Punjab National Bank Directors Report

Dear Stakeholders,

On behalf of the entire team, I am pleased to present the Annual Report for the Financial Year 2024-25. Financial Year 2024-25 has been a good year in terms of Business growth, asset quality improvements and profitability.

Indias economic growth in FY 2024-25 has been notable, with a projected GDP growth 6.5 per cent as per National Statistical Organization (NSO). Strong rural consumption, increased government spending, and a revival in private consumption contributed to the overall growth. However, challenges related to global trade and industrial performance remain to be addressed. Key sectors driving this expansion include construction, trade, and financial challenges highlights its strong domestic fundamentals and strategic policy measures. In FY 2024-25, the Indian banking sector demonstrated strong performance, with healthy credit growth, improved asset quality, and increased profitability. The Bank could perform as per expectations and delivered commendable growth during the year, strengthening its foothold in the industry. The Bank raised Rs. 5000 Crore of equity capital through Qualified Institutional Placements during FY 2024-25.

In business terms, the Bank surpassed the business of Rs.26.83 Lakh Crore as on 31st March, 2025 recording a quantum increase of Rs.3.30 Lakh Crore over the previous year. As on 31st March, 2025, Global Deposits stood at Rs.15.67 Lakh Crore registering the growth of 14.4 per cent on year on year basis. Domestic Depsoits grew by 13.3 per cent to reach Rs. 15.11 Lakh Crore. As on 31st March, 2025, Global Advances stood at Rs.11.17 Lakh Crore registering the growth of 13.6 per cent. Domestic Advances registered the growth of 13.1 per cent and stood at Rs.10.66 Lakh Crore. Amongst Advances, Retail, Agriculture and MSME (RAM) Advances registered the growth of 15.9 per cent. Under Retail Segment, Housing Loan, Vehicle Loan and Personal Loan exhibited the growth of 18.3 per cent, 25.5 per cent and 10.5 per cent respectively year on year basis1. Asset quality of the Bank improved during the year through adoption of robust recovery and enhanced underwriting standards. The Banks GNPA per cent declined to 3.95 per cent as on 31st March, 2025 from 5.73 per cent as on 31st March, 2024. Net NPA per cent also went down to 0.40 per cent as on 31st March, 2025 from 0.73 per cent as on 31st March, 2024.

Provision Coverage Ratio including Technical Write Off (TWO) of the Bank improved to 96.82 per cent as on 31st March, 2025 from 95.39 per cent as on 31st March, 2024.

On the digital front, the Bank performed remarkably by coming out with more than 130 products, processes and portals. Apart from digital thrust, development under Human Resource

Transformation also remained at the forefront and UDAAN project continued to evolve with capacity building and coming out with digital Performance management system.

"Against this backdrop, your Board of Directors have pleasure in presenting the Annual Report of the Bank for the year ended 31st March, 2025 (FY 2024-25) along with its audited Annual Financial Statements".

I. FINANCIAL PERFORMANCE AS ON 31st March, 2025

1. Topline a. Global Business stood at Rs. 26,83,260 Crore as on 31st March, 2025 vis-?-vis Rs. 23,53,038 Crore as on 31st March, 2024, registering year on year growth of 14.0 per cent.

b. Global Deposits stood at Rs.15,66,623 Crore as on 31st March, 2025 as against Rs.13,69,713 Crore as on 31st March, 2024, showing the year on year growth of 14.4 per cent.

c. CASA Deposits was at Rs.5,73,543 Crore as on 31st March, 2025 as against Rs.5,52,449 Crore as on 31st March, 2024.

i. Current Deposits was at Rs. 75,114 Crore as on 31st March, 2025.

ii. Savings Deposits was at Rs.4,98,429 Crore as on 31st March, 2025.

d. Global Advances stood at Rs.11,16,637 Crore as on 31st March, 2025 against Rs. 9,83,325 Crore as on 31st March 2024, recording the growth of 13.6 per cent on year on year basis.

e. Retail Advances was at Rs.2,59,363 Crore as on 31st March, 2025 as against Rs. 2,22,574 Crore as on 31st March, 2024, registering the year on year growth of 16.5 per cent.

f. Agriculture Advances was at Rs.1,80,625 Crore as on 31st March, 2025 as against Rs.1,58,188 Crore as on 31st March, 2024, showing the year on year growth of 14.2 per cent.

g. MSME Advances was at Rs.1,62,693 Crore as on 31st March, 2025 as against Rs.1,39,288 Crore as on 31st March, 2024 showing the growth of 16.8 per cent.

h. Retail Agriculture MSME (RAM) Advances was at Rs.6,02,682 Crore as on 31st March, 2025 vis-?-vis Rs.5,20,050 Crore as on 31st March, 2024 showing the year on year growth of 15.9 per cent.

i. Share of RAM w.r.t. Domestic Advances was at 56.5 per cent as on 31st March, 2025 as against 55.2 per cent as on 31st March, 2024.

2. Bottom Line

a. Operating Profit of the Bank was at Rs. 26,831 Crore in FY 2024-25 showing year on year growth of 7.6 per cent.

b. Net Profit of the Bank was at Rs. 16,630 Crore in FY 2024-25 showing year on year growth of 101.7 per cent.

c. Net Interest Income was at Rs. 42,782 Crore in FY 2024-25 vis-?-vis Rs. 40,083 Crore in FY 2023-24, registering the growth of 6.7 per cent on year on year basis.

3. Asset Quality

a. Gross NPA of the Bank stood at Rs. 44,082 Crore as on 31st March, 2025, reduced from the level of Rs. 56,343 Crore as on 31st March, 2024.

b. Gross NPA % exhibited decline of 178 bps from a level of 5.73 per cent as on 31st March, 2024 and stood at 3.95 per cent as on 31st March, 2025.

c. Net NPA of the Bank reduced to Rs.4,291 Crore as on 31st March, 2025 from Rs.6,799 Crore as on 31st March, 2024.

d. Net NPA % improved by 33 bps and stood at 0.40 per cent as on 31st March, 2025.

e. Provision Coverage Ratio (PCR) including TWO increased by 143 bps to 96.82 per cent as on 31st March, 2025.

. Provision Coverage Ratio (PCR) excluding TWO increased by 234 bps to 90.27 per cent as on 31st March, 2025.

4. Key Ratios (Global) a. Net Interest Margin stood at 2.93 per cent in FY 2024-25.

b. Cost of Deposits was 5.23 per cent in FY 2024-25.

c. Yield on Advances stood at 8.34 per cent in FY 2024-25.

d. Yield on Investment increased to 6.99 per cent in FY 2024-25.

e. Return on Assets improved to 0.97 per cent in FY 2024-25 from 0.54 per cent in FY 2023-24.

f. Business Per Employee improved to Rs.26.86 Crore as on 31st March, 2025 from Rs.23.84 Crore as on 31st March, 2024.

g. Business Per Branch improved to Rs.253.55 Crore as on 31st March, 2025 from Rs.225.25 Crore as on 31st March, 2024.

5. Capital Position

The Capital Adequacy of the Bank improved during the financial as on account of capital raising. During FY 2024-25, Bank raised Rs. 8,000 Crore of capital.

Under Tier I, Rs. 5,000 Crore (Equity Capital) were raised via., Qualified and Rs. 3,000 Crore through Tier II Bonds. The Bank will continue to focus on growth in Business on sustainable basis. The Bank has adequate capital base to meet the growing credit demand of the economy.

The Capital Adequacy Ratio of the Bank recorded increase by 104 bps to reach at 17.01 per cent, as of 31st March, 2025, with Common Equity Tier-1 (CET-1) at 12.33 per cent and AT-1 capital at 1.72 per cent.

Due to Qualified Institutional Placement(QIP), the total number of shares increased from 1101.10 Crore to 1149.29 Crore with Government of India shareholding remaining above 70 per cent as on 31st March, 2025.

6. Compliance Culture a. Compliance Function activities are managed by dedicated officials Compliance Officers at Zonal Offices and Circle Compliance Officers at Circle Offices.

b. New Initiatives: Integrated Compliance Tool developed to meet RBIs requirements of implementing comprehensive, integrated, solutions/ enterprise-wide and workflow-based tool to enhance the effectiveness of Internal Compliance Monitoring Function by automating all the compliance activities and integrating it on single platform.

II. OPERATIONAL HIGHLIGHTS

1. Key Digital Initiatives & Achievements

InFY2024-25,PNBcontinuedtoembracedigitalization and emerged as a frontrunner in the domain of digital banking services. The Mobile Banking Services and

Internet Banking Services now have 250+ features, catering to diverse customer needs and preferences. Additionally, the Bank launched a mobile banking application for corporate customers on 12.09.2024, which is enriched with 150+ features.

Towards customers /borrowers convenience, the

Bank has launched following digital lending journeys:

a. Digital Education Loan: A web and tab-based journey named PNB Pratibha for both existing and new customers made live on 12.04.2024.

b. Digital Vehicle Loan: Offered to the banks Existing to Bank (ETB) and New to Bank (NTB) customers. It was made live on 12.04.2024.

c. e-PM Vishwakarma Scheme: The Bank was the first bank to launch this scheme in digital mode and was made live on 05.07.2024.

d. PM Vidyalaxmi: It is a Government Scheme to financial support to meritorious students so that financial constraints do not prevent any youth of India from pursuing quality higher education.

The scheme was launched on 6th November, 2024 and portal was launched on 25th February, 2025.

e. DIGI MSME Loan includes New-to-Bank (NTB) customers along with Existing to Bank (ETB) customers, with a maximum loan amount of Rs.25.00 Lakh, effective from 13.12.2024.

f. GST Express Working Capital for New to Bank (NTB) customers was made live on 28.02.2025.

Further, to cater to the evolving needs of tech-savvy customers, the Bank launched WhatsApp Banking with an initial offering of 5 features. Now, it is having 80+ services. During FY 2024-25, several major new functionalities have been introduced and are available through WhatsApp Banking including: a. Public Provident Fund (PPF) & Sukanya Samridhi Yojana (SSY) balance check b. Account & Deposit Summary c. Applying for a Debit Card & Generating Green PIN OTP d. Disabling Debit Card & Reducing Debit Card limits e. Opening Fixed Deposits f. Updating email addresses g. Changing account schemes h. Submitting Form 15 G/H

The following journeys have been made live on the

Digital Business Platform (DBP):

a. Digital Journey of Self Help Group (SHG) b. Online Public Provident Fund (ETB & NTB) account opening c. New to Bank (NTB) e-Mudra d. Online Savings Account opening-DIY journey

2. Key Structural Transformations

a. Operational Resilience Command Centre (ORCC): ORCC has been established at Head Office for real time monitoring of Banks critical applications for end-to-end oversight of applications through dashboard.

b. Formation of Transaction Monitoring Division (TMD): TMD has been established for monitoring of transactions at centralized level with comprehensive approach and to prevent the frauds.

c. Banks Training Structure: Training structure ofBank revamped for establishing four Advanced Learning Institutes (ALI) at Delhi, Lucknow, Noida & Panchkula and re-designing the Learning & Knowledge Management Centre (LKMC) to the Centre for Learning & Innovation (CLI) in order to enhance employee competencies, promote continuous learning, and maintain a competitive edge by providing specialized and role-based training programs.

d. Software Development Cell (SDC) at Bengaluru: To facilitate collaboration between the Bank & Reserve Bank Innovation Hub (RBIH), Software Development cell at Bengaluru has been established. This will facilitate innovation in banking technology and exploring new possibilities in digital banking & financial services.

e. Centralized Procurement & Partnership Division (CPPD): The CPPD aims to centralize and streamline the Banks procurement processes, covering all IT and Non-IT related procurements. This division is responsible for ensuring efficient procurement system through tenders/Request for Proposal (RFPs) or any other procurement modes, enhancing partnership/ vendor management, optimizing cost efficiencies, vendor payment & reconciliation and monitoring of overall procurement function of bank.

f. Data Privacy & Management Division (DPMD):

In accordance with the recommendations of the Indian Banks Association (IBA), DPMD has been formed for overseeing data quality and customer data privacy.

g. RAM Initiatives Division at Head Office: Retail, Agriculture and MSME (RAM) & Financial Inclusion (FI) Structure has been revamped to prioritize Retail, Agriculture & MSME lending by way of formation of RAM Initiative Division, which consists of Co-lending & Pool Cell, Financial Supply Management Cell (FSCM) and Lead Monitoring & Data Management Cell for augmentation of Banks Business.

h. A dedicated Self Help Group (SHG) Monitoring Cell under Agriculture Division, Head office been established with a targeted approach to focus on lending under Self Help Group (SHG) segment.

i. ESG/Sustainability Cell at Head Office: ESG/Sustainability Cell has been established to enhance long term sustainability opportunities and to focus on green financing business.

3. Project UDAAN- Transformation to excel and lead Under the UDAAN project, PNB embarked on a digital HR transformation journey, achieving the following:

a. Digital Performance Monitoring System (PMS): Towards transformation of the appraisal process for officers by emphasizing transparency, efficiency, and alignment with strategic objectives. A structured and streamlined approach has been introduced for performance evaluation, incorporating methods to define job roles clearly, set measurable targets, and monitor progress effectively.

This initiative is aimed at enhancing the overall efficiency of performance management. It marks a significant step forward in modernizing appraisal systems for greater fairness, visibility, and impact.

b. Capability Building: A comprehensive Capability Building Framework introduced to enhance workforce proficiency in an evolving banking landscape. This initiative is strategically aligned with organizational objectives, promoting operational sustainable growth through the development of human capital.

The framework encompasses key advancements, including structured career development plans, data-driven succession planning for critical roles, and leadership development programs targeting key competencies. The digitalization of processes such as training, onboarding, and postings has improved transparency and streamlined operations.

c. Workforce Development and Optimization: Other than above, the Bank introduced several initiatives to strengthen workforce management and operational planning. These efforts focused on creating an all-inclusive framework for employee development, streamlining recruitment processes, and optimizing manpower allocation.

These measures have not only fostered a culture of continuous improvement and accountability but have also strengthened the banks ability to manage its workforce effectively.

d. Implementation of Reward and Recognition Framework: The Bank has reviewed its existing rewards & recognition schemes/processes and has redesigned the framework to identify high performers and motivate them toward excellence in their roles. A digital rewards and recognition platform has also been developed to objectively recognize achievements and launch campaigns aimed at improving business performance.

e. Creation of next-generation talent pool:

Towards cultivating a next-generation talent pool equipped with market-ready competencies and ensuring the Banks sustained competitive advantage, 26 skills have been identified to cover all banking activities.

These skills are divided into current (existing skills) and future (Next Gen skills) categories. Furthermore, these skills are subdivided into a total of 138 unique sub-skills. Each of these sub-skills has been meticulously mapped to specific job roles, ensuring relevance to operational and strategic needs.

By leveraging this structured approach, the Bank aims to foster innovation, enhance productivity, and adapt proactively to emerging industry trends. This initiative underscores the Banks commitment to talent development as a key enabler of sustainable growth.

f. Revamping of Learning and Development (L&D) practices and processes:

The Bank successfully transformed its Learning and Development (L&D) practices and processes to create a superior ecosystem for growth and capability enhancement. Amongst notable accomplishments included benchmarking with Centers of Excellence (CoE) from prominent banks, developing and finalizing SOPs for streamlined processes, completing L&D talent gap analysis, and selection of officers for faculty positions at Advances Leaning Institutes (ALIs) and Staff Training Centres (STCs). Themes aligned with job families were mapped to physical CoEs.

A Next Gen Learning Management System (LMS) deployed to digitize training operations, and a Learning & Development (L&D) tool has been developed to enable tailored training and assess effectiveness. Learning Dashboard on the Udaan Portal centralizes the training journey of officers, seamlessly integrating with PNB UNIV and HRMS for a two-way flow of information. The revamping of ALI Delhi was completed, reinforcing the Banks commitment to fostering a culture of continuous learning and excellence.

g. Manpower Audit: In alignment with the Banks strategic priorities under the UDAAN project, a comprehensive manpower audit has been concluded in second year of project UDAAN. The audit was conducted by Willis Towers Watson (WTW) India Private Ltd. WTW submitted a detailed review report mentioning "No Discrepancies were found". The report covers all offices whose manpower was assessed through Manpower Assessment Tools developed under the project "UDAAN".

4. DIVIDEND

The Board of Directors of the Bank has recommended a dividend of Rs.2.90 per equity share (145 per cent) of face value of Rs.2/- each for FY 2024-25, subject to approval of the shareholders at the 24th Annual General Meeting of the Bank.

III. ASSET QUALITY

The Bank was able to reduce Gross NPA from the level of Rs. 56,343 Crore as on 31st March, 2024 to Rs. 44,082 Crore as on 31st March, 2025. Net NPA reduced to Rs. 4,291 Crore as on 31st March, 2025 from Rs. 6,799 Crore as on 31st March, 2024. Focus on asset quality continues to be one of the topmost priorities for the Bank.

Provision Coverage Ratio (PCR) including TWO is was at 96.82 per cent as on 31st March, 2025.

1. Recovery & Upgradation: Total Recovery stood at Rs. 14,336 Crore for FY 2024-25. Of this, Total CashRecovery and upgradation stood at Rs. 6,864 Crore. Rs. 7,472 Crore was recovered in Technical Write Off Accounts (TWO) and Recorded Interest (RI) in FY2024-25.

2. Upgradation through Resolution Mechanism:

The Resolution Cell was created to deal exclusively with restructuring/resolution of NPA accounts and recovery in National Company Law Tribunal (NCLT) cases. The details regarding the same is as under:

Restructured Accounts (Amount in Rs. Crore)
	Total Sanctioned
	No. of A/cs	Amount
FY 2024-25	02	147.89

Further, a sum of Rs. 2,032 Crore was recovered in NPA accounts under IBC in NCLT.

3. Mega e-Auctions: During FY 2024-25, 11,296 properties were uploaded on e-Bikray portal. Out of which, 1952 Immovable Properties (IPs) were auctioned successfully.

4. Sale of Assets to Asset Reconstruction Company (ARC)/National Asset Reconstruction Company Ltd (NARCL): Details of financial assets sold to ARCs/NARCL is as under:

	(Amount Rs. in Crore)
Items	FY 2024-25
i. Number of Accounts sold to ARCs/	7
NARCL
ii. Book Outstanding of Accounts sold	1134
iii. Aggregate Consideration received	863

5. Initiatives taken to improve Asset Quality during FY 2024-25

a. Time bound action under SARFAESI initiated for taking symbolic/physical possession of the property and ensuring that all the eligible properties are put on auction invariably. Proper publicity of properties was also done for making e-Auction successful.

b. Popularization of OTS/e-OTS schemes of the Bank and organization of regular recovery camps at frequent intervals during the year.

Regular monitoring of OTS proposals at Head Office for reducing the Turn Around Time (TAT) & improving/achieving recovery budgets.

c. Promoted the use of SAMARTH portal which brings all recovery actions on one platform and comprehensive quantitative analysis is done to k maximize recovery in NPA Accounts.

d. The Bank has also launched campaign for recovery in NPA for specific segments.

Campaigns to resolve small value accounts and housing loan was also launched during the year.

e. Initiated CIRP and PIRP in eligible corporate cases having balance o/s greater than Rs.1 Crore.

f. Regular review of recovery agencies/resolution agents/supporting agents of the Bank in a quarter.

g. Active participation in Lok–Adalat was ensured alongwith continuous monitoring of DRT cases for vacation of stay and early resolution.

h. Explored ARC sale wherever resolution was not forthcoming.

IV. GROWING DIGITALISATION

The fusion of technology and banking has revolutionized the way the Bank is operating. From Mobile Applications to themArtificial Intelligence, the Bank is effectively for bringing convenience to our customers.

S. No Parameters (in Crore)	As on 31.03.24	As on 31.03.25	Gr% (YoY)
1 No. of Internet Banking Users	4.23	4.42	4.5
2 PNB ONE Activated users	1.73	2.14	23.7
S. No Parameters (in Crore)	FY 2023-24	FY 2024-25	Gr% (YoY)
1 No. of Digital Transactions	659	997	51.4
2 UPI Transactions	623	963	69.8

The Bank, during FY 2024-25 took up various digital initiatives towards business growth and customer convenience:

1. Incorporation of Solar Roof Top scheme in JanSamarth Portal through Application Programming Interface (API) Integration:

A new API Integration has been developed with JanSamarth Portal of the Government for providing loan under PM Surya Ghar Yojana.

2. Gram Panchayat API Integration (MP Government):

API integration between Bank and National Informatics Centre (NIC) has been developed for Gram Panchayat (MP) for fetching UPI transactions. In this project Management Information System (MIS) data of UPI transactions in the account of Gram Panchayat provided by bank can be uploaded on the Panchayat Darpan Portal without manual intervention.

3. IFMS Odisha Online and OTC Payment-API Integration: Collection of Odisha treasury challans (Online and OTC Mode).

4. INSPREM-API Integration: Collection of Insurance Premium from Partner Insurance Company (Bajaj Alliance)

5. Bharat Aadhaar Seeding Enabler (BASE)-API Integration: BASE is the interface between various channels through which Aadhaar seeding request can be raised, NPCI mapper and the banks. The platform will use various APIs for the eco system to communicate online/offline for seeding requests.

6. Sending an SMS to customers on marking of delivery of Cheque-Books in CBS which are undelivered and returned to branch: Changes made for personalized Cheque Book in CBS such that while marking delivery of Cheque Book undelivered in CBS, system is automatically sending the SMS to customers at their registered mobile number

7. Various Services Made Live through WhatsApp Banking.

a. WhatsApp Banking (TDS Certificate, Interest Certificate, etc.): New features added in the currently running WhatsApp banking which includes providing TDS cum Interest Certificate to on-boarded customers, providing provisional and final interest certificate for Housing Loan and Education Loan, etc.

b. WhatsApp Banking Pre-Approved Offers: Various Pre-approved offers for individual customers can be viewed by customers through specific menu in WhatsApp Banking.

8. National Cyber Crime Reporting Portal (NCCRP) API-Suspect Registry: Cyber Fraud Mitigation Centre has been established at the Indian Cyber Crime Coordination Centre (14C) in New Delhi with representatives of major banks, Financial Intermediaries, Payment Aggregators, Telecom Service Providers, IT Intermediaries and States/UTs Law Enforcement Agencies (LEAs). It aims to take immediate action and ensure seamless cooperation to tackle online financial crimes. As part of this initiative, a Suspect Registry of various identifiers is being created based on NCCRP managed by I4C, in collaboration with PNB for strengthening fraud risk management capabilities of financial ecosystem.

9. WhatsApp Banking RRB 1.0: Implementation of WhatsApp Banking for Regional Rural Banks (RRBs).

10. PNB Hackathon: PNB initiated Hackathon in collaboration with reputed Educational Institute where a portal was developed and teams from all over India can register and submit projects related to Cybersecurity.

11. e-NACH Mandate: National Payment Corporation of India (NPCI) envisaged to simplify the online registration of NACH mandates to improve customer experience and drive digitization. e-mandates will be self-verified by the customer online using one of the following new options:

l Aadhaar Number (without UIDAI authentication).

l Permanent Account Number (PAN)

l Customer ID (of customer with destination bank)

The Bank will validate one of the above parameters with the operative account linked with it. Thereafter, OTP verification will be done to verify the e-Mandate apart from other existing business rules. This workflow will be applicable for mandate of amount up to Rs. 15,000/- per mandate.

The following additional facilities have been given to our retail borrowers through e-Mandate:

l Amend: Allows the issuer of the mandate to make changes in the mandate subject to certain conditions.

l Cancel: Bank customer can cancel the mandate if account in PNB is closed by the customer.

l Suspend & Revoke: Customer can suspend a mandate and revoke suspension whenever required.

V. ANALYTICS CENTRE OF EXCELLENCE (ACoE)

The Analytics Centre of Excellence (ACoE) is a specialized vertical within the Bank entrusted with the development of reports, MIS support, and AI/ML-based solutions (including Gen AI). It plays a pivotal role in driving data-driven decision-making and digital transformation across the organization.

In addition to reporting and analytics, ACoE is responsible for managing several applications and regulatory data submissions, including:

l CIC Module (Bureau One)

l Data submission to Credit Information Companies (CICs)

l Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI)

l National e-Governance Services Ltd (NeSL)

l RBS, CIMS, Data Aggregator/Account Aggregator

l PNB 360 application dashboard

l Enterprise-Wide Data Warehouse (EDW)

l Funnel for the Digital Journeys.

1. Enterprise-Wide Data Warehouse (EDW):

l Central repository of summarized data from different internal operational systems and external sources.

l Single Source of information having integration with Banks 65+ source systems.

l Providing more than 1650 reports covering all-business needs across banks verticals.

l Pushing data to more than 35 downstream applications like OSS, CAML etc.

2. Data Analytics Team:

Established in 2018, the Data Analytics Cell at Analytical Centre of Excellence (ACoE) was created to build in-house capabilities in the domain of

Artificial Intelligence and Machine Learning. The team operates across three strategic verticals:

Business, Control, and Support, with the following objectives:

l Enhancing value creation

l Driving cross-sell and up-sell opportunities

l Increasing revenue and optimizing costs

l Strengthening product offerings and delivery channels

l Expanding the Banks digital footprint

l Improving risk profiling for both existing and prospective customers

l Fulfilling analytics-related mandates under the

EASE reforms

The team identifies high-propensity leads by analyzing customer behavior using parameters such as demographics, investment profile, relationship with the Bank, transaction patterns, geographic presence, digital activity, and product usage.

3. New Initiatives a. Value Creation using unstructured data: To explore the capabilities and data insights by conversion of unstructured data into structured one, below mentioned use cases have been developed in house with available tools on pilot basis.

i. Dashboard for Branch reviews on Google:

This online dashboard aggregates and analyzes branch feedback from Google Reviews and other online sources, offering PNB employees a comprehensive view. It includes branch reviews, sentiment analysis, and another dashboard regarding financial news insights and the news sentiment. ensuring employees can quickly gauge customer sentiments and industry trends.

ii. News Insight: Banks corporate website provides link (https://pnbinsightx.pnb.in/) for public to access the latest finance-related news, keeping them well-informed about industry trends and developments.

b. GEN AI based use cases: Circular Summarization and Synthetic Audio Generation: summarize daily important circulars and generate pdf and audio file and the same is sent to employees email.

c. Statement analyzer: The team has revamped the analyzer to have better understanding of customer spending earning and investment behavior to help Bank make credit decision for individual customers.

d. Transaction based lead generation for HL, VL and Education: Based on the transaction initiated by the customers to Vehicle dealers, Builders and reputed education institutes are used for pitching of the Banks product.

e. Mule Hunter in co-ordination with RBiH: The model is deployed for saving account for early identification of accounts being used as mule.

4. Other Key Highlights a. Account Aggregator & Data Aggregation and Analytical Services (DAAS): With the fast-paced lifestyle the customers are having, it has become pertinent that that the flow of the information for credit appraisal can be done digitally.

Keeping customer centricity in focus the Bank has been extensively using "Account Aggregator & Data Aggregation and Analytical Services" for accessing the account statement alongwith other services like Income Tax Return (ITR), Import Export

Code (IEC), Udyam Registration, Bank Statement

Analysis, Vehicle Data Verification, etc. Some of journeys where these are consumed are below:

l Digital Home Loan (DIGI HL),

l New-to-Bank Personal Loan (NTB PL),

l Digital Car Loan (DIGI CL),

l PNB ONE

l NTB Mudra

l NTB PABL

l DIY Credit Card.

b. PNB 360 and Customer 360 Dashboards: The

Analytics Centre of Excellence (ACoE) has developed the in-house "PNB 360" dashboard to fast-track data accessibility where in dashboards are available to support business monitoring and enables faster, more informed decision-making. The integrated "VisitModule" also digitizes branch visit tracking by zonal and circle officials.

In addition, the "Customer 360" dashboard offers a consolidated view of high-value customer data, currently accessible in view-only mode for Central and State Government departments, PSUs, and Single Nodal Agency (SNA) accounts. Customers can download reports in PDF or Excel formats.

The dashboard provides visual summaries of fund positions, fund movements, interest earned, TDS deductions, facilities availed, and comparisons over quarters and financial years on a T+1 basis.

c. Risk-Based Supervision (RBS): The RBSPortal was developed to automate the end-to-end submission process for Tranche 1, 2, and 3 data under Risk-Based Supervision. The portal allows granular data access, aiding the bank during audits. ACoE is responsible for the maintenance and data submission support through the RBS Portal.

d. Centralised Information Management System (CIMS): CIMS has been instrumental in streamlining the submission of regulatory returns to the Reserve Bank of India (RBI). The ACoE team manages this platform, ensuring timely and accurate regulatory compliance through centralized data handling.

VI. BRANCH NETWORK

1. Domestic: As on 31st March, 2025, the number of domestic branches was at 10,189. The population-group wise branches along-with the percentage share are given as under:

2. International: As on 31st March, 2025, the Bank has presence in 6 countries with 1 branch at Dubai, 1 branch at GIFT City Gujarat (caters to the international business of the bank), 2 subsidiaries (London-UK and Bhutan), 1 joint venture (Nepal), 2 representative offices (Myanmar and Bangladesh).

VII. INTERNATIONAL BANKING

As on 31st March, 2025, the Bank has 259 Authorized Dealer (AD) branches authorized to handle Foreign Exchange Business which are routing forex transactions through 4 Trade Finance Centers (TFCs) functioning at New Delhi, Chennai, Kolkata & Mumbai. TFCs are specialized for centralized handling of trade transactions and International Service Branch (ISB) is specialized for handling all Inward remittances.

The Bank has 1 Exchange Bureau at Indira Gandhi

International Airport to facilitate encashment of Foreign

Exchange currency notes by foreign tourists/NRIs.

1. Domestic Business

The Bank registered a Foreign Exchange Business Turnover of Rs.1,50,028 Crore (Exports and Imports together) for the FY 2024-25.

The Bank has an International Service Branch

(ISB) functioning at New Delhi for handling Inward Remittances of the Bank as a whole. During FY 2024-25, the Bank handled remittance business of Rs. 80,527 Crore.

The Bank has Rupee Drawing Arrangements (RDA) with 8 exchange houses (5 in the Gulf, 1 each in Singapore, UK and Seychelles) to facilitate remittance from NRIs.

The Bank also has remittance arrangement under Money Transfer Service Scheme (MTSS) with Ria Money Transfer Services Pvt. Ltd.

There is a specialized NRI cell for augmenting NRIBusiness, resolution of complaints and Help Desk for NRI customers.

2. Overseas Business

Overseas Business of the Bank stood at Rs.1,05,877 Crore as on 31st March, 2025 registering YoY growth of 37 per cent. The Bank has two international branches at DIFC Dubai and GIFT City Gandhinagar.

International branches are focusing on High Quality Medium/ Long term Assets to build a diversified loan portfolio with low Credit Risk Weight to improve profitability and remain sustainable. Both international branches of the Bank are offeringExternal Commercial Borrowing (ECB), Foreign Currency Term Loan (FCTL) and Trade FinanceProducts to Indian and Overseas customers.

3. New Initiatives a. NRI Customer Service Centre: To keep up with the global standards and cater to the needs of NRIs across the world, NRI Customer Service Centre (NCSC) has started its operations on 24*7 basis on 23.11.2024.

b. Facility for handling of export documents without submission of Physical copy through

Trade Finance Redefined Portal (IBPS): A facility has been provided to customers, wherein, in case of direct dispatch of export documents permitted by RBI/Bank, submission of physical copy of documents has been exempted.

c. New scheme for exporters: A new export credit scheme-Export Express for MSME customers was launched with competitive rate of interest, service charges & exchange margin. d. The Bank has also opened ten Special Rupee

Vostro Account (SRVA) accounts in Myanmar and Bangladesh.

e. Multicurrency World Travel Card: The product has a unique feature of multiple currencies loaded in a single card. Bank is offering the cards in 6 foreign currencies.

f. Trade Finance portal for Trade Finance Products: Exporter and Importer can submit online all types of trade finance request through the portal

g. Outward Remittance Facility for Resident Individuals through IBS & MBS: The Bank has launched Outward Remittance Facility for resident individuals for remitting funds under Liberalised Remittance Scheme (LRS) through Mobile Banking.

h. 50 branches have been identifiedas NRI service branches to increase NRI portfolio.

VIII. BUSINESS DIVERSIFICATION Insurance Business

1. Life Insurance: The Bank solicits Life Insurance

Business under Corporate Agency Agreement with the following Life Insurance companies: a. PNB MetLife India Insurance Co. Ltd (PMLI) b. Life Insurance Corporation of India (LIC) During FY 2024-25, income from commission stood at Rs.358.45 Crore against Rs. 338.24 Crore during FY 2023-24 showing the YoY growth of 6.0 per cent.

2. Non-Life Insurance: The Bank solicits Non-Life

Insurance Business under Corporate Agency Agreement with following insurance companies a. The Oriental Insurance Co. Ltd. (OICL), b. Bajaj Allianz General Insurance Co. Ltd. (BAGIC), c. Cholamandalam MS General Insurance Co. Ltd. (CHOLA MS), d. Care Health Insurance Ltd. (CHIL) e. Star Health & Allied Insurance Co. Ltd. (SHICL).

During FY 2024-25, income from commission is Rs.113.86 Crore against Rs. 109.69 Crore during FY 2023-24 registering YoY growth of 3.8 per cent.

3. Mutual Funds: The Bank is a distributor of Mutual

Fund products of the Asset Management Companies namely Sundaram Asset Management Company Limited, Nippon Life Asset Management Limited, UTIAsset Management Company Limited, Aditya Birla Sunlife Asset Management Company Limited, LIC Mutual Fund Asset Management Limited, DSP Asset Managers Private Limited and Franklin TempletonAsset Management (India) Private Limited.

The Bank has partnered with Finwizard Technology Private Limited (FISDOM) to offer online mutual fund investment and robo-advisory services to all its customers. As part of the arrangement, FISDOM compensates the Bank through a commission on revenue sharing basis.

During FY 2024-25, income from commission is Rs.11.27 Crore against Rs. 8.60 Crore during FY 2023-24 showing YoY growth of 31 per cent.

4. Depository Services: The Bank offers Demat services as a Depository participant of NSDL and CDSL and trading services through tie-up with four trading channel partners viz., SMC global Securities Ltd., Geojit financial Services ltd., Aditya Birla MoneyLtd. and IDBI Capital Market & Securities Ltd.

The Bank is having total 2.19 Lakh Demat account and 1.02 Lakh trading account as on 31st March, 2025. Income earned in FY 2024-25 from Depository services is Rs. 6.07 Crore.

5. Application Supported by Blocked Amount (ASBA) & Merchant Banking: The Bank has license to act as Banker to Issue, Debenture Trustee andMerchant Banker. During FY 2024-25, 528 number of issues were handled as against 427 in FY 2023-24.

The amount blocked through ASBA was Rs.1,00,211Crore in FY 2024-25 against Rs. 45,716 Crore in FY 2023-24.

During FY 2024-25, income of Rs.2.18 Crore was earned from ASBA business against Rs.0.78 Crore in the FY 2023-24.

6. Defense Business: Defense Business Cell (DBC) is established for strengthening PNBs banking business with Indian Armed forces, Paramilitary and Police forces. During FY 2024-25, the Banks business from Defense Vertical has shown growth under the heads such as CASA, Term Deposits andRetail Loans showed the growth of 19.3 per cent, 15.9 per cent and 21.3 per cent respectively.

7. Government Business Vertical (GBV): 21 GBVs have sourced total new 8,731 Government Accounts; 54,455 new Savings Accounts. GBVs have also canvassed Retail Loans of Rs.1033 Crore and Loans & Advances to Government Departments of Rs. 30,829 Crore were sanctioned.

8. New Initiatives a. Insurance Business:

i. Telemarketing: Telemarketing service is now used for new as well as renewal customers. Earlier the service was used only for renewal product.

ii. Machine learning: The Bank is working on AI based machine learning lead for business growth.

b. Depository & ASBA Business-Discount brokerage:

i. Bank has launched Single Journey

Demat & trading account opening: In this Demat account will be opened with PNB and trading account with trading channel partner in a seamless journey. The functionality is live with m/s Aditya Birla money Ltd in both IBS & MBS.

ii. Bank has launched Lien & trade product: In this aforesaid facility the client can enjoy the hassle-free trading facility up to the amount blocked by them in CBS, except the upfront cash margin facility. The amount of fund the client has blocked and has done trading will only be debited from their operative linked account at the EOD.

This facility is now live with M/s Aditya Birla Money Limited.

IX. GOVERNMENT BUSINESS

To take a more proactive role in facilitating fund transfers from the Centre and States to beneficiaries, the Bank has set up an exclusive Government Business Department (GBD). It manages various functions, including pension processing and disbursement, government small savings schemes, direct and indirect tax collections, and currency chest operations. Additionally, the Bank serves as an accredited banker for nine Central Government departments and continues to strengthen its collaborations with State Governments to address their specific financial needs.

Key Initiatives taken up under Government Business are as under:

1. The Bank is disbursing pension of approximately

6.15 lakh pensioners i.e. Central Government, Defense, Railways, Telecom and State Government.

2. National Pension System (NPS): All the Branches are enabled for NPS transactions. Online facilities for NPS Registration and Contribution is also available through website (https://www.pnbindia.in/nps.html) as well as PNB ONE App. Total number of NPS subscribers associated as on 31st March, 2025 is 1,30,685. The Bank is also providing NPS facilities to27 corporates under Corporate Model.

3. Govt. e-Market Place (GeM): The Bank is providing the facilities of GPA (GeM Pool Account), e-PBG (Performance Bank Guarantee) & e-EMD (Earnest Money Deposit) on Government e-Marketplace to sellers and purchasers.

4. Public Financial Management System (PFMS):

The Bank has timely disbursed funds of Rs.1671 Crore to about 84 Lakh beneficiaries under PM KisanSamman Nidhi through PFMS.

5. Through active marketing, 43,091 PPF, 61,438 SSA and 71,888 Senior Citizen Savings Accounts were opened during the FY 2024-25.

6. Integration with various states and collecting online and offline taxes through their Cyber Treasury Portal. Collection of VAT is being done in 19 States.

7. Collection of taxes (Direct & Indirect) is being done through offline and online modes on PAN India Basis. The Bank is one of the major collectors of taxes forCentral & State Government.

8. PNB Sahayak Portal was launched on 7th November, 2024 having following functionalities for pensioners: a) Pension slip and Form 16 through PNB Corporate website. b) New EPPO implementation for Civil, Railway and Defence pensioners. c) Life Certificate (LC) Status. d) 6th and 7th Central Pay Commission (CPC) revision. e) Pension related Frequently Asked Questions (FAQs) etc.

9. NPS Vatsalya: A saving cum pension scheme regulated and administered by the PFRDA was launched for all minor citizens (age below 18 years) with minimum contribution of Rs.1000/- and there is no maximum limit.

X. TREASURY OPERATIONS

The Banks Gross Domestic Investments stood atRs.4,92,305 Crore as on 31st March, 2025 registering YoY growth of 16.3 per cent.

1. Overview of System liquidity: In FY 2024-25, the Indian banking system on an average experienced surplus liquidity in H1 FY 2024-25. However, it subsequently turned deficit to as high as Rs.3 LakhCrore in H2 FY 2024-25 as RBI sold dollars amid persistent FII selling in domestic equity market. To ease the liquidity RBI has taken initiatives such as Cash Reserve Ratio (CRR) cut by 50 bps, Open Market Operations (OMO) purchases, daily & long term Variable Repo Operations (VRR) and USD INR buy-sell swaps. As a result of which, liquidity situation gradually improved and ended the financial year2024-25 in surplus.

2. Fixed Income (SLR/NSLR): The 10 Year benchmark yield eased by 48 bps from 7.06 per cent as on 31st March, 2024 to 6.58 per cent as on 31st March, 2025 due to increased inflows from inclusion of GovernmentSecurities in JP Morgan Emerging Market Bond Index and initiation of the Regulators rate cutting cycle in order to support growth. The RBI reduced policy rate by 25 bps in February 2025 to 6.25 per cent as inflation eased.

The 10-year AAA (Public Sector Undertakings (PSUs)& Financial Institutions (FIs) & Banks) eased from 7.40 per cent as on 31st March, 2024 to 7.10 per cent as on 31st March, 2025 amidst liquidity improvement and inflation coming in the RBI target band of 2-6 per cent.

3. Equity: Equity Market registered its worst monthly run in 29 years since 1996, extending losses for five straight months from October 2024-Februaray 2025.

The S&P BSE Sensex closed at 77,414.92, while theNifty 50 closed at 23,519.35 on 31st March, 2025. Over the past one year, the S&P BSE Sensex gained 5.11 per cent while the Nifty 50 surged by 5.34 per cent.

4. Forex: The Indian Rupee ended FY 2024-25 at85.47, registering a fall of 2.48 per cent against the US dollar.

Likely RBI interventions in different segments of the foreign exchange market amid continued outflows made Indian Rupee as one of the most stable currencies in Calendar Year (CY) 2024.This, however, resulted in a significant drawdown in forex reserves. After Trumps Presidential victory in November 2024, rupee depreciated to a low of 87.95 in February 2025 amid stronger dollar and persistent Foreign Institutional Investors (FII) selling from domestic equities. Notably, the sharper depreciation of the Indian Rupee by approximately 1.34 per cent in December 2024 over November 2024 indicates RBIs increasing tolerance towards the strengthening of the dollar amidst tight liquidity till mid-March 2025 in the domestic banking system and increased volatility in global markets.

All the major currencies remained volatile amidst growing geopolitical uncertainties and Trumps reciprocal tariff.

XI. CUSTOMER CARE

Customer Service is a business approach that places the customer at the center of all banking operations and decisions. It involves tailoring products, services, and processes to meet the specific needs and preferences of the banks customers. The Bank fully realizes the importance of customer service and continues to lay utmost priority to render prompt and efficient service to customers. The primary responsibility of the Bank is to ensure that all the grievances directed towards Bank through various channels like Contact Centre, Post, Email, Centralized Public Grievance Redress and Monitoring System (CPGRAMS), Integrated Grievance Redressal Mechanism (INGRAM), Internet Banking, Mobile Banking, Website, Social Media, e-mail to MD & CEO, Reserve Bank of India (RBI), various ministries/forums etc. are entered in the Online Grievance Portal (CGRMS/CRM) of the Bank.

These complaints are dealt strictly in accordance with Banks Grievance Redressal Policy.

For faster resolution of complaints, the Bank has designated Chief Customer Executive Officer (CCEO) with the rank of Dy. General Manager at Zonal Offices (ZOs) and Chief Manager at Circle Offices who can be approached by the customers for redressal of their grievances. The contact details of CCEOs have also been displayed at Banks website.

Customer Service Committees are present in all branches and Circle Offices to assess the quality of customer service. These committees meet on monthly basis and provide platform for staff and customers to engage in open discussions about service-related issues. These committees review feedback and suggest improvements for fostering a better customer experience.

The Bank also has a monthly magazine "Customer Speaks" in which selected complaints filed by customers and the action taken/resolution provided to the complainants are published. We also mention in the magazine about the appreciation letters received from the customers appreciating the service of officials of the Bank.

Apart from Theme Based Meetings which are conducted at monthly intervals in branches on a pre-decided date, the Bank also conducts Customer Satisfaction Surveys and take suitable measures based on feedback for better customer service.

Customer Service Agents (CSAs) at the Call Centre undergo regular training sessions to enhance their ability to handle customer calls they provide accurate and up-to-date information about products and services, enabling them to effectively even the minor customer concerns.

The Bank has State-Of-The-Art Primary Contact Centers at Gurugram and Noida to provide tele-banking services to its customers on 24 x 7 x 365 basis through two leading Service Providers. In addition to these two Primary Sites, the Bank has also established two Secondary Contact Centers at Dehradun and Bhopal to provide tele-banking services to its customers in 13 languages.

There are two online portals i.e., CGRMS Portal and Contact Centres CRM Portal. The nature of complaints received at CGRMS Portal and CRM Portal are largely Non- Digital & Digital transaction related respectively.

A total of 16,80,324 complaints were received during the FY 2024-25, out of which 5,40,494 complaints were resolved within T+1 days of its receipt. As such, these have not been treated as complaints in terms of RBI guidelines.

Therefore, the total number of reported complaints received during the FY 2024-25 is 11,39,830. The details of complaints received and disposed during FY 2024-25 is as follows:

Particular	Count*
Number of complaints pending at beginning of the Year	32,351
Number of complaints received during the Year	11,39,830
Number of complaints disposed during the Year	11,43,326
Number of complaints pending at the end of the Year	28,855

Excluding complaints which were resolved within T+1 days of its receipt.

Initiatives undertaken during the year for improvement in customer service

1. Chat with live agent facility introduced to provide latest information about new/existing service of the Bank.

2. The reward and motivation programme for customer experience has been developed to track performance on customer service experience and to reward eligible branch to foster better customer service at the field level.

3. To facilitate Divyangjan Customers, facility of booking time slot was introduced in advance through contact center for availing services in the branch.

4. Functionality for capturing Customers feedback through Branch has been developed and it has been integrated with single Digital Platform called

Customer Feedback Portal. This new QR Code based functionality enables Branches to capture walk in Customers feedback who come to the branch premises to avail any of the Banks services.

5. Hybrid-Squad comprising of bank staff up in contact centers for providing better customer service.

XII. IMPLEMENTATION OF OFFICIAL LANGUAGE

Punjab National Bank has been a leader in implementing Hindi as the official language. The Bank remains dedicated to complying with directives from the Department of Official Language, Ministry of Home Affairs, Government of India, as well as guidelines from the Committee of Parliament on Official Language and the Department of FinancialServices, Ministry of Finance. It has successfully achieved most of the targets outlined in the annual program for the Financial Year 2024-25 issued by the Department of Official Language, Ministry of Home Affairs, Government of India.

It is immensely a matter of pride to inform that during the FY 2024-25 the Bank has been awarded the 1st prize under the "Rajbhasha Kirti" award for Banks in-house magazine "PNB Pratibha" and 2nd prize under Banking category. Further 22 Rajbhasha awards were received by various Zonal and Circle offices of the Bank from the Regional Implementation Office of the Ministry of Home Affairs. Moreover, various offices/staff members of the Bank have won many awards from various Govt. Institutes.

1. Actions taken for and progress made in implementation of the Annual Program for Progressive Use of Hindi

a. The Bank has a well-organized mechanism for implementation of the Official Language, which is functioning well under the supervision of the Official Language Department established at the Head Office. Official Language Department is established in all the Zonal Offices, Circle Offices and Training Centres, which implement the official language policy duly approved by the Board of Directors of the Bank in their offices, subordinate offices and branches.

b. Intensive monitoring was done to achieve the targets prescribed in the Annual Programme of Department of Official Language, Ministry of Home Affairs. Official Language (OL) Policy of the Bank and Rajbhasha Corporate Action Plan are in place.

c. Awards were given to winner offices/employees under Lala Lajpat Rai Shield Scheme, other incentive schemes and Rajbhasha competitions to increase its use in the Bank.

d. The Banks quarterly in-house magazine "PNB Pratibha" and half yearly Hindi magazines of Zonal Offices & Circle offices are published regularly. Hindi books were made available in Rajbhasha Libraries established at various level.

e. All India level Inter Bank Hindi Essay Competition was organized on the subject "Digital banking" in August 2024.

f. A total of 11 Hindi books were awarded by the Bank under the Original Hindi Book Writing Scheme (for working and retired staff) during theFY 2024-25.

2. Official Language Committees and their meetings a. The meetings of the Official Language Implementation Committee of the Head Office were held quarterly under the chairmanship of the Managing Director and Chief Executive Officer.

b. PNB has efficiently of convener of 28 Town Official LanguageImplementation Committees across the country. Half yearly meetings of these committees were organized and Hindi competitions, Hindi workshops, Hindi seminars etc. were organized during the year.

c. Quarterly meetings of official language committees were organized by all the offices of the Bank.

3. External Inspection/Official Language Seminar/Conference

a. A three-day All India Official LanguageConference (19th-21st March, 2025) and Review Meeting of the Official Language Officers of the Bank was organized in Delhi by the Head Office under the chairmanship of Executive Director and in the presence of Mrs. Anshuli Arya, IAS, Secretary, Department of Official Language, Ministry of Home Affairs, Government of India. Intensive monitoring of all offices was done through official language inspection and annual review meetings.

b. Rajbhasha Seminar was organized on 20th March, 2025 by the Head Office on the topic "Official Language Hindi and ArtificialIntelligence". Shri Vijender Singh Chauhan, Associate Professor, Zakir Husain College, DelhiUniversity was present as the chief speaker in the seminar in Advanced Learning Institute (ALI).

c. The Banks work in Official Language was appreciated by the Third Sub-Committee of the Parliamentary Official Language Committee during the inspections of Zonal Office Hyderabad, Zonal Office Jaipur and Circle Office Mumbai Western. d. Rajbhasha (Hindi) Day (4th October 2024) and Rajbhasha (Hindi) Month (14th September to 13th October 2024) were celebrated enthusiastically in the Bank. Lala Lajpat Rai Shield was given to the winners by Managing Director and Chief Executive Officer and Executive Directors in the main official language function organized at HeadOffice

4. Progress made in the use of Hindi in Information Technology

a. The website of the Bank is completely bilingual and it opens in Hindi by default.

b. Facility of Hindi and regional languages are available in ATM.

c. SMS alerts have been sent to customers in their preferred language (Hindi and regional language).

d. Online Hindi reporting of all the Branches, Circles, Zones and Divisions of the Head Office was done on the ‘Rajbhasha web portal.

e. Bilingualization of Finacle and HRMS was done through Linguify software updated version. Along with it, bilingual facility is available to work on all computers.

f. Mobile banking app ‘PNB ONE was implemented in the new revamped look in Hindi and various regional languages. g. Internet Banking is available in Hindi as well as in regional languages.

h. A daily Hindi podcast is being released on Banking subject.

i. Online Hindi courses were introduced for the employees on the Banks e-learning portal PNB Univ. based on which the employees are given marks in Performance Appraisal Form (PAF).

j. Hindi version of WhatsApp Banking is available for the customers.

5. Special work and programmes regarding the use of Hindi a. The Bank organized a conference on 2nd August, 2024 for the Heads of 28 Nagar Rajbhasha Karyanvayan Samiti (NARAKAS) in which the Bank is convener. This conference was successfully completed under the Chairmanship of the Managing Director and Chief Executive Officer and the dignified presence of Secretary, Smt. Anshuli Arya, Ministry of Home Affairs. b. The Banks stall was set up at Hindi Diwas and All India Official Language Conference organized by Department of Official Language, Ministry of Home Affairs, Government of India at BharatMandapam, New Delhi on 14-15th September 2024. A quiz competition was organized for the participants through a mini kiosk at the stall, which was inaugurated by the Managing Director and Chief Executive Officer. c. On the occasion of World Hindi Day, a centralized workshop was organized on the topic of "Official Language Hindi and e-Tools" for the senior officials of the Bank (General Managers andChief General Managers).

d. A workshop was organized for Official Language Officers on the topic "Latest technical guidelines and e-tools in OfficialLanguage". On this occasion, Joint Director-Official Language from Ministry of Home Affairs, Department of Official Language, Mr. RajeshSrivastava provided special guidance regarding "Kanthastha-2.0" and Senior Technical AdvisorMr. Kewal Krishna provided special guidance regarding Official Language Reporting. e. Rajbhasha module of Mobile app "PNB Arambh" was launched to digitalize the official language implementation in the Bank. f. Hindi Training for work in Hindi on Computer and Translation Tool Kanthasth 2.0 was imparted to staff members through Hindi workshops, Unicode Training and Desk Training by Head Office, Zonal Offices, Circle Offices and TrainingCentres.

6. Bilingual status of circulars/forms/other documents a. During the year, circulars issued by the divisions of the Head Office were uploaded on BanksPortal in bilingual form. b. The forms used by customers are also available in Hindi/bilingual and 11 regional languages. c. To facilitate the work in Hindi, "Standard Draft" of daily letters/office notes related to various departments is available on the e-portal of the Bank. d. Hindi and regional languages were used in publicity and promotional campaigns related to the Banks schemes and products.

XIII. PNBS SUBSIDIARIES AND REGIONAL RURAL BANKS

1. DOMESTIC SUBSIDIARIES a. PNB Gilts Ltd.: The bond markets performance in FY-2025 was marked by considerable volatility and influenced by a combination of global and domestic factors. Globally, U.S. Treasury yields experienced fluctuations driven by FOMC policy decisions, inflation concerns, and uncertainty surrounding the US Presidents policies. These yields saw both increases and sharp declines throughout the year. Notably, both the US FOMC and the European Central Bank initiated policy rate cuts, signaling a broader trend of monetary policy easing. Domestically, the Indian bond market generally witnessed declining yields. This was attributed to factors such as the RBIs transfer of surplus dividends to the government, increased foreign buying interest, and expectations of fiscal prudence. The RBIs active role in monetary policy, including repo rate cuts and liquidity management through Open

Market Operations and forex swaps, significantly impacted bond yields. Furthermore, concerns about domestic economic growth, highlighted by lower-than-expected GDP figures, contributed to expectations of policy easing and downward pressure on yields. Overall, the Indian 10-year benchmark bond yield demonstrated a general downward trajectory, albeit with interim volatility, moving from 7.06 per cent as on 31st March 2024 and eventually settling at 6.58 per cent as on 31st March 2025.

PNB Gilts Ltd. continued to fulfill all its obligations as a Primary Dealer mandated by RBI both in Primary and Secondary market. The Company posted a Profit Before Tax (PBT) of Rs. 310.95 Crore during FY 2024-25 vis-a-vis PBT of Rs. 99 Crore during FY 2023-24. Profit after Tax (PAT) amounted to Rs. 233 Crore during FY 2024-25 as against Rs. 69 Crore during FY 2023-24. Capital Adequacy remains strong with its Capital to Risk Weighted Assets Ratio (CRAR) at 42.68 per cent as on 31st March, 2025 well above the regulatory minimum of 15 per cent for Primary Dealers (PDs).

b. PNB Investment Services Limited (PNBISL): During the year ended as on 31st March, 2025, the Company registered operational (fee-based) income of Rs.10.20 Crore and total income of Rs.13.72 Crore as against a fee- based income of Rs.8.17 Crore and total income of Rs.11.38 Crore for the year ended as on 31st March, 2024.

Profit before Tax during the period ended as on31st March, 2025 was Rs.7.86 Crore as against Rs.5.46 Crore as on 31st March, 2024.

The Company operates in three verticals, namely Corporate Advisory, Merchant Banking and Security Trustee. In the Corporate AdvisoryVertical, during the year PNBISL advised many marquees business groups and corporate clients on various transactions, including debt syndication, debt resolution and other corporate advisory assignments. With in-house expertise and deep understanding of select sectors, PNBISL prepared and delivered credible

Techno-Economic Viability (TEV) & LIE (LendersIndependent Engineer services) reports to its clients.

In Corporate Advisory Vertical, during FY 2024-25, the Company was able to complete majorly four Debt Syndication assignments.

The Company has also completed around70 assignments of U P State Industrial Development Authorities (UPSIDA) and around 30 TEV/LIE assignments. FY 2024-25 was a significantChallenge) practice of the Company and the Company undertook and completed 4 significantDebt Resolution. Now with the credentials already being in place, the Company believes the business may see an uptrend in FY 2025-26.

In Merchant Banking Vertical, during FY 2024-25, the Company has been able to showcase its strengths to the markets in the form of timely filing of documents to regulatory authorities in nearly all the ECM product verticals i.e., Initial Public Offers (IPOs), Qualified Institutional Placement (QIP) and Open Offer assignments.

Going forward the Company has strengthened its Merchant banking team by hiring the experienced candidates and has good pipeline in hand. Merchant Banking Vertical is poised for continued growth and success.

Growth seen in trusteeship segment in FY 2024-25. The Trusteeship Division remains well-positioned to capitalize on new opportunities, given the foundation of strong client relationships, strategic market positioning, and an increased focus on quality service delivery. The Company believes that it will be further strengthened through continued focus on business development, client diversification, and expanding value-added offerings under the Trusteeship segment.

Looking ahead, the Company is dedicated to strengthening its expertise across various business verticals, including credit appraisal, debt syndication, TEV consultancy, merchant banking, and security trusteeship. These initiatives aim to enhance the value offered to the parent bank and all stakeholders.

c. PNB Cards and Services Limited (PNBCSL):

PNBCSL, a wholly-owned subsidiary of Punjab National Bank (PNB), was incorporated on 16th March, 2021 following RBI approval on 7th December, 2020. Initially focused on non-financial support services for PNBs credit card business, PNBCSL received further RBI approval on 13th January, 2023 to expand its services. These now include sourcing, marketing, promoting, publicizing, advertising, and soliciting deposits and retail products. Operating across 100+ locations with a workforce exceeding 1,000+ employees, PNBCSL has facilitated housing loans worth over Rs. 1,200 Crore, vehicle loans exceeding Rs. 600 Crore, issued more than 90,000 credit cards, and sourced over 50,000 CASA accounts.

PNBCSL maintained its profitability trajectory, achieving a net profit after tax of Rs. 3.68 Crore for FY 2024-25, showing YoY growth of 63.6 per cent, demonstrating its continued contribution to the Banks success.

PNBCSL remains committed to offering high-quality services and expanding its reach to serve a broader customer base.

2. INTERNATIONAL

d. PNB International Limited (PNBIL): Punjab National Bank (International) Limited was incorporated in the UK on 13th April, 2006 and registered with the Companies House in England & Wales. The Bank is authorized by the Prudential Regulation Authority (‘PRA) and regulated by Financial Conduct Authority (‘FCA) to conduct banking Business in UK.

The total deposits increased from Rs.6,664 Crore as on 31st March, 2024 to Rs.7,688 Crore as on 31st March, 2025, showing YoY growth of 15.37 per cent. Total advance increased from Rs. 7,726 Crore as on 31st March, 2024 to Rs. 8,333 Crore as on 31st March 2025, showing YoY growth of 7.86 per cent. In the FY 2024-25, PNBIL recorded a Net Profit of Rs.196.96 Crore as per Indian Generally Accepted Accounting Principles (IGAAP) and Rs. 3.49 Crore as per International Financial Reporting Standards (IFRS).

PNBILs main business is to provide commercial and retail banking services to differentsegments of customers, with a focus on the Indian community within the UK. Its offerings include accepting deposits from both retail and corporate clients; lending to retail, SMEs and corporate clients; and transaction banking services such as currency remittances.

The deposit products primarily include current, savings, term deposits and Individual Savings Accounts. Some of these products such as ISAs (Individual Savings Accounts) and Fixed deposits are also being availed by a wider audience in the UK. The lending products includes real estate lending i.e., Buy to Let Residential, Commercial, Development Loans and Hotels & Hospitalities, lending to SME and Term loans backed by SBLC.

e. Druk PNB Bank Ltd (DPNBL):

Druk PNB Bank Ltd, Bhutan, Banking Company having its corporate office at Thimphu, Bhutan. It started its operation on 27th January, 2010, in Bhutan as the countrys fourth commercial Bank, with a component of both Foreign Direct Investment (FDI) and joint venture in the Banking Sector. Presently, the Bank has 9 branches and 30 ATMs spread across the country. Total Deposits of DPNBL increased from Rs. 2,590 Crore as on 31st March, 2024 to Rs.2828 Crore as on 31st March, 2025 i.e. YoY increase of 9.18%.

Total Advances of DPNBL increased from Rs. 1,914 Crore as on 31st March, 2024 to Rs. 2,103 Crore as on 31st March, 2025 i.e. YoY increase of 9.87%.

Profit decreased from Rs.49 Crore as on 31st March, 2024 to Rs.30.41 Crore as on 31st March, 2025. Paid up capital of the Bank as on 31st March, 2025 is Rs.168 Crore.

3. REGIONAL RURAL BANKS (RRBs): As on 31st March, 2025, there are 9 RRBs sponsored by the bank namely Dakshin Bihar Gramin Bank (DBGB), Patna; Sarva Haryana Gramin Bank (SHGB), Rohtak; Himachal Pradesh Gramin Bank (HPGB); Mandi; Punjab Gramin Bank (PGB), Kapurthala; Prathama UP Gramin Bank (PUPGB), Moradabad; Assam Gramin Vikas Bank (AGVB), Guwahati; Bangiya Gramin Vikas Bank (BGVB), Berhampore; Tripura Gramin Bank (TGB), Agartala and Manipur Rural Bank (MRB), Imphal.

These nine RRBs are operating in nine states namely Bihar, Haryana, Himachal Pradesh, Punjab, Uttar Pradesh, West Bengal, Assam, Manipur and Tripura covering 162 districts with a network of 4709 branches.

a. Total Business of sponsored RRBs as on 31st March, 2025 is Rs.2,44,946 Crore registering a YoY growth of 9.52 per cent.

b. Deposits of RRBs are at Rs.1,52,499 Crore as on 31st March, 2025. Aggregate Deposits registered a YoY growth of 8.06 per cent.

c. Advances of the RRBs as on 31st March, 2025 stood at Rs. 92,447 Crore with a YoY growth of 12.04 per cent. d. As per RBI guidelines it is mandatory for RRBs to meet the regulatory requirement of CRAR of 9 per cent.

The RRBs except DBGB attained CRAR over and above the regulatory requirement TGB (24.50 per cent), PGB (15.86 per cent), SHGB (15.31 per cent), PUPGB (13.06 per cent), BGVB (11.78 per cent) and MRB (10.01 per cent) HPGB (9.09 per cent) and AGVB (9.54 per cent). CRAR of DBGB is below the regulatory requirement at (2.99 per cent). e. The sponsored RRBs are in profit of Rs.1131 Crore. Consolidated Operating profit of RRBs stood at Rs.2630 Crore as on 31st March, 2025. f. The RRBs have cumulatively disbursed Rs.3021 Crore under Pradhan Mantri Mudra Yojana (PMMY)/MUDRA as on 31st March, 2025, achieving 83.93 per cent of targeted budget of Rs.3,600 Crore for disbursement.

.

XIV. AWARDS AND ACCOLADES

The Banks efforts have been recognized at various platforms. The Bank has been conferred with the following for initiatives taken in various fields for FY 2024-25:

1. Under EASE 6.0, PNB was declared winner in two themes along-with First runner-up in the category of Top Performing Bank.

a. Tech and Data driven capability building b. Digital and Analytics driven business improvement

2. Data Quality Award "PSU Best DQI-FY25" in Consumer Segment from Credit Information Company TransUnion CIBIL (TU CIBIL) during IBA TransUnion CIBIL Annual Conference of CGMs/GMs of IT and MIS Departments of Public Sector Banks.

3. Prestigious Silver Shield for Excellence in Financial Reporting in the category of Public Sector Banks for the Year 2023-24 by the Institute of Chartered Accountants of India (ICAI).

4. CIMSME Banking Excellence Awards for: a. Best Bank for implementing Government Schemes (Winner) b. Best MSME Friendly Bank (Runner Up)

5. IBEX India 2025 for 2 entries- I) AARAMBH and II) PNB ONE Biz.

6. IBA Banking Technology Awards under the following 2 categories at 20th Annual Banking

Technology Conference, Expo and Citation 2024 by Indian Banks Association (IBA). a. Best IT Risk Management (Special Mention) b. Best Fintech and DPI Adoption (Special Mention)

7. SKOCH award for ‘Analytical Model Based Derived Cash Retention Limit of ATMs under BFSI category during 100th SKOCH Summit.

8. Outstanding Performance in SHG Linkage 2023-24 by Deen Dayal Antyodaya Yojana, National Rural Livelihood Mission, Ministry of Rural Development, government of India.

9. 1st Runner up award with SHRM HR Excellence Awards in the field of Inclusion, Equity & Diversity under Public Sector Enterprise (PSE) Category by Society of Human Resource Management (SHRM).

10. AwardofExcellenceforOutstandingPerformance-2nd Best Performing Bank under RAPID campaign under Agriculture Infrastructure fund by Ministry of Agriculture and Farmer Welfare.

11. Green Ribbon Champions award for Banks green initiatives under project PALASH by News18. 12. Global Fintech Awards 2024 (First prize) in the category of Green Banking Initiative of the Year for its PNB ONE onboarding through Aadhaar during Global Fintech Fest 2024 by Payment Council of India, NPCI and Fintech Convergence Council (FCC).

13. The Ministry of New and Renewable Energy,Govt. of India has organized Global Renewable Energy Investors Meet and Expo (4th REINVEST) at Mahatma Mandir, Gandhi Nagar wherein the Bank was felicitated by the Ministry for contribution to the ambitious 200 GW Energy Generation fromRenewable Sources.

14. Rajbhasha Kirti Puruskar for 2023-24 (First Prize) for PNB Pratibha Magazine and 2nd Prize overall for our Bank. The award by given away by Department of Official Language, Ministry of Home Affairs,Government of India and received by the MD & CEO from Shri Amit Shah, Minister of Home Affairs.

15. Winner in the following two categories amongstIndian Public Sector Banks (Large) category in 2nd ICC Emerging Asia Banking Conclave & Awards organized by Indian Chamber of Commerce. a. Best Performance on Asset Quality b. Best Performance on Profitability

16. Infosys Finacle Innovation Awards 2024 in following category:

a. Ecosystem-led Innovation Platinum Winner Krishi Tatkal Rinn

b. Channel Innovation Gold WinnerDigital Execution of Locker Agreement

c. Maximizing Customer Engagement – Gold WinnerAADHAR-based Mobile Onboarding

17. PSE Award 2024 - Enterprise Applications Category-Express Computer-The Indian Express Group.

18. TransUnion CIBIL Award:

a. Best Data Quality-PSB Consumer Award 2023-24

b. Best Data Quality-PSB Commercial Award 2023-24

c. TUCIBIL Best Data Quality Award 2023-24

19. Award of achievement to Bank under Mission Upgrade Campaign for the FY 2023-24.

XV. FUTURE BUSINESS PLAN OF THE BANK

As the Bank embarks on a transformative journey in the Financial Year 2025-26, it aspires to soar higher and achieve unprecedented milestones. Guided by a strategic focus on growth and profitability, the Bank will continue to prioritize Retail, Agriculture & MSME (RAM) Advances, enhancing its CASA portfolio and ensuring sustainable business growth.

The Bank will keep its focus on expanding its horizons by diversifying its product offerings, exploring new markets, and tapping into untapped customer segments.

Operational efficiency seamless service delivery.

Accelerating its digital transformation, the Bank will leverage cutting-edge technologies, including AI-powered tools, to offer personalized and seamless online and mobile banking experiences to all our customers.

Customer-centricity will remain at the heart of the Banks approach. By introducing innovative products and services, strengthening internal processes, and investing in employee training, the Bank will consistently strive to exceed customer expectations.

Employee development will be another key pillar of this journey. The Bank will invest in the holistic growth of its workforce, fostering a culture of self-driven excellence through initiatives like the PNB UDAAN project.

FY 2025-26 marks a year of growth and transformation.

By focusing on these strategic areas, the Bank is poised to solidify its position as a leading financial institution, delivering value to customers, employees, and stakeholders alike.

XVI. CHANGES IN BOARD OF DIRECTORS

1. Dr. Rekha Jain, Shareholder Director, completed her tenure on 11.09.2024.

2. Shri Ambarish Ojha, Shareholder Director, was deemed elected as Shareholder Director of the Bank w.e.f., 12.09.2024.

3. Shri Pankaj Joshi, Part-time Non-Official Director, completed his tenure on 20.12.2024.

4. Shri Sanjeev Kumar Singhal, Part-time Non-OfficialDirector, completed his tenure on 20.12.2024.

5. Shri Atul Kumar Goel, MD & CEO, completed his tenure on 31.12.2024 on attaining superannuation.

6. Shri Binod Kumar, Executive Director, vacated the office on 16.01.2025 upon his appointment as Managing Director and Chief Executive Officer ofIndian Bank

7. Shri Ashok Chandra was appointed as MD & CEO of the Bank w.e.f., 16.01.2025.

8. Shri D Surendran was appointed as Executive Director of the Bank w.e.f. 24.03.2025.

XVII.SECRETARIAL AUDIT REPORT

The Secretarial Auditor in the Reports has made observations in respect of (i) vacancies of Women Director under regulation 17(1)(a) of SEBI (LODR) Regulations, 2015, Workmen Employee Director, Employee Director who is not a workman, CA Director i.e. Directors under section 9(3) (e), (f), (g) and (h), respectively, of Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 on theBoard of the Bank and (ii) non-compliance of SEBI (LODR) Regulations with respect composition of Board of Directors, Stakeholder Relationship Committee of the Board, Audit Committee of the Board, Non- submission of prior intimation of Board Meeting and Chairmanship of Meeting of Risk Management Committee of the Board.

XVIII. DIRECTORS RESPONSIBILITY STATEMENT The Directors confirm that in the preparation of the annual accounts for the year ended 31st March, 2025:

1. The applicable Accounting Standards have been followed along with proper explanation relating to material departures, if any;

2. The accounting policies, framed in accordance with the guidelines of the Reserve Bank of India, were consistently applied;

3. Reasonable and prudent judgment and estimates were made so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit of the Bank for the year ended31st March, 2025.

4. Proper and maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks in India, and;

5. The accounts have been prepared based on the principle of "going concern".

XIX. ACKNOWLEDGEMENT

The Board of Directors thank the shareholders, valued customers, well-wishers and other stakeholders for their good-will, patronage and support.

The Board acknowledges with gratitude for the guidance and support of Government of India, Reserve Bank of India, Securities & Exchange Board of India, Insurance Regulatory and Development Authority of India, Central Vigilance Commission, Stock Exchanges and Statutory Central Auditors of the Bank, in the functioning of the Bank.

The Board also placed on record its appreciation for the valuable contribution made by the members of the Banks staff at all levels and is looking forward to their continued involvement in achieving the future goals.

For and on behalf of Board of Directors

Ashok Chandra

Managing Director & CEO