TABLE OF CONTENTS

CONTENTS Page No

Chapter 1 – Introduction 1-21

1.1. Overview of Industry as a whole

Chapter 2 – Company Profile 22-45

2.1. Profile of the Organization

2.2. Problems of the Organization

2.3. Competition Information

2.4. S.W.O.T Analysis of the Organization

Chapter 3 – Conceptual Discussion 46-57

Chapter 4 – Research Methodology 58-62

4.1. Significance

4.2. Managerial usefulness of the study

4.3. Objectives

4.4. Scope of the study

4.5. Methodology

Chapter 5 - Data Analysis And Interpretations 63-85

Chapter 6 - Findings and Recommendations 86

Chapter 7 – Conclusion 87

Chapter 8 - Annexure 88-90

Chapter 9 – Bibliography 91
1.1 -OVERVIEW OF THE BANKING SECTOR

Without a sound and effective banking system in India it cannot have a healthy economy. The banking
system of India should not only be hassle free but it should be able to meet new challenges posed by the
technology and any other external and internal factors. For the past three decades India's banking
system has several outstanding achievements to its credit. The most striking is its extensive reach. It is
no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has
reached even to the remote corners of the country. This is one of the main reasons of India's growth
process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the
nationalization of 14 major private banks of India. Not long ago, an account holder had to wait for hours
at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone
are days when the most efficient bank transferred money from one branch to other in two days. Now it
is simple as instant messaging or dial a pizza. Money has become the order of the day. The first bank in
India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking
System can be segregated into three distinct phases. They are as mentioned below:

 Early phase from 1786 to 1969 of Indian Banks

 Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.

 New phase of Indian Banking System with the advent of Indian Financial & Banking Sector
Reforms after 1991.

Phase:I
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank.
The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras
(1843) as independent units and called it Presidency Banks. These three banks were amalgamated in
1920 and Imperial Bank of India was established which started as private shareholders banks, mostly
Europeans shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indian, Punjab National Bank Ltd.
was set up in 1894 with headquarters at Lahore. Between 1906 and1913, Bank of India, Central Bank of
India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India
came in 1935.
During the first phase the growth was very slow and banks also experienced periodic failures between
1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and
activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949
which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of
1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as
the Central banking authority.

During those days public has lesser confidence in the banks. As an aftermath deposit mobilization was
slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer.
Moreover, funds were largely given to traders.

Phase:II

In 1955, Government nationalized Imperial Bank of India with extensive banking facilities on a large
scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent
of RBI and to handle banking transactions of the Union and State Governments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July 1969, major
process of nationalization was carried out. It was the effort of the then Prime Minister of India, Mrs.
Indira Gandhi. 14 major commercial banks in the country were nationalized.

Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more
banks. This step brought 80% of the banking segment in India under Government ownership.

The following are the steps taken by the Government of India to Regulate Banking Institutions in the
Country:

 1949: Enactment of Banking Regulation Act.

 1955: Nationalization of State Bank of India.

 1959: Nationalization of SBI subsidiaries.

 1961: Insurance cover extended to deposits.

 1969: Nationalization of 14 major banks.

 1971: Creation of credit Guarantee Corporation.

  1975: Creation of regional rural banks.

 1980: Nationalization of seven banks with deposits over 200 crores.

After the nationalization of banks, the branches of the public sector bank India raised to approximately
800% in deposits and advances.

Took a huge jump by 11,000%.

Banking in the sunshine of Government ownership gave the public implicit faith and immense
confidence.

Phase:III

This phase has introduced many more products and facilities in the banking sector in its reforms
measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name,
which worked for the liberalization of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a
satisfactory service to customers. Phone banking and net banking is introduced. The entire system
became more convenient and swift. Time is given more importance than money.

The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered
by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible
exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and
banks and their customers have limited foreign exchange exposure.

CURRENT SCENARIO

Currently (2008), overall, banking in India is considered as fairly mature in terms of supply, product
range and reach-even though reach in rural India still remains a challenge for the private sector and
foreign banks. Even in terms of quality of assets and capital adequacy, Indian banks are considered to
have clean, strong and transparent balance sheets-as compared to other banks in comparable
economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from
the government. The stated policy of the Bank on the Indian Rupee is to manage volatility-without any
stated exchange rate-and this has mostly been true.
With the growth in the Indian economy expected to be strong for quite some time-especially in its
services sector, the demand for banking services-especially retail banking, mortgages and investment
services are expected to be strong. M & As, takeovers, asset sales and much more action (as it is
unraveling in China) will happen on this front in India.

Recently (March 2007), the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak
Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold
more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding
5% in the private sector banks would need to be vetted by them.

Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks (that is with the
Government of India holding a stake), 29 private banks (these do not have government stake; they may
be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network
of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the
public sector banks hold over 75 percent of total assets of the banking industry, with the private and
foreign banks

COMMERCIAL BANKING STRUCTURE

The commercial banking structure in India consists of:

 Scheduled Commercial Banks in India

 Unscheduled Banks in India

Scheduled Banks in India constitute those banks, which have been included in the Second
Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in
this schedule, which satisfy the criteria laid down, vide section 42 (6) (a) of the Act.

The scheduled commercial banks in India comprise of State bank of India and its associates (8),
nationalized banks (19), foreign banks (45), private sector banks (32), co-operative banks and
regional rural banks.

"Non-scheduled bank in India" means a banking company as defined in clause (c) of section 5 of the
Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank".
The following are the Scheduled Banks in India (Public Sector):

 State Bank of India

 State Bank of Bikaner and Jaipur

 State Bank of Hyderabad

 State Bank of Indore

 State Bank of Mysore

 State Bank of Patiala

 State Bank of Saurashtra

 State Bank of Travancore

 Andhra Bank

 Allahabad Bank

 Bank of Baroda

 Bank of India

 Bank of Maharashtra

 Canara Bank

 Central Bank of India

 Corporation Bank

 Dena Bank

 Indian Overseas Bank

 Indian Bank

 Oriental Bank of Commerce

 Punjab National Bank

 Punjab and Sind Bank

 Syndicate Bank

 Union Bank of India

 United Bank of India

 UCO Bank

 Vijaya Bank

The following are the Scheduled Banks in India (Private Sector):

 Vysya Bank Ltd

 UTI Bank Ltd

 Indusind Bank Ltd

 ICICI Banking Corporation Bank Ltd

 Global Trust Bank Ltd

 HDFC Bank Ltd

 Centurion Bank Ltd

 Bank of Punjab Ltd

 IDBI Bank Ltd

The following are the Scheduled Foreign Banks in India:

 ANZ Gridlays Bank Plc.

 Bank of America NT & SA

 Bank of Tokyo Ltd.

 Banquc Nationale de Paris

  Barclays Bank Plc

 Citi Bank N.C.

 Deutsche Bank A.G.

 Hongkong and Shanghai Banking Corporation

 Standard Chartered Bank

 The Chase Manhattan Bank Ltd.

 Dresdner Bank AG

TERM LENDING INSTITUTIONS

Term lending Institutions were established to provide medium- term and long-term financial assistance
to various industries for setting up new projects and for the expansion and modernization of existing
facilities. These institution. Provide fund- based and non- fund based assistance to industry in the form
of loans, underwriting, direct subscription to shares, debentures and guarantees. The primary long-term
lending institution. Include IDBI (converted into a banking company with effect from Oct, 2004), IFCI Ltd.
Infrastructure development Finance Company Ltd. And Industrial Investment Bank of India and
Industrial Credit Corporation of India Ltd. (prior to its amalgamation). The term lending
Institutions.Were expected to play a critical role in industrial growth in India and, accordingly, had
access to confessional govt. funding. However,in recent years, the operating environment of the term
lending institutions. Has changed substantially. Although the initial role of these institutions. Was largely
limited to providing a channel for Govt. funding to industry, the reform process required them to
expand the scope of their business activities. Their new activities include:

 Fee – based activities like investment banking and advisory services

 Short- term lending activity including corporate loans and working capital loans.

The RBI has a centralized control over all banks. It performs a wide range of functions to:

 Issue Bank notes

 Supervise & administer exchange control and banking regulations and administer the Govt. policy
 Issue licenses to the foreign banks for operations in India

 Approve the licenses of operation for the private banks

 Grant licenses to new banks and new bank branches.

 Structure of the organised banking sector in India. Number of banks are in brackets.

Punjab National Bank’s Performance Highlights

Operating Profit

• Despite the challenging operating environment characterized by increased preemptions under

CRR and hardening of interest rates, the Bank has been able to post a modest increase in
Operating profit, without revision in lending rates in Q1 of FY 2008-09. The Operating profit of
the bank increased Y-o-Y by 5.3 % to Rs 982.43 crore from Rs 933.12 crore during the
corresponding quarter last year.

Net Profit

• Net profit of the bank registered a Y-o- Y growth of 20.6% to Rs 512.40 crore, during Q1 of FY
2008-09, from Rs 425.06 crore in the corresponding quarter of last year. Improved asset quality
and steps taken earlier for derisking the investment portfolio enabled the Bank to register
growth in Net profit despite increase in G-sec yields. The increase in Net Profit is after providing
for all mandatory provisions.

Income

 Total Income increased to Rs 4595 crore from Rs 3795 cr in Q1 last FY, registering a y-o-y growth
of 21.07%.

 Yield on advances of the bank improved to 10.74% in June 2008 from 10.23% in June 2007.

 Fee based income of the bank increased to Rs 443 crore as compared to Rs 377 cr during Q1 of
FY 2007-08, registering a y-o-y growth of 17.5%.

Operating Expenses

• During Q1 of FY 2008-09, the growth in total operating expenses of the bank, has been
contained at 4.73 %.
• Staff expenses of the bank, during the quarter ended June 2008 was Rs 644 crore compared to
Rs 641 crore during the quarter ended June 2007.

Net Interest Income: (NII)

• NII for Q1 June’08 increased to Rs 1445 cr from Rs 1301.cr in June’07 registering a y-o-y increase
of 11.05%.

Net Interest Margin : Net Interest Margin of the Bank is 3.27% in Q1 of FY 2008-09 as compared to
3.59% in Q1 of FY 2007-08 due to increased cost of funds and higher CRR prescription. Bank has already
taken appropriate measures to protect the margins.

Return on Assets (ROA) stood at 1.00% at the end of June 2008, as compared to 1.02% at the end of
June 2007.

Capital to Risk Asset Ratio (CRAR): The level of CRAR as per Basel II accord is 12.96 %, at the end of June
2008 of which Tier I capital comprising of paid up capital and free reserves is 8.87%.

NPA Administration : The focus has been on arresting slippages, recovery and up gradation of NPA
accounts. As a result, the Ratio of Gross NPAs to Gross Advances declined to 2.82%, as at the end of June
2008, from 3.81% at the end of June 2007. The ratio of net NPAs to net Advances declined to 0.63% at
the end of June 2008 from 0.98% at the end of June 2007.

Total Business of the bank increased by 20.7% on y-o-y basis to reach Rs 2,87,504 crore at the end of
June 2008 compared to Rs 238249 as on June2007.

Deposits at the end of June 2008 were Rs 1,73,074 crore compared to Rs 142609 crore in June 2007,
registering a YOY growth of 21.4%.

Advances at the end of June 2008 were Rs 1,14,430 crore compared to Rs 95640 cr in June 2007
recording a y-o-y growth of 19.6%. The increase in advances is after writing off more than Rs.1100 cr. of
Agriculture debt in terms of Agricultural Debt Waiver & Debt Relief Scheme – 2008 framed by Govt. of
India.

Retail credit (excluding traders) increased to Rs 18,893 crore at the end of June 2008 from Rs 16,159
crore in June 2007, registering a growth of 16.92%. To expedite credit sanction and better risk
assessment, Bank has adopted ‘Hub and Spoke’ model under which 67 Hubs have been set up for
sanction of retail loans.

Education loan which is the main thrust area of the bank grew by 62% to Rs 1,187 crore at the end of
June 2008 from Rs 731 cr in June 2007. The education loan applications are being accepted online. The
bank has also made a tie up arrangement with M/s Kotak Mahindra Mutual Life Insurance Ltd for
providing insurance cover to its education loan borrowers.

Financial Inclusion

Bank has declared Year 2008, as ’Year of Financial Inclusion’ for providing banking facilities, at a fair
cost, to a vast majority of low income population which is deprived of these facilities.

Till now, the bank has opened 7.98 lakh “No Frill” accounts with an outstanding balance of Rs 151 crore.
Overdraft facility has also been extended in 7,751 accounts. The bank has also issued 26,793 General
Credit Cards amounting to Rs 48.6 crore.

The bank plans to launch 27 pilot projects (20 rural and 7 urban) out of which 8 have already been
launched. The bank has also opened its first dedicated Micro Finance Branch in Mukundpur, Delhi which
is equipped with all modern banking facilities such as CBS system, ATM, Lockers, insta remit, internet,
etc.

• The bank is also in the process of opening Micro Finance Branches at Devli, Delhi. and Gumla,
Jharkhand.

• To give more focused attention to SMEs, 7 centralized hubs will be set up in different parts of
the country. Besides, 7 new specialised SME branches will also be opened taking their total
number to 42.

• The bank has taken new initiative in collaboration with Centre for Rural Development (a local
NGO partner of America India Foundation, a non- profit organization) at Varanasi, Allahabad &
Lucknow and with SamaaN Foundation at Patna by introducing a comprehensive scheme
covering finance, insurance (health and life) etc for the upliftment the Rickshaw pullers

• The bank has also entered into an agreement with the America India Foundation, on June 17,
2008 to make credit facility available to NGOs working in the sphere of livelihood promotion and
 generation. This MoU will enable unorganised sector workers, like rickshaw pullers to avail
loans.

• PNB’s 8 Farmers’ Training Centres (FTCs) trained more than 1,46,600 persons including around
21,500 women by the end of June 2008. Training has been provided Free of Cost to the rural
youth for creation of self employment opportunities and improving their living standards.

• Being the SLBC Convenor in the states of Punjab & Haryana, the bank has opened

Financial Literacy cum Credit Counselling Centres in these states. The main objective has been to build
capabilities of the common man for absorption of credit and its proper utilisation for income generation.
Besides, the bank has recently signed an MoU with Infrastructure Leasing & Financial Services - Cluster
Development Initiative Ltd (IL&FS-CDI) to work towards developing viable financing models and best
practices for industrial infrastructure projects & SMEs in the cluster, which can be replicated across
different sectors and geographical locations.

Information Technology

Large network of Core Banking Solution SOLs : 3941 Service Outlets (SOLs) at 1849 centres, covering
90% of bank's business, facilitating more than 3 crore customers with "anytime and anywhere" banking.
Besides, Cash Management Services are also available in all CBS branches.

The bank has 3347 RTGS; 3347 NEFT and 1395 SFMS branches.

The number of ATMs in the bank is 1581 with 51.36 lac ATM/Debit card holders.

ATMs (sharing arrangement): More than 27000

The bank’s internet Banking Services are used by more than 3.8 lakh users.

Branch Network

With 4598 domestic offices, including 292 extension counters, the bank has the largest network of
offices, among nationalized banks. The bank also has overseas branches – Kabul (Afghanistan),
Hongkong and Offshore Banking Unit (OBU), Mumbai. Besides Bank has a subsidiary in London, PNB
International Ltd operating with 2 branches.

Awards
 at the IDRBT Banking Technology awards for the
"Best IT Team of the Year Award"
year 2005-06.
SKOTCH Challenger Award for Change Management for the year 2005-06

Best IT User in Banking & Financial

by NASSCOM in partnership with Economic Times
Services Industry - 2004

for Excellence in Corporate Governance - 2005 by

Golden Peacock Award
Institute of Directors

FICCI's Rural Development Award for Excellence in Rural Development - 2005

Skotch Challenger Award for Exemplary

for becoming a pioneer in Public Banks - 2005
use of Technology

Golden Peacock National Training - 2004

by Institute of Directors
& 2005

National Award for Excellence in SSI Ranked 2nd for 4 consecutive years - 2002, 2003, 2004
Lending & 2005

Banking Technology Awards 2004

Runner up in 'Best IT Team of the Year Jointly Adjudged by IBA, Finacle & TFCI
Award 2005'

Money Outlook Award - 2004

Runner up in 'Best Bank (public Sector) of
the year Award' -2005

Niryat Bandhu Gold Trophy for excellence in export perforamnce for 3 consecutive
years 2001, 2002 & 2003
 by Federation of Indian Exporters Organization (FIEO)

by the leading Financial Daily The Economic Times, June

21st Amongst Top 500 Companies
2005

9th amongst India's Top 50 Most Trusted

A.C Nielson Survey, The Economic Times Dec 2004
Service Brands

3rd Rank amongst Banking Sector in India

The Bankers' Almanac, January 2006
323rd Rank in the World

368 amongst Top 1000 Global Banks The Banker, London July 2005

PERFORMANCE ANALYSIS FOR YEAR 2006 AND 2007

I. Financial Results
1. Profit & Loss Account

• Net profit for the first half of the current financial year 2007-08 amounted to Rs 963.55 Cr,
compared to Rs 872.51 Cr during the first half of FY 2006-07, registering a y-o-y growth of
10.4%.

• Operating Profit of the bank (excluding loss incurred on transfer of securities to HTM portfolio)
during the half year ended September 2007 increased to Rs 1788 Cr, compared to Rs 1778 Cr
during the half year ended September 2006. However, on accounting for the loss of Rs 497.74 Cr
incurred on transfer of securities to HTM portfolio, the Operating Profit of the bank amounted to
Rs 1290 Cr during the first half year ended September 2007. The transfer of securities was done
during the first quarter of FY 2007-08 to de-risk the investment portfolio of the bank from
interest rate risk.

In the current environment, higher pressure on Net Interest Margin & NPAs and the need for
additional provisioning for pension, gratuity & leave encashment for staff of the bank under
projected unit credit method (PUCM) resulted in lower operating profit of the bank.

• Total income of the bank increased to Rs 7228 Cr during April-September 2007, compared to
Rs 5596 Cr during April-September 2006, registering a y-o-y growth of 29.2%.

Non-Interest income through commission, exchange and brokerage increased by 17.4 % to Rs

540 Cr during the first half of FY 2007-08 from Rs 461 Cr during the first half of FY 2006-07.

Total expenses (excluding provisions) amounted to Rs 5938 Cr during the half year ended
September 2007, compared to Rs 4204 Cr during the half year ended September 2006, registering a
y-o-y growth of 41.2%.

Net Interest Margin has declined to 3.49% during April- September 2007 from 3.86% during April-
September 2006.

Yield on Advances of the bank has improved to 10.20% during April-September 2007 from 8.95%
during April- September 2006.

Due to the overall firming of interest rates, the Cost of Deposits of the bank increased to 5.55%
during the first half of FY 2007-08 from 4.35% during the first half of FY 2006-07.
 Yield on Investment of the bank has declined to 6.88% during April- September 2007 from 7.09%
during April- September 2006.

Return on Assets stood at 1.13% at the end of September 2007.

Capital to Risk Asset Ratio (CRAR) at the end of September 2007 at 12.58%. Bank is ready for
Basel II compliance.

2. Balance Sheet

• Total Business of the bank increased by 19.3% on y-o-y basis to Rs 251474 Cr at the end of
September 2007 compared to Rs 210755 Cr as at the end of September 2006.

• Total Deposits at the end of September 2007 amounted to Rs 149980 Cr, compared to Rs
128415 Cr as at the end of September 2006 registering a growth of 16.8 % on y-o-y basis.
CASA accounted for 43.91 % of the total deposits of the bank at the end of September 2007.

• Advances at the end of September 2007 amounted to Rs 101494 Cr, compared to Rs 82340
Cr as at the end of September 2006, registering a y-o-y growth of 23.3 %.

Retail credit constituted 23.3% of Gross Credit of the bank, as at the end of September 2007. It
increased by 21.8% to Rs 24100 Cr at the end of September 2007 from Rs 19794 Cr at the end of
September 2006. Education loan is the main thrust area of the bank, showing an increase of 35% to
Rs 1155 Cr, while loan to traders increased by 46% to Rs 7889 Cr.

Priority sector advances increased to Rs 41,709 Cr at the end of September 2007, compared to Rs
36,615 Cr as at the end of September 2006, registering a Y-O-Y growth of 13.9%. Ratio of PS
advances to adjusted net bank credit continued to remain much higher at 42.38% against national
goal of 40%.

The bank has opened more than 3 lakh No Frill accounts under PNB Mitra Scheme and has issued
more than 24,000 General Credit Cards.

Credit to Agriculture was Rs 18,942 Cr at the end of September 2007, compared to Rs 16570 Cr as
at the end of September 2006 showing Y-O-Y growth of 14.3%. Agricultural advances as percent to
adjusted net bank credit at around 18.3% was higher than the national goal of 18%.
 To facilitate disbursal of credit to the farmers, the bank has issued 1,29,433 Kisan Credit Cards
(KCCs) during April-September 2007 taking the cumulative number to 22.48 lakh KCCs.

The bank's advances to the Small Enterprises at the end of September 2007 stood at Rs 11,789 Cr,
compared to Rs 9606 Cr as at the end of September 2006, recording a Y-O-Y growth of 22.7%. Ratio
of Small Enterprises advances to adjusted net bank credit stood at 11.98% at the end of September
2007.

II. Information Technology

• Core Banking Solution (CBS) has been implemented in 2791 Service Outlets (SOLs) at 935
centres, covering 83% of bank's total business, facilitating around 2.23 Cr customers with
"anytime and anywhere" banking.

• National Electronic Fund Transfer (NEFT) is operational in 2280 branches.

• The bank has 2353 RTGS and 1395 SFMS branches.

III. International Operations

• Total Export-Import turnover of the bank increased to Rs 30,506 Cr in half year ended
September 2007 as compared to Rs 24,848 Cr in the half year ended September 2006,
registering a y-o-y growth of 22.8 %.

• PNB’s Hong Kong branch is likely to be operational in the month of November, 2007. The
bank is in the process of upgrading its Representative Office at Shanghai into a branch and
to establish presence at Singapore (OBU) and Canada (Subsidiary). PNB is also exploring
possibilities for its presence in Bhutan through JV route.

IV. NPA Management

• At the end of September 2007, the ratio of Net NPAs to net Advances was 1.86 %, while
Gross NPAs to Gross Advances of the bank stood at 4.57 % at the end of September 2007.

V. New Business Initiatives of the Bank

• Bank launched a pilot project on financial inclusion at Neemrana, Distt. Alwar, Rajasthan
and endeavors to launch it at 9 more places, viz at Chandigarh, Taran Taran, Saharanpur &
Balia, Dehradun, Ranchi, Mayur Bhanj, Gaya and Patna.

• Under Financial Inclusion, the bank plans to cover 30,000 villages, 15 million households
and 75 million people by 2010.

• PNB’s 8 Farmers’ Training Centres (FTCs) trained 1, 09,614 persons till September 2007.
The FTC introduced a scheme, called Kisan Bandhu whereby 5 local youth have been
inducted and trained at each FTC, who are actively pursuing the task of financial inclusion by
visiting the doorstep of villagers.

• PNB has introduced PNB Baghban, a Reverse Mortgage Loan Scheme for senior citizens
and 49 cases involving an amount of around Rs 18 Cr have already been sanctioned.