 48.51 3d Corporate & Others 194619 231998 254904 22905 9.9 1 Business Performance Page 9#10pnb Retail Product Performance YoY Gr 6.1% Retail 78656 62336 Crore Retail Components Mar'18 Mar'19 Mar'20 | YoY % 83479 Housing 36003 44874 51267 14.2 Mortgage 6220 8150 9191 12.8 Car/Vehicle 5934 5745 5480 -4.6 Education 5220 5586 5843 4.6 Personal 4348 4865 5124 5.3 Others 4610 9435 6573 -30.3 Total Retail 62336 78656 83479 6.1 Mar'18 Mar'19 Mar'20 Growth 14.2% Gr 12.8% Gr -4.6% Gr 4.6% Gr 5.3 % Gr -30.3 % Gr 51267 44874 Housing 8150 9191 5745 5480 9436 5586 5843 4865 5124 6574 Mortgage 1 Car/Vehicle Education ■Mar'19 Mar'20 Business Performance Personal Others Page 10#11pnb 41% Segment Mix 14% MSME Lending portfolio ■Micro ■Small Medium 45% Bank has maximum exposure in MSE sector to boost priority sector credit. 1 9% 15% Book by Loan Size 9% 67% ■Upto 5 crore ■5 cr-10 cr ■10 cr-25 cr More than 25 cr Maximum MSME portfolio of Bank is in smaller valued accounts. Business Performance Crore Page 11#12pnb MSME Lending portfolio Geographical Mix 12% 10% ■NORTH 20% 15% WEST ■SOUTH 63% 4% 3% 7% 5% Sectoral Mix ■Textile Iron & steel ■Gems & Jewellery 5% Infrastructure 2% Automobile 2% \1% 2% EAST 1% 20% 28% Bank has maximum exposure in Northern States of ■Manufacturing of CONSUMER DURABLES DRUGS & PHARMACEUTICALS Manufacturing of food items PLASTIC INDUSTRY Service & Others ■Manufacturing & Other Small Buisness Professionals India 1 Business Performance Crore Page 12#13pnb 7% 3% MSME: Advances Composition 32% 28% Crore Unsecured 97% ■Secured Long term loan ■Short term loan 68% 72% 93% Mar'19 Mar'20 Mar-19 Mar-20 97% of MSME loan portfolio is secured. Short term MSME portfolio of Bank increased during FY 19-20. 71% of MSME loan portfolio is consists of working capital loans. 1 Business Performance Page 13#14pnb Mudra and Stand up India muda LOAN Amount Sanctioned Parameter Mar'19 Mar'20 6315 5956 Amount Disbursed 4964 4707 Achievement % Disbursement to sanctions 78.6% 79.0% STAND UP India Endeavour and Prosper 1 Since Inception Current FY No. of A/Cs Amt. Sanc. No. of A/Cs Amt. Sanc. 12497 2822 1014 314 Business Performance Crore Page 14#15pnb Priority Sector National YoY Variation SI. Parameters Mar'18 Mar'19 Mar'20 Goals Amt. % 1 Priority Sector 169772 178644 182344 3700 2.071 % to ANBC 40% 40.94% 41.89% 39.47% 2 Agriculture (PS) 69207 81500 79707 -1793 -2.2 % to ANBC 18% 18.49% 18.40% 17.85% 3 Small and Marginal Farmers 34442 36826 40512 3686 10.01 % to ANBC 8% 8.86% 8.41% 8.86% 4 Weaker Section 51600 49595 50850 1255 2.53 % to ANBC 10% 11.56% 11.30% 11.30% 5 Women Beneficiaries 26083 29813 30580 767 2.573 % to ANBC 5% 6.78% 6.81% 6.81% 6 Micro Enterprises (PS) 34475 31552 31506 -46 -0.15 % to ANBC 7.65% 7.71% 7.27% % Ach. is on Quarterly Annual Average Basis. 7.5% 1 Business Performance Crore Page 15#16O pnb Balance Sheet: PNB Standalone Crore SI. Parameters YoY Variation Mar'18 Mar'19 Mar'20 Amt. % CAPITAL & LIABILITIES 1 Capital 552 921 1348 427 46.3 2 Reserves and Surplus 40522 43866 61010 17144 39.1 3 Deposits 642226 676030 703846 27816 4.1 4 Borrowings 60851 39326 50225 10900 27.7 5 Other Liabilities and Provisions 21679 14806 14237 -570 -3.8 Total 765830 774949 830666 55716 7.2 ASSETS 1 Cash and Balances with RBI 28789 32129 38398 6269 19.5 2 Balances with Banks 66673 43159 37595 -5564 -12.9 3 Investments 200306 202128 240466 38337 19.0 4 Loans & Advances 433735 458249 471828 13579 3.0 5 Fixed Assets 6349 6225 7239 1014 16.3 6 Other Assets 29978 33059 35140 2081 6.3 Total 765830 774949 830666 55716 7.2 1 Business Performance Page 16#17O pnb Diversified Industry Portfolio Crore Mar'18 Mar'19 Mar'20 YoY variation SI. Parameters % to Total o/s o/s o/s % Portfolio 1 Food Processing 10761 10120 10293 5.8 1.7 2 23 Textiles 10258 9289 7801 4.4 -16.0 Chemical & Chemical Products 6355 4803 17522 9.9 264.8 45 4 Cement & Cement Products 1508 1651 995 0.6 -39.7 5 Basic Metal & Metal Products 26604 22240 25650 14.5 15.3 -Iron & Steel 24392 20234 23734 13.4 17.3 6 Paper & paper products 1252 1084 931 0.5 -14.1 7 Petroleum 8370 7219 4546 2.6 -37.0 8 Engineering 4887 4363 3940 2.2 -9.7 9 Vehicles & Vehicle parts 662 1053 758 0.4 -28.0 10 Construction 3818 2579 1330 0.8 -48.4 11 Infrastructure 70501 72754 71963 40.6 -1.1 -Power -Tele-Communication -Roads & Ports -Others 32592 36884 32072 18.1 -13.0 11872 14083 13231 7.5 -6.0 18261 16011 21727 12.3 35.7 7777 5776 4934 2.8 -14.6 12 Others Total 30367 30595 31557 17.8 3.1 175344 167750 177287 100.0 5.7 1 Business Performance Page 17#18O pnb Exposure to Sensitive Sector YoY Variation SI. Parameters Mar'19 Jun'19 Sep'19 Dec'19 Mar'20 Amt. % 1 Capital Market 4849 4180 3700 4625 3966 -883 -18.2 2 Commercial Real Estate 14480 15675 19318 18681 18415 3935 27.2 3 NBFC 40771 39858 44577 43026 54206 13435 33.0 of which HFC 15116 14150 14377 17316 22304 7188 47.6 4 Aviation 1 7023 7007 6703 5539 5337 -1686 -24.0 Business Performance Crore Page 18#19O pnb Regulatory Bifurcation of Advances Crore YoY Variation SI. Parameters Mar'19 June'19 Sep'19 Dec'19 Mar'20 Amt. % 1 Regulatory Retail (< Rs 5 Crore) 172365 168915 172590 175240 176223 3858 2.2 2 Corporate Total 317447 283029 282540 279796 318822 1375 0.4 2a Corporate (> Rs 250 Crore) 230170 200452 202262 199886 239751 9581 4.2 Corporate (> Rs 10 Crore & < Rs 2b 76548 71864 69256 68685 67806 -8742 -11.4 250 Crore) 2c Others (> Rs 5 Crore& < Rs 10 Crore) 10729 10713 11021 11225 11265 536 5.0 3 Gross Domestic Advances (1+2) 489812 451944 455130 455036 495045 5233 1.1 1 Business Performance Page 19#20O pnb SI. Parameters Concentration Risk Mar'18 Mar'19 Mar'20 1 Exposure to top 20 Borrowers as % of total Exposure 18.6 19.9 18.2 2 Exposure to top 10 Groups as % of total Exposure 14.4 13.2 14.3 Crore 1 Business Performance Page | 20#21pnb Advances Mix of Benchmark Rate (%) 2.1 0.0 2.6 0.0 2.7 0.1 3.7 2.0 Crore 2.9 3.3 58.9 60.1 61.5 59.7 58.9 15.4 12.3 12.6 12.4 18.2 3.2 3.4 3.3 3.2 2.9 20.4 21.6 19.8 18.9 13.9 Mar'19 June'19 Sep'19 Dec'19 Mar'20 Base Rate BPLR Fixed MCLR ■RLLR Foreign Currency & Others 1 Business Performance Page 21#22O pnb Investment Portfolio YoY Variation Crore SI. 1 Domestic Investment Parameters Mar'18 Mar'19 Mar'20 Amt. % 197328 200632 236670 36038 18.0 a SLR 145271 140391 166713 26322 18.7 b Non SLR 52057 60241 69957 9716 16.1 SLR as % to Dom. Investment 73.62 69.97 70.44 | Held To Maturity (HTM) 119439 135102 162123 24603 18.2 || Available For Sale (AFS) 77839 65280 74541 9261 14.2 III 2 Held For trading (HFT) Duration (AFS+HFT) 50 250 5 -245 -98.0 4.29 3.42 3.75 3 Modified Duration (AFS+HFT) 4.09 3.26 3.61 4 Net demand & time Liabilities 584269 639565 703577 64012 10.0 5 Investment by Overseas Branches 6081 5493 7084 1591 29.0 6 Total Gross Investment (1+5) 203409 206125 243754 37629 18.3 SLR HTM to Total SLR (%) 73.38 77.45 71.85 HTM To Investment (%) 60.53 67.33 68.50 1 Business Performance Page 22#23O pnb Non SLR Portfolio Crore Mar'18 Mar'19 Mar'20 Y-o-Y Variation SI. Parameters O/S % Share o/s % Share o/s % Share Amt Gr. % 1 PSU Bonds 12696 24.4 11130 18.5 9615 13.7 -1515 -13.6 Corporate and Other Bonds & 2 17254 33.1 16415 27.2 9317 13.3 -7098 -43.2 Debentures 3 Special Govt. Sec excl. Recap Bonds 1996 3.8 1328 2.2 1212 1.7 -116 -8.7 4 CG Recap. Bond 5473 10.5 19628 32.6 35719 51.1 16091 82.0 5 Share of PSU/Corporate/Others 6678 12.8 6587 10.9 5693 8.1 -894 -13.6 6 Venture Capital Fund 216 0.4 164 0.3 152 0.2 -12 -7.0 7 Regional Rural Bank 70 0.1 70 0.1 74 0.1 4 6.1 8 Security Receipts 1657 3.2 1526 2.5 1458 2.1 -68 -4.4 9 Subsidiaries JV 2952 5.7 2927 4.9 2977 4.3 50 1.7 10 Other Total Non SLR Investment 3065 5.9 468 0.8 3740 5.3 3272 699.7 52057 100.0 60241 100.0 69957 100.0 9716 16.1 1 Business Performance Page 23#24чpnb Total Income Crore YoY Variation YOY SI. Parameters Q4' FY19 Q3' FY20 Q4' FY20 FY19 FY20 Amt. % Gr. % 1 Interest Income (2+3+4) 12836 13563 13859 1023 8.0 51310 53800 4.9 2 Interest on Advances 8811 8838 9220 408 4.6 35086 35815 2.1 3 Interest on Investments 3543 4022 3935 393 11.1 14106 15333 8.7 4 Other Interest Income 482 702 704 222 46.1 2118 2652 25.2 5 Other Income (6+7+8+9) 1889 2405 2529 640 33.9 7377 9274 25.7 of which 6 Fee Based Income 1003 980 1073 70 7.0 4225 4341 2.7 7 Recovery in Written off a/cs 545 1194 1006 460 84.4 1808 3095 71.2 00 8 Trading Profit 252 203 407 156 61.8 1093 1632 49.3 9 Others 89 28 43 -46 -51.5 251 207 -17.8 10 Total Income (1+5) 14725 15967 16388 1663 11.3 58688 63074 7.5 2 Profitability Page | 24#25O pnb Non Interest Income Crore Q4' Q3' Q4' YoY Variation YOY SI. Parameters FY19 FY20 FY 19 FY 20 FY20 Amt. % Gr. % A Fee Based Income 1003 980 1073 70 7.0 4225 4341 2.7 1 Processing Fees 113 58 128 15 13.1 623 649 4.1 2 LC/LG Income 169 178 169 0 -0.1 676 664 -1.7 3 Income from Ins & MF 76 60 74 -2 -2.9 233 243 4.6 4 Govt. Business 50 34 51 1 2.4 124 144 15.9 5 Exchange Profit 102 83 122 20 19.4 509 439 -13.7 6 Misc. Fee Income 493 567 529 37 7.4 2061 2201 6.8 B Trading Profit 252 203 407 156 61.8 1093 1632 49.3 C Realization in write off A/C's 545 1194 1006 460 84.4 1808 3095 71.2 D Income from Dividend 16 6 35 18 110.0 149 154 3.6 E Other Non intt Income 73 22 9 -64 -87.9 103 52 -48.9 Total Non Interest Income(A to E) 1889 2405 2529 640 33.9 7377 9274 25.7 2 Profitability Page 25#26ч pnb Total Expenses YoY Variation YOY SI. Parameters Q4' FY19 Q3' FY20 Q4' FY20 FY19 FY20 Gr. % Amt. % 1 Total Interest Paid (2+3+4) 8635 9208 9181 546 6.3 34154 36362 6.5 2 Intt. Paid on Deposits 8330 8658 8552 222 2.7 32218 34375 6.7 3 Intt. Paid on Borrowings 135 191 254 119 88.5 552 654 18.4 4 Others 170 359 375 204 119.9 1384 1333 -3.6 5 Operating Expenses (6+8) 3229 2997 3275 46 1.4 11538 11973 3.8 6 Estab. Expenses 1990 1751 1854 -136 -6.8 6963 6962 0.0 Of Which Employee Benefits (AS-15) 508 207 300 -208 -40.9 1143 854 -25.3 7 Other Operating Expenses 1239 1245 1421 182 14.7 4575 5012 9.5 8 Total Expenses (1+5) 11864 12205 12456 592 5.0 45692 48336 5.8 2 Profitability Crore Page 26#27O pnb Profit Crore YoY Variation YOY SI. Parameters Q4' FY19 Q3' FY20 | Q4' FY20 FY19 FY20 Gr. % Amt. % 1 Interest Income 12836 13563 13859 1023 8.0 51310 53800 4.9 2 Interest Expenses 8635 9208 9181 546 6.3 34154 36362 6.5 3 Net Interest Income 4200 4355 4678 477 11.4 17156 17438 1.6 4 Other Income 1889 2405 2529 640 33.9 7377 9274 25.7 5 Operating Income 6090 6760 7207 1117 18.3 24534 26712 8.9 6 Operating Expenses 3229 2997 3275 46 1.4 11538 11973 3.8 7 Operating Profit (5-6) 2861 3763 3932 1071 37.4 12995 14739 13.4 8 Provisions 7611 4255 4629 -2981 -39.2 22971 14402 -37.3 9 Net Profit (7-8) -4750 -492 -697 4052 -9975 336 2 Profitability Page 27#28pnb Provisions Q4' FY 19 Q3' FY20 Q4' FY20 FY19 FY20 Sl. Parameters 1 NPAs 9154 4445 4618 24435 14464 Standard Advances 2 223 -209 441 208 73 incl. Std. Restructured 3 Depreciation on Investment 147 -106 -404 1641 -366 4 Income Tax 5 Others B Total Provision 2 -2460 109 -272 -5370 403 548 16 246 2058 -171 7611 4255 4629 22971 14402 Profitability Crore Page 28#29pnb Profitability Ratios SI. Parameters Q4' FY19 Q3' FY20 Q4' FY20 FY19 FY20 1 Return on Assets [%] -2.33 -0.23 -0.31 -1.25 0.04 2 Return on Net worth [%] -46.92 -3.38 -4.91 -24.64 0.59 3 Earnings per share [*] -49.62 -2.95 -4.14 -30.98 0.62 4 Book Value per Share [*] 47.2 57.74 54.43 47.2 54.43 5 Cost to Income Ratio [%] 53.02 44.33 45.44 47.03 44.82 6 Opt. Profit to AWF [%] 1.40 1.75 1.74 1.63 1.72 7 Opt. Exp. To AWF [%] 1.58 1.39 1.45 1.45 1.40 2 Profitability Annualized % Page 29#30pnb Cost of Deposit [%] 5.21 5.02 Cost & Yield Ratios (Q4) Cost of Funds [%] 4.24 4.06 Annualized % Yield on Advances [%] 7.53 7.98 Q4 FY19 Q4 FY20 Q4 FY19 Yield on Investment [%] 7.40 6.94 Q4 FY19 Q4 FY20 2 Q4 FY20 Q4 FY19 Q4 FY20 Yield on Funds [%] NIM [%] 6.30 6.12 2.45 2.32 2.50 2.40 Q4 FY19 Q4 FY20 Q4 FY19 NIM (Domestic) [%] Q4 FY20 ■NIM (Global) [%] Page | 30 Profitability#31pnb Cost of Deposit [%] 5.14 5.16 FY19 FY20 Yield on Investment [%] 7.41 7.13 FY19 FY20 2 Cost & Yield Ratios (FY) Cost of Funds [%] 4.29 4.25 Yield on Advances [%] 7.72 7.82 FY19 FY20 FY19 FY20 Yield on Funds [%] NIM [%] 2.59 6.44 6.28 2.41 2.40 2.30 FY19 FY20 FY19 FY20 ■NIM (Domestic) [%] Profitability NIM (Global) [%] Page 31#32pnb SI. Productivity Parameters Mar'18 Mar'19 Mar'20 1 Business per Employee 2 Business per Branch 1473 1680 1821 14624 15650 16259 3 Operating Profit per Employee 14.84 19.96 23.44 4 Operating Profit per Branch 147 186 209 2 Profitability in lakhs Page 32#33pnb Asset Quality Classification: Advance Mar'18 Mar'19 Mar'20 YoY Variation SI. Parameters O/S Share% O/S Share% O/S Share% Amt. Var. % 1 Standard 384677 81.6 427722 84.5 443450 85.8 15728 3.7 2 Gross NPA 86620 18.4 78473 15.5 73479 14.2 -4994 -6.4 2a Sub-Standard 22289 4.7 14053 2.8 12532 2.4 -1521 -10.8 2b Doubtful 2c Loss 51708 11.0 51657 10.2 50291 9.7 -1366 -2.6 12623 2.7 12763 2.5 10656 2.1 -2107 -16.5 Total Advances(1+2) 471297 100 506194 100 516929 100.0 10735 2.1 3 Asset Quality Crore Page 33#34pnb Movement of NPA 3 SI. 1 NPA as at the beginning of Year 2 4 -Cash Recovery -Up-gradation -Write Off 5 Total Reduction (2+3+4) Parameters Mar'19 Dec'19 (Q4FY19) (Q3FY20) | (Q4FY20) Mar'20 FY19 FY20 77733 79458 76809 86620 78473 2518 5043 2922 12165 10782 1064 1601 1121 3633 1598 2981 3403 4308 12253 13365 6562 10047 8351 28051 25745 6 Fresh Addition 7302 7398 5020 19904 20751 -Fresh slippages 6710 6783 3850 16616 18235 -Debits in existing NPA A/cs 592 615 1170 3288 2516 Gross NPAs at end of the period 78473 76809 73479 78473 73479 8 Eligible Deductions incl. Provisions 48435 46290 46260 48435 46260 9 Net NPAS 30038 30519 27219 30038 27219 10 Recovery in written-off A/cs 545 1194 1006 1808 3095 3 Asset Quality Crore Page 34#35pnb SI. NPA Ratios Parameters Mar'18 Mar'19 Dec'19 Mar'20 1 Gross NPA (%) 18.38 15.50 16.30 14.21 2 Net NPA (%) 11.24 6.56 7.18 5.78 3 Provision Coverage Ratio (%) 58.42 74.50 75.27 77.79 4 Provision Coverage Ratio (%) (Exc TWO) 43.80 61.72 60.27 62.96 5 Credit Cost (%) 7.38 5.18 2.59 2.86 3 Asset Quality Page 35#36pnb Movement of Std. Restructured Advances SI Parameter A Opening Balance B Total Addition 1 Fresh Restructuring Mar'18 Mar'19 Mar'20 11932 5235 3102 476 675 1246 319 565 1176 2 Up-gradation 156 110 70 C Reduction 7173 2808 851 1 In eligible 1038 2056 504 2 Down-gradation to NPA 4169 629 321 3 Exit/Failure 1966 123 26 Closing Balance (A+B-C) 5235 3102 3497 3 Asset Quality Crore Page 36#37pnb SI. A Retail Loans B Agriculture & Allied C MSME Sector wise Std. Restructured Parameter Mar'18 Mar'19 Mar'20 1374 1360 1268 277 622 1762 D Corporate & Others 3584 1120 467 Total 3 Asset Quality 5235 3102 3497 Crore Page 37#38pnb Exposure to NCLT accounts: 31st Mar 2020 SI. Parameters Accounts Balance Provision PCR% 1 RBI list 1 5 5654 5654 100 2 RBI list 2 11 3964 3761 95 3 Filed by other Lenders 239 34638 30521 88 4 Filed by PNB 80 7054 6722 95 5 Total 335 51309 46657 91 100.0% 94.9% 88.1% 95.3% 90.9% 51309 IO/S Amount Provision Coverage (%) 5654 3964 34638 7054 RBI 1 List RBI 2 List Account Filed by PNB and Admitted Accounts Filed by Other Banks / FI/Operational Creditors Total 3 Asset Quality Crore Page 38#39O |თის NPA classification: Industry wise Crore Mar'18 Mar'19 Mar'20 YoY variation SI. Parameters GNPA GNPA% GNPA GNPA% GNPA GNPA% Amount 1 Food Processing 2378 22.1 2041 20.2 1945 18.9 -96 2 Textiles 1787 17.4 1762 19.0 1844 23.6 82 3 Chemical & Chemical Products 959 15.1 883 18.4 539 3.1 -344 4 Cement & Cement Products 822 54.5 896 54.3 108 10.8 -788 5 LO Basic Metal & Metal Products 16341 61.4 10738 48.3 6745 26.3 -3993 -Iron & Steel 15657 64.2 10027 49.6 6110 25.7 -3917 6 Paper & paper products 318 25.4 169 15.6 102 10.9 -67 7 Petroleum 22 0.3 354 4.9 351 7.7 -2 8 Engineering 2064 42.2 1900 43.5 1802 45.7 -97 9 Vehicles & Vehicle parts 98 14.8 421 40.0 101 13.3 -321 10 Construction 1077 28.2 678 26.3 419 31.5 -259 11 Infrastructure -Power -Tele-Communication -Roads & Ports -Others 12 Others Total 22295 31.6 18246 25.1 16239 22.6 -2007 13642 41.9 11346 30.9 8183 25.5 -3163 4005 33.7 4674 33.2 3677 27.8 -997 2483 13.6 1204 7.5 3674 16.9 2470 2165 27.8 1022 17.7 705 14.3 -317 14111 46.5 12626 41.3 11375 36.0 -1251 62272 35.5 50714 30.3 41569 23.4 -9144 3 Asset Quality Page 39#40O pnb NPA Classification: Sector Wise Crore Mar'18 Mar'19 Mar'20 SI. Parameters o/s GNPA GNPA% 2 1 Global Gross Advances Overseas Advances (Gross) Slippages (Q) 471297 86620 18.3 30377 506194 o/S GNPA GNPA% Slippages (Q) o/s GNPA GNPA% Slippages (Q) 78473 15.5 6710 516929 73479 14.2 3850 42831 2772 6.4 382 16382 1748 10.7 0 21883 2792 12.8 0 3 Domestic Advances 428466 83848 19.6 29996 489812 76724 15.7 6710 495045 70686 14.3 3850 3a Retail Loans 62336 2971 4.8 869 78656 3033 3.9 429 83479 3479 4.2 428 3b Agriculture & Allied 90009 9890 11.0 1973 100120 11928 11.9 2186 86121 13464 15.6 376 (PS+NPS) 3c MSME 81502 13243 16.2 4446 79037 13878 17.6 1878 70541 13798 19.6 1982 3d Corporate & Others 194619 57744 29.7 22708 231999 47885 20.6 2217 256390 39946 15.7 1064 3 Asset Quality Page 40#41O pnb Retail Sector NPA Mar'18 Mar'19 Mar'20 SI. Parameters o/s GNPA GNPA% O/S GNPA GNPA% O/S GNPA GNPA% Crore 1 Total Retail Credit 62336 2971 4.8 78656 3033 3.9 83479 3479 4.2 of which 2 Housing 36003 1449 4.0 44874 1531 3.4 51267 1849 3.6 3 Mortgage 6220 289 4.6 8150 305 3.7 9191 328 3.6 4 Car/Vehicle 5934 371 6.2 5745 372 6.5 5480 396 7.2 5 Education 5220 726 13.9 5586 695 12.4 5843 775 13.3 6 Others 3 8958 136 1.5 14300 130 0.9 11697 132 1.1 Asset Quality Page 41#42pnb Position of SMA 2 Parameter Mar'19 Jun'19 Sep'19 Dec'19 Mar'20 SMA2 14120 24650 21165 19361 9608 SMA2 as % to Dom. 2.8 5.3 4.5 4.3 1.9 Advances Crore 3 Asset Quality Page 42#43pnb NBFC Portfolio 54206 Exposure to NBFC as on 31.03.2020 NBFC Breakup 54206 Housing Finance 22304 47% 50% Crore ■Backed by large Pvt. Sector Institutions ■ Public Sector/ Govt. account 20898 ■Backed by large Pvt. Sector Institutions 13564 Public Sector/ Govt. account 19744 Pvt. Sector External Rating wise portfolio 3190 2 B% Others 30% 29% Others HFC NBFC O/S % Share AAA 34764 64.2% AA 14244 26.3% A 2788 5.1% BBB & Below 2410 4.4% Total 54206 100% 3 Asset Quality 40% Pvt. Sector ■Backed by large Pvt. Sector Institutions ■ Public Sector/ Govt. account Pvt. Sector Page 43#44pnb Telecom Sector as on 31.03.2020 Telecom Classification 13231 ■ A & Above 9554 10888 3677 NPA STD 3 2343 PSU Pvt. BBB External Rating Std Portfolio 2017 7537 Crore Asset Quality Page 44#45pnb Power Classification 32072 8183 Power Sector as on 31.03.2020 23889 15612 Standard NPA 3 Standard Breakup External Rating of standard portfolio 8277 19% 8% 2% , 70% ■ A & Above BBB, BB & B ■ C & D Unrated Public Private Asset Quality Crore Page | 45#46pnb External Rating Outstanding Portfolio Crore SI Rating Grade Mar'18 % Share Mar'18 Mar'19 % Share Mar'19 Mar'20 % Share Mar'20 1 AAA & AAA+ 40676 65839 79873 2 AA 18596 47.8% 36886 59.8% 39118 68.3% 3 A 18512 22393 23666 4 BBB 27872 17.1% 24597 11.8% 21743 10.4% 5 BB 19221 12713 14828 6 B 8880 17.4% 4403 8.3% 7770 10.9% 7 C 240 198 111 8 D 10296 6.3% 6017 2.9% 4247 2.0% 9 Unrated 18475 11.4% 36176 17.3% 17434 8.4% Total 162769 100% 209222 100% 208790 100% 3 Asset Quality Page 46#47pnb Portfolio: Rating Wise External Rating O/S Standard Portfolio 71.6 64.9 LL 23.7 Mar'18 11.4 11.2 Mar'19 78.7 17.3 12.9 8.4 (in %) Risk Weight wise Portfolio 77.0 75.0 65.2 34.8 25.0 23.0 Mar'20 Mar'18 Mar'19 Mar'20 Below 100% >=100% BBB & Above BB & Below Unrated Exposure after risk mitigation 3 Asset Quality Page 47#48pnb Capital Adequacy (Basel III) SI. Parameters Mar'18 Mar'19 Mar'20 1 Tier I 32267 30309 49108 Common Equity 26971 25107 44116 Additional Tier I 5296 5202 4992 2 Tier II 9413 9057 9226 3 Total (Tier I+II) 41680 39366 58334 4 Risk-weighted Assets 453070 404622 412628 1 Tier 1 % 7.12 7.49 11.90 Common Equity % 5.95 6.21 10.69 Additional Tier 1 % 1.17 1.29 1.21 2 Tier II % 2.08 2.24 2.24 3 Total (Tier I+II) % 9.20 9.73 14.14 4 Capital & Share Holding Crore Page 48#49pnb Capital Optimization SI. Parameters Mar'19 June'19 Sep'19 Dec'19 Mar'20 1 Credit RWA (Includes NFB RWA) 331929 329591 329747 334769 334835 Of which Credit RWA (FB) 264271 259531 250141 254057 254547 2 Market RWAS 34382 34019 38296 36867 37771 3 Operational RWAS 38310 40022 40022 40022 40022 4 Total RWAS 404621 403632 408065 411658 412628 5 Global Credit Exposure 602905 568782 584920 580063 631290 6 Credit Exposure (Domestic FB) 528134 492537 498158 500254 543398 7 RWA/Advances 67.11% 70.96% 69.76% 70.97% 65.36% 8 Credit RWA Density (Domestic FB) 50.0% 52.7% 50.2% 50.8% 46.8% 9 Total NFB O/S 10 NFB RWA 11 Leverage Ratio 56520 55802 54620 63442 66940 21070 22977 23859 23755 24592 3.72% 3.89% 5.95% 5.73% 5.82% 4 Capital & Share Holding Crore Page 49#50pnb Share holding Pattern Mar 20 5.6% 2.2% 1.1% 5.7% 2.3% 83.2% ■Govt. of India ■Fls/Banks/Insurance Mutual Funds Resident Individual ■Flls 4 ■ Non-institutions Capital & Share Holding Page 50#51pnb PNB One: 'One for All' 'All for One' Unified Mobile application with advanced features 80 Interactive Interface NE pnbone # Just one app BILL A₁₂ 'अ Scan and Pay through QR Code Simplified Dashboard to manage key Value Added Services with Pay Bills/Recharge Complaint Available in English and Hindi Manage Debit and Credit Card Banking Activities 5 Service Management Digitalization & Financial Inclusion Bio-metric authentication for greater Security Page 51#52pnb B Expanding Digital Footprints UPI txns 43.68 Crore YoY Gr 150% PIHU PNB's Instant Help for you Available on IBS & MBS Internet Banking Users Crossed 179.51 Lakh YoY Gr: 13.5% ABA POS Total Installed 86823 YoY:21.65% 2002 Credit Card pnb PLATINUM 6528 58XX XXXX XXXX 09/16 DEV KUMAR Total issued 08/23 RuPay CREDIT 346663 RUPEE DIGITAL CURRENCY PNB E-Rupaya Digital Solution in Villages without internet connectivity 5 BHARATQR #R Digitalization & Financial Inclusion Bharat/BHIM QR Code Total Installed 170334 YoY Gr: 141% Page 52#53O pnb SI. Transactions Q4 FY'19 Q4 FY'20 Parameters % Share to Total Transaction (in lakhs) Transaction (in lakhs) Transaction % Share to Total Transaction 1 ATM 830 17.6 893 13.7 2 POS 76 1.6 471 7.2 3 Internet Banking 47 1.0 60 0.9 4 Mobile Banking 7 0.1 12 0.2 5 LO UPI 801 17.0 1370 21.1 6 IMPS 22 0.5 29 0.4 7 RTGS & NEFT 149 3.2 147 2.3 8 Cash Deposit Kiosk 59 1.3 56 0.9 Total ADC (1 to 8) 1991 42.2 3038 46.7 9 Branches & Others 2727 57.8 3465 53.3 Total Transaction 4718 100.0 6503 100.0 5 Digitalization & Financial Inclusion Page 53#54O pnb Alternate Delivery Channels 73% of financial transactions are through ADC in FY20 Transaction share% Transactions on various digital channels 2.47 0.94 0.24 0.46 3.46 27% 6.71 1.24 9.55 41% 32% ■Digital Transaction ATM Withdrawl Other Transaction 5 53.55 Digitalization & Financial Inclusion 21.37 Internet Banking Mobile Banking AEPS Debit Card ■ UPI ■IMPS ■ NACH ■Credit Card ■ NEFTR/RTGS ■ Others Page | 54#55pnb f 9.24 lakhs Social Media Presence in 52093 150572 You Tube 22100 O. 32243 5 Digitalization & Financial Inclusion Page 55#56|აის 103/149 30/51 338/421 Pan India Presence No. of Branches/ No. of ATMs 6563/ 9168 680/668 246/408 514/614 1273/1726 207/725 (515/726 ) 579/695 3/2 3/3 63/80 13/7 2/1 120/211 5/6 273/393 3/5 [1/1] 184/161 295/462 126/243 173/258 1/1 1/1 236/380 72/94 7/12 63/90 85/101 164/212179/255 Population Group wise Break up of Dom. branches Rural Semi-Urban ■ Urban Metro 20 20 18 37 25 Branches 2/2 III 6563 T ATM 9168 BCS 7500 4/4 Other Offices 5 477 Digitalization & Financial Inclusion Page 56#57pnb Financial Inclusion: Profitable Business Proposition PMJDY Accounts No. in Lakhs No. of DBT Txns (Quarterly) No. in Lakhs 231 247 198 Mar'19 200 Mar'20 Mar'19 PMJDY Avg. Balance Amt. in 2891 2397 Mar'20 Deposit Mobilized by BCS Amt. in Crore 4269 3334 Mar'19 Mar'20 Mar'19 Mar'20 No. in Lac SI. Jansuraksha Schemes Enrollment Up To Mar'19 Mar'20 1 2 3 Pradhan Mantri Jeevan Jyoti Bima Yojana Pradhan Mantri Suraksha Bima Yojana Atal Pension Yojana 15.7 17.5 69.6 74.0 4.1 5.1 5 Digitalization & Financial Inclusion Page 57#58O Covid-19 Measures taken to proactively manage risks Credit Risk Rating Models Key focus area: Use of In-house developed Credit Risk Rating Models for independent risk assessment for Corporate Borrowers Covid Response/ Readiness: Dynamic Review Rating of Borrowers/Industries impacted due to Covid -19 pandemic to capture increased riskiness in the portfolio. Scoring Models Key focus area: Use of In-house developed Scoring Models for Retail/MSME/Farm Sector for independent risk assessment for Retail Borrowers. Covid Response/ Readiness: Bureau scores impact taken into Scoring Models for tracking delinquencies/new enquires. Behaviour Score Model is in place for assessing impact on transactional behavior changes pnb Early Warning Signals Key focus area: Use of In-house developed Early warning Signal + Preventive Monitoring System to address the issue of monitoring of causes of build-up of stress in assets. Covid Response/ Readiness: The system covers comprehensive 127 early warning signals including 42 RBI prescribed signals for capturing build up stress in borrowers due to Covid-19 pandemic. 6 Key focus area: Credit Policy Lending in Thrust Areas i.e. Retail, Segment, Priority Sector & MSMEs Covid Response/ Readiness: Readiness to support economic reversal and growth. Way Forward Page 58#59|თის • • Employees Readiness during COVID-19 Operations Customers Quick Response Team created at deal with to different level situation. Staggered working hours and Work from Home were exercised wherever feasible. Person with disabilities were exempted for physically attending offices. Compensation to staff in case of untimely Death due to Covid. Bank's operations were intact during lockdown 94% branches were operational* (on any given day) • 90% ATMs • • (on any given day) were operational* Alternate Digital Channels were fully operational. Extensive Conferencing operations. • use of Video for internal *Closure due to declaration of containment zone/strict lockdown by authorities. emergency credit Special Credit Scheme: Guaranteed Loan/Covid-19 Emergency Credit Facility/liberalized working capital • assessment. PNB Kisan Tatkal Rin Yojana: An instant for farming community credit SHG Covid Tatkal Sahayata Rin. Personal Loan Scheme for Public (PNB Sahyog COVID) and for Pensioners (PNB Aabhar COVID) for meeting emergent consumption or medical need because of COVID 19 outbreak. Rs. 17000 crore loan sanctioned related to COVID-19. 6 Way Forward Page 59#60pnb New FinTech Initiatives Thumb work Technologies: Walnut: Expense Manager which also facilitates fund transfer via PNB UPI services. UPI handle: pnbpay Alliance Partners 6 B IB Hv Oracle: Chatbot Solution: PIHU integrated with PNB Net Banking and PNB ONE to resolve customer queries. India Innovation (KITE): PNB KITE: Co branded Prepaid Card with two flavors i.e. Corporate Card and Gift Card NSCSPL (E Rupaya): Closed group card setup for small transactions. It can work in offline mode. Way Forward Page 60#61O pnb Sales Targeting Use of Data Analytics Business growth through targeted leads for financial products Predictive Analytics Process Improvisation Preventing Revenue Leakages by improving process Use of Enriched Data Potential Takeover leads of Housing loans for Rs. 25980 Cr using CICs drawn by the branches during last 2 years Transaction Analysis Fraud Risk Management To develop Early Warning System using Machine Learning algorithms in the areas of Operations, Risk, Products and Processes using transactional and behavioral analytics. Targeted potential leads for Cross / Up Sell of Retail, wealth management products and Credit Cards to 8.75 lakh individual customers who received Income Tax Refund during FY 2018-19 and 2019-20 6 Way Forward Deploy Dynamic Risk rating models using external data sources and manage fraud risk through advanced analytics solution. Page 61#62O |თის Performance of Subsidiaries, Joint Venture and Associates Crore Type Name of the entity Country of Proportion of Incorporation Ownership% Results FY/9M Total Total Gross Net Income Expenses Profit Profit Associates PNB MetLife India Insurance Co. Ltd India 30.00 Mar-20 (12M) 5834 5740 94 93 Associates PNB Housing Finance LTD India 32.65 Mar-20 (12M) 8490 7679 811 646 Subsidiaries PNB (International) Ltd. UK 100 Mar-20 (12M) 354 227 127 21 Subsidiaries PNB Gilts Ltd. India 74.07 Mar-20 (12M) 883 552 331 186 Subsidiaries PNB Investment Services Ltd. India 100 Mar-20 (12M) 8 7 1 1 Subsidiaries Druk PNB Bank Ltd. Bhutan 51.00 Dec-19 (12M) 120 95 25 19 JV Everest Bank Ltd. Nepal 20.03 July 19-April-20 (9M) 248 173 75 53 Associates JSC Tengri Bank. Kazakhstan 41.64 Dec-19 (12M) 243 257 23 -14 RRBs Consolidated 35.00 Mar'20 (FY) 7183 6981 1368 141 8 Subsidiaries, JVs, Associates & RRBs Page 62#63pnb PNB MetLife Finance Ltd pnb MetLife Parameter FY2019 Total Income Total Expenses Operating profit Q4-2019 6367 2346 Q3-2020 Q4-2020 FY2020 1862 1136 5834 6215 2273 1833 1088 5740 152 73 29 48 94 143 73 29 48 93 Net Profit Capital adequacy ratio/ 197% 197% 197% 189% 189% Solvency Ratio 7 Subsidiaries, JVs, Associates & RRBs Crore Page 63#64pnb PNB Housing Finance LTD pnb Housing Finance Limited Parameter FY2019 Q4-2019 Q3-2020 Q4-2020 FY2020 66628 66628 Loans and advances 74288 74288 69194 16132 16132 Deposits 14023 14023 16470 17.98% 17.98% Capital adequacy ratio 13.98 13.98 17.06 1952 8490 Total Income 7683 2148 2075 2279 7679 Total Expenses 5949 1603 1777 Operating profit Net Profit -327 811 1734 545 298 -242 646 1192 380 237 7 Subsidiaries, JVs, Associates & RRBs Crore Page 64#65pnb PNB (International) Ltd. punjab national bank (International) Limited Parameter FY'2019 Q4'2019 Q3'2020 (Audited) Loans and advances 6339 6339 6512 Q4'2020 FY'2020 (Unaudited) 6399 6399 Deposits 5003 5003 5266 5124 5124 Capital adequacy ratio 29.63 29.63 29.43 29.82 29.82 Total Income Total Expenses 323 82 56 148 354 209 34 60 57 227 114 48 -4 91 127 Operating profit Net Profit 7 58 56 -9 16 21 Subsidiaries, JVs, Associates & RRBs Crore Page 65#66pnb PNB Gilts Ltd. PNB PNB GILTS GILTS LTD Parameter FY2019 Total Income Total Expenses Operating profit Net Profit Capital adequacy ratio 508 Q4-2019 146 Q3-2020 217 Q4-2020 276 FY2020 883 425 124 147 144 552 83 22 70 132 331 53 -8 57 99 186 36.58% 36.58% 25.18% 32.66% 32.66% 7 Subsidiaries, JVs, Associates & RRBs Crore Page 66#67pnb PNB Investment Services Ltd. pnb investment services ltd. (A wholly owned subsidiary of Punjab National Bank) Parameter FY2019 Q3-2020 Total Income 2.54 Total Expenses Q4-2019 8.70 6.29 1.65 1.52 1.89 6.71 Q4-2020 FY2020 3.60 1.31 7.47 Net interest income 2.90 0.70 0.67 0.72 2.81 Operating profit 2.41 0.89 2.08 -0.58 0.76 Net Profit 1.75 0.09 1.74 -0.48 0.57 7 Subsidiaries, JVs, Associates & RRBs Crore Page 67#68pnb Druk PNB Bank Ltd. FY'2018 FY'2019 Parameter (Jan-Dec) (Audited) Q4'2018 (Oct-Dec) Q3'2019 Q4'2019 (Jan-Dec) (July-Sept) (Oct-Dec) (Audited) 847 847 976 1091 1091 Loans and advances 1251 1251 1425 1430 1430 Deposits Capital adequacy ratio 17.97% 17.97% 14.89% 12.57% 12.57% Total Income 101 29 31 30 120 Total Expenses 67 20 20 21 30 95 Operating profit Net Profit 7 34 9 10 -0.46 25 23 6 3 0.22 19 Subsidiaries, JVs, Associates & RRBs Crore Page 68#69pnb Parameter Everest Bank Ltd एभरेष्ट बैंक लिमिटेड EVEREST BANK LIMITED (A joint-Venture with punjab national bank, India) FY2019 Q4-2019 (16.07.2018- (16.04.2019- Q3-2020 (16.01.2019- 15.07.2019) 15.07.2019) 15.04.2020) 6987 6987 7417 Loans and advances Deposits 8136 8136 8863 Capital adequacy ratio 13.74 13.74 12.63 Total Income 903 246 248 Total Expenses 631 172 173 Operating profit Net Profit 272 74 75 191 52 53 7 Subsidiaries, JVs, Associates & RRBs Crore Page 69#70pnb JSC Tengri Bank TENGRIBANK FY'2018 AN ASSOCIATE OF PUNJAB NATIONAL BANK INDIA Loans and advances Deposits Parameter (Jan-Dec) Q4'2018 (Oct-Dec) Q3'2019 (July-Sept) Q4'2019 (Oct-Dec) FY'2019 (Jan-Dec) (Audited) 1840 1840 1862 2075 2075 1618 1618 1729 1732 1732 Capital adequacy ratio 11.39 11.39 13.60 14.10 14.10 Total Income 352 171 80 79 243 Total Expenses Operating profit Net Profit 7 340 183 90 84 257 12 -29 8 6 -22 4 -19 -10 -5 -14 Subsidiaries, JVs, Associates & RRBs Crore Page 70#71pnb RRBs: Performance of RRB Consolidated Position FY2019 Q4-2019 Q3-2020 Loans and advances 41683 18407 Deposits Capital adequacy ratio 18843 44200 60804 29186 30059 30986 69452 5.9 5.9 5.7 5.04 5.04 Q4-2020 16709 FY2020 Total Income 6418 1559 1708 1887 7183 Total Expenses 6920 2128 1595 2021 6981 Operating profit 1017 137 191 444 1368 Net Profit -418 -602 72 -86 141 1.DBGB: Dakshin Bihar Gramin Bank, Patna 2.SHGB: Sarva Haryana Gramin Bank, Rohtak 3.HPGB: Himachal Pradesh Gramin Bank, Mandi 4.PGB: Punjab Gramin Bank, Kapurthala 5.PUPGB: Prathama Uttar Pradesh Gramin Bank, Moradabad 7 Subsidiaries, JVs, Associates & RRBs Crore Page 71#72|pის 8 სიის Oriental art.4. eft. United Together for the better Summary of Amalgamated Entity PNB 2.0 - A New Beginning Page I 72#73pnb Objective with a new beginning Creation of Strong Next-Gen Bank With State-of-the-Art Products and Services Opportunity to re-engineer its process and strengthen control measures Cohesive, Customer Friendly and Efficient Bank with Strong And Stable Footing Augmented Capacity, Capability and Reach With Synergistic Benefits Enhancing Value For Stakeholders 8 Amalgamation Page 73#74pnb e Amalgamation Benefits for Customers 0% 1 Geographical Proximity 1. Nationwide reach of customers with increased number of Branches/ATMs. 2. Increased number of touch points enabling trust building of customers. 2 Products & Services 1. Remodeled products with customers at the center of the overall ecosystem 2. Product range addressing new age aspirations of the customers 3. Competitive Service Charges and Rate of Interest 3 Technology 1. Best in Class Digital Products and Services 2. End to end Digital Journeys 3. Maximizing Alternative Delivery Channels for wider outreach of Customers. 4 Customer Centricity 1. Organization structure reflecting targeted customer segmentation in order to have dedicated end to end service models. 2. Organization processes supporting a single window for delivering value through integrated solutions. 8 Amalgamation Page 74#75O pnb Amalgamation Benefits for Investors Scalability: Built for future growth 1. Increase in Market Share. 2. Increase in Customer Base. Operational Efficiency 1. Increase in operational efficiency by reducing cost of lending. 2. LEAN and efficient operations Improved Financials 1. Improvement in financials on Supplementary segments i.e. Netting off of CD Ratio of eUNI & eOBC to the levels of PNB, thus reducing Cost of Funds for eOBC & Increasing Return on Assets for eUNI segment. Span of Control 1. Stronger Balance Sheet & controls. 2. Better risk rating curves given large scale, more experience and better models. 1. Enhanced Brand Name Increase in Brand Value. 2. Enhanced global competitiveness. Reduced Costs Harmonization and Rationalization of: 1. Branches 2. ATMs 3. Vendors 4. Softwares 5. Fixed Assets 6. Systems 80 Amalgamation Page 75#76O pnb 1 PNB 2.0 and Way Forward ORGANISATION STRUCTURE: For improving operational efficiency: HO Divisions have been reorganized. Number of Zones & Circles has been increased to 24 and 161 respectively. 5 SASTRA: Separate vertical for Focused Recovery & Resolution of NPA accounts formed at field level for focused Recovery & Resolution action. 161 Circle SASTRA & 24 Zonal SASTRA Centres being opened for the same. 2 VERTICALIZATION: Different business and control functions have been segregated and made part of the verticals for creating focused approach for business development and improving customer service. 6 ZONAL RISK MANAGEMENT CENTRE: Created 24 centers to completely segregate Risk Assessment. 3 4 CREDIT DELIVERY MODEL: It is structured in 4 tiers model: 1. 23 LCB/ELCBs for focus on Accounts above Rs. 50 Cr. 2. 116 MCCs for accounts above Rs. 1 cr to upto Rs. 50 Cr. 3. 135 PNB Loan Point (RAM/ IRAM) for Retail, Agriculture and MSME credit from above Rs.10 lac to upto Rs. 1 Cr. 4. General Banking Branches. CUSTOMER ACQUISITION CENTRES: 50 Customer Acquisition Centres operationalized for focusing on liability business from Corporates, Institutions, HNIs, NRIs including Wealth Management and Retail Business. 8 7 8 CULTURAL SURVEY: A cultural survey is designed to understand sentiments of employees about organization culture and bring in the desired cultural elements to life in the amalgamated entity. PNB 2.0 ROLL OUT: Going live with Functioning of different verticals and new organization structure from 01/07/2020. Amalgamation Page 76#77|აის ☐ [4/4] 122/107 46/91 372/453 Pan India Presence PNB 2.0 No. of Branches / No. of ATMs 10910/13530 1088/1066 330/494 783/852 360/899 8/4 759/966 1778/2246 723/826 10/10 329/387 29/17 5/4 232/281 23/29 387/535 287/250 199/304 371/450 1218/1429 68/93 9/10 2/2 3/3 420/551 140/194 19/23 164/185 134/167 8/11 276/345 200/243 8 4/3 Amalgamation T ATM 13530 BCs 12733 III Branches 10910 Other Offices (1012) Page 77#78O pnb Dominant Presence: PNB 2.0 922, [PERCENTAGE] 468, [PERCENTAGE] 735, 7% Geographic Region wise Branch Distribution Total Branches: 10910 ■Northern Region Central Region 3533, [PERCENTAGE] ■Eastern Region 2558, [PERCENTAGE] 2694, [PERCENTAGE] 8 Amalgamation ■Western Region ■North Eastern Region ■Southern Region Page 78#79O pnb Market Share of Branches: PNB 2.0 vis-à-vis SCBS State wise Distribution States PNB 2.0 States PNB 2.0 States PNB 2.0 Northern Region 13.0 Eastern Region 10.3 North Eastern Region 7.7 Himachal Pradesh 23.0 West Bengal Tripura 12.1 13.5 Punjab 16.7 Manipur 11.4 Bihar 9.9 Assam 11.4 Haryana 15.5 Jharkhand 7.5 Meghalaya 8.1 Chandigarh 11.7 Odisha 7.3 Arunachal Pradesh 4.9 Rajasthan 10.0 Sikkim 6.1 Mizoram 4.5 NCT of Delhi 10.0 Andaman & Nicobar Islands 5.8 Nagaland 2.9 Jammu & Kashmir 7.0 Western Region Southern Region 2.2 9.1 Ladakh 5.9 Puducherry 3.1 Central Region Dadra & Nagar Haveli 10.4 Kerala 3.0 & Daman & Diu 4.5 Uttarakhand 15.5 Telangana 2.7 Uttar Pradesh Gujarat 3.4 10.1 Tamil Nadu 2.4 Chhattisgarh Maharashtra 3.2 Andhra Pradesh 1.9 7.2 Madhya Pradesh 5.5 Goa 2.8 Karnataka 1.6 8 Amalgamation Page 79#80pnb 25 HIMACHAL PRADESH UTTARAKHAND TRIPURA 18 18 Market Share of ATMs: PNB 2.0 vis-à-vis SCBS State wise Distribution % Market share 16 15 14 13 12 11 10 10 10 9988 766555 PUNJAB CHANDIGARH HARYANA WEST BENGAL DELHI UTTAR PRADESH 80 BIHAR ASSAM RAJASTHAN CHHATISGARH JHARKHAND MANIPUR ORISSA JAMMU AND KASHMIR MIZORAM Amalgamation MADHYA PRADESH LADAKH SIKKIM Page 80#81pnb 68531 Greater Management Depth Punjab National Bank 2.0 (PNB, e-OBC, e-UNI) to have better succession planning with wider talent pool and greater management depth Staff Strength (No.) Staff Strength (No.) 20994 102804 13279 Punjab National Bank 2.0 (PNB, e-OBC, e-UNI) Staff scale PNB e-OBC e-UNI Total % Share Officers 31521 13251 7181 51953 50.54 SWO/Clerk 20761 5606 3456 29853 29.04 Sub-Staff 16249 2137 2612 20998 20.42 Total Staff 68531 20994 13279 102804 100.0 PNB e-OBC e-UNI Total 8 Amalgamation Page 81#82pnb Advisor and Consultants - on Board Wipro Consultant for System integrator for EDW Deloitte IDBI Capital Consultant for Fairness Opinion on the Share Exchange Ratio Consultant for Financial and Tax due diligence Cyrill Amarchand Mangaldas Consultant for legal due diligence an D. S.R. Batilboi & Co. Consultant for the Enterprise to determine SWAP ratio % EY 4 pmb აის Ernst & Young Consultant for Overall Amalgamation wipro 8 ओ.बी.सी. Oriental United TED BANK OF OF INDIA Amalgamation Capgemini Consultant for Overall IT/ITES Integration and Migration Page 82#83O pnb Disclaimer This presentation has been prepared by Punjab National Bank (the "Bank") solely for information purposes, without regard to any specific objectives, financial situations or informational needs of any particular person. Except for the historical information contained herein, statements in this release which contain words or phrases such as "will", "aim", continue", "will "anticipate", likely result", "estimate", "would", "intend", "believe", "plan", "may", "expect", "contemplate", "will "seek to", "future", "objective", "goal", “strategy”, “philosophy", "project", "should", "will pursue” and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, future levels of non-performing loans, our growth and expansion, the adequacy of our allowance for credit losses, our provisioning policies, technological changes, investment income, cash flow projections, our exposure to market risks as well as other risks. Punjab National Bank undertakes no obligation to update the forward-looking statements to reflect events or circumstances after the date thereof. Note: All financial numbers in the presentation are from Audited Financials or Limited Reviewed financials or based on Management estimates. Page 83#84pnb Thank You! Page 84

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