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Shareholding Info
  • Promoters
    73.15 %
  • Foreign institutions-FII
    1.82 %
  • Other domestic institutions
    8.77 %
  • Retail and other
    11.58 %
  • Mutual Funds
    4.68 %

Punjab National Bank overview

Punjab National Bank (PNB) began its operations in 1985 in Lahore, with an authorised capital of ₹2 lakhs and working capital of ₹20,000. Since the inception of PNB, nine banks have merged with it. PNB’s share price is listed on the BSE (former Bombay Stock Exchange) and the NSE (National Stock Exchange). PNB has two international subsidiaries: PNB International Ltd. London and Druk PNB Bank Ltd. Bhutan. PNB’s representative offices are also in Myanmar and Bangladesh.
The bank focuses on quality business growth, recovery and reducing non-performing assets (NPAs). It maintains a low-cost Current Account Savings Account (CASA) with a share of 44.91%. By September 2022, the bank had 43,451 delivery channels, a network of 10,038 domestic branches, 2 international branches, 12,966 automated teller machines (ATMs) and 20,447 business correspondents. The bank’s global gross business was valued at ₹20,23,713 crore during this period.

Punjab National Bank journey

Key PNB milestones since inception are:
  • 1895: India’s first Swadeshi Bank - managed by Indians with Indian capital.
  • 1940: PNB takes over Bhagwan Dass Bank – a scheduled bank located in New Delhi.
  • 1944: Introduces the teller system.
  • 1951: Acquires 39 branches of Bharat Bank.
  • 1961: Acquires Universal Bank of India.
  • 1969: PNB and 13 other banks are nationalized.
  • 1986: Acquires Hindustan Commercial and adds its 142 branches to PNB’s network.
  • 1993: Merges with the New Bank of India, which was a nationalized bank.
  • 1996: Sets up a representative office in Almaty, Kazakhstan.
  • 2002: Comes out with an initial public offer, resulting in a reduction of 20% government ownership in the bank.
  • 2005: Follow-on public offer based on Basel II requirements, reducing the government’s ownership to 57.8%.
  • 2007: Enters into a memorandum of understanding (MOU) with India Infrastructure Finance Company (IIFC) to support IIFC’s infrastructure projects.
  • 2009: Partners with Tata Motor to finance their entire passenger car range.
  • 2013: PNB acquires a 30% stake in the Metlife India Insurance company.
  • 2020: Receives the IBA Technology Awards 2020 for the most innovative project using technology for the PNBOne model. Approval for the amalgamation of the Oriental Bank of Commerce and United Bank of India with PNB, is granted on March 4.

Punjab National Bank - Initial Public Offer (IPO)

In March 2002, PNB undertook its initial public offer for 5,30,60,700 equity shares of ₹10 each. The IPO resulted in reducing the government’s shareholding in the bank by 20%. To meet further capital requirements, PNB undertook a follow-on public offer (FPO) in March 2005, via the book-building process. The FPO issue start date was 7 March 2005, and the closure date was 11 March 2005. PNB offered 8,00,00,000 equity shares having a face value of ₹10 each for cash at a PNB share price of ₹390 per equity share. The FPO issue size was around ₹3,120 crores. It reduced the government’s shareholding in PNB to 57.8%.

Punjab National Bank products

PNB offers various banking products under four main categories, namely:
  • Personal: Some of the bank's personal products include deposits, loans, insurance and approved housing projects.
  • Corporate: PNB’s corporate offerings include corporate loans, forex services to exporters or importers, and cash management services.
  • International: These products include FX Retail Platform, NRI Services and LIBOR Transition, amongst others.
  • Capital Services: They are offered in the form of depository services, mutual funds, merchant banking and ASBA facilities.
PNB stock price return in 5 years: -70.93%.

Punjab National Bank business highlights

The company’s key business segments are:

PNB business segments

*Revenue break-up


Primary business segment




Corporate / wholesale banking


Retail banking


Other banking operations


Secondary business segments (Geographical)


Domestic operations


Foreign operations


*The interest income gets allocated as per actual interest received from various business segments.

Punjab National Bank performance highlights

3-year CAGR (revenue)


EBIDT (FY2021-22)

₹21,650 crore

Profit (FY2021-22)

₹3,457 crore

PNB share price return in last 3 years


ROCE (FY2021-22)


ROE (FY2021-22)


Punjab National Bank management

Chairman (Non-Executive): K.G. Ananthakrishnan
Chief Executive Officer (CEO): Atul Kumar Goel
Chief Finance Officer (CFO): Dilip Kumar Jain
Investor Relations: Ekta Pasricha

Indian banking industry overview

The key players in the banking sector are: –

Key players

Market capitalisation

 November 2022

 (in crore)


State Bank of India



Bank of Baroda



Canara Bank



Punjab National Bank



Union Bank


Size of the Indian banking industry

  • In 2022, the market size of the Indian banking industry stood at ₹2,18,32,768 crore, compared to ₹2,01,06,011 crore in 2021.
  • As of FY2019-20, regional rural banks accounted for nearly 42% of the market share while foreign banks had a 34% share. Private sector banks had a 16% share and public sector banks accounted for 8% of the market share.
  • As of September 2021, India had 2,13,145 ATMs, of which 47.5% were located in rural and semi-urban areas.
  • As of July 29, 2022, the overall bank credit stood at ₹124 lakh crore.
  • By June 1, 2022, bank accounts opened under the government’s Pradhan Mantri Jan Dhan Yojana (PMJDY) reached ₹46 crore with deposits totalling ₹1,68,000 crore.
  • The banking sector has adopted digitization. In May 2022, 5.95 billion transactions were undertaken via Unified Payments Interface (UPI) valued at ₹10,41,000 crore.

Industry growth prospects

  • India Ratings & Research (Ind-Ra) has predicted the banking sector’s credit growth at 10% in FY2022-23.
  • The rise in income is expected to increase the requirement for banking services in rural areas of India. India’s FinTech sector is expected to reach ₹6,20,000 crore by 2025, resulting in higher demand for banking services.
  • Technological advancements will be a key growth driver for the banking sector. The Indian digital banking platform is expected to grow at a CAGR of 9.8% to reach an anticipated revenue target of ₹12,097 crore by 2028.

Punjab National Bank growth prospects

  • The steady rise in the Indian economy in recent months has led to PNB revising its credit growth forecast for FY2022-23 to 12%-13% from the earlier projection of 10%.
  • PNB expects to recover ₹32,000 crores, reducing its NPA to 3.5% by the end of FY2022-23 from the current 4.3%.
  • The bank would focus on cash recovery, upgradation and recovery from written-off accounts as part of the overall recovery.

Risks and concerns

  • Bad loans or NPAs are a major concern for the banking sector. The economic slowdown in recent years and rising inflation have seen a rise in NPAs in the sector, leading to losses.
  • Adverse conditions like the ongoing Russia-Ukraine war, and foreign exchange fluctuations increase the risk of investments and market trading for the sector.
  • Cyber security risks due to the increase in digital banking operations could lead to online fraud and data theft.


M/S Beetal Financial and Computer Services (P) Ltd.
Ph: 011-29961281-83

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