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Punjab & Sind Bank.

BSE: 533295 Sector: Financials
NSE: PSB ISIN Code: INE608A01012
BSE 00:00 | 28 Oct 10.70 -0.03






NSE 00:00 | 28 Oct 10.70 -0.05






OPEN 10.70
52-Week high 23.05
52-Week low 9.20
Mkt Cap.(Rs cr) 750
Buy Price 10.70
Buy Qty 138.00
Sell Price 10.70
Sell Qty 62.00
OPEN 10.70
CLOSE 10.73
52-Week high 23.05
52-Week low 9.20
Mkt Cap.(Rs cr) 750
Buy Price 10.70
Buy Qty 138.00
Sell Price 10.70
Sell Qty 62.00

Punjab & Sind Bank. (PSB) - Director Report

Company director report

The Board of Directors has pleasure in presenting Annual Report of theBank along with the Balance Sheet and Profit and Loss Account for the year ended 31stMarch 2020.


Economic Outlook:

Global Outlook:

Today we are facing the threat posed by the Covid-19 pandemic whichhas disrupted normal life and livelihood accelerated a slowdown worldwide and compelledentrepreneurial spirit to withhold its urge for growth. But the determination to overcomethis phase of life is what is becoming clearer amidst the crisis and that is where ourthoughts take their origin from.

The World is adopting new normality i.e. surviving/living with thecoronavirus pandemic to face the greatest medical-cum- economic crisis in the history. Asper World Bank "COVID-19 is the most adverse peacetime shock to the global economy ina century. Demand for goods and services has been severely curtailed while at the sametime supply has fallen sharply as the number of people working has declined and the costof doing business has risen. The shock caused unprecedented disruptions to global tradetravel and tourism; stress in global financial system".

As per IMF World Economic Outlook update (June 2020) "The globaleconomy is projected to contract sharply by -4.9% in 2020 and in 2021 global growth isprojected at 5.4%. As per RBI's Monetary Policy Statement 2020-21 "The globaleconomy is inexorably headed into recession. Green Shoots of recovery are expected in theworld economy with the unlocking/opening of the economies around the world. We can expectsome good recovery in the world economy in the remaining half of the year".

Domestic Outlook:

RBI's Monetary Policy Statement 2020-21 mentions that "Thecombined impact of demand compression and supply disruption will depress economic activityin the first half of the year. Assuming that economic activity gets restored in a phasedmanner especially in the second half of this year and taking into considerationfavourable base effects it is expected that the combination of fiscal monetary andadministrative measures being currently undertaken would create conditions for a gradualrevival in activity in the second half of 2020-21."

However the Pandemic is also creating an opportunity for the countryto become self-sustainable global manufacturing hub and to play a crucial role in theglobal supply chain. To achieve this further focus on broad-based structural reformstrading relationships integrated infrastructure like large ports and highways highlytrained manpower law reforms R&D incentives for innovation ease of doingbusinesses and protecting intellectual property is required.

As per the Ministry of Finance Macro Economic Report June 2020."Green shoots are visible in the economy with the pickup in GST collection in June2020 real activity indicators like electricity and fuel consumption inter andintra-state movement of goods retail financial transactions etc"

The emergence of green shoots in the rural economy such as tractorsales increase in demand for consumer durables etc. and other sectors suggests thatrevival is happening in the economy to some extent. The pace of the revival of the economydepends on the containment of the pandemic and quick phasing out of socialdistancing/lockdowns and combination of structural reforms and supportive social welfaremeasures.

Banking Sector:

The slowdown in the economy due to the pandemic will have an impact onthe banking sector too. However with the unlocking of the economy and measures taken bythe Government of India and RBI the economy is in a path of rebuild. To face thepandemic focus of our Bank is on quality of assets curtailing NPAs and mobilizing lowcost deposits


TOTAL BUSINESS: During the year ended 31.03.2020 total Business of theBank stood at Rs.152231.75 crore as compared to Rs.171305.07 crore as on 31.03.2019.

PROFIT: The Bank recorded a Net Loss of Rs.990.80 crore for the year2019-20 as compared to Net Loss of Rs.543.48 crore during the FY 2018-19. The Return onAssets (ROA) stood at (-) 0.91% as compared to that at (-) 0.47% in the year 2018-19.

DIVIDEND: The Board has not recommended any dividend for the year2019-20.

CAPITAL & RESERVE: The Net Worth of the Bank stood at Rs.2917.44crore as on 31.03.2020 as compared to Rs.3652.26 crore as on 31.03.2019.

The Capital Adequacy Ratio (Basel III) of the Bank is 12.76% as on31.03.2020 against the minimum stipulated requirement of 10.875%.

DEPOSITS: The total deposits of the Bank stood at Rs.89667.55 crore ason 31.03.2020 as compared to Rs. 98557.60 crore as on 31.03.2019. The average cost ofdeposits of the bank stood at 6.04% as compared to 6.01% in previous year.

ADVANCES: The Bank's Advances stood at Rs.62564.20 crore as on31.03.2020 as compared to Rs. 72747.47 crore as on 31.03.2019. The average yield onAdvances stood at 8.54% as compared to 8.61% during the last year.


The Bank has been an active participant in promoting FinancialInclusion. The number of accounts opened high operative accounts to total accounts totalnumber of Rupay cards issued and a healthy average balance maintained in the accountspoint out to the strong commitment of the Bank in fostering inclusive growth.

A. Bank's Status under PMJDY as on 31.03.2020:

Sl No. Parameter Status
1. Total PMJDY A/Cs 13.24 lac
2. Operative PMJDY Accounts 11.35 lac (86%)
3. Total Rupay Cards Issued 11.90 lac (90%)
4. Balance held in the PMJDY accounts 644 Cr
5. Average Balance in the the accounts Rs. 4860/-
6. Number of Over Drafts Sanctioned in the accounts 59040
7. Amount Sanctioned under the overdraft 8.53 Cr.
8. Number of Zero balance accounts 18426 (1.4%)

B. Individual Bank Mitr Model:

Bank has appointed a total of 353 Bank Mitrs in 11 states. Theiroperations cover the jurisdiction of 19 Zones of the Bank in providing Banking Services torural areas where brick & mortar branches are not available. Bank has adoptedindividual BC Model. BCs provide basic Banking services like A/C opening Deposit/Withdrawal & Fund Transfer (interoperable) Balance Enquiry & Mini Statementsourcing of GCC/KCC FD/RD opening sourcing of various micro insurance schemes(PMJJBYPMSBY) along with pension schemes (APY) & helping Branches in recovery ofNPA/TWO accounts etc.

Performance of Bank Mitrs:

Particulars FY 2018-19 FY 2019-20
Total Business brought by Bank Mitrs 382 Cr 385 Cr
Total No of Transactions done on Micro ATMs 10.34 lac 11.28 Lac
Total FD/RD Accounts opened 9809 10149
Total Deposit brought 266 Cr 250 Cr
No of KCC opened 2760 2898
Amount disbursed 97.06 Cr 104 Cr
No of GCC opened 145 316
Amount disbursed 2.47 Cr 6.96 Cr
No of Accounts with NPA Recovery 3083 2883
Amount Recovered 16.86 Cr 25.15 Cr

C. Awards & Achievement:

The bank was awarded by 'SKOCH Group' for achievement in FinancialInclusion in June'2019.


Achievement of Marketing & Insurance Department:

• Bank offers life insurance policies by way of corporate agencyarrangement with following two insurance company:

• SBILIFE insurance company

• LIC of India.

• Bank has widened the product range by entering into Corporateagency arrangement with the following companies for offering General Insurance policies tocustomers :

I. Oriental Insurance Company Limited

II. New India Assurance Company Limited

III. Bajaj Allianz General Insurance Company Limited Achievement of HOGovernment Business Department:

> Bank has enrolled/sourced 185324 customers under Pradhan MantriSuraksha Bima Yojana (PMSBY) for the FY 2019-20 against 138529 customers in the FY2018-19.

> Bank has enrolled/sourced 57289 customers under Pradhan MantriJeevan Jyoti Bima Yojana (PMJJBY) for the FY 2019-20 against 41700 customers in the FY2018-19.

> Bank has enrolled/sourced 50888 customers under Atal PensionYojana (APY) for the FY 2019-20 against 38797 customers in the FY 2018-19. The Bankactively participates in every APY Campaign organized by PFRDA.

> Bank has been awarded as the best performer in the APY FormationDay campaign among Public Sector Banks for the year 2019-20.


• Bank's advance to Small & Marginal Farmers stood at Rs.6246Crore (8.30% of Adjusted Net Bank Credit) as on 31.03.2020 against the target of 8.00% ofAdjusted Net Bank Credit

• Bank made advances to the tune of Rs. 1102 Crore against thetarget of Rs. 1200 crore under Pradhan Mantri Mudra Yojana which is 91.83% against thetarget.

• Bank has issued RuPay Debit Cards in 2.22 lac KCC accounts outof the total operative KCC accounts of 2.26 lac (98.23%) as on 31.03.2020

• Bank has 17 Financial Literacy Centres (FLCs) at block level inPunjab & Haryana to spread financial literacy among people. A total of 1349camps have been organized during the 2019-20 by FLC Counsellors wherein 52720 peopleactively participated and were sensitized about Basic Banking Services so that they areable to avail banking services according to their requirements.

• Bank's lending to weaker sections stood at Rs.7564 croreachieving 10.04% of Adjusted Net Bank Credit as against a target of 10% of Adjusted NetBank Credit

New Initiatives in Priority Sector:

• Bank has introduced PSB UDYAN a product for financingdevelopment of Horticulture.

• Bank has introduced PSB KHADYAN SURAKSHA a scheme for financingagainst Electronic negotiable Warehouse Receipts.

• Bank has launched PSB KRISHAK MITRA a scheme to financecommission agents Agri Input Dealers / Distributors.

• Relationship Officers are working in 144 specialized MSMEbranches to take care of various financial needs of existing MSME Customers and specialhelpdesk created at each of these branches for MSME Customers.

• Bank has adopted cluster-based Financing. We have 803 Branchesin 268 MSME clusters and 71 Specialized Branches in 156 MSME clusters. Bank has presencein 73 Food and Agro Processing Clusters.

• Bank has created MUDRA product on PSB loans in 59 minutes portalfor mobilizing small MSME loan proposals.


• The Retail Lending portfolio of the Bank as on 31.03.2020 standsat Rs 16552 Crore and thereby Retail Lending has registered a business growth of 6.00 %over the previous year (Rs15615 Crore).

• The percentage of Retail credit (Rs 16552 Cr) to Gross Advances(Rs 62578 Cr) was 26.45% as on 31.03.2020.

• The Bank has launched CenMARG (Centralized MSME And RetailGroup) for centralized processing of loan proposals through Loan Origination Software. Atpresent CenMARG is processing loan proposals of Home loans (PSB Apna Ghar) Vehicle loans(PSB Apna Vahan) and Education Loans originating from selected 697 branches from all Metroand Urban centres and selected Semi-Urban & Rural Centres.

• The Bank has rationalized the Retail Lending products to makethem more attractive and competitive. In order to generate more business in housingsegment the Bank has expanded the scope of PSB Apna Ghar upto 5th dwelling unit perfamily. Exposure to 3rd to 5th dwelling unit will be treated as Commercial Real Estate(CRE) exposure.

• Under PSB Utsav Mala Campaign (09.09.2019 to 31.03.2020)covering the Retail products viz. PSB Apna Ghar PSB Apna Vahan and PSB Vyapar the Bankhas sanctioned fresh loans to the tune of Rs. 1445 crore.

• The Bank has also launched PSB Performers' League (PPL) as amotivational campaign to create competitive environment amongst branches and to generatemore Retail Lending business during the campaign period.


The bank made significant efforts to contain NPAs by employing allavailable tools of recovery including negotiated settlements and legal means. The Bank hasalso organized Recovery Camps and Auctions using the e-bikrey portal during the year. Thefocused efforts resulted in the total recovery of over Rs.943.33 Cr during the yearincluding recovery of Rs.275.53 Cr in Technically Written Off.

Bank has made earnest efforts to contain the fresh slippage. Theresulting increase in the slippage is due to the meltdown of the NBFC sector. As a resultour gross NPAs and net NPAs as on 31-03-2020 stood at Rs 8874.57 Cr and Rs 4684.15 Crrespectively against Rs 8605.87 Cr and 4994.23 Cr as on 31-03-2019.

The position of Gross and Net NPAs as on 31-03-2020 vis-a-vis previousyear is as under;


As on 31-03-2019

As on 31-03-2020

Gross NPA 8605.87 11.83% 8874.57 14.18%
Net NPA 4994.23 7.22% 4684.15 8.03%

Progress made in the FY 2019-20

The Bank has made total recovery amounting to Rs.1987 Crore against thetarget of Rs.2000.00 Crore (Including recovery out of fresh NPA during the year). Thisamount includes recovery of Rs.275.53 Crore in Technically Written Off accounts against atarget of Rs.200.00 Crore


SAMverT has been set up for management of all stressed assets of Rs.25Crore and above. The scope of the vertical is as follows:

i. Special Mention Accounts (SMA) -To monitor the SMA - 1 & 2accounts having Balance Outstanding amount Rs.25.00 Crores and above.

ii. NPA/TWO accounts - Ensures that timely action is taken underSARFAESI Act/ RDDB Act/ Insolvency & Bankruptcy Code etc. Progress made in the FY2019-20

In the financial year 2019-20 the SAMVert has been instrumental inrecovery amounting to Rs.310.17 Crores which includes recovery of Rs.133.62 Crores inTechnically Written Off accounts.


The Department has already set up a Control Room for proper andeffective monitoring of large accounts with exposure above Rs.25 Lac at HO and accountsup to Rs.25 Lac by separate Control Rooms at Zonal Offices. The Control Room maintainsclose followup with the zones and branches on an ongoing basis so that there is aneffective management of SMA and prevention of slippage.

The Department has entered into tie-up with Credit InformationCompanies like CIBIL and Equifax for enhanced Due diligence. Various functionalities havebeen developed for easy reporting and having an effective check on revenue leakage besidesbringing about Capital Conservation with the help of automation.


• The Bank's gross investment as on 31.03.2020 was Rs.24946.38 Crwith a portfolio consistent with Bank's requirement risk perception and in accordancewith the investment policy.

• Bank made the highest ever profit of Rs.404.83 Cr onsale/redemption of securities with an increase of 12.97% over March 2019 profit ofRs.358.36 crores on account of active trading and redemption in G-Sec and Non SLRsecurities.

• The total profit of the Foreign exchange department is Rs.28.28crores and dealing room exchange profit for the year 2019-20 is Rs.17.62 crores


Risk appetite based budgeting was introduced in order to reduce theRisk Weighted Assets of the Bank for optimal utilisation of Capital.

Bank launched extensive range of training programmes to improve RiskCulture and redesigned frameworks policies procedures and instruments to detect andmitigate potential risks. The strategy was to have risk-based outlook on businesscontainment of operational risk monitoring through expanded KRIs and a continuous Riskawareness building exercise.

RWAs (Risk Weighted Assets) position of the bank is as under: (Amt inCr)

Mar' 19 FY 2019-20
Q1 Q2 Q3 Q4
Credit Risk Weighted Assets 47441 47411 46306 45232 39494
Market Risk Weighted Assets 6153 5910 6499 6623 5809
Operational Risk Weighted Assets 4990 4990 4990 4990 4836
Total Risk Weighted Assets (RWA) 58584 58311 57795 56845 50139
CRAR Position (%) 10.93 11.35 11.68 12.04 12.76


The cadre wise staff strength as on 31.03.2020 is as under:

Category 31st March 2019 31st March 2020
Officers 6293 6471
Clerks 2292 2084
Sub-staff 363 307
Total 8948 8862

Women in employment: Out of the total strength of 8862 as on31.03.2020 the women employees are 2558 constituting 28.86% of the total strength. TheBank has taken specific steps to empower its women employees and to plan their careergrowth. HRD Women Cell at Head Office looks after feedback/ suggestions requests andcomplaints/grievances received from women staff of the Bank.

Promotions: Bank is regularly promoting its employees almost in all thecadres every year to keep on rewarding its top performers and enabling them to assumehigher responsibilities. Following promotions have been effected during the year 2019-20:-

Promotions from DGM to GM AGM to DGM CM to AGM SRM to CM MGR to SRM OFF to MGR CLK to OFF SUBSTF to CLK
Total 0 12 27 95 157 318 293 0

Training & Human Resources Development:

With a commitment to provide training to 50% of its employees duringthe Financial Year 2019-20 Bank conducted 216 programmes in General Banking &Computer skills at Bank's Staff Training College Delhi and the National Institute ofBanking Studies and Corporate Management (NIBSCOM) jointly sponsored by the Bank alongwith Punjab National Bank (earlier Oriental Bank of Commerce) The Jammu & KashmirBank Ltd. and the Nainital Bank Ltd. 101 Locational Trainings were also conducted atZonal Offices in addition to a collaborative programme with an external agency M/s JIMSRohini (3 Batches with attendance of 133 participants) in various fields from 1st April2019 to 31st March 2020 in which training was imparted to 2933 employees of differentcadres. 351 Officers/Executives were imparted training at Apex Level Institutes (like theMDI Gurgaon IIM Kolkata and State Bank Institute of Management Kolkata).

Competency Mapping & Strategic Thinking and Leadership DevelopmentProgramme: This FY our bank had conducted 4 Batches of Competency Mapping programme (byTISS-SVE Mumbai) for 127 Executives (DGMs-127 AGMs-58 & CMs-59). Also StrategicThinking & Leadership Development programme was conducted at MDI Gurgaon which wasattended by 79 Executives (DGMs- 21 & AGMs-58).

Specialization Through Job Families: Bank has introduced specializationthrough Job families by identifying 11 (Revised) job families in which options were soughtfrom staff members. Identified and shortlisted staff members were imparted training andaccordingly are being considered for placement. Bank has added the following areas to itsearlier defined 7 Job families:

1. Retail Banking

2. Inspection and Audit

3. Human Resources

4. Compliance

MoU with Centre of Excellence (CoE): In an effort to empower Personswith Disabilities Bank has executed MoU with Centre of Excellence (CoE) SBI Foundation-the CSR arm of the State Bank of India. This year bank has conducted 2 batches of specialtraining programme for Divyangjans (staff members).

Capacity Building for Senior Management Functionaries (Project Pragati& Project LEAD): Bank is imparting specialized apex training programmes to Scale IV& above who are identified based on residual service experience performanceaptitude interest and educational qualifications. The Bank has envisaged a"three-phase training" for Executives of Assistant General Manager grade andabove. The Focus is on imparting training vis-a-vis 3 levels i.e:

I. Development of Strategic Thinking and Leadership Qualities

II. Skill development in the immediate area of functioning

III. Lateral specialization in their area of interest

Industrial Relations: The Industrial relations in the Bank remainedcordial throughout the year. The representatives from Workmen and Officers unionsparticipated in various discussions on developmental and other issues with the managementat various levels and efforts were made to resolve the same.

Employment to Reserved Category Employees: The Bank implements allguidelines stipulated by the Govt. of India in respect of Reservation Policy forreservation of posts in recruitments/promotions wherever required.

The Cadre wise staff strength of reserved category employees (SC/ST/OBCetc) as on 31.03.2020 is as under:

OFFICERS 1265 501 1561 60 214
CLERKS 498 70 524 187 54
SUB-STAFF 117 14 22 21 6
TOTAL 1880 585 2107 268 274

Corona Pandemic Initiatives: Bank has provided variousrelaxations/incentives to staff members who are coming and attending the office during thelockdown phase in accordance with directions given by Ministry of Home Affairs Gol andState Government.

Equal Opportunity Policy for Divyangjan: In accordance with theprovisions of the Rights of Persons with Disabilities Act 2016 and Rules 2017 the Bankstrives to ensure that the work environment is free from any discrimination againstDivyangjan.

Performance of Bank's Hockey Team: Our Bank is having two teams (SeniorMen's Hockey Team affiliated with Hockey India and one Junior Hockey Academy) and theyare performing well in all the major events of their respective categories.


During FY 2019-20 the Bank adopted a multi-media strategy to build upits image in public. The Publicity Budget was centralized to decide proper utilization andeffective control.

On the occasion of 112th Foundation Day celebration of the BankPromotional and cultural activities were organised at Amritsar the founding place of theBank. To commemorate the day Blood Donation Camps were organized across all branches andZonal offices.

On the occasion of 550th Birth Anniversary of Sri Guru Nanak Dev JiBank arranged facilities for pilgrims. Painting Exhibition was held at Gurdwara BanglaSahib New Delhi depicting the cultural religious and historical paintings on Sikhheritage.



Focus of the Bank is to create a safe & fearless work environmentconducive to business growth with safety. This is envisaged to be achieved through puttingin place a robust Preventive Vigilance Set up. Whistle Blower Policy (WBP) has been madeavailable at all prominent places such as Bank's portal to publicize it and make itpopular among all concerned. Staff members are encouraged to lodge their concern under WBPif the need arises in their view.

Bank has been adhering to the extant references / guidelines of CentralVigilance Commission (CVC). Accordingly these guidelines have been circulated amongconcerned functionaries that are handling disciplinary proceeding at various levels.

Vigilance Awareness Week (VAW) was observed from October 28th toNovember 02nd 2019 with this year's (2019-2020) central theme "Integrity - A way oflife"

During this period of VAW the Bank has organized a variety ofprogrammes at various places across the country involving positive participation ofgeneral public at large. Numerous activities were conducted at different locationsincluding Slogan contest Poster Making Essay Writing Competition E-Rickshaw RalliesWalkathons Bike Rallies Road Shows Cyclathons Debates Quizes Health Check up campsBlood Donation Camps Awareness through Media (FM Radio LED (audio / Video) display atprominent Bus Stations / Depots Morning Walks Awareness through Mobile Vans Elocutionscompetition and singing competition etc.

Nukkad Nataks were especially played at prominent places across Delhi& NCR territory. Various Rallies were organized by each Zonal Office of Bank where alarge number of students Bank employees and public in general participated in spreadingawareness of Vigilance and integrate honesty in our daily walk of life.

During the week 233 Gram Sabhas 585 programmes in the schools 117programmes in the colleges were held. The staff members / customers of the Bank/ generalpublic were encouraged to have E-Pledge through URL provided on Bank's web site. Our Bankorganized main function at Staff Training College Rohini Delhi on 01.11.2019 withparticipation of the top management and invitees from a cross-section of the society.


The year 2019-20 was a year of achievements in terms of implementationof the Official Language. This year first prize was given to our bank's Hindi magazine"Rajbhasha Ankur" and e-magazine "Rajdeep" by Delhi Bank Town OfficialLanguage Implementation Committee along with Incentive Award for Best Official LanguageImplementation at Head Office. In addition to this our bank received a total no. of 12awards in Inter Bank competitions organized by various banks under the aegis of Delhi BankNARAKAS. Our bank's branches Fraser Road Patna Himmat Nagar (Gandhi Nagar) Durg(Chhattisgarh) Ranchi Bhilai Rajkot Nagpur and Zonal Office Bareilly and Noida alsoreceived Official Language Shields from their respective Town Official LanguageImplementation Committees for better work in the official language in the Banking Sector.

During the financial year 2019-20 Bank made significant progress inimplementation of the Official Language Policy of Govt. of India for promoting andpropagating the use of Official Language Hindi in the Bank. Implementation of OfficialLanguage was liberated from the confines of translation and promoted on the soundprinciples of project implementation. A total of 65 workshops were organized in which1125 staff members were trained. Besides this in 403 Hindi Desk Training Programmes 1293staff members were imparted training for using official language and Unicode training oncomputers. Official Language inspections were conducted in 452 branches / offices toreview the progress.

Further in the financial year 2019-20 on Hindi Diwas attractive cashprizes alongwith shield were awarded to the winning staff- members in differentcompetitions held at Head office.


All the grievances/ representation(s) need to be redressed within a 14days (presently time advised by RBI under Internal Ombudsman Policy 2018 in resolvinggrievance) and in any case not later than 21 days. The time given to various levels wouldbe as follows:

a. Branch Level Resolution would be 7 days on receipt of the complaintif Branch is unable to resolve the complaint it will be escalated to Zonal Office.

b. The Zonal Office Resolution would be 3 days if Zonal Office failsto resolve within given timelines or resolution would take more time than prescribed ZOhas to appraise reasons & date by which grievance would be resolved to HO InspectionDept.

c. HO. Inspection Dept./HO. ATM Cell/HO. Pension Cell would within next4 days apprise the competent authority and communicate decision to concerned ZonalOffice/Department.