| Textual Information(1) |
Notes forming part of Reviewed Standalone and Consolidated Financial results for the quarter ended June 30, 2025: 1. The above Financial Results have been reviewed and approved by the Board of Directors in its meeting held on July 30, 2025. In absence of requisite number of Independent Directors on the Board, the quorum of the Audit Committee of the Board could not be met and hence, based on the provisions of Para 14A of the Nationalized Banks (Management and Miscellaneous Provisions) Scheme, 1970, as amended, the quarterly financial results have been placed directly to the Board for review. These results have been subjected to limited review by the Statutory Central Auditors of the Bank as per the requirements of Securities & Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended thereafter. 2. These financial results of the Bank have been arrived at after considering provisions for non-performing assets, standard assets, restructured advances, stressed sector accounts, standard derivative exposures, direct taxes including deferred tax, unhedged foreign currency exposure and investment depreciation on the basis of extant guidelines issued by Reserve Bank of India and applicable accounting standards issued by The Institute of Chartered Accountants of India. Other usual and necessary provisions (including provision for employee benefits) for the quarter have been made on estimated basis and are subject to adjustments, if any, at the year end. 3. There is no material impact of changes in significant Accounting Policies followed for preparation of financial results for the quarter ended June 30, 2025 as compared to those followed for the preparation of financial statements for the year ended March 31, 2025. 4. These financial results have been drawn from financial statements prepared in accordance with Accounting Standard 25 on Interim Financial Reporting. 5. The Consolidated financial results are prepared in accordance with Accounting Standard 21 on Consolidated Financial Statements and Accounting Standard 23 on Accounting for Investment in Associates in Consolidated Financial Statements issued by the Institute of Chartered Accountants of India and guidelines issued by RBI. 6. The consolidated financial results of the Group comprise financial results of 5 Subsidiaries and 13 Associates listed hereunder. The consolidated results are prepared in accordance with RBI guidelines, section 133 of Companies Act, 2013 and regulation 33 and 52 of Securities & Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. Sl. No. Name of the Entity Type of Association Proportion of Ownership (%) As at 30.06.2025 As at 31.03.2025 1 PNB Gilts Limited Subsidiary 74.07 74.07 2 PNB Investment Services Ltd. Subsidiary 100 100 3 PNB Cards and Services Ltd. Subsidiary 100 100 4 Punjab National Bank (International) Ltd., UK Subsidiary 100 100 5 Druk PNB Bank Ltd., Bhutan Subsidiary 51.00 51.00 6 PNB Metlife India Insurance Company Ltd. Associate 30.00 30.00 7 PNB Housing Finance Limited Associate 28.08 28.10 8 JSC (Tengri Bank), Almaty, Kazakhstan* Associate 41.64 41.64 9 Canara HSBC Life Insurance Co. Ltd. Associate 23.00 23.00 10 Everest Bank Ltd., Nepal Associate 20.02 20.02 11 Himachal Pradesh Gramin Bank, Mandi Associate 35.00 35.00 12 Punjab Gramin Bank, Kapurthala Associate 35.00 35.00 13 Sarva Haryana Gramin Bank, Rohtak Associate 35.00 35.00 14 Assam Gramin Vikas Bank, Guwahati Associate 35.00 35.00 15 Manipur Rural Bank, Imphal Associate 35.00 35.00 16 Tripura Gramin Bank, Agartala Associate 35.00 35.00 17 Bihar Gramin Bank, Patna Associate 35.00 - 18 West Bengal Gramin Bank, Kolkata Associate 35.00 - 19 Prathama UP Gramin Bank, Moradabad Associate Nil (refer notes hereunder) 35.00 20 Dakshin Bihar Gramin Bank, Patna Associate 35.00 21 Bangiya Gramin Vikash Bank, Murshidabad Associate 35.00 22 India SME Asset Reconstruction Co. Ltd.@ Associate - 20.90 * Under liquidation @ Entire stake has been sold during the quarter. Notes: i. Central Government vide Gazette ID No. CG-DL-E-07042025-262329 dated 07.04.2025 notified amalgamation of several Regional Rural Banks (RRBs) under the concept One State-One RRB with effect from May 01, 2025. Accordingly, a. Prathama UP Gramin Bank (sponsored by Punjab National Bank) has been amalgamated into Uttar Pradesh Gramin Bank (sponsored by Bank of Baroda), and Bank’s investment in equity shares of Prathama UP Gramin Bank amounting to Rs. 21.18 Crore has been realised during the quarter. b. Dakshin Bihar Gramin Bank (sponsored by Punjab National Bank) and Uttar Bihar Gramin Bank (sponsored by Central Bank of India) have been amalgamated to form Bihar Gramin Bank, which is sponsored by Punjab National Bank. Our Bank has paid Rs. 668.89 Crore to Central Bank of India in lieu of its stake. c. Bangiya Gramin Vikash Bank (sponsored by Punjab National Bank), Paschim Banga Gramin Bank (sponsored by UCO Bank) and Uttarbanga Kshetriya Gramin Bank, (sponsored by Central Bank of India) have been amalgamated to form West Bengal Gramin Bank, which is sponsored by Punjab National Bank. Our Bank has paid Rs. 282.80 Crore to UCO Bank and Central Bank of India in lieu of their stake. ii. Owing to the above-mentioned disposal / amalgamations, a net amount of Rs. 62.91 crore in respect of the said associates (RRBs) has been adjusted in Reserves and Surplus of the Consolidated Financial Statements as per AS-23 ‘Accounting for investment in Associates’ during the quarter. 7. In accordance with SEBI regulations, for the purpose of quarterly consolidated financial results for June 30, 2025, minimum eighty percent of consolidated revenue, assets and profits have been subjected to limited review. 8. As per RBI Letter no. DBR.No.BP.15199/21.04.048/2016-17 dated June 23, 2017 (RBI List-1) and Letter no. DBR.BP.1908/21.04.048/2017-18 dated August 28, 2017 (RBI List-2) for the accounts under the provisions of Insolvency & Bankruptcy Code (IBC) where the Bank is having exposure, the Bank is holding total provision of Rs. 6778.92 Crore (Aggregate provision of RBI List 1 and List 2 accounts is 100%) as on June 30, 2025. 9. During the quarter, the Bank has not availed any dispensation in respect of frauds in terms of option available as per RBI Circular No. RBI/2025-26/13 DOR.STR.REC.9/21.04.048/2025-26 dated April 01, 2025. Further, there is no un-amortized amount which has been carried forward to subsequent quarters. 10. In terms of RBI Circular DBR No. BP. BC 45/21.04.048/2018-19 dated June 7, 2019 on Prudential Framework for Resolution of Stressed Assets, having total banking exposure of Rs. 1,500 Crore and above, the Bank is holding additional provision of Rs.1,959.17 Crore as on June 30, 2025 in 13 accounts as detailed below: (Rs.in Crore) Amount of loans impacted by RBI Circular (FB+NFB) Amount of NPA Loans as on 30.06.2025 out of (a) (FB+NFB) Amount of FB NPA loans out of (b) Amount of Standard loans as on 30.06.2025 out of (a) Total Additional Provision held as on 31.03.2025 Additional Provision / (Reversal) made during quarter (g) – (e) Total Provision held as on 30.06.2025 (a) (b) (c) (d) (e) (f) (g) 6207.59 1527.31 0.00 4680.28 1763.02 196.15 1959.17 11. In accordance with RBI circular no. DBR.No.BP.BC.18/21.04.048/2018-19 dated January 01, 2019, DOR.No.BP.BC.34/21.04.048/2019-20 dated February 11, 2020 and DOR.No. BP.BC/4/21.04.048/2020-21 dated August 06, 2020 on ‘Micro, Small and Medium Enterprises (MSME) sector – Restructuring of Advances’, the summary of MSME restructured accounts as on June 30, 2025 is as under: (Rs. in Crore) No. of Accounts Restructured Amount involved 2200 397.51 12. In accordance with RBI circular no. DOR.STR.REC.12/21.04.048/2021-22 dated May 05, 2021 on Resolution Framework 2.0 - Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs) the summary of restructured accounts as on June 30, 2025 is as under: (Rs. in Crore) No. of Accounts Restructured Amount involved 12236 1368.34 13. As per RBI Circular RBI/2022-23/19 DOR.AUT.REC. 12/22.01.001/2022-23 dated April 07, 2022, for the purpose of disclosure under Accounting Standard 17, Segment Reporting issued by ICAI, Digital Banking Segment has been identified as sub-segment under Retail Banking by Reserve Bank of India (RBI). As on June 30, 2025, 8 (eight) Digital Banking Units (DBUs) of the Bank are operating and the segment information disclosed as Digital Banking under Retail Banking Operations is related to the said DBUs. 14. As on June 30, 2025, the Bank is holding an additional provision of Rs. 126.28 Crore (Rs. 229.41 Crore as at June 30, 2024) on standard accounts restructured under COVID 19 Resolution Framework 1.0 and 2.0, at higher than prescribed rate of 5%/10%, as per Bank’s policy based on the evaluation of risk and stress in these sectors, in terms of RBI Master Circular dated April 01, 2025 regarding Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances. 15. In terms of RBI Master Circular dated April 01, 2025 regarding Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances, the Bank is holding floating provision of Rs. 750 Crore as on June 30, 2025 (Rs. 150 Crore as at June 30, 2024). 16. The Bank has estimated the liability for Unhedged Foreign Currency Exposure (UFCE) in terms of Reserve Bank of India (Unhedged Foreign Currency Exposure) Directions, 2022, no. RBI/2022-23/131 DOR.MRG.REC.76/00-00-007/2022-23 dated October 11, 2022 and is holding a provision of Rs. 236.22 Crore as on June 30, 2025 (Rs.175.54 Crore as on June 30, 2024). 17. The Provisioning Coverage Ratio (including Technically Written off accounts) as at June 30, 2025 works out to 96.88% (95.90% as at June 30, 2024). 18. In accordance with RBI circular no. DOR.STR.REC.51/21.04.048/2021-22 dated September 24, 2021, the details of loans transferred/acquired during the quarter ended June 30, 2025 are given below: i. The Bank has not acquired any Special Mention Accounts (SMA) and also not transferred any loans not in default or Special Mention Accounts (SMA). ii. Details of loans not in default acquired through pool buyout via assignment: Particulars Values Amount of Loan Rs.2575.56 Crore Weighted average maturity 128.90 months Weighted average holding period 14.53 months Retention of beneficial economic interest (by originator) 10% Tangible security coverage 302.59% Rating wise distribution of rated loans NA iii. The Bank has not acquired any non-performing assets. iv. Details of non-performing assets (NPAs) transferred: (all amounts in Rs. Crore) To ARCs To permitted transferees To other transferees No. of accounts 1 Nil Nil Aggregate principal outstanding of loans transferred 193.53 Nil Nil Weighted average residual tenor of the loans transferred Nil Nil Nil Net book value of loans transferred (at the time of transfer) Nil Nil Nil Aggregate consideration 103.67 Nil Nil Additional consideration realized in respect of accounts transferred in earlier years 37.03 Nil Nil Quantum of excess Provision reversed to the Profit & Loss account on account of sale of stressed loans 103.67 Nil Nil 19. As per RBI circular no. RBI/DOR/2024-25/135 DOR.STR.REC.72/21.04.048/2024-25 dated March 29, 2025, on guidelines for Government-guaranteed security Receipts, banks are permitted to reverse any excess provision to the Profit and Loss Account in the year of transfer of a loan to an Asset Reconstruction company (ARC) for a value higher than the net book value (NBV), provided the consideration consists solely of cash and SRs guaranteed by the Government of India. Such SRs shall be valued periodically by reckoning the Net Asset Value (NAV) declared by the ARC based on the recovery ratings received for such instruments. In accordance with the said circular, during the quarter ended June 30, 2025, the Bank has credited a net unrealised amount of Rs. 44.42 Crore to the Profit and Loss Account in respect of SRs guaranteed by the Government of India. 20. Distribution of the SRs held across the various categories of Recovery Ratings assigned to such SRs by the credit rating agencies as on June 30, 2025: Recovery Rating Band Face Value (Rs. in Crore) Carrying Value* (Rs. in Crore) RR1+ 83.61 22.43 RR1 707.72 749.35 RR2 393.54 120.67 RR3 42.10 0.00 RR4 7.39 0.00 RR5 80.69 0.00 Unrated 2198.28 871.15 Total 3513.33 1763.60As per RBI guidelines, post 8 years Rating is not applicable. * Provision of Rs. 393.79 Crore is held against carrying value of NPI SRs. 21. Other income includes income (including commission) from non-fund-based banking activities, fees, earnings from foreign exchange, profit/loss on sale of assets, profit/loss (including revaluation) from investments, dividends from subsidiaries, recoveries from accounts written off/technically written off, etc. 22. The Bank has evaluated the option of lower tax regime permitted under Section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Act, 2019. Based on that, the Bank has decided to exercise the said option of lower tax rate with effect from FY 2025-26 (AY 2026-27). While recognizing the provision for income tax for the quarter ended June 30, 2025, the deferred tax assets (net) have been remeasured based on the tax rate applicable as per new regime along with release of certain income tax provisions which are no longer required. The resultant impact is a one-time charge of Rs.3324.24 Crore in the Profit and Loss Account for the quarter ended June 30, 2025. 23. In terms of RBI circular no. RBI/2025-26/08 DOR.CAP.REC.2/21.06.201/2025-26 dated April 01, 2025, banks are required to make Pillar 3 disclosures under BASEL III capital regulations. Accordingly, Pillar 3 disclosures under BASEL III capital regulations are being made available on Bank's website i.e. www.pnbindia.in. These disclosures have not been subjected to limited review by the Statutory Central Auditors. 24. Details of Investors complaints for the quarter ended June 30, 2025: Pending at Beginning: Nil, Received: 08; Disposed off: 08; Closing: Nil. 25. The figures of the last quarter of the previous year are the balancing figures between audited figures in respect of financial year 2024-25 and the published year to date figures up to the end of the third quarter of the previous year. 26. Figures of the previous periods have been regrouped / rearranged / re-classified wherever necessary to conform to current period's classification. |