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.

India's 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 services. India's resilience amidst global
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 31^st March, 2025 recording a quantum
increase of Rs.3.30 Lakh Crore over the previous year.

As on 31^st 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 31^st 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 Bank's GNPA per cent declined to 3.95 per cent
as on 31^st March, 2025 from 5.73 per cent as on 31^st March,
2024. Net NPA per cent also went down to 0.40 per cent as on
31^st March, 2025 from 0.73 per cent as on 31^st March, 2024.
Provision Coverage Ratio including Technical Write Off (TWO)
of the Bank improved to 96.82 per cent as on 31^st March, 2025
from 95.39 per cent as on 31^st 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 31^st March,
2025 (FY 2024-25) along with its audited Annual Financial Statements".

I. FINANCIAL PERFORMANCE AS ON 31^s1 March, 2025

1. Topline

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

b. Global Deposits stood at Rs.15,66,623 Crore
as on 31^st March, 2025 as against Rs.13,69,713
Crore as on 31^st 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 31^st March, 2025 as against Rs.5,52,449
Crore as on 31^st March, 2024.

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

ii. Savings Deposits was at Rs.4,98,429

Crore as on 31^st March, 2025.

d. Global Advances stood at Rs.11,16,637 Crore
as on 31^st March, 2025 against Rs. 9,83,325
Crore as on 31^st 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 31^st March, 2025 as against Rs. 2,22,574
Crore as on 31^st 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 31^st March, 2025 as against
Rs.1,58,188 Crore as on 31^st 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 31^st March, 2025 as against Rs.1,39,288
Crore as on 31^st 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 31^st March,
2025 vis-a-vis Rs.5,20,050 Crore as on 31^st

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 31^st March, 2025 as
against 55.2 per cent as on 31^st 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-a-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 31^st March, 2025, reduced from the
level of Rs. 56,343 Crore as on 31^st March, 2024.

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

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

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

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

f. Provision Coverage Ratio (PCR) excluding
TWO increased by 234 bps to 90.27 per cent as
on 31^st 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 31^st March, 2025 from Rs.23.84
Crore as on 31^st March, 2024.

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

5. Capital Position

The Capital Adequacy of the Bank improved during
the financial year due to improved profitability as well
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 Institutional Placement (QIP)
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
31^st 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 31^st March, 2025.

6. Compliance Culture

a. Compliance Function activities are managed
by dedicated officials at Head Office, Zonal
Compliance Officers at Zonal Offices and Circle
Compliance Officers at Circle Offices.

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

1. Key Digital Initiatives & Achievements

In FY2024-25, PNB continued to embrace digitalization
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 bank's
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 6^th November,
2024 and portal was launched on 25^th 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. Bank's Training Structure: Training structure of
Bank 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

ser.ice;.

e. Centralized Procurement & Partnership
Division (CPPD): The CPPD aims to centralize
and streamline the Bank's 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 Bank's Business.

h. A dedicated Self Help Group (SHG) Monitoring
Cell under Agriculture Division, Head office has
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 and adaptability
in an evolving banking landscape. This initiative
is strategically aligned with organizational
objectives, promoting operational efficiency and
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 bank's 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 Bank's 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 Bank's
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 Bank's commitment
to fostering a culture of continuous learning and

excellence

g. Manpower Audit: In alignment with the Bank's
^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 24^th 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 31^st March, 2024 to Rs. 44,082
Crore as on 31^st March, 2025. Net NPA reduced to
Rs. 4,291 Crore as on 31^st March, 2025 from Rs. 6,799
Crore as on 31^st 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 31^st March, 2025.

1. Recovery & Upgradation: Total Recovery stood at
Rs. 14,336 Crore for FY 2024-25. Of this, Total Cash
Recovery 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 FY
2024-25.

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:

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:

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
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
Artificial Intelligence, the Bank is effectively utilizing them
for bringing convenience to our customers.

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

Aiiiance,

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:

• Aadhaar Number (without UIDAI authentication).

• Permanent Account Number (PAN)

• 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:

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

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

• 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:

• CIC Module (Bureau One)

• Data submission to Credit Information Companies

(CICs)

• Central Registry of Securitization Asset Reconstruction

and Security Interest of India (CERSAI)

• National e-Governance Services Ltd (NeSL)

• RBS, CIMS, Data Aggregator/Account Aggregator

• PNB 360 application dashboard

• Enterprise-Wide Data Warehouse (EDW)

• Funnel for the Digital Journeys.

1. Enterprise-Wide Data Warehouse (EDW):

• Central repository of summarized data from
different internal operational systems and external

sources

• Single Source of information having integration
with Bank's 65 source systems.

• Providing more than 1650 reports covering all¬
business needs across banks verticals.

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

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:

• Enhancing value creation

• Driving cross-sell and up-sell opportunities

• Increasing revenue and optimizing costs

• Strengthening product offerings and delivery
channels

• Expanding the Bank's digital footprint

• Improving risk profiling for both existing and
prospective customers

• 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: Bank's 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 employee's 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 Bank's 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:

• Digital Home Loan (DIGI HL),

• New-to-Bank Personal Loan (NTB PL),

• Digital Car Loan (DIGI CL),

• PNBONE

• ^-"NTB Mudra

• NTB PABL

• 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 “Visit
Module” 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 RBS

Portal 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 31^st 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 31^st 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).

As on 31^st 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 NRI
Business, 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 31^st 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 offering
External Commercial Borrowing (ECB), Foreign
Currency Term Loan (FCTL) and Trade Finance
Products to Indian and Overseas customers.

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 identified as 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, UTI
Asset Management Company Limited, Aditya Birla
Sunlife Asset Management Company Limited, LIC
Mutual Fund Asset Management Limited, DSP Asset
Managers Private Limited and Franklin Templeton
Asset 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 Money
Ltd. and IDBI Capital Market & Securities Ltd.

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

ser.ice;. is Rs 6 07 rrore

5. Application Supported by Blocked Amount
(ASBA) & Merchant Banking: The Bank has license
to act as Banker to Issue, Debenture Trustee and
Merchant 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.1,00,211
Crore 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 PNB's banking
business with Indian Armed forces, Paramilitary
and Police forces. During FY 2024-25, the Bank's
business from Defense Vertical has shown growth
under the heads such as CASA, Term Deposits and
Retail 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 31^st March, 2025 is
1,30,685. The Bank is also providing NPS facilities to
27 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 Kisan
Samman 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 for
Central & State Government.

8. PNB Sahayak Portal was launched on 7^th 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) 6^th and 7^th 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 Bank's Gross Domestic Investments stood at
Rs.4,92,305 Crore as on 31^st 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 Lakh
Crore 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 year
2024-25 in surplus.

2. Fixed Income (SLR/NSLR): The 10 Year benchmark
yield eased by 48 bps from 7.06 per cent as on 31^st
March, 2024 to 6.58 per cent as on 31^st March, 2025
due to increased inflows from inclusion of Government
Securities in JP Morgan Emerging Market Bond Index
and initiation of the Regulator's 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 31^st March, 2024 to 7.10 per cent
as on 31^st 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 the
Nifty 50 closed at 23,519.35 on 31^st 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 at
85.47, 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 Trump's 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 RBI's
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 Trump's
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
bank's 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
Bank's 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 Bank's
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 efficiently. These sessions ensure
they provide accurate and up-to-date information about
products and services, enabling them to effectively resolve
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 Centre's 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:

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 Customer's 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 Customer's feedback who come to the branch
premises to avail any of the Bank's services.

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

(II. 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 Financial
Services, 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 1^st prize
under the “Rajbhasha Kirti” award for Bank's in-house
magazine “PNB Pratibha” and 2^nd 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 Bank's 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 the
FY 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 discharged the responsibility
of convener of 28 Town Official Language
Implementation 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 Language
Conference (19^th-21^st 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
20^th March, 2025 by the Head Office on the
topic "Official Language Hindi and Artificial
Intelligence". Shri Vijender Singh Chauhan,
Associate Professor, Zakir Husain College, Delhi
University was present as the chief speaker
in the seminar in Advanced Learning Institute
(ALI).

c. The Bank's 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 (4^th October 2024) and
Rajbhasha (Hindi) Month (14^th September to 13^th
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
Head Office.

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 Bank's 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 2^nd 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 Bank's 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 Bharat
Mandapam, New Delhi on 14-15^th 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 and
Chief General Managers).

d. A workshop was organized for Official
Language Officers on the topic "Latest
technical guidelines and e-tools in Official
Language". On this occasion, Joint Director-
Official Language from Ministry of Home Affairs,
Department of Official Language, Mr. Rajesh
Srivastava provided special guidance regarding
"Kanthastha-2.0" and Senior Technical Advisor
Mr. 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 Training
Centres.

6. Bilingual status of circulars/forms/other

documents

a. During the year, circulars issued by the divisions
of the Head Office were uploaded on Bank's
Portal 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 Bank's schemes and products.

XIII. PNB'S SUBSIDIARIES AND REGIONAL RURAL BANKS

1. DOMESTIC SUBSIDIARIES

a. PNB Gilts Ltd.: The bond market's 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 President's 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 RBI's transfer of surplus dividends to the
government, increased foreign buying interest,
and expectations of fiscal prudence. The RBI's
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 31^st March
2024 and eventually settling at 6.58 per cent as
on 31^st 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 31^st 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 31^st 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 31^st March, 2024.
Profit before Tax during the period ended as on
31^st March, 2025 was Rs.7.86 Crore as against
Rs.5.46 Crore as on 31^st March, 2024.

The Company operates in three verticals,
namely Corporate Advisory, Merchant Banking
and Security Trustee. In the Corporate Advisory
Vertical, 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 (Lenders
Independent 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 around
70 assignments of U P State Industrial
Development Authorities (UPSIDA) and around
30 TEV/LIE assignments. FY 2024-25 was a
significant year for the Debt Resolution (Swiss
Challenge) practice of the Company and the
Company undertook and completed 4 significant
Debt 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
16^th March, 2021 following RBI approval on
7^th December, 2020. Initially focused on non¬
financial support services for PNB's credit
card business, PNBCSL received further RBI
approval on 13^th 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 Bank's 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 13^th 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 31^st March, 2024 to Rs.7,688 Crore
as on 31^st March, 2025, showing YoY growth
of 15.37 per cent. Total advance increased
from Rs. 7,726 Crore as on 31^st March, 2024 to
Rs. 8,333 Crore as on 31^st 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).

PNBIL's main business is to provide commercial
and retail banking services to different segments
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 27^th January, 2010, in Bhutan
as the country's 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 31^st March, 2024 to
Rs.2828 Crore as on 31^st March, 2025 i.e. YoY
increase of 9.18%.

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

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

3. REGIONAL RURAL BANKS (RRBs): As on 31^st
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 31^st
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 31^st March, 2025. Aggregate Deposits
registered a YoY growth of 8.06 per cent.

c. Advances of the RRBs as on 31^st 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 31^st March, 2025.

f. The RRBs have cumulatively disbursed Rs.3021
Crore under Pradhan Mantri Mudra Yojana
(PMMY)/MUDRA as on 31^st March, 2025,
achieving 83.93 per cent of targeted budget of
Rs.3,600 Crore for disbursement.

XIV. AWARDS AND ACCOLADES

The Bank's 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-FY'25”

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. 1^st 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. Award of Excellence for Outstanding Performance-

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

11. Green Ribbon Champions award for Bank's 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 (4^th REINVEST)
at Mahatma Mandir, Gandhi Nagar wherein the
Bank was felicitated by the Ministry for contribution
to the ambitious 200 GW Energy Generation from
Renewable Sources.

14. Rajbhasha Kirti Puruskar for 2023-24 (First Prize)

for PNB Pratibha Magazine and 2^nd 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 amongst
Indian Public Sector Banks (Large) category in 2^nd
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
s Krishi Tatkal Rinn

b. Channel Innovation - Gold Winner

s Digital Execution of Locker Agreement

c. Maximizing Customer Engagement - Gold
Winner

s AADHAR-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 will remain a core focus, enabling

seamless setSISe dej|.e|V

Accelerating its digital transformation, the Bank will
leverage cutting-edge technologies, including Al-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
Bank's 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-Official
Director, 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 of

Indian 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 the

Board 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 31^st 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 ended
31^st March, 2025.

4. Proper and sufficient care was taken for the
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 Bank's
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 & CEO¹