Assignment 5

Submitted by:
SANDEEP SHEKHAR
AMITY BUSINESS SCHOOL
MBA (M&S)
AN INTRODUCTION ON PUNJAB NATION BANK
 PUNJAN NATIONAL BANK
• Punjab National Bank (PNB) is an Indian multinational banking and financial
services company.
• The bank was founded in 1894.
• As of 31 March 2019, the bank has over 110 million customers, 7001
branches (7,000 as on 2nd Oct. 2018) and 10681 ATMs across 764 cities.
• PNB has a banking subsidiary in the UK (PNB International Bank, with seven
branches in the UK), as well as branches in Hong Kong, Kowloon, Dubai,
and Kabul. It has representative offices
in Almaty (Kazakhstan), Dubai (United Arab
Emirates), Shanghai (China), Oslo(Norway), and Sydney (Australia).
In Bhutan it owns 51% of Druk PNB Bank, which has five branches.
In Nepal PNB owns 20% of Everest Bank Limited, which has 50 branches.
Lastly, PNB owns 84% of JSC (SB) PNB Bank in Kazakhstan, which has four
branches.
HISTORY

 Punjab National Bank is a PSU working under Central Government of India regulated by Reserve Bank of
India Act, 1934 and Banking Regulation Act, 1949.
 Punjab National Bank, India’s first Swadeshi Bank, commenced its operations on April 12, 1895 from
Lahore, with an authorised capital of Rs 2 lac and working capital of Rs 20,000. The bank opened for
business on 12 April 1895 in Lahore.
 PNB has the distinction of being the first Indian bank to have been started solely with Indian capital that
has survived to the present.
 PNB has had the privilege of maintaining accounts of national leaders such as Mahatma Gandhi, Jawahar
Lal Nehru, Lal Bahadur Shastri, Indira Gandhi, as well as the account of the famous Jalianwala
Bagh Committee.
 The Government of India (GOI) nationalized PNB and 13 other major commercial banks, on 19 July 1969.
PNB EMPLOYEE RETAINTION

Punjab National Bank There is no structural employee retention policy existing

in PNB. However banks use some retention tactics to retain the new joiner and
superannuating employees. But these strategies have negative impact on
employees in spite of positive effect because of nominal salary and low grade
positions. Few tactics are For new joiners- Bond filling in officer cadre, paid
training, etc. For superannuating employees- Post named “business facilitator”
on nominal salary etc.
 Mergers and acquisitions
Number Acquisition date Company Location

1 1951 Bharat Bank Ltd. New Delhi, India

Universal Bank of
2 1961 Dalmianagar, Bihar, India
India

Indo-Commercial
3 1962 India
Bank

Hindustan
4 1986 India
Commercial Bank

5 1993 New Bank of India New Delhi, India

6 2003 Nedungadi BanK Kozhikode, Kerala, India

 Listings and shareholding

Shareholders (as on 31-Dec-2013) Shareholding

Promoter Group (Govt. of India) 58.87%
Foreign Institutional Investors (FII) 17.51%
Insurance Companies 15.46%
Individual shareholders 04.05%
Banks/Financial Institutions/Mutual Funds/UTI 03.02%
Others 01.09%
Total 100.0%

 PNB's equity shares are listed on Bombay Stock Exchange and the National
Stock Exchange of India.It is a constituent of the CNX Nifty at the NSE.
PNB SHARE GRAPH
CAPITAL ADEQUACY RATIO

 The Bank’s CRAR stood at 10.52% (as compared to 9.20% in Mar’18)

which comprised Tier I ratio of 8.25% (Mar’18: 7.12%) and Tier II ratio
of 2.27% (Mar’18: 2.08%).
CORPORATE SOCIAL RESPONSIBILITY

 “Farmers‟ Training Centres” (FTCs)

 Rural Self Employment Training Institutes (RSETIs)

 Financial Literacy Centres (FLCs)

 PNB VIKAS-Village Adoption Scheme

 Bank has bounced back

NET PROFIT ₹ 247 crore

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 Key Financial Highlights
Net profit of ₹ 247 crore

Domestic NIM Increased


 
Recovery of ₹ 16600 cr
to 2.64% in Dec’18 up
by 22 bps over Mar’18

 
Saving Deposit increased –
Net NPA Reduced by 302 bps
more than ₹ 8000 crore over
over Mar’18 to 8.22%
March’18

Total RWA reduced by more

than ₹ 89000 crore (YoY)
  PCR Increased by 1043 bps
over Mar’18 to 68.85%

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 Deposits

Domestic Deposits increased by ₹ 42619 crore YoY to reach ₹ 6.31 lakh crore

CASA share at 43.42% improved by 40 bps over Sep’18

Increase of more than ₹ 8000 crore in Saving Deposits over Mar’18

More than 33 lac new accounts added in Saving Deposits during 9M FY19

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 Improving Asset quality: Reduction in NPA

Consistent reduction in NPA

NNPA declined by ₹ 13009 crore over Mar’18

Net NPA ratio reduced by 302 bps

GNPA declined by ₹ 8886 crore over Mar’18

GNPA ratio reduced by 205 bps

Overall stressed assets reduced by 265 bps over Mar’18

Provision Coverage Ratio improved by 1043 bps over Mar’18 to 68.85%.

Provision coverage under NCLT accounts stands at 75.1%.

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 Dominant Pan India Presence ATMs
9598 9668 9326
114/156 No. of Branches / No. of ATMs
7001 / 9326
352/383
720/817 37/42
260/404 Dec'17 Mar'18 Dec'18
3/2
545/581
240/797
3/4 BCs
1356/1773 69/90 8365 8365
540/705 602/684 1/1 8044
13/8

134/204 4/6
292/381
197/154 319/490
133/232 3/5
1/1
1/- 181/251 Dec'17 Mar'18 Dec'18
1/1 Distribution of Domestic
263/388
Branches Dec’18
81/92 Domestic Branches
18% 6956 6982 7001
7/6
62/89 37%
90/105
2/2 20%
4/4
197/260
25%
174/208 Dec'17 Mar'18 Dec'18
Rural Semi-Urban Urban Metro

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 Improving Asset Quality ₹ crore

Sl. Parameters Dec’17 Mar’18 Dec’18 Q1FY19 Q2FY19 Q3FY19

1 NPA as at the beginning of Year 55370 55370 86620 86620 82889 81251
2 -Cash Recovery 3720 4443 10736 5519 2321 2967
₹ 16608 crore
3 -Up-gradation 1286 1174 2985 2926 1418 1457
4 -Write Off 6128 7407 9273 2648 3543 3082
5 Total Reduction (2+3+4) 11134 13025 22994 11094 7282 7505
6 Fresh Addition 13283 44274 14107 7363 5644 3988
-Fresh slippages 11204 40672 11122 5250 4476 3324
-Debits in existing NPA A/cs 2079 3602 2985 2113 1167 664
7 Gross NPAs at end of the period 57519 86620 77733 82889 81251 77733
8 Eligible Deductions incl. Provisions 23444 37936 42058 39016 42972 42058
9 Net NPAs 34076 48684 35675 43872 38279 35675
10 Recovery in written-off debt A/Cs 822 981 1263 508 377 378

11 Gross NPA (%) 12.11 18.38 16.33 18.26 17.16 16.33

12 Net NPA (%) 7.55 11.24 8.22 10.58 8.90 8.22
13 Provision Coverage Ratio (%) 60.78 58.42 68.85 61.80 66.92 68.85

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 Share holding Pattern

0.4% 1.8%
1.0% 4.2% 3.1%
8.6%
8.8%
6.1%

Dec'17 10.1% Dec’18

28.6% 57.0%

70.2%

Successful mobilization under ESPS with 90% subscription by staff, raised ₹ 649 crore
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 PNB One: The all in one app for Digital Banking
Unified Mobile application with advanced features under the name “PNB ONE” has been launched on
15.12.2018 for both Android and IOS users.

Interactive Interface Pay Bills/Recharge

Scan and Pay through QR Code Available in English and Hindi

Simplified Dashboard to Manage Debit and Credit Card

manage key Banking Activities

Value Added Services with Bio-metric authentication for

Complaint Service Management greater Security

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 Expanding Digital Footprints
Internet
UPI txns Debit
Banking
Card
581 lakh txns in Q3. Users Crossed
Users Crossed
315% gr YoY 142.09 Lacs
4.03 Crores
YoY: 15.53%
YoY: 16%

Mobile Credit
Banking BHIM Card
Users Crossed Users Crossed Total issued
148.52 Lacs 22.90Lacs 331069
YoY: 29.90% YoY:19.9%

PNB
E-Rupaya Bharat
PoS QR Code
Digital Solution in
Total Installed
Villages without Total Installed
56746
YoY:46.10%
internet 38,280
connectivity
Bank is on 2nd position in No. of O/S Debit cards in the industry*
Bank is on 2nd position in No. of O/S Credit cards among all PSBs*
YoY increase in Number of ATM transaction is more than 46%
43 *As per latest report(Nov’18) of RBI ….the name you can BANK upon
 Awards for Excellence

NSDL Star Performer

Awards -2018
1st position in Demat
account growth rate
&
Top Performer in New
Accounts opened Skoch Order of Merit
Aadhar Excellence (Banks category) Awards
Award- 1. M-Touch
2. ATM Switch Migration
2nd Best PSB for Aadhar 3. Finacle X Upgrade
Generation and Seeding 4. PIM

Rajbhasha Kirti
Purashkar
1st position in K shetra

Bank set up a Hockey academy in 2002 for Junior Players and in 2004 for Senior Players. Recently
the Senior team has won 29th Lal Bahadur Shashtri HockeyTournament
20 ….the name you can BANK upon
 CSR & Corporate Business Strategy
CSR is at the core of PNB’s Corporate Business Some CSR Activities during the quarter
Strategy and the Bank makes following commitments:

Sustainability

Green Corporate
Initiatives Volunteering

Contributed to "KERALA CHIEF MINISTER’S RELIEF FUND” for

flood affected victims

Health & Social

Sanitation Investments Financial assistance for infrastructure to Schools for water purifiers,
water coolers etc.

Clothes & Woolens to Safai Sevaks and under previleged

Schemes for empowerment & upliftment : PNB Ladli,
PNB Vikas, PNB Ujala, Mahila Kaushal Vikas Yojna , PNB
Sewing machines to women beneficiaries
Kisan Balak Shiksha protsahan Yojana
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 Focus for the FY19

Recovery in NPA Accounts

CAPITAL Conservation AND

OPTIMISATION OF RWAs

Rationalising Operations

Sale of Non Core Assets

LEVERAGING TECHNOLOGY FOR BUSINESS

GROWTH AND ENHANCED CUSTOMER
EXPERIENCE
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 Thank You
53 ….the name you can BANK upon
 MetLife

 143 years (Founded in 1868) experience serving

over 90 million customers across the world
 No.1 Life Insurer in the World
 US$ 3.7 trillion of Life Insurance in Force as on
31Dec2010
 Ranked 46 on the FORTUNE 500 list 2011
 No 1 life Insurer in US
 Ranked 4th In Fortune Magazine 2011 List of
“America’s Most Admired Companies”

24

*based on Life Insurance in force

• MetLife, Inc. is the holding corporation for the Metropolitan Life
Insurance Company (MLIC), better known as MetLife, and its affiliates.
MetLife is among the largest global providers of insurance, annuities,
and employee benefit programs, with 90 million customers in over 60
countries. The firm was founded on March 24, 1868. MetLife ranked
No. 43 in the 2018 Fortune 500 list of the largest United States
corporations by total revenue.
 HISTORY
• In January 6, 1915, MetLife completed the mutualization process, changing from a stock
life insurance company owned by individuals to a mutual company operating without
external shareholders and for the benefit of policyholders. The company went public in
2000.
• The predecessor company to MetLife began in 1863 when a group of New York
City businessmen raised $100,000 to found the National Union Life and Limb Insurance
Company. The company insured Civil War sailors and soldiers against disabilities due to
wartime wounds, accidents, and sickness. On March 24, 1868, it became known as
Metropolitan Life Insurance Company and shifted its focus to the life insurance business.
• The predecessor company to MetLife began in 1863 when a group of New York
City businessmen raised $100,000 to found the National Union Life and Limb
Insurance Company. The company insured Civil War sailors and soldiers against
disabilities due to wartime wounds, accidents, and sickness. On March 24, 1868, it
became known as Metropolitan Life Insurance Company and shifted its focus to the
life insurance business.

• MetLife President Joseph F. Knapp brought “industrial” or “workingmen’s”

insurance programs to the United States – insurance issued in small amounts on
which premiums were collected weekly or monthly at the policyholder's home. By
1880, sales had exceeded a quarter million of such policies, resulting in nearly $1
million in revenue from premiums. In 1909, MetLife had become the nation's
largest life insurer in the United States, as measured by life insurance in force (the
total value of life insurance policies issued)
 MetLife India

• Commenced operations in 2001

• Specialists in Individual, Health, Annuities, Group Insurance & Employee
benefits
• Comprehensive product portfolio based on researched customer needs
Acquisitions, sales, and major deals
 1992 - merged with United Mutual Life Insurance Company, the only African-American life insurer in New York, in
1992.
 1992 - acquired Executive Life's single premium deferred annuity business, which was worth approximately $1.2
billion. MetLife also acquired the firm's life insurance business, valued at about $260 million.
 1995 - sold Century 21 to Cendant (known as Hospitality Franchise Systems at the time) while purchasing New
England Mutual Life Insurance Company.
 1997 - acquired Security First Group in 1997 for $377 million.
 1999 - acquired Lincoln National Corporation's individual disability income unit.
 1999 - bought out reinsurance provider GenAmerica Corporation for $1.2 billion, as well as its
subsidiaries, Reinsurance Group of America and Conning Corporation. That year, the company had grown to serve
7 million policyholders.
 2001 - invested $1 billion in the United States stock market during 2001, immediately after the September 11th
terrorist attacks.
 2006 - sold Peter Cooper Village, or Stuyvesant Town, the largest apartment complexes in New York City at the
time, for $5.4 billion. MetLife had developed the apartment complexes between 1945 and 1947, to house
veterans returning home from serving in World War II.
 Products

 Life Insurance*  Renters

 Term Life Insurance  Insurance for Landlord
 Final Expense Whole Life Insurance  Mobile Home Insurance
 Whole Life Insurance  Employee Benefits
 Universal Life Insurance  Life
 Dental
 Disability Income Insurance  Disability
o Individual Disability Insurance  Vision
 Auto Insurance  Accident & Health
 Individual Auto Insurance  Investment
 Group Auto Insurance  Annuities
 Home Insurance  IRAs
 Homeowners  Mutual Funds and Brokerage (MetLife
 Condo
Securities Inc.)
*Life Insurance is MetLife’s biggest area of business.
Life is in their name!
MetLife Investment Management: Total Assets Under Management at
December 31, 2018
 Credit Rating
A.M. Best Company Moody's Investors
Fitch Ratings Service Standard & Poor's
American Life Insurance
Not Rated Not Rated A1 AA-
Company

First MetLife Investors

A+ Not Rated Not Rated AA-
Insurance Company

General American Life

A+ AA- Aa3 AA-
Insurance Company

MetLife Insurance
A+ AA- Aa3 AA-
Company USA*
Metropolitan Life
A+ AA- Aa3 AA-
Insurance Company
MetLife Insurance K.K.
Not Rated Not Rated Not Rated AA-
(MetLife Japan)**

New England Life

A+ AA- Aa3 AA-
Insurance Company

A.M. Best: A+ = Superior Fitch: AA- =

Very Strong
Moody’s: Aa3 = High Quality; A1 = Upper Medium Standard &
Poor’s: AA- = Very Strong
METLIFE SHARE GRAPH
THANK YOU
INTRODUCTION ON PNB METLIFE
OurParentage
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates ("MetLife"), is
one of the world's leading financial services companies with over 150 years
of experience in providing insurance, annuities, employee benefits and asset
management services to help its individual and institutional customers
navigate their changing world. Founded in 1868, MetLife has operations in
more than 40 countries and holds leading market positions in the United
States, Japan, Latin America,Asia, Europe and the Middle East.

Punjab National Bank (PNB), India’s first Swadeshi Bank launched in 1895, is
recognised as the second largest public sector bank in India by total assets.
PNB has always been a people’s bank, serving millions throughout India and
also had the proud distinction of serving great national leaders in the past.

During the long history of over 123 years of the Bank, 7 banks have merged
with PNB and it has become stronger and bigger with a network of 6950
domestic branches as on 30th September, 2017.

Global insurance expertise combined with strong domestic distribution capability

PNB MetLife India Insurance Company Limited (PNB MetLife) is one of the
leading life insurance companies in India present since 2001. PNB MetLife
has as its shareholders MetLife International Holdings LLC (MIHL), Punjab
National Bank Limited (PNB), Jammu & Kashmir Bank Limited (JKB), M.
Pallonji and Company Private Limited and other private investors, MIHL
and PNB being the majority shareholders.
 PNB MetLife

Fast Facts
MD & CEO: Ashish Kumar Srivastava
Established in India: 2001
Regional Headquarters: Hong Kong
Employees: 10000*
Offices: 107 locations
Products: Life Insurance, Retirement Solutions and
Employee Benefit Programs
*As of March 31, 2018
 History

 PNB MetLife was initially launched as MetLife India Insurance Company Limited in
2001. In 2011, PNB picked up a 30% stake in MetLife India Insurance. Both PNB and
MetLife India approached the Competition Commission of India (CCI) on 7 December
2012.
 In January 2013, PNB received full approval for acquiring 30% stake in MetLife India
Insurance. This new private sector life insurer was re-branded as PNB MetLife India
Ltd.
 PNB MetLife is now present in over 150 locations across the country and serves
customers in more than 7,000 locations through its bank partnerships
with PNB, Jammu and Kashmir Bank Limited (JKB) and Karnataka Bank Limited.
Key People
The key people of PNB MetLife India Insurance Company Limited as defined by Insurance Regulatory and Development
Authority of India (IRDA) are as follows:

Name of Key Person Designation

Ashish Kumar Srivastava Principal Officer & CEO
Ashish Kumar Srivastava Principal Officer & CEO
P K Dinakar Appointed Actuary
P K Dinakar Appointed Actuary
Sanjay Kumar Chief Investment Officer
Sanjay Kumar
Viraj Taneja Chief of InternalChief
AuditInvestment Officer
Niraj Taneja
Viraj Ashwin Shah Chief Finance Officer
Chief of Internal Audit
Sarang Cheema
Niraj Ashwin Shah Chief Compliance Chief
Officer
Finance Officer
Anjan Bhattacharya Chief Risk Officer
Sarang Cheema Chief Compliance Officer
Anjan Bhattacharya Chief Risk Officer
 Solid Bancassurance Partners

Tie-ups with the

 Jammu & Kashmir Bank Limited (JKB)

 Karnataka Bank Limited (KBL)
 Punjab National Bank (PNB),
which is one of the leading nationalized banks in India with around 6,900
domestic outlets and over 103 million customers
Products and Services

Some key plans include:

MetLife Endowment Savings Plan – Endowment plan

MetLife Money Back Plan – Money back at regular intervals
MetLife Major Illness Premium Back Cover – Protection from 35
illnesses
MetLife Mera Tera Plan – Protection for your family
MetLife College Plan – Children’s education policy
MetLife Retirement Savings Plan – Retirement plan
MetLife Mera Wealth Plan – Life protection
 PNB MetLife is present in 107 locations across the
country with access to over 100 million customers in
more than 10,000 locations through its strong bank
partnerships with PNB, JKB, KBL and RRB.
PNB METLIFE MARKET SHARE

PNB MetLife has a market share of 2.4% among private

life insurers and an overall market share of little over
0.7% going by new business premium data for FY18
released by IRDAI. The company is the 10th largest
among the 23 private life insurer with a new business
premium of Rs 1,427 crore.
Insurance Regulator IRDA has approved the 30 per cent stake
purchase by Punjab National Bank (PNB) in MetLife India
Insurance Company. It is to be noted that PNB in 2010 decided
to part ways with its foreign partner Principal Financial Group in
a proposed life insurance joint venture it set up four years ago
Awards

 2016: PNB MetLife won the ‘Website of the Year’ award at the
E-Commerce Summit & Awards in Mumbai.

 2016: PNB MetLife won ‘Celent Model Insurer Asia’ award for
the most responsive ecommerce platform on a mobile.

 2016: PNB MetLife won honors at the prestigious Asia Training &
Development Excellence Awards 2016 held in Singapore in two
categories – Best Education Training Campaigns and Programs
and Best Sales Development Program.
 Attaining GlobalRecognition
One of the first in India to break-even and turn
profitable
2011
Recognized internationally for its Business Process Management at Celent
2011 Model Insurer Summit, held in New York

Accelerating Growth
Awarded the “Fastest Growing Company Award” at the Indian
Insurance Awards, 2012, held in Mumbai

Established aJoint Venturewith

2012
andRebranded as
THANK YOU