I place before you the highlights of your Bank's performance for the year FY 2021-22details of which have been given in the Annual Report.
The past couple of years have been a period of intense action and reflection. Punjab& Sind Bank stands tall in the service of the society and mankind. With the glorifyinglegacy of 114 years and commitment towards the society as its core principle the bankwith 1526 branches is rendering uninterrupted best-in-class services. Our tagline"Where service is a way of life" is woven to the core of ourfabric andinculcated in each and every PSBian.
We have seen a global pandemic geopolitical tensions supply chain disruptions therisk of crypto currency etc. Indian economy is not immune to negative externalities. Thesurge in commodity prices is already posing inflation risks and forcing RBI to policynormalization and leading to a rise in interest rates in the system. However with thethird wave behind us and with the removal of all restrictions alongside a broadening ofvaccination coverage economic activity is returning to speed.
As the dust settles and a clearer picture of the world ahead emerges I believe yourbank is standing at the threshold of great opportunities and growth. In the face ofwidespread change your bank has shown remarkable resilience and adaptability coming outstronger than ever after terrible events like the global financial crisis or thepandemic. Towards the commitment to offer state- of-the-art digital channel for bankingthe Bank has launched Omni channel "PSB UniC - You and I Connected" and set-upthree e- lobbies inthe state of Punjab. With PSB UniC the bank is digitally offeringrange of best-in-class services and products.
KEY PERFORMANCE OFTHE BANK
During the year Bank makes a turnaround with a historic Net Profit of Rs.1039Cr(FY)against a Net Loss of Rs.2733Crfor FY 2020-21. The business of the Bank grew by 5.25% onY-o-Y basis. Deposits and Advances grew by 6.27% and 3.80% respectively. The thrust onCASA deposits and RAM Segment advances (Retail Agriculture and MSME) bore its results andthey grew by 9.51% and 15.29% respectively on Y-o-Y basis. RAM composition has alsoimproved from 48% to 51% while corporate advance has declined from 52% to 49% on Y-o-Ybasis. All the regulatory norms under different segments of Priority Sector have also beenachieved as on March 2022.
For the financial year 2021-22 Operating profit of the Bank stood at Rs.1330 crore ascompared to Rs.772 crore during 2020-21 showed a growth of 72.28%. The Bank's cost ofdeposits decreased by 78 bps to 4.28%. The net interest income stood at Rs.2651 croreasagainst Rs.2262 crore in the last year.
RoA of the Bank stood at 0.85% highest among public sector banks for the year underconsideration. NIM stood at 2.80% and Yield on Advances at 7.20%. Other Income of the Bankis 6.08% more as compared to that of in previous year i.e. FY 2020-21.
During 2021-22 the Bank has achieved the following mandated targets:
50.20% of the Adjusted Net Bank Credit (ANBC) against 40% norm in PrioritySector.
11.81%oftheANBCagainst9%toSmalland Marginal Farmers.
12.91% of the ANBC against 11% mandated target to Weaker Sections.
The Banksold PSLCto the tune ofRs.650crorein 2021-22 and earnedan incomeof approx.Rs.12crore.
Priority Sector Advances of the Bank as at March 2022 reached at Rs.31178 crorerecording a Y-o-Y growth of 10.45%. The Bank's advances under MSME portfolio increased by13.26%to Rs.13021crore.
To provide access at a reasonable cost for all households to a full range of financialservices Bank is actively tracking the agenda of Financial Inclusion (Fl)andopened 15.25lakh accounts underPMJDYand mobilized aCASA deposit ofRs.560croreasat March2022.
The Bank has been making consistent efforts on NPA management and improved the assetquality. Gross Non-Performing Assets (GNPA) ratio improved to 12.17% from 13.76% as atMarch 2021. Similarly Net Non-Performing Assets (NNPA) ratio reduced to 2.74% as at March2022 down from 4.04% as at March 2021. Provision Coverage Ratio (PCR) stands at 87.89% asat March 2022 against82.89%asat March 2021.
With the infusion of Capital by Government of India CRAR and CET-1 (including CCB) arewell above the regulatory requirement and stands at 18.54%and 12.77% respectively.
Bank has been awarded with
1st Position under ExemplaryGold Award "Leadership Capital (4.0)"campaign organised by PFRDAfor APY Enrolments
Runner-up in Best Digital Financial Inclusion Initiative categoryaward declaredby IBA.
3rd Top Performing BankinTheme 3 i.e. Collaborating forSynergistic Outcomesunder EASE 4.0 as on 31.12.2021.
3rd Position in DSB(DoorStep Banking) UdaanCampaign launched by PSB AlliancePvt. Ltd. from 01.02.2022to02.03.2022.
Bank was awarded with "Rajbhasha Kirti Puraskar (Second)" in the year2019-20 in the category 'B' of Nationalized Banks and Financial Institutionsforthe bestimplementation oftheOfficial Language Policy.
Bankwas awarded as 'Best Public Sector Bank in SHG Linkage' for FY 2019-20.
Given the present circumstances like geopolitical tensions input price inflation thespike in crude oil and a global rate hike cycle which could put some pressure on growth /NIM in the near term. But with the government's reformative stance and measures initiatedby the regulator we are hopeful that the things will ease out quickly and the bankingsector may register double-digit credit anddepositgrowth.
The Bank has continued its focus on laid down strategy to reorient its business awayfrom wholesale corporate lending to RAM segment organizational restructuring to leverageoptimum utilization ofthehuman and other resources. Besidesthisthe Bank aims atstrengthening the Risk Management architecture IT Infrastructure credit monitoringsystems to curtail fresh slippages and to improve asset quality further.
The Bank is fully dedicated and committed to provide best in the industry Bankingservices for all financial needs with our branch network digital deliveryand an arrayofbanking products and services.