Project Report on Punjab National Bank-Financial Analysis Topic for MBA Synopsis
Finance Project Report on Punjab National Bank-Financial Performance
Ratio Analysis and SWOT Analysis of PNB (Punjab National Bank)
SWOT Analysis of PNB
Strengths
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Punjab National
Bank
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Company Data
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- Large market share.
- Dominance in northern India and in rural retail banking.
- Financial high performance.
- Potential for political interference.
- Limited international operations provide little diversification; pace of overseas expansion is fairly slow.
- Plans for PNB Investment Services to set up an investment consultancy and a merchant banking subsidiary.
- Increased business with customers in rural areas through banking correspondents and technology (for the bank to benefit from low value, high volume transactions).
- The gradual entry of foreign banks operating more fully.
Punjab National Bank (PNB), established in 1895, is India's second largest public sector bank and its largest nationalised bank in terms of the number of branches, deposits, advances, total business and operating and net profit in 2008-09. Based in New Delhi, PNB employs over 56,000 people and has representative offices in Almaty, Dubai, Shanghai, Singapore, branches in Kabul and Hong Kong, and a subsidiary in London. The bank also has a joint venture with Everest Bank in Nepal.
PNB achieved net profit of US$661.61mn for FY08/09 and had assets of US$52.84bn. PNB has demonstrated strong financials, with net profit increasing by 50.87% y-o-y in FY08/09. Deposits also grew by 23.89% y-o-y in the six months through to September 2009. The bank's capital adequacy ratio stood at 14.03% in 2009, up from 13.46% in 2008.
PNB has a policy of inclusive growth in the Indo-Gangetic region, which involves 'banking for the unbanked'. In addition to its large network of rural branches, it has launched a number of ATMs designed for disabled customers.
PNB is also expanding its international presence and is looking to open branches in Australia, Fiji, Indonesia and Canada.
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Table:
Stock Market Indicators
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2004
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2005
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2006
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2007
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2008
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2009
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Oct
2010
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Market Capitalisation, INR
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107,606.70
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147,009.80
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159,858.38
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209,518.84
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166,070.09
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285,727.59
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425,280.71
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Market Capitalisation, US$
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2,475.99
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3,263.26
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3,611.80
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5,315.71
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3,411.82
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6,141.05
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9,552.58
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Share Price, INR
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405.20
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466.25
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507.00
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664.50
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526.70
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906.20
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1,348.80
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Share Price, US$
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9.32
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10.35
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11.46
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16.86
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10.82
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19.48
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30.30
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Share Price, % change (eop)
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76.25
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11.01
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10.68
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47.18
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-35.82
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79.99
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Change, year-to-date
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17.15
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Shares Outstanding (mn)
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265.30
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315.30
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315.30
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315.30
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315.30
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315.30
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315.30
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Source: PNB, Bloomberg
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Table:
Balance Sheet (INRmn, unless stated)
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2004
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2005
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2006
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2007
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2008
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2009
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Total Assets
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1,046,857
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1,281,037
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1,483,255
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1,661,237
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2,037,159
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2,535,912
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Loans & Mortgages
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476,568.4
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610,683.8
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753,850.6
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976,132.7
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1,209,461.0
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1,570,257.0
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Total Deposits
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872,123.8
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1,011,168.0
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1,175,313.0
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1,378,030.0
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1,636,157.0
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2,049,623.0
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Total Shareholders' Equity
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56,020.5
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86,995.4
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100,304.9
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111,832.7
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132,139.6
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157,001.6
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Earnings per share (INR)
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45.16
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50.72
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48.59
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51.70
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69.87
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101.40
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Source: PNB, Bloomberg
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Table:
Balance Sheet (US$mn, unless stated)
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2004
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2005
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2006
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2007
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2008
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2009
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Total Assets
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24,010.48
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29,284.19
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33,240.06
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38,213.52
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50,789.3
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49,983.47
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Loans & Mortgages
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10,930.47
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13,960.08
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16,893.96
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22,454.03
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30,153.6
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30,950.17
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Total Deposits
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20,002.84
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23,115.05
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26,339.02
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31,698.88
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40,791.75
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40,398.61
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Total Shareholders' Equity
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1,284.87
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1,988.69
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2,247.86
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2,572.49
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3,294.43
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3,094.54
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Earnings per share (INR)
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0.98
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1.13
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1.10
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1.14
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1.74
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2.22
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Source: PNB, Bloomberg
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Table:
Key Ratios (%)
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2004
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2005
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2006
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2007
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2008
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2009
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Return on Assets
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1.24
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1.16
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1.11
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1.04
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1.19
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1.40
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Return on Equities
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24.32
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19.25
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16.58
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15.56
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18.26
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22.33
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Loan/Deposit Ratio
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58.83
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63.51
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66.30
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72.49
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75.27
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77.69
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Loan/Asset Ratio
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49.01
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50.13
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52.53
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60.13
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60.46
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62.79
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Equity/Asset Ratio
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5.21
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6.70
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6.68
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6.65
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6.42
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6.14
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Total Risk Based Capital Ratio
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13.10
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14.78
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11.95
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12.29
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26.42
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27.25
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Tier 1 Capital Ratio
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7.01
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8.87
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10.06
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8.93
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17.49
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17.58
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Source: PNB, Bloomberg
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