Description
This is a documentation is about company analysis of Punjab national bank.
Company Analysis of Punjab National Bank
1
INDUSTRY ANALYSIS of BANKING INDUSTRY
• Introduction:
Indian Banking is undoubtedly the sap of financial operations of the nation and its people. Banking has helped in parallel development of vital sectors of Indian economy and put it on the path of progress. The banking industry has been successful in translating the hopes and aspirations of the masses into reality. But to do so, it has had to undergo several transformations, suffer impacts of foreign rule and unforgettable pangs of partition. Today, Indian Banking Industry is confidently competing with the modern banks worldwide. To start off, Banking in India originated with The General Bank of India in 1786, followed by Bank of Hindustan. Both these banks are now defunct. After that, in mid of 18th century, Indian Govt. established three presidency banks viz., the Bank of Bengal, the Bank of Bombay and the Bank of Madras. Subsequently, these banks amalgamated into the Imperial Bank of India which is now, quite popularly, known as the State Bank of India. With the Allahabad Bank (1865), the Punjab National Bank (1895), the Bank of India (1906), The Reserve Bank of India formally took on the responsibility of regulating the Indian Banking Sector from 1935. Over the last 60 years, since nationalization, deregulation, innovation and technological upgradation, the banks have been coming out with services to cater emerging needs of their valued customers. Greater freedom to frame their own policies, rapid advancement in technology has helped banks diversify their portfolios and improve credit delivery.
• ?
Industry Trends:
Global Trends:
1. Focus on Next Generation Banking Solutions:
? ?
Internet banking services for carrying out financial transactions has increased customer comfort level. Due to the impact of new regulations, banks are looking to make money by charging for web-based value-added services.
2. Drive towards Core Banking Platform Replacements:
2
Urgent need of Business agility for implementing new business rules and industry regulations. ? Increased consolidation activity in banking has made standardization and homogenization necessary. 3. Increased Role of Business Intelligence and Analytics: ? Compliance with Basel II and Basel III requires solid data management which requires support from Business Intelligence and Analytics. ? Business Intelligence helps in monitoring transactions and analyzing behavior which can help in fraud prevention. ? 4. Focus on Enterprise Payment Hubs in Payments Processing: ? Innovative payment services like mobile payment, contactless cards, have geared up the competition among banks. ? Globalization has resulted in customer demands for consisted offerings and services across geographies.
?
Indian Trends:
1. Relatively lower integration of domestic financial sector with the global
financial system has lessened the effect of financial turmoil happening in the developed economies. 2. Sudden reversal of capital flows, tightening of credit availability from overseas and domestic market has impacted forex market and liquidity. 3. Indian Policies of gradual and calibrated integration of domestic financial market with overseas through capital control saved the market from impact. 4. Ensuring that banks maintained adequate capital and liquidity while containing undue volatility in debt markets helped in preserving financial stability, while promoting growth.
?
Recent Happenings:
In volatile trade, the Indian rupee fell 20 paise to settle at 55.32 against US dollar tracking weakness in local shares amid a firm dollar overseas as the Eurozone debt problems resurfaced. 2. RBI Panel, headed by Exec. Director B. Mahapatra, reviewing bank loan restructuring norms has proposed tougher conditions that, if implemented, will significantly increase the provision burden on lenders, impacting their profitability. 3. HSBC's staff in India has come under the scanner for deficiencies in their role as "offshore reviewers" of the global banking giant's compliance to safety mechanism against money laundering and terrorist
1.
3
financing. The Reserve Bank of India will probe whether HSBC Holdings' India unit was involved in the misdeeds — including helping American citizens escape taxes and terror funding. 4. The Finance Ministry has asked public sector banks (PSBs) not to accept bulk deposits beyond 15 per cent of total deposits to improve asset-liability management.
• PEST Analysis of Banking Industry:
? Political:
1. Favoring a particular political party, the Govt. declares some benefits like waivers in short-term agricultural loan to attract votes. 2. Various co-operative bank sector are open and exploited by politicians for their benefits. 3. Analyzing the present situation, various policies are framed by the RBI on CRR. Regulation of interest rates, licensing, SLR, open market operations, etc. for better control over the banks.
? Economic:
1. After Independence, most of the banks neglected the priority sectors like agriculture, small industries, etc. and mostly financed industrial units. Therefore, in order to control banks, they were nationalized. 2. RBI, in an attempt to remove inter-regional, inter-sectorial imbalances, declares its half-yearly policy, which affects the banks. 3. Union Budget too, affects the banking sector. 4. If the FDI limits are relaxed, more FDI can be brought in India through banks.
? Socio-Cultural:
In 1969, Govt. nationalized 14 banks in order to adopt social development of banking sector, consistent with social justice, democratic political system and in which opportunities are open for all. 2. Keeping national and social objectives in mind, banks were directed to help economically weaker section of society. 3. Banks having big clients have to provide personalized banking and special provisions.
1.
? Technological:
1. The use of ATM and internet banking has made banking possible anywhere and anytime.
4
2. Automatic voice recorders answer simple queries, currency counting machines make job easier. 3. Today, MasterCard and Visa card are most popular and have encouraged cashless society. 4. Home banking using telecommunications, using SMS and internet as major tools for promotions.
•
SWOT Analysis of Banking Industry:
? Strengths:
1. High standard regulatory environment. 2. Bank lending – a significant driver of GDP growth and employment. 3. 53,000 networks of branches spread all over the country. 4. Diversifications in banking operations. 5. Large manpower with excellent banking skills. 6. Technological upgradation. 7. Financial strengthening in terms of productivity and profitability.
? Weaknesses:
1. 2. 3. 4. 5. 6. Low operating size. High operating costs. Inadequate deposit mobilization efforts. High level of non-performing assets. Poor customer service. Unsatisfactory work culture.
? Opportunities:
1. Increase profitability by accessing international financial markets. 2. Freedom to pursue new lines of business as a part of overall business strategy. 3. Freedom in pricing and structuring their product. 4. Growing SME sector leading to greater demand of credit facilities. 5. Boom in Indian consumer spending.
? Threats:
1. Re-structuring the assets is a big challenge as it would be a tedious process.
5
2. Due to huge proportion of NPAs, mergers and acquisitions happen causing a loss to capital of entire system. 3. Huge surplus of manpower, absence of good work culture, antiquated labor laws, inflexible and inefficient labor and existence of strong labor union.
COMPANY ANALYSIS of PUNJAB NATIONAL BANK
• Description:
Punjab National Bank (PNB) is an India-based bank. The Company offers banking products, and also operates in the credit card, debit card; bullion business; life and non-life insurance; gold coins, and asset management business. During the fiscal 2012, it distributed and marketed mutual fund products of PNB AMC & UTI AMC. In fiscal 2012, PNB under the Gold Coin scheme sold gold coins of two, five, eight, 10 and 20 grams. In fiscal 2012, its total domestic branches were 5670, including six extension counters. It comprises 2193 rural, 1325 semi-urban, 1219 urban and 933 metropolitan branches. PNB has more than 520 specialized branches that include micro finance branches, retail asset branches, agricultural branches, small and medium enterprise branches, international banking branches and asset recovery management branches.
•
General Information:
? Company Logo:
6
? Tagline:
“The name you can BANK upon”
? Vision:
“To be a Leading Global Bank with Pan India footprints and become a household brand in the Indo-Gangetic Plains providing entire range of financial products and services under one roof”
? Mission:
“Banking for the unbanked”
? Headquarters:
PUNJAB NATIONAL BANK Head Office, 7, Bhikaji Cama Place, New Delhi - 110607.
? Year of Founding:
1895
? Founders:
? ? ? ? ? ? ? ? Dayal Singh Majithia, Founder of Tribune. Lala Harkishan Lal, Founder of DAV College. Lala Lalchand, First Industrialist of Punjab. Kali Prosanna Roy, Chairman of the Reception Committee of INC, Lahore. E. C. Jessawala, Parsi Merchant and Partner of Jamshetji & Co., Lahore. Prabhu Dayal, Merchant and Philanthropist. Bakshi Jaishi Ram, Civil Lawyer of Lahore. Lala Dholan Dass, Banker and Merchant.
? Shareholding Pattern:
7
3% 5%
1%
Govt. Insurance FIIs Non-Institutions MF & UTI Banks
17% 56% 18%
? Number of Employees:
56,928
? Top Management:
?
?
?
K. R. Kamath (CMD), Exec. Directors - Usha Ananthasubramaniam and Sandhu Ram Bansal, Directors - Jasbir Singh, Mushtaq A. Antulay, Pradeep Kumar, D. K. Singla.
•
Financial Performance:
8
9
10
11
•
Competitor Analysis:
Name Last Price 2,143.20 697.00 823.40 326.90 403.00 93.40 193.40 185.30 140.50 238.55 82.65 112.00 415.50 100.30 76.30 76.70 99.90 56.35 46.65 375.90 509.10 500.25 58.90 68.25 Market Cap. (Rs. cr.) 143,818.33 28,743.40 27,927.97 18,781.06 17,852.90 11,940.33 10,647.62 7,963.64 7,025.37 6,959.96 6,587.19 6,267.30 6,154.77 6,037.56 5,616.56 5,098.34 3,497.08 2,792.36 2,750.45 2,631.30 2,545.50 2,341.16 2,126.28 1,598.47 Net Interest Income 106,521.45 29,673.72 36,428.03 28,480.67 30,850.62 23,369.93 21,144.28 12,231.32 15,523.28 15,814.88 17,897.08 11,338.73 13,017.78 15,268.35 19,149.50 14,632.37 6,794.13 7,988.12 7,213.96 6,291.36 6,828.76 5,078.44 7,961.09 6,474.50 Net Profit 11,707.29 5,006.96 4,884.20 2,677.52 3,282.72 2,031.61 1,787.13 1,746.97 1,866.79 1,141.56 1,050.13 1,344.67 1,506.04 1,313.39 533.04 1,108.67 803.14 580.99 430.83 652.03 510.46 369.15 632.53 451.28 Total Assets 1,335,519.24 447,321.46 458,194.01 384,535.47 374,160.20 253,376.80 235,984.44 141,419.20 182,934.57 178,130.17 219,648.17 124,964.23 163,560.42 182,468.06 229,799.74 180,498.41 87,387.93 95,764.00 88,017.38 72,528.15 85,949.33 60,403.58 102,010.39 72,905.27
SBI Bank of Baroda PNB Bank of India Canara Bank IDBI Bank Union Bank Indian Bank Allahabad Bank Oriental Bank IOB Andhra Bank Corporation Bank Syndicate Bank Central Bank UCO Bank Dena Bank Vijaya Bank Bank of Maharashtra State Bank of Bikaner State Bank of Travancore State Bank of Mysore United Bank Punjab & Sind Bank
12
•
SWOT Analysis:
? Strengths:
a) Diversified operations with 5100 branches. b) Strong IT support. c) Schemes for small and medium scale businesses. d) 2nd Largest State-owned Commercial Bank in India with about 5000 branches across 764 cities. e) 56,000+ workforce serving over 37 million customers.
? Weaknesses:
a) Less penetration in the urban areas. b) Inadequate advertising and branding as compared to other banks. c) Legal issues regarding employees caused a bad name of PNB.
? Opportunities:
a) b) c)
Small scale business banking across India. Expansion in other countries for international banking. Installation of more ATM’s and better customers’ services.
? Threats:
a) b) c)
Economic crisis and economic fluctuations. Highly competitive environment. Stringent Banking Norms by the RBI and the Government.
•
Business Strategies:
? Alliances:
1. Everest Bank, Nepal in 2004 ? Permits migrants to transfer funds easily between India and Everest Bank’s 12 branches in Nepal. 2. Ashok Leyland in 2009 ? To extend finance to commercial vehicle customers. 3. Brokerage Firms in 2009 ? With NSBL, SMC Global Securities, SAM Global Securities and SMC Comtrade. ? To boost its online securities trading.
13
4. Oriental Insurance Company in 2010 ? To offer a floater Health Insurance Policy covering the proposer and family under one sum insured.
? Joint Ventures:
1. ? ?
?
? 2. a. b. c. d.
Druk PNB Bank Ltd. (DPNBL) JV Subsidiary in Bhutan. Equity Participation upto 51%. Operating since 27th January 2010 3 Branches at Thimphu, Phentsholing and Wangduephodrang. Several other JVs with Principal PNB Asset Management Company Pvt. Ltd. Principal Trustee Company Pvt. Ltd. Asset Care Enterprises Ltd. India Factoring & Finance Solutions Pvt. Ltd.
? Expansions:
1. Overseas: a. Punjab National Bank (International) Limited (PNBIL): ? PNB India’s wholly owned UK subsidiary. ? Incorporated and registered in UK on 13th April 2006. ? Authorized by the Financial Services Authority (FSA) on 13th April 2007. ? Started banking operations in UK on 10th of May 2007. ? Corporate Office located at Gresham Street, London (UK). ? Presently, 7 Branches at - Gresham Street, London (UK) - Southall, Middlesex (UK) - Belgrave Road, Leicester (UK) - Soho Road, Birmingham (UK) - Crane book Road, Essex, London (UK) - Ealing Road, Wembley (UK) - Dudley Road, Wolver Hampton (UK) 2. Domestic: a. PNB Gilts Limited (PNBGL):
14
Engaged in the business of trading in Govt. securities, treasury bills and Non SLR Investments. ? Further, engaged in dealing in Money Market Instruments (Call/Notice/Term Money, Repo /Reverse Repo, Inter-corporate Deposits, Commercial Paper, Certificate of Deposit) and Mutual Funds Distribution. b. PNB Housing Finance Limited (PNBHFL): ? Engaged in providing Housing loans. ? Offers Loans for construction. ? Also provides Finance for construction of residential projects. ? Provide Loans to NRIs.
? c. PNB Investment Services Limited (PNBISL):
? ? ?
Carries out Merchant Banking Business. Provides services for Project Appraisal, Loan Syndication, and Debt Placement and to execute IPOs/FPO/QIPs. Registered with SEBI as a Category- I Merchant Banker.
d. PNB Insurance Broking Limited (PNBIBL) e. PNB Life Insurance Company Limited (PNBICL)
? Acquisitions:
1. JSC (SB) PNB, Kazakhstan. ? Acquired 80.95% stake in JSC (SB) PNB, Kazakhstan. ? Headquarters at Almaty, Kazakhstan. ? Total 5 branches at Almaty, Pavlador, Karaganda, Astana and Taraz in Kazakhstan.
15
doc_140924382.doc
This is a documentation is about company analysis of Punjab national bank.
Company Analysis of Punjab National Bank
1
INDUSTRY ANALYSIS of BANKING INDUSTRY
• Introduction:
Indian Banking is undoubtedly the sap of financial operations of the nation and its people. Banking has helped in parallel development of vital sectors of Indian economy and put it on the path of progress. The banking industry has been successful in translating the hopes and aspirations of the masses into reality. But to do so, it has had to undergo several transformations, suffer impacts of foreign rule and unforgettable pangs of partition. Today, Indian Banking Industry is confidently competing with the modern banks worldwide. To start off, Banking in India originated with The General Bank of India in 1786, followed by Bank of Hindustan. Both these banks are now defunct. After that, in mid of 18th century, Indian Govt. established three presidency banks viz., the Bank of Bengal, the Bank of Bombay and the Bank of Madras. Subsequently, these banks amalgamated into the Imperial Bank of India which is now, quite popularly, known as the State Bank of India. With the Allahabad Bank (1865), the Punjab National Bank (1895), the Bank of India (1906), The Reserve Bank of India formally took on the responsibility of regulating the Indian Banking Sector from 1935. Over the last 60 years, since nationalization, deregulation, innovation and technological upgradation, the banks have been coming out with services to cater emerging needs of their valued customers. Greater freedom to frame their own policies, rapid advancement in technology has helped banks diversify their portfolios and improve credit delivery.
• ?
Industry Trends:
Global Trends:
1. Focus on Next Generation Banking Solutions:
? ?
Internet banking services for carrying out financial transactions has increased customer comfort level. Due to the impact of new regulations, banks are looking to make money by charging for web-based value-added services.
2. Drive towards Core Banking Platform Replacements:
2
Urgent need of Business agility for implementing new business rules and industry regulations. ? Increased consolidation activity in banking has made standardization and homogenization necessary. 3. Increased Role of Business Intelligence and Analytics: ? Compliance with Basel II and Basel III requires solid data management which requires support from Business Intelligence and Analytics. ? Business Intelligence helps in monitoring transactions and analyzing behavior which can help in fraud prevention. ? 4. Focus on Enterprise Payment Hubs in Payments Processing: ? Innovative payment services like mobile payment, contactless cards, have geared up the competition among banks. ? Globalization has resulted in customer demands for consisted offerings and services across geographies.
?
Indian Trends:
1. Relatively lower integration of domestic financial sector with the global
financial system has lessened the effect of financial turmoil happening in the developed economies. 2. Sudden reversal of capital flows, tightening of credit availability from overseas and domestic market has impacted forex market and liquidity. 3. Indian Policies of gradual and calibrated integration of domestic financial market with overseas through capital control saved the market from impact. 4. Ensuring that banks maintained adequate capital and liquidity while containing undue volatility in debt markets helped in preserving financial stability, while promoting growth.
?
Recent Happenings:
In volatile trade, the Indian rupee fell 20 paise to settle at 55.32 against US dollar tracking weakness in local shares amid a firm dollar overseas as the Eurozone debt problems resurfaced. 2. RBI Panel, headed by Exec. Director B. Mahapatra, reviewing bank loan restructuring norms has proposed tougher conditions that, if implemented, will significantly increase the provision burden on lenders, impacting their profitability. 3. HSBC's staff in India has come under the scanner for deficiencies in their role as "offshore reviewers" of the global banking giant's compliance to safety mechanism against money laundering and terrorist
1.
3
financing. The Reserve Bank of India will probe whether HSBC Holdings' India unit was involved in the misdeeds — including helping American citizens escape taxes and terror funding. 4. The Finance Ministry has asked public sector banks (PSBs) not to accept bulk deposits beyond 15 per cent of total deposits to improve asset-liability management.
• PEST Analysis of Banking Industry:
? Political:
1. Favoring a particular political party, the Govt. declares some benefits like waivers in short-term agricultural loan to attract votes. 2. Various co-operative bank sector are open and exploited by politicians for their benefits. 3. Analyzing the present situation, various policies are framed by the RBI on CRR. Regulation of interest rates, licensing, SLR, open market operations, etc. for better control over the banks.
? Economic:
1. After Independence, most of the banks neglected the priority sectors like agriculture, small industries, etc. and mostly financed industrial units. Therefore, in order to control banks, they were nationalized. 2. RBI, in an attempt to remove inter-regional, inter-sectorial imbalances, declares its half-yearly policy, which affects the banks. 3. Union Budget too, affects the banking sector. 4. If the FDI limits are relaxed, more FDI can be brought in India through banks.
? Socio-Cultural:
In 1969, Govt. nationalized 14 banks in order to adopt social development of banking sector, consistent with social justice, democratic political system and in which opportunities are open for all. 2. Keeping national and social objectives in mind, banks were directed to help economically weaker section of society. 3. Banks having big clients have to provide personalized banking and special provisions.
1.
? Technological:
1. The use of ATM and internet banking has made banking possible anywhere and anytime.
4
2. Automatic voice recorders answer simple queries, currency counting machines make job easier. 3. Today, MasterCard and Visa card are most popular and have encouraged cashless society. 4. Home banking using telecommunications, using SMS and internet as major tools for promotions.
•
SWOT Analysis of Banking Industry:
? Strengths:
1. High standard regulatory environment. 2. Bank lending – a significant driver of GDP growth and employment. 3. 53,000 networks of branches spread all over the country. 4. Diversifications in banking operations. 5. Large manpower with excellent banking skills. 6. Technological upgradation. 7. Financial strengthening in terms of productivity and profitability.
? Weaknesses:
1. 2. 3. 4. 5. 6. Low operating size. High operating costs. Inadequate deposit mobilization efforts. High level of non-performing assets. Poor customer service. Unsatisfactory work culture.
? Opportunities:
1. Increase profitability by accessing international financial markets. 2. Freedom to pursue new lines of business as a part of overall business strategy. 3. Freedom in pricing and structuring their product. 4. Growing SME sector leading to greater demand of credit facilities. 5. Boom in Indian consumer spending.
? Threats:
1. Re-structuring the assets is a big challenge as it would be a tedious process.
5
2. Due to huge proportion of NPAs, mergers and acquisitions happen causing a loss to capital of entire system. 3. Huge surplus of manpower, absence of good work culture, antiquated labor laws, inflexible and inefficient labor and existence of strong labor union.
COMPANY ANALYSIS of PUNJAB NATIONAL BANK
• Description:
Punjab National Bank (PNB) is an India-based bank. The Company offers banking products, and also operates in the credit card, debit card; bullion business; life and non-life insurance; gold coins, and asset management business. During the fiscal 2012, it distributed and marketed mutual fund products of PNB AMC & UTI AMC. In fiscal 2012, PNB under the Gold Coin scheme sold gold coins of two, five, eight, 10 and 20 grams. In fiscal 2012, its total domestic branches were 5670, including six extension counters. It comprises 2193 rural, 1325 semi-urban, 1219 urban and 933 metropolitan branches. PNB has more than 520 specialized branches that include micro finance branches, retail asset branches, agricultural branches, small and medium enterprise branches, international banking branches and asset recovery management branches.
•
General Information:
? Company Logo:
6
? Tagline:
“The name you can BANK upon”
? Vision:
“To be a Leading Global Bank with Pan India footprints and become a household brand in the Indo-Gangetic Plains providing entire range of financial products and services under one roof”
? Mission:
“Banking for the unbanked”
? Headquarters:
PUNJAB NATIONAL BANK Head Office, 7, Bhikaji Cama Place, New Delhi - 110607.
? Year of Founding:
1895
? Founders:
? ? ? ? ? ? ? ? Dayal Singh Majithia, Founder of Tribune. Lala Harkishan Lal, Founder of DAV College. Lala Lalchand, First Industrialist of Punjab. Kali Prosanna Roy, Chairman of the Reception Committee of INC, Lahore. E. C. Jessawala, Parsi Merchant and Partner of Jamshetji & Co., Lahore. Prabhu Dayal, Merchant and Philanthropist. Bakshi Jaishi Ram, Civil Lawyer of Lahore. Lala Dholan Dass, Banker and Merchant.
? Shareholding Pattern:
7
3% 5%
1%
Govt. Insurance FIIs Non-Institutions MF & UTI Banks
17% 56% 18%
? Number of Employees:
56,928
? Top Management:
?
?
?
K. R. Kamath (CMD), Exec. Directors - Usha Ananthasubramaniam and Sandhu Ram Bansal, Directors - Jasbir Singh, Mushtaq A. Antulay, Pradeep Kumar, D. K. Singla.
•
Financial Performance:
8
9
10
11
•
Competitor Analysis:
Name Last Price 2,143.20 697.00 823.40 326.90 403.00 93.40 193.40 185.30 140.50 238.55 82.65 112.00 415.50 100.30 76.30 76.70 99.90 56.35 46.65 375.90 509.10 500.25 58.90 68.25 Market Cap. (Rs. cr.) 143,818.33 28,743.40 27,927.97 18,781.06 17,852.90 11,940.33 10,647.62 7,963.64 7,025.37 6,959.96 6,587.19 6,267.30 6,154.77 6,037.56 5,616.56 5,098.34 3,497.08 2,792.36 2,750.45 2,631.30 2,545.50 2,341.16 2,126.28 1,598.47 Net Interest Income 106,521.45 29,673.72 36,428.03 28,480.67 30,850.62 23,369.93 21,144.28 12,231.32 15,523.28 15,814.88 17,897.08 11,338.73 13,017.78 15,268.35 19,149.50 14,632.37 6,794.13 7,988.12 7,213.96 6,291.36 6,828.76 5,078.44 7,961.09 6,474.50 Net Profit 11,707.29 5,006.96 4,884.20 2,677.52 3,282.72 2,031.61 1,787.13 1,746.97 1,866.79 1,141.56 1,050.13 1,344.67 1,506.04 1,313.39 533.04 1,108.67 803.14 580.99 430.83 652.03 510.46 369.15 632.53 451.28 Total Assets 1,335,519.24 447,321.46 458,194.01 384,535.47 374,160.20 253,376.80 235,984.44 141,419.20 182,934.57 178,130.17 219,648.17 124,964.23 163,560.42 182,468.06 229,799.74 180,498.41 87,387.93 95,764.00 88,017.38 72,528.15 85,949.33 60,403.58 102,010.39 72,905.27
SBI Bank of Baroda PNB Bank of India Canara Bank IDBI Bank Union Bank Indian Bank Allahabad Bank Oriental Bank IOB Andhra Bank Corporation Bank Syndicate Bank Central Bank UCO Bank Dena Bank Vijaya Bank Bank of Maharashtra State Bank of Bikaner State Bank of Travancore State Bank of Mysore United Bank Punjab & Sind Bank
12
•
SWOT Analysis:
? Strengths:
a) Diversified operations with 5100 branches. b) Strong IT support. c) Schemes for small and medium scale businesses. d) 2nd Largest State-owned Commercial Bank in India with about 5000 branches across 764 cities. e) 56,000+ workforce serving over 37 million customers.
? Weaknesses:
a) Less penetration in the urban areas. b) Inadequate advertising and branding as compared to other banks. c) Legal issues regarding employees caused a bad name of PNB.
? Opportunities:
a) b) c)
Small scale business banking across India. Expansion in other countries for international banking. Installation of more ATM’s and better customers’ services.
? Threats:
a) b) c)
Economic crisis and economic fluctuations. Highly competitive environment. Stringent Banking Norms by the RBI and the Government.
•
Business Strategies:
? Alliances:
1. Everest Bank, Nepal in 2004 ? Permits migrants to transfer funds easily between India and Everest Bank’s 12 branches in Nepal. 2. Ashok Leyland in 2009 ? To extend finance to commercial vehicle customers. 3. Brokerage Firms in 2009 ? With NSBL, SMC Global Securities, SAM Global Securities and SMC Comtrade. ? To boost its online securities trading.
13
4. Oriental Insurance Company in 2010 ? To offer a floater Health Insurance Policy covering the proposer and family under one sum insured.
? Joint Ventures:
1. ? ?
?
? 2. a. b. c. d.
Druk PNB Bank Ltd. (DPNBL) JV Subsidiary in Bhutan. Equity Participation upto 51%. Operating since 27th January 2010 3 Branches at Thimphu, Phentsholing and Wangduephodrang. Several other JVs with Principal PNB Asset Management Company Pvt. Ltd. Principal Trustee Company Pvt. Ltd. Asset Care Enterprises Ltd. India Factoring & Finance Solutions Pvt. Ltd.
? Expansions:
1. Overseas: a. Punjab National Bank (International) Limited (PNBIL): ? PNB India’s wholly owned UK subsidiary. ? Incorporated and registered in UK on 13th April 2006. ? Authorized by the Financial Services Authority (FSA) on 13th April 2007. ? Started banking operations in UK on 10th of May 2007. ? Corporate Office located at Gresham Street, London (UK). ? Presently, 7 Branches at - Gresham Street, London (UK) - Southall, Middlesex (UK) - Belgrave Road, Leicester (UK) - Soho Road, Birmingham (UK) - Crane book Road, Essex, London (UK) - Ealing Road, Wembley (UK) - Dudley Road, Wolver Hampton (UK) 2. Domestic: a. PNB Gilts Limited (PNBGL):
14
Engaged in the business of trading in Govt. securities, treasury bills and Non SLR Investments. ? Further, engaged in dealing in Money Market Instruments (Call/Notice/Term Money, Repo /Reverse Repo, Inter-corporate Deposits, Commercial Paper, Certificate of Deposit) and Mutual Funds Distribution. b. PNB Housing Finance Limited (PNBHFL): ? Engaged in providing Housing loans. ? Offers Loans for construction. ? Also provides Finance for construction of residential projects. ? Provide Loans to NRIs.
? c. PNB Investment Services Limited (PNBISL):
? ? ?
Carries out Merchant Banking Business. Provides services for Project Appraisal, Loan Syndication, and Debt Placement and to execute IPOs/FPO/QIPs. Registered with SEBI as a Category- I Merchant Banker.
d. PNB Insurance Broking Limited (PNBIBL) e. PNB Life Insurance Company Limited (PNBICL)
? Acquisitions:
1. JSC (SB) PNB, Kazakhstan. ? Acquired 80.95% stake in JSC (SB) PNB, Kazakhstan. ? Headquarters at Almaty, Kazakhstan. ? Total 5 branches at Almaty, Pavlador, Karaganda, Astana and Taraz in Kazakhstan.
15
doc_140924382.doc