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15 fo"k; lwph i`"b lafuns'kdksa dh fjiksvz 3-21 çca/u laca/h fopkj&foe'kz,oa fo'ys"k.k fuxfer 'kklu ij ys k ijh{kdksa dk çek.k&i=k fuxfer 'kklu ij fjiksvz foùkh; fooj.k i=k (lksyks) 69 & rqyu&i=k & ykhk&gkfu krk & krksa ls lecfu/r fviif.k;ka & udnh çokg fooj.k&i=k & ys kijh{kdksa dh fjiksvz lesfdr foùkh; foojf.k;ka 125 & rqyu&i=k & ykhk&gkfu krk & krksa ls lecfu/r fviif.k;ka & udnh çokg fooj.k&i=k & ys kijh{kdksa dh fjiksvz Contents ys k ijh{kd lwjh,am d-,l-ih-,e-th-,am d-,e-ds-ih-,l-,am,lksfl,v~l th-,l- ekfkqj,am d-,p-mh-,l-th-,am,lksfl,v~l AUDITORS 'ks;j varj.k,tsav chvy iqkbzusaf'k;y,am de;wvj lfozflt (çk-) fy] ^chvy gkml*] r`rh; ry] 99] enuxhj] yksdy 'kkwfiax lsavj ds ihns] ubz fnyyh & Vsyh- ua /82/83] iqsdl % bzesy% SHARE TRANSFER AGENT 1 1 PNB Abridged AR indd 1 13-Jul-18 4:59:03 PM

16 1 PNB Abridged AR indd 2 13-Jul-18 4:59:10 PM

17 funs'kd fjiksvz Directors' Report 3 1 PNB Abridged AR indd 3 13-Jul-18 4:59:22 PM

18 Ø- la- isjkehvj S. No PARAMETERS 1 'ks;j iwath Share Capital 2 vkjf{kr fufèk;k Reserves & Surplus 3 tekjkf'k;ka Deposits 4 vfxze Advances 5 dqy dkjksckj Total Business 6 dqy vkflr;ka Total Assets 7 'kq¼ fuos'k Net Investment 8 dqy 'kk[kk,a* (la[;k) Total Branches*( Number) 9,Vh,e usvodz (la[;k) ATM Network ( Number) 10 ifjpkyu ykhk 11 dqy izkoèkku Total Provisions 12 'kq¼ ykhk 13 dkjksckj@dezpkjh (` yk[k esa) Business/Employee (` lakh) 14 ½.k&tek vuqikr (%) Credit-Deposit Ratio (%) 15 tekjkf'k;ksa dh ykxr (%) Cost of Deposit (%) 16 vfxzeksa ij vk; (%) Yield on Advances (%) 17 fuos'k ij izkfir (%) Yield on Investment (%) 18 'kq¼ C;kt ekftzu (%) Net Interest Margin (%) 19 vkflr;ksa ij izfriqy (%) Return on Assets (%) 20 ykxr vk; vuqikr (%) Cost to Income Ratio (%) 21 ldy,uih, (%) Gross NPAs (%) 22 'kq¼,uih, (%) Net NPAs (%) 23 iwath i;kzirrk vuqikr (csly III) (%) Capital Adequacy Ratio (Basel III) (%) *,d,dlvsa'ku dkmavj lfgr?kjsyw 'kk[kk,a izxfr,d utj esa PROGRESS AT A GLANCE foùk o"kz13 FY 13 foùk o"kz14 FY 14 foùk o"kz15 FY 15 foùk o"kz16 FY 16 (` djksm+ es a) ` foùk o"kz17 foùk o"kz18 FY 17 FY PNB Abridged AR indd 4 13-Jul-18 4:59:22 PM

19 izeq[k foùkh; flfkfr KEY FINANCIAL POSITION 5 1 PNB Abridged AR indd 5 13-Jul-18 4:59:23 PM

20 izeq[k foùkh; flfkfr KEY FINANCIAL POSITION izeq[k vuqikr KEY RATIOS 6 1 PNB Abridged AR indd 6 13-Jul-18 4:59:24 PM

21 funs'kdksa dh fjiksvz vkids funs'kd foùkh; o"kz*18 gsrq csad dh okf"kzd fjiksvz vksj blds ys kijhf{kr okf"kzd foùkh; fooj.k lg"kz vkids le{k çlrqr dj jgs gsaa,- foùkh; çn'kzu vkflr;ka vksj ns;rk,a csad dh dqy vkflr;ka 31 ekpz 2017 ds ` 7]20]331 djksm+ ls 6-32» c<+dj 31 ekpz 2018 ij ` 7]65]830 djksm+ gks xbzaa bl vofèk ds nksjku] csad dk ½.k iksvziqksfy;ks 3-39» c<+dj ` 4]19]493 djksm+ ls ` 4]33]735 djksm+ gks x;ka 31 ekpz 2018 ij 'kq¼ fuos'k 7-27» c<+dj ` 1]86]725 djksm+ ls ` 2]00]306 djksm+ gks x;ka fuos'k dk,d cm+k fgllk?kjsyw cktkj dh ljdkjh çfrhkwfr;ksa esa FkkA 31 ekpz 2018 ij vkids csad dh dqy ns;rk,a (iwath o vkjf{kr fufèk;ksa dks NksM+dj) 6-86» c<+dj `7]24]755 djksm+ jghaa bl vofèk ds nksjku] tekjkf'k;ka 3-3» c<+dj `6]21]704 djksm+ ls `6]42]226 djksm+ gks xbzaa 'kq¼ C;kt vk; foùkh; o"kz*18 ds nksjku vkids csad dh 'kq¼ C;kt vk; `14]922 djksm+ jgha o"kz ds nksjku C;kt vk; `47]996 djksm+ jgha C;kt O;; `33]073 djksm+ jgs ftlesa ls tekjkf'k;ksa ij C;kt O;; `30]456 djksm+ jgka foùkh; o"kz*18 ds nksjku fuos'k ij vftzr C;kt us 10-9» dh o`f¼ n'kkzbza csad dh 'kqyd vkèkkfjr vk; esa Hkh 10» dh o`f¼ ntz dh xbz tcfd O;kikj ykhk ls vk; esa 22-7» dh o`f¼ ntz dh xbza ifjpkyu ykhk vkids csad dh dqy vk; foùkh; o"kz*17 ds `56]227 djksm+ ls c<+dj foùkh; o"kz*18 esa `56]877 djksm+ jgh] tcfd dqy O;; foùkh; o"kz*17 ds `41]662 djksm+ ls c<+dj foùkh; o"kz*18 esa `46]582 djksm+ gks x,] ftlds ifj.kkelo:i foùkh; o"kz*18 esa `10]294 djksm+ dk dqy ifjpkyu ykhk gqvka rfkkfi] vutzd vkflr;ksa ds fy, mpp çkoèkkuhdj.k] Vªstjh iksvziqksfy;ks esa,evh,e?kkvs vksj èkks kèkm+h lacaèkh çkoèkkuksa ds dkj.k foùkh; o"kz*18 ds nksjku csad us `12]283 djksm+ dk 'kq¼?kkvk n'kkz;k gsa çkoèkku,oa vkdfledrk,a vkids csad us finys o"kz ds `12]554 djksm+ dh rqyuk esa foùkh; o"kz*18 ds nksjku `29]869 djksm+ dh jkf'k ds vfèkd çkoèkku (dj dks NksM+dj) fd, gsaa ;g o`f¼ eq[; :i ls foùkh; o"kz*17 dh `12]704 djksm+ dh rqyuk esa bl o"kz `24]453 djksm+ ewy; dh vutzd vkflr;ksa gsrq fd, x, vfèkd çkoèkkuksa rfkk xr o"kz ds `487 djksm+ dh rqyuk esa bl o"kz `2027 djksm+ ds fuos'k ij ewy;ßkl ds dkj.k gqbza 31 ekpz 2018 ij csad dk çkoèkku dojst vuqikr 58-42» FkkA bam,,l (Hkkjrh; ys k ekud) ds dk;kzuo;u ij çxfr vkjchvkbz us bam,,l ds dk;kzuo;u dks 05 vçsy 2018 dh çsl fokfir (2017&18@2642) ds ekè;e ls foùkh; o"kz 2019&20 ds fy, LFkfxr dj fn;k gsa csad us bam,,l (Hkkjrh; ys k ekud) DIRECTORS REPORT Your Directors take pleasure in placing the Bank s Annual Report for FY 18 along with its audited Annual Financial Statements. A. Financial Performance Assets and Liabilities Total Assets of the Bank increased by 6.32% from ` 7,20,331 crore as at 31st March 2017 to ` 7,65,830 crore as at 31st March During the period, the loan portfolio of the Bank increased by 3.39% from ` 4,19,493 crore to ` 4,33,735 crore. Net Investment increased by 7.27% from ` 1,86,725 crore to ` 2,00,306 crore as at 31st March A major portion of the investment was in the Domestic Market in Government Securities. Your Bank s Aggregate Liabilities (excluding Capital and Reserves) rose by 6.86% to ` 7,24,755 crore as at 31st March The Deposits rose by 3.3% from ` 6,21,704 crore to ` 6,42,226 crore during this period. Net Interest Income Net Interest Income of your Bank stood at `14,922 crore during FY 18. Interest Income during the year was ` 47,996 crore. Interest Expenses was ` 33,073 crore out of which Interest expenses on Deposits was ` 30,456 crore. Interest Earned on Investments showed a growth of 10.9% during FY 18. Fee Based Income of the Bank also registered a growth of 10% while Income from Trading Total Income of your Bank increased from ` 56,227 crore in FY 17 to ` 56,877 crore during FY 18 while Total Expenses increased from ` 41,662 crore in FY 17 to ` 46,582 crore ` 10,294 crore during FY 18. However, Bank has posted a Net Loss of ` 12,283 crore during FY 18 due to the higher provisioning for Non Performing Assets, MTM losses in treasury portfolio and provisioning on fraud. Provisions and Contingencies During FY 18, your Bank has created a higher amount of provisions (other than tax) of ` 29,869 crore compared to ` 12,554 crore last year. The increase was primarily due to increase in provisions on Non Performing Assets of ` 24,453 crore against ` 12,704 crore in FY 17 and depreciation on investment of ` 2027 crore against ` 487 crore last year. Provision Coverage Ratio of the Bank was 58.42% as at 31st March Progress on Implementation of IND AS (Indian Accounting Standards) RBI has deferred implementation of IND AS to FY vide Press Release ( /2642) dated 5 th April The Bank has already commenced the process of IND 7 2 PNB Full AR indd 7 13-Jul-18 4:27:09 PM

22 ch- ds dk;kzuo;u dh çfø;k foùkh; o"kz 2016&17 ls igys gh vkjahk dj nh gsa bam,,l ds dk;kzuo;u dh çxfr dh fuxjkuh gsrq dk;zikyd funs'kd dh vè;{krk rfkk csad ds fofhkuu dk;kzred {ks=kksa ds egkçcaèkdksa dh lnl;rk okyh lapkyu lfefr dk xbu fd;k x;k gs vksj blds dk;kzuo;u esa egroiw.kz çxfr gqbz gsa vkidk csad vc dksj csafdax ç.kkyh esa ;Fkko';d ifjorzuksa dk vkdyu dj jgk gs vksj visf{kr ½.k gkfu ekwmy rs;kj djus dk dk;z igys gh vkjahk dj pqdk gsa ifjpkyu lacaèkh fo'ks"krk,a foùkh; o"kz*18 dh vafre frekgh ds nksjku eqacbz dh czsmh gkml 'kk k esa `14]357 djksm+ dh èkks kèkm+h ds dkj.k csad dks cm+k >Vdk yxka dfbu ifjflfkfr;ksa ds ckotwn] csad us leekutud çn'kzu fd;k vksj dbz u, dhfrzeku LFkkfir fd,a foùkh; o"kz*18 esa csad ds ifjpkyu dh dqn fo'ks"krk,a uhps lwphc¼ gsa% foùkh; csad us?kjsyw dkjksckj `10 yk djksm+ ls vfèkd jgus ds lkfk,d u;k dhfrzeku LFkkfir fd;ka dklk tekjkf'k;ka?kjsyw tekjkf'k;ksa esa 43-85» dh fgllsnkjh ds lkfk lkoztfud {ks=kksa ds csadksa ds chp lokzfèkd cuh jghaa tekjkf'k;ksa dh ykxr 5-33» ls?kvdj 4-96» gks xbza foùkh; o"kz*18 ds nksjku qnjk vfxzeksa esa 15-5» vksj vkokl ½.k lsxesav esa 16-6» dh o`f¼ gqbza foùkh; o"kz*18 ds nksjku çkfkfedrk {ks=k ds rgr lhkh çeq y{; çkir fd, x,a iw th o"kz ds nksjku] csad us iwath dks c<+kus ds fy, ;ksx; lalfkkxr IyslesaV (D;wvkbZih) ds ekè;e ls `5000 djksm+ tqvk,a lkfk gh] ljdkj us Hkh ekpz*18 esa `5473 djksm+ dk fuos'k fd;ka èku çcaèku lsok,a vius xzkgdksa dh fujarj c<+rh vko';drkvksa dks iwjk djus ds fy,] csad us 3 chek daifu;ksa vksj 4 E;wpqvy iqam,,elh (vkflr çcaèku daifu;ksa) ds lkfk u, forj.k vuqcaèk fd,a csad vius xzkgdksa dks fofoèk u, foùkh; mriknksa dk çfr&foø; o mifj&foø; djus dh vpnh flfkfr esa gsa foùkh; o"kz*18 ds nksjku chek o E;wpqvy iqam (,e,iq) ls çkir vk; esa 31-1» dh o`f¼ gqbza vkbzvh rfkk fmftvy igy csad us xzkgd vuqhko dks csgrj cukus gsrq vius lhch,l IysViQkWeZ dks fiqukdy 10-x laldj.k esa liqyrkiwozd vixzsm fd;k gsa bavjusv csafdax mi;ksxdrkzvksa esa 35» ls vfèkd vksj eksckby csafdax mi;ksxdrkzvksa esa 45» ls vfèkd o`f¼ ds lkfk csad us vius fmftvy vkèkkj dks c<+k;k gsa bl fn'kk esa csad us igyh iw.kzr;k fmftvy 'kk k ^ih,uch fmthgv* Hkh ksyh gsa AS (Indian Accounting Standards) implementation from A Steering Committee headed by the Executive Director and comprising of General Managers from various cross functional areas of the Bank has been formed to monitor the progress of the implementation of IND AS and substantial progress has been made in its implementation. Your Bank is now assessing the changes, wherever required in the core banking system and has already initiated formulation of Expected Credit Loss Models. B. Operational Highlights During the last quarter of FY 18, the Bank faced a serious setback due to a fraud of `14,357 crore at Brady House branch in Mumbai. Despite trying circumstances, the Bank performed creditably and reached several new milestones. Some of the operational highlights of FY 18 are listed below: Financial Bank achieved a new landmark with Domestic Business crossing `10 lakh crore. CASA Deposits remained highest amongst PSBs with 43.85% share in Domestic Deposits. Cost of Deposits declined from 5.33% to 4.96%. Retail Advances grew by 15.5% during FY 18 with 16.6% growth in Housing Loan Segment. All major goals under Priority Sector achieved during FY 18. Capital During the year, Bank raised ` 5000 crore through capital. Further, the Govt. infused ` 5473 crore in March Wealth Management Services the Bank entered into new distribution arrangements with 3 Insurance Companies and 4 Mutual Funds AMCs (Asset Management Companies). The Bank is well positioned to cross-sell and up-sell a full suite Income from Insurance and Mutual Funds (MFs) increased by 31.1% during FY 18. IT and Digital Initiatives Successfully upgraded the CBS platform to Finacle 10.x version for better customer experience. The Bank increased its Digital Base with more than 35% rise in Internet Banking Users and more than 45% in Mobile Banking Users. In this direction, PNBDIGIHUT. 8 2 PNB Full AR indd 8 13-Jul-18 4:27:10 PM

23 lh- csad us fmftvy ysunsuksa dks c<+kok nsus ds fy, ih,uch ekschbzt] ih,uch fjokwmzt] ih,uch fiqu fyvjslh] ih,uch ;qok] ih,uch,vh,e vfllv] ih,uch,e&csafdax] ih,uch fdêðh vkfn tslh fofhkuu fmftvy,fiyds'ku vkjahk dh gsaa lkfk gh] foùkh; o"kz*18 esa ih,uch,e&iklcqd dks Hkh ykwup fd;k x;k ftlds ekè;e ls xzkgd vius eksckby iqksu ij viuh krk fooj.kh ns ldrs gsaa floýv dks dksj csafdax ç.kkyh (lhch,l) ds lkfk,dhñr fd;k x;k] tgk lhkh tkod Hkqxrkuksa ds floýv lans'k lhch,l ds ekè;e ls fdlh esu;qvy glr{ksi ds fcuk Lopkfyr :i ls mriuu gksrs gsaa ifjorzudkjh çfø;k dkjksckjh mrñ"vrk dh fn'kk esa ^fe'ku ifjorzu* uked ifjorzudkjh çfø;k vkjahk dh xbz ftlls yksxksa] çfø;kvksa,oa ls lacafèkr csad dh xfrfofèk;ksa dks cksmz }kjk vuqeksfnr dkjksckjh j.kuhfr o fotu ds vksj vfèkd vuq:i cuk;k tk ldsa fe'ku ifjorzu ds dk;kzuo;u gsrq lajfpr n`f"vdks.k lqfuf'pr djus ds fy, ^fe'ku ifjorzu* uked Lora=k çhkkx vkjahk fd;k x;ka ;g çhkkx csad ds ffkad VSad ds :i esa dk;z djrk gs vksj fn'kkred@uhfrxr buiqv çnku djrk gsa ;g ckwve&vi n`f"vdks.k dk mi;ksx dj uhfr fuekz.k dh çfø;k esa ç-dk- ds çhkkxksa rfkk lelr vkarfjd fgrèkkjdksa dk LokfeRo] çfrc¼rk vksj layxurk c<+kus gsrq,d eap ds :i esa dk;z djrk gsa gkfy;k?kvukøe o mbk, x, dne csad dh czsmh gkml] eqacbz 'kk k esa gqbz èkks kèkm+h esa jru o vkhkw"k.k {ks=k ds dqn krs 'kkfey Fks] tgka csad dh floýv ç.kkyh dk nq#i;ksx dj èkks kèkm+hiwozd rfkk vufèkñr :i ls Hkkjrh; csadksa dh dqn fons'kh 'kk kvksa gsrq opui=k (,yvks;w)@fons'kh lk i=k (,iq,ylh) tkjh fd, x,a bl èkks kèkm+h dh tkap fofhkuu dsaæh; tkap,tsafl;ksa }kjk dh tk jgh gsa fnukad ij ns;,yvks;w@,iq,ylh ds dkj.k mriuu ` djksm+ dh nsunkfj;ksa dks csad }kjk iwjh rjg ls Lohdkjrs gq, Hkqxrku dj fn;k x;k gsa lkfk gh] csad us,d foosdiw.kz mik; ds :i esa fnukad ds ckn ns; gksus okys bl èkks kèkm+h ls lacafèkr 'ks"k,yvks;w@,iq,ylh ds lacaèk esa viuh cfg;ksa esa ` djksm+ dh nsunkfj;ka ntz dj yh gsaa mi;zqùkq lalfkkvksa dks miycèk djkbz xbz vu; ½.k lqfoèkkvksa ds rgr cdk;k jkf'k dks feykus ds ckn] 'kkfey jkf'k ` djksm+ gks tkrh gsa èkks kèkm+h ds dkj.k ekpz*18 esa flyist `7579 djksm+ jgsa vkjchvkbz us csad dks bl èkks kèkm+h ds fy, vu; vkjf{kr fufèk;ksa dks MsfcV fd, 25» dh nj ls çkoèkku djus rfkk 'ks"k jkf'k dk çkoèkku vkxkeh foùkh; o"kz dh igyh rhu frekfg;ksa ds nksjku djus dh vuqefr nha rfkkfi] csad us vhkh"v ls vfèkd ` djksm+ 50» dh nj ls ` djksm+ ds çkoèkku fd, gsaa èkks kèkm+h dk irk yxrs gh csad us ;Fkko';d lqèkkjkred mik; rrdky vkjahk dj fn,a lkfk gh] csad nks"kh dezpkfj;ksa ds fo#¼ Bank launched number of innovative mobile apps in order to facilitate digital transactions such as PNB MobiEase, PNB Rewards, PNB Fin Literacy, PNB Yuva, PNB ATM Assist, PNB m-banking, PNB Kitty, etc. Further, PNB M-Passbook was launched in FY 18 for customers to access their account statement on mobile phones. SWIFT was integrated with Core Banking Solution (CBS), wherein all outward payment SWIFT messages are automatically generated through CBS without any manual intervention. Transformational Exercise Mission PARIVARTAN, a transformational exercise for Business Excellence launched to align Bank s activities relating to people, process & products more aligned to the Board approved business strategy & vision. To ensure a structured approach for implementation of the Mission PARIVARTAN, an independent Division named Mission Parivartan has been started. This Division acts as Think Tank of the Bank providing both directional / policy inputs. It acts as a platform to enhance ownership, commitment and involvement of HO Divisions & all internal stakeholders in the policy-development process using a bottom-up approach. C. Recent developments and steps taken The fraud at Brady House, Mumbai Branch of the Bank involved certain accounts in the Gems & Jewellery sector where Letters of Undertaking (LOUs)/Foreign Letter of Credit (FLCs) were issued fraudulently and in an unauthori ed manner to certain overseas branches of Indian Banks through the misuse of SWIFT system of the Bank. The fraud is under investigation by various central investigating agencies. The liabilities amounting to ` crore on account of LOUs/ FLCs which became due on have been fully honoured and paid by the Bank. Further, as a prudent measure Bank has created liability amounting to ` crore in the books in respect of balance LOUs/FLCs relating to this fraud which are becoming due after After including outstanding amounts under other credit facilities to the above entities, the amount involved works out to ` crore. The slippages due to fraud in March'18 were ` 7579 crore. RBI permitted the Bank to make provisions against this 25% without debiting "Other Reserves" and ` crore amounting to ` crore. As soon as the fraud was detected, the Bank took immediate 9 2 PNB Full AR indd 9 16-Jul-18 1:40:34 PM

24 Mh- mfpr dne mbk jgk gs] èkks kèkm+h djus okyksa ds fo#¼ dkuwuh dk;zokgh dj jgk gs vksj fofu;ked,oa fofèk çorzu,tsafl;ksa ds lkfk iw.kz lg;ksx dj jgk gsa ç.kkfy;ksa vksj fu;a=k.kksa dks vksj vfèkd lqn`<+ cuk;k x;k gsa floýv dks dksj csafdax ç.kkyh (lhch,l) ds lkfk,dhñr fd;k x;k] tgk lhkh tkod Hkqxrkuksa ds floýv lans'k vc lhch,l ds ekè;e ls fdlh esu;qvy glr{ksi ds fcuk Lopkfyr :i ls mriuu gksus yxs gsaa blds vfrfjùkq] floýv dsaæ] eqacbz esa lhch,l esa ysunsuksa ds fooj.k ds çfrijh{k.k ds ckn gh lhkh tkod foùkh; lans'kksa dk iqu% çek.khdj.k djus vksj blds ckn gh bugsa floýv xsvos lozj ls fudyus dh vuqefr nsus gsrq f=klrjh; iqu% çek.khdj.k dk vfrfjùkq Lrj cukus tsls vfrfjùkq mik; Hkh fd, x, gsaa lhch,l esa esdj&psdj vksj floýv esa iqu% vfèkñrdrkz dh voèkkj.kk ds dkj.k ^8 vka ksa* dk fl¼kar dk;kzfuor fd;k x;k gsa ys kijh{kdksa dks ;g lqfuf'pr djus gsrq funzs'k fn, x, gsa fd 100» lans'k lhch,l ds lkfk ØkWl&psd fd, tk,aa lhch,l esa vyvz dh fuxjkuh ds fy, çks ksfxdh vkèkkfjr vkwiqlkbv ys kijh{kk ç.kkyh fø;k'khy gks pqdh gsa ½.k ewy;kadu vksj fuxjkuh ç.kkyh dks i`fkd dj fn;k x;k gsa O;fÙkQ&lacaèkh tksf e] ifjpkyu&lacaèkh tksf e vksj ½.k&lacaèkh tksf e dks de djus dh fn'kk esa ½.kksa dh lksflzax] vkjafhkd leqfpr lkoèkkuh] çlaldj.k] fuxjkuh rfkk olwyh ds fy, vyx ofvzdy cuk, x, gsaa jk"vªh; csafdax rfkk çcaèku lalfkku (,uvkbzch,e)] iq.ks tsls çfrf"br lalfkku ds ekè;e ls csad dh ys kijh{kk ç.kkyh dh O;kid leh{kk djkbz tk jgh gsa,uvkbzch,e }kjk lq>k, x, lqèkkj csad dh ys kijh{kk ç.kkyh esa 'kkfey fd, tk,axs ftlls bls vksj vfèkd etcwr,oa fo'oluh; cuk;k tk,xka vkflr xq.koùkk 31 ekpz 2018 ij] csad dk ldy,uih, `86]620 djksm+ (31 ekpz 2017 ij `55]370 djksm+) vksj fuoy,uih, `48]684 djksm+ (31 ekpz 2017 ij `32]702 djksm+) jgka vuqikrksa ds lanhkz esa] ekpz*18 esa ldy,uih, vuqikr 18-38» (ekpz*17% 12-53») o fuoy,uih, vuqikr 11-24» (ekpz*17% 7-81») jgka foùkh; o"kz*18 ds nksjku vkjahk dh xbz igysa% o"kz ds nksjku] csad us nks fo'ks"k vksvh,l ;kstuk,a cukbza ftuds ifj.kkelo:i `2299 djksm+ dh cdk;k jkf'k okys 2]70]633 vksvh,l vuqeksfnr ekeyksa esa `1544 djksm+ dh olwyh gqbza csad us fo'ks"k :i ls NksVs vfxzeksa lfgr lhkh vfxzeksa esa olwyh dks c<+kok nsus ds fy, esxk ½.k eqfùkq f'kfoj Hkh vk;ksftr fd,a mèkkjdrkzvksa ls olwyh ds fy, fe'ku xkaèkhfxjh dk vkjahk fd;k x;k ftlesa vfm+;y mèkkjdrkzvksa ds ifjlj ds lkeus eksu çn'kzu@fojksèk çn'kzu fd, x,a çr;sd ekg@frekgh@o"kz ds nksjku,uih, krksa esa olwyh ds {ks=k esa mrñ"v fu"iknu djus okyksa dks leekfur djus ds fy, fjdojh psafi;al dh voèkkj.kk 'kq: dh xbz gsa appropriate steps against erring employees, legal action against the fraud perpetrators and closely cooperating with the regulators and law enforcement agencies. The systems and controls have been further strengthened. SWIFT was integrated with Core Banking Solution (CBS), whereby all outward payment SWIFT messages are now automatically generated through CBS without any manual intervention. Besides, additional measures of placing an additional tier of 3rd level authentication, at SWIFT Centre, messages only after cross checking details of transactions in CBS and thereafter, allowed to pass through SWIFT Gateway server have been put in place. The concept of 8 eyes principle. Auditors were instructed to ensure that 100% messages are cross-checked with CBS. Technology based offsite audit system for monitoring alerts in CBS is in operation now. Loan appraisal and monitoring system have been segregated. Different verticals have been created for sourcing, initial due diligence, processing, monitoring and recovery of loans for reducing people risk, operational risk and credit risk. A comprehensive review of the Bank s Audit system is being undertaken through a reputed institution, National Institute of Banking and Management (NIBM), Pune. Suggested improvements will be incorporated in the Audit System of the Bank to make it more robust and reliable. D. Asset Quality The Bank s Gross NPA stood at ` 86,620 crore as at 31st Mar'18 (` 55,370 crore as at 31st Mar 17) and the Net NPA stood at ` 48,684 crore as at 31st Mar 18 (` 32,702 crore as at 31st Mar 17). In terms of ratios, Gross NPA ratio stood at 18.38% in Mar 18 (Mar 17:12.53%) and Net NPA ratio stood at 11.24% in Mar 18 (Mar 17: 7.81%). Initiatives taken during FY 18 During the year, the Bank formulated two special OTS schemes resulting in the recovery of ` 1544 crore in 2,70,633 OTS approved cases with balance outstanding of ` 2299 crore. impetus to recovery especially in small advances. Mission Gandhigiri was launched for recovery from borrowers wherein silent protests/demonstrations were made in front of premises of recalcitrant borrowers. Concept of Recovery Champions has been introduced to felicitate the outstanding performers in month/quarter/year PNB Full AR indd Jul-18 4:27:10 PM

25 bz- vkflr olwyh çcaèku 'kk kvksa (,vkj,ech)] Lrjh; olwyh Vheksa rfkk vr;fèkd,uih, gsrq fpfér 50 'kk kvksa esa dk;zjr dezpkfj;ksa ds fy, çeq mùkjnkf;ro {ks=kksa (dsvkj,) dh igpku dh xbza Hkkjrh; fjtoz csad ds fn'kkfunzs'kksa ds vuqlkj] bjknru pwddrkzvksa ds :i esa fpfér fofhkuu mèkkjdrkzvksa dks uksfvl tkjh fd, x,a bl çfø;k ds ifj.kkelo:i] fnukad rd 1089 mèkkjdrkz bjknru pwddrkz?kksf"kr fd, x, FksA krk fof'k"v fuxjkuh ds fy, fo'ks"k MsLd fuèkkzfjr fd, x, gsa] ftudk usr`ro 3 lgk;d egkçcaèkd djrs gsa tks `1 djksm+ o blls vfèkd ds lhkh,uih, dh fuxjkuh djrs gsa vksj O;fÙkQxr krksa esa olwyh dkjzokbz dk vuqikyu lqfuf'pr djrs gsaa vks ksfxd iqujzpuk nckoxzlr vkflr;ksa ds lekèkku lacaèkh ekstwnk funzs'k tsls fd nckoxzlr vkflr;ksa ds iqu#¼kj dh :ijs k] daiuh dtz iqujzpuk (lhmhvkj) ;kstuk] ekstwnk nh?kzdkfyd ifj;kstuk ½.kksa dh yphyh lajpuk] j.kuhfrd dtz iqujzpuk (,lmhvkj) ;kstuk],lmhvkj ds ckgj LokfeRo esa ifjorzu vksj nckoxzlr vkflr;ksa dh èkkj.kh; lajpuk gsrq ;kstuk (,l4,) fnukad ls gvk fn, x, gsaa,sls krs tgka buesa ls dksbz Hkh ;kstuk vkjahk dh xbz gs ij vc rd ykxw ugha dh xbz gs lfgr lhkh krs la'kksfèkr :ijs k }kjk fu;af=kr gksaxsa fueufyf r krs iqjkuh :ijs k }kjk gh fu;af=kr gksaxs D;ksafd ekstwnk lekèkku ;kstuk,a igys gh ykxw dh tk pqdh gsa% Ø- la- ;kstuk dk uke ij krksa dh la[;k ij cdk;k jkf'k (#- djksm+ esa) 1 daiuh dtz iqujzpuk nckoxzlr vkflr;ksa dh èkkj.kh; lajpuk gsrq ;kstuk 3,lMhvkj ds ckgj LokfeRo esa ifjorzu 4 nh?kzdkfyd ifj;kstuk ½.kksa dh yphyh lajpuk * *iqufozùk ½.k dh jkf'k (i) lw{e] y?kq o eè;e m eksa ds iqu#¼kj vksj iquokzl dh :ijs k (,e,l,ebz gsrq,iqvkjvkj),e,l,ebz krksa esa ncko dk lekèkku djus vksj muds iqu#¼kj ds fy,,d ljy o Rofjr ra=k çnku djus dh fn'kk esa csad us y?kq vksj eè;e m eksa ds fy, dtz iqujzpuk ra=k (Mhvkj,e) ds LFkku ij fnukad ls,e,l,ebz ds iqu#¼kj o iquokzl dh ubz :ijs k (,iqvkjvkj) ds rgr uhfr viukbz gsa Key Responsibility Areas (KRAs) have been Management Branches (ARMBs), Recovery Teams having large concentration of NPAs. As per Reserve Bank of India guidelines, notices as willful defaulters. This exercise resulted in declaration of 1089 Wilful Defaulters as on Special Desks set up for account who are monitoring all NPAs of ` 1 crore & above and ensuring compliance of recovery actions in individual accounts. E. Industrial Restructuring The extant instructions on Resolution of Stressed Assets, Corporate Debt Restructuring Scheme, Flexible Structuring of Existing Long Term Project Loans, Strategic Debt Restructuring Scheme (SDR), Change in Ownership outside SDR and Scheme for Sustainable Structuring of Stressed Assets (S4A) stand withdrawn w.e.f All accounts, including those where any of the schemes have been invoked but not yet implemented, will be governed by the revised framework. Following accounts will continue to be governed under the old framework as the existing resolution schemes have already been implemented. Sr. No Name of the scheme No. of accounts as on Amount outstanding as on (in ` Crore) 1 Corporate Debt restructuring 2 Scheme for Sustainable Structuring of Stressed Asset 3 Change of Ownership outside SDR 4 Flexi Structuring of Long Term Projects * (i) Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises (FRR for MSMEs) In order to provide a simpler and faster mechanism to address the stress in MSME accounts and their revival, Bank has adopted the policy under New Framework for Revival and Rehabilitation (FRR) of MSMEs w.e.f in place of Debt Restructuring Mechanism (DRM) for Small and Medium Enterprises PNB Full AR indd Jul-18 4:27:10 PM

26 foùkh; o"kz*18 ds nksjku],e,l,ebz gsrq,iqvkjvkj ds rgr `55 djksm+ cdk, okys 12 krksa dh iqujzpuk dh xbza (ii) iqujzpuk&vu; vius fu;a=k.k ls ckgj ds dkj.kksa ls vlfkk;h lel;kvksa dk lkeuk dj jgh lahkko; vfkz{ke bdkb;ksa ds dtz dh iqujzpuk ds fy, Hkh csad esa,d ikjn'khz ra=k fo eku gsa blesa,sls ekeyksa dks doj fd;k x;k gs tks iqjkuh :ijs k ds rgr ekstwn ;kstukvksa }kjk fu;af=kr ugha gksrs gsaa foùkh; o"kz*18 ds nksjku] `1099 djksm+ cdk, okys,sls 846 krksa esa iqujzpuk dh xbza fnukad ij] iqujzpuk ykxw fd, x, 892 krksa esa cdk;k jkf'k `7584 djksm+ FkhA,iQ- lwpuk çks ksfxdh rfkk fmftvyhdj.k lrr uoçorzuksa vksj ekstwnk mriknksa o lsokvksa esa muu;u ds ekè;e ls csad fmftvyhdj.k ds ifk ij fujarj vxzlj gsa csad vius lhkh xzkgdksa dks fparkeqùkq vksj lqfoèkktud csafdax lsok,a çnku djrk jgk gsa foùkh; o"kz*18 esa fmftvy ysunsuksa dh dqy la[;k us o"kz&nj&o"kz vkèkkj ij 25» ls vfèkd dh o`f¼ ntz dh vksj dqy ysunsuksa esa fmftvy ysunsuksa dh Hkkxhnkjh 69» jgha osdfyid forj.k psuy v) bavjusv csafdax% 31 ekpz 2018 ij] csad us vius fjvsy rfkk dkwikzsjsv lsxesav~l ds varxzr vkbzch,l mi;ksxdrkzvksa ds lacaèk esa 37» dh o`f¼ çnf'kzr dh gsa csad us ekstwnk ekwmyksa dks vksj Hkh vfèkd muur cukus dh fn'kk esa vkèkkj lhfmax] isu lhfmax rfkk bavjusv csafdax ds ekè;e ls krksa esa bz&esy vkbzmh vimsv djus tslh lqfoèkkvksa dk vkjahk fd;k gsa vk) eksckby csafdax% foùkh; o"kz*18 ds nksjku eksckby csafdax mi;ksxdrkzvksa dh la[;k esa 46» o`f¼ gqbza Mªd ih,uch HkwVku ds xzkgdksa fy, Hkh eksckby csafdax lqfoèkk vkjahk dh xbza (yk esa) (ii) During FY 18, 12 accounts, with outstanding of ` 55 crore, were restructured under FRR for MSME. Restructuring-Others The Bank has also in place, a transparent mechanism for restructuring of debts of potentially viable units, which are facing temporary problems due to factors beyond their control. This covers the cases which cannot be governed in the schemes under the old framework. During FY 18, 846 such accounts with outstanding of ` 1099 crore have been restructured. As on , outstanding in 892 implemented restructured accounts stood at ` 7584 crore. F. IT and Digitalization through constant innovations and upgradations of its existing products and services. The Bank has been providing hassle free and convenient banking services to all its customers. Total Number of digital transactions in FY 18 registered growth of more than 25% on YoY basis and the share of digital transactions in total transactions stood at 69%. Alternative Delivery Channels a) Internet Banking: As at 31st March 2018, under its retail and corporate segments, the Bank has shown growth of 37% in respect of IBS users. In order to further upgrade the existing models, the Bank has introduced Aadhar seeding, PAN seeding and updating id into accounts through Internet Banking. b) Mobile Banking: There was a growth of 46% in Mobile banking users during FY 18. Mobile Banking for the customers of DrukPNB, Bhutan was also introduced. (in Lakh) bavjusv csafdax rfkk eksckby csafdax mi;ksxdrkz b),vh,e% csad ds ikl 6 djksm+ ls vfèkd dkmks± ds lqn`<+ vkèkkj ds lkfk 9668,Vh,e dk fo'kky usvodz gsa csad us xfr'khy eqæk :ikarj.k] ikwivi ds ekè;e ls,vh,e esa vkèkkj lhfmax vksj ih,uch,vh,e ij tslhch@;wihvkbz dkmz ysunsu dh lqfoèkkvksa dk vkjahk fd;k gsa csad ewyhkwr,vh,e ysunsu lsok,a çnku djus ds vfrfjùkq dbz vu; lsok,a Hkh çnku dj jgk gsa bz) csad us fmftvy ysunsuksa dks c<+kok nsus ds fy, ih,uch ekschbzt] ih,uch fjokwmzt] ih,uch fiqu fyvjslh] ih,uch c) ATMs: The Bank has a vast Network of 9668 ATMs with a strong card base of more than 6 crore. The Bank has introduced Dynamic Currency Conversion, Aadhar seeding through pop-up in ATMs and JCB/ UPI card transaction on PNB ATMs. The Bank is offering a host of other services apart from providing basic ATM transaction services. d) Bank has introduced different digital applications in order to facilitate digital transactions such as PNB 12 2 PNB Full AR indd Jul-18 4:27:11 PM

27 ;qok] ih,uch,vh,e vfllv] ih,uch,e&csafdax] ih,uch fdêðh vkfn tslh fofhkuu fmftvy,fiyds'ku vkjahk dh gsaa lkfk gh] foùkh; o"kz*18 esa ih,uch,e&iklcqd dks Hkh ykwup fd;k x;k ftlds ekè;e ls xzkgd vius eksckby iqksu ij gh viuh krk fooj.kh ns ldrs gsaa egroiw.kz xfrfofèk;ka csad us eqfær,vh,e fiu ds LFkku ij dkxt&jfgr xzhu fiu],l,e,l o bavjusv csafdax rfkk dkwy lsavj esa miycèk bavjsfdvo okw;l fjlikal fllve (vkbzohvkj,l) ds ekè;e ls MsfcV dkmz dh rrdky gkwv&fyflvax tslh igy vkjahk dh gsaa csad us bavhxzsvsm iqh iksvzy (vkbz,iqih) ykwup fd;k ftlesa xzkgdksa dks bavjusv csafdax xsvos ds ekè;e ls 'kqyd Hkqxrku gsrq çsfjr fd;k tkrk gsa xzkgd bavjusv csafdax] MsfcV dkmz o ØsfMV dkmz ds ekè;e ls fdlh Hkh le; ;s Hkqxrku dj ldrs gsaa csad us Hkkjr fcy Hkqxrku çpkyu ç.kkyh ds varxzr çpkyu bdkbz ds :i esa dk;z djus ds fy,,uihlhvkbz ds lkfk,dhdj.k fd;k gs vksj bls flracj 2017 esa lfø; dj fn;k x;k gsa csad us chlh LFkkuksa ij ge&ij (vkwu&vl) vksj gels&brj (vkwiq&vl) nksuksa gh çdkj ds ysunsu ds fy, ekbøks,vh,e lqfoèkk,a miycèk djkbz gsaa lwpuk lqj{kk% csad esa lqfu:fir lkbcj lqj{kk uhfr lfgr lwpuk lqj{kk uhfr ekstwn gsa fdlh Hkh çdkj dh lkbcj?kvuk ls fuivus ds fy, csad }kjk lkbcj ladv çcaèku ;kstuk Hkh cukbz xbz gsa csad ds MsVk lsavj] usvodz vkwijsfvax dsaæ (,uvkslh) vksj vkink cgkyh (Mhvkj) lkbv o"kz 2016&19 dh vofèk ds fy, vkbz,lvks 27001%2013 çekf.kr gsaa fmftvy mriknksa ds mi;ksx dks c<+kus ds fy, csad us fofhkuu fmftvy vfhk;kuksa o fmftvy fnolksa dk vk;kstu fd;k gsa csad us çèkku dk;kzy;] }kjdk esa fmftvy 'kk k ds igys çwiq vkwiq dkwulsiv (ihvkslh) ekwmy ih,uch fmthgv dk 'kqhkkjahk Hkh fd;k gsa th- çcaèku lwpuk ç.kkyh foùkh; o"kz*18 ds nksjku flfcy],dlihfj;u] gkbz ekdz vksj bfdoiqsdl MsVkcsl ls lahkkfor mèkkjdrkzvksa dh mihkksùkqk Js.kh ds rgr 17]40]263 lk lwpuk fjiksvz (lhvkbzvkj) vksj okf.kft;d Js.kh ds rgr yxhkx 35]000 lhvkbzvkj çkir dh xbzaa ekpz*18 rd csad }kjk çfrhkwfrdj.k] vkflr iqujzpuk,oa çfrhkwfr fgr gsrq Hkkjr dh dsaæh; jftlvªh (lhbzvkj,l,vkbz) ds lkfk yxhkx 5-29 yk vpy laifùk;ka (vkbzih) vksj py laifùk;ka iathñr djkbz xbzaa ih,uch èku&'kksèku fuokj.k (,,e,y) esa] çksmd'ku lozj esa dqy 79 ifjn`'; ykxw fd, x, tcfd ih,uch }kjk çk;ksftr {ks=kh; xzkeh.k csadksa (vkjvkjch) esa dqy 55 ifjn`'; ykxw fd, x,a MobiEase, PNB Rewards, PNB Fin Literacy, PNB Yuva, PNB ATM Assist, PNB m-banking, PNB Kitty, etc. Further, PNB M-Passbook was launched in FY 18 for customers to access their account statement on mobile phone itself. Important Developments The Bank has started initiative of paperless Green PIN instead of printed ATM PIN, Instant Hot-listing of Debit Cards through SMS, Internet Banking and through Interactive Voice Response System (IVRS) at call centers. The Bank launched Integrated Fee Portal (IFP) in which the customers are on-boarded for fee payments through Internet Banking Gateway. Customers can make these payments through Internet Banking, Debit card and Credit card anytime. The Bank has integrated with NPCI to work as an operating unit under Bharat Bill Payment Operating Unit and it was made live in September The Bank has provided Micro ATM facilities at BC locations for both i.e., On-US and Off-US transactions. Information Security: The Bank has Information Security Policy and a well delineated Cyber Security Policy. The Bank has a Cyber Crisis Management Plan to handle any kind of cyber incident. Data Centre of the Bank, Network Operating Centres (NOC) and Disaster Recovery (DR) site are ISO and Digital Days for increasing the usage of digital products. Model of Digital Branch PNB DIGIHUT at Head G. Management Information System During FY 18, 17,40,263 Credit Information Reports (CIRs) of prospective borrowers under Consumer category and around 35,000 CIRs under Commercial category were drawn from CIBIL, Experian, High Mark & Equifax databases. Around 5.29 lakh Immovable Properties (IP) & Movable properties were registered with Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) by Bank till March 18. In PNB Anti Money Laundering (AML), a total of 79 scenarios implemented in production server while in PNB Sponsored Regional Rural Banks (RRBs), a total of 55 scenarios were implemented PNB Full AR indd Jul-18 4:27:11 PM

28 ,p- 'kk k,oa dk;kzy; usvodz?kjsyw miflfkfr fnukad dh flfkfr ds vuqlkj] csad ds ikl 6983?kjsyw 'kk kvksa ds lkfk lkoztfud {ks=k ds csadksa ds chp nwljk lcls cm+k usvodz gs] ftlesa 1283 egkuxjh;] 1392 'kgjh] 1731 vèkz'kgjh vksj 2577 xzkeh.k 'kk k,a 'kkfey gsaa xzkeh.k o vèkz'kgjh 'kk k,a dqy 'kk k usvodz dk 62» FkhaA Domestic Presence The Bank has the second largest branch network amongst PSBs with 6983 domestic branches as on comprising of 1283 Metropolitan, 1392 Urban, 1731 Semi- Urban and 2577 Rural branches. Rural and Semi Urban Branches (RUSU) comprise 62% of the Total Branch Network. 'kk k,a varjjk"vªh; miflfkfr orzeku esa] 4 'kk kvksa (gkaxdkax esa 2] nqcbz esa 1 vksj eqacbz flfkr vkwiq'kksj csafdax ;wfuv (vksch;w) esa 1)] 2 vuq"kafx;ksa (yanu o HkwVku)] 1 lgk;d daiuh (dtk Lrku)] 1 la;qùkq m e (usiky) vksj 3 çfrfufèk dk;kzy;ksa ('ka?kkbz&phu] <kdk&ckaxykns'k vksj nqcbz&;w,bz) ds :i esa csad dh 8 ns'kksa esa varjjk"vªh; miflfkfr gsa vkbz- varjjk"vªh; csafdax foùkh; o"kz*18 gsrq fons'kh eqæk dkjksckj `1]46]683 djksm+ jgk ftlesa o"kz&nj&o"kz vkèkkj ij 4-17» dh o`f¼ ntz dh xbza 31 ekpz 2018 rd] csad ds ikl fons'kh eqæk dkjksckj dk lapkyu djus ds fy, 204 vfèkñr 'kk k,a,oa O;kikfjd ysunsu dk lapkyu djus ds fy, ubz fnyyh esa fo'kskrkçkir O;kikj foùk gsrq dsaæhñr csd vkwfiql gsa csad ds ikl vk;krdksa@fu;kzrdksa dks lsok,a çnku djus ds fy, çeq fu;kzr dsaæksa esa fo'ks"khñr varjjk"vªh; csafdax 'kk k,a gsaa blds vfrfjùkq] csad ds ikl fons'kh i;zvdksa@,uvkjvkbz }kjk fons'kh eqæk uksvksa@;k=kh psdksa ds udnhdj.k dh lqfoèkk ds fy, egroiw.kz i;zvd dsaæksa ij 22,Dlpsat C;wjks gsaa csad ds ikl iwjs csad ds fy, lexz :i ls vkod èkuçs"k.kksa dk lapkyu djus ds fy, ubz fnyyh esa,d varjjk"vªh; lsok 'kk k Hkh gsa foùkh; o"kz*18 ds nksjku] csad us `54]000 djksm+ ls vfèkd ds èkuçs"k.k dkjksckj dk lapkyu fd;ka ts- dkjksckj fofoèkhdj.k E;wpqvy iqam% foùkh; o"kz*18 ds nksjku] csad us ekstwnk xbcaèkuksa ds vfrfjùkq pkj ubz E;wpqvy iqam vkflr çcaèku daifu;ksa vfkkzr,yvkbzlh E;wpqvy iqam,lsv esustesav fyfevsm] fjyk;al fuiikwu ykbiq,lsv esustesav fyfevsm] VkVk,lsV esustesav fyfevsm vksj fcm+yk lu ykbiq E;wpqvy iqam ds lkfk xbcaèku fd;ka foùkh; o"kz*18 ds nksjku] csad us `8242 djksm+ dk dqy dkjksckj tqvk;k vksj 31 ekpz 2018 ij çcaèkukèkhu vkflr;ka (,;w,e) `812 djksm+ jghaa csad us E;wpqvy iqam dh fcøh ls `6 djksm+ dk czksdjst vftzr fd;ka International Presence At present, Bank has its overseas presence in 8 countries by way of 4 branches (2 in Hong Kong, 1 in Dubai and 1 Offshore Banking Unit (OBU) in Mumbai), 2 Subsidiaries (Shanghai-China, Dhaka-Bangladesh and Dubai-UAE). I. International Banking The foreign exchange turnover for FY 18 was `1,46,683 crore registering a growth of 4.17% on YoY basis. As at 31st March 2018, the Bank had 204 branches authorised to handle foreign exchange business and a specialised International Banking Branches at major export centres for extending services to the importer/exporter. Besides, the Bank has 22 Exchange Bureaus at important tourist centres to facilitate encashment of foreign exchange currency notes/traveller cheques by foreign tourists/nris. The Bank is also having an International Service Branch at New Delhi for handling inward remittances for the Bank as a whole. During FY 18, the Bank handled remittance business of more than ` 54,000 crore. Mutual Fund: Besides the existing tie-ups, the Bank during FY 18 tied-up with four new Mutual fund Asset Management Companies namely LIC Mutual Fund Asset Management Limited, Reliance Nippon Life Asset Management Limited, Tata Asset Management Limited and Birla Sun Life Mutual Fund. of `8242 crore and as at 31st March 2018, Assets under Management (AUM) stood at `812 crore. The Bank earned brokerage of `6 crore via. Mutual funds selling PNB Full AR indd Jul-18 4:27:12 PM

29 chek dkjksckj 1- thou chek dkjksckj% thou chek dkjksckj ls csad dh vk; foùkh; o"kz*17 ds nksjku vftzr `110 djksm+ ds eqdkcys foùkh; o"kz*18 ds nksjku `144 djksm+ jgh] tks 31» dh o`f¼ n'kkzrh gsa vkjahk ls vhkh rd lax`ghr dqy O;olk; ikwfyfl;ksa ls `5880 djksm+ jgk vksj dqy vk; `502 djksm+ jgha 2- xsj&thou chek dkjksckj% foùkh; o"kz*18 ds nksjku] csad us xsj&thou chek dkjksckj ds fy, rhu daifu;ksa vfkkzr U;w bafm;k,';ksjsal daiuh fyfevsm] ctkt vkfy;kat tujy ba';ksjsal daiuh fyfevsm vksj jsfyxs;j gsyfk ba';ksjsal daiuh fyfevsm ds lkfk xbcaèku dk vkjahk fd;ka vftzr vk; foùkh; o"kz*17 ds `28 djksm+ ls 29» c<+dj foùkh; o"kz*18 esa `36 djksm+ jgha fmikwftvjh lsok,a% csad us fmikwftvjh lsok,a çnku djus ds fy, foùkh; o"kz*18 ds nksjku `74 yk dh vk; vftzr dha vkwuykbu VªsfMax lsok,a% foùkh; o"kz*18 ds nksjku] vkwuykbu VªsfMax xfrfofèk;ksa ds dkj.k esllz,l,elh Xykscy fld;ksfjvht fyfevsm] esllz vkbzmhchvkbz dsfivy lfozlst fyfevsm vksj esllz usvofkz LVkWd czksfdax fyfevsm tsls lg;ksfx;ksa ls `33-17 yk dh vk; çkir gqbza epzsav csafdax% foùkh; o"kz*18 ds nksjku] csad us 187 fuxze ds lkis{k 9]98]000 ls vfèkd,,lch, vkosnuksa dk çlaldj.k fd;k] ftlls `2952 djksm+ dh jkf'k dks vo#¼ djrs gq, `1-05 djksm+ dh deh'ku vk; lfgr `5 djksm+ ls vfèkd dh dfyir vk; vftzr dh xbza ØsfMV dkmz% ØsfMV dkmz tkjh djus dh nj esa 25» o`f¼ gqbza ij csad dk 3]19]641 ØsfMV dkmz vkèkkj lkoztfud {ks=k ds csadksa ds chp nwljk lcls cm+k vkèkkj gsa foùkh; o"kz*18 ds nksjku] csad us viuk u;k ØsfMV dkmz osfj,av ih,uch #is IySfVue ØsfMV dkmz ykwup fd;k ftlesa xzkgdksa gsrq fofoèk ykhk vksj nq?kzvuk fodykaxrk chek doj miycèk gsaa csad us ihvks,l vksj bz&dkwelz ij ih,uch balvk&is bz,evkbz vfkkzr Ø;&iwoZ bz,evkbz ;kstuk dk Hkh vkjahk fd;k tks dkmzèkkjdksa dks mriknksa dh jhn ds le; gh jhn dks bz,evkbz esa cnyus dh lqfoèkk çnku djsxha ØsfMV dkmz tkjh djus ds dkjksckj ls csad us `25 djksm+ dk 'kq¼ ykhk vftzr fd;ka epzsav vfèkxzg.k dkjksckj% 31 ekpz 2018 dh flfkfr ij] csad us 56]746 ihvks,l VfeZuy LFkkfir fd, vksj 493 bavjusv isesav xsvos,dhñr fd,a ihvks,l VfeZuy esa cgq&lrjh; bz,evkbz lqfoèkk% ihvks,l VfeZuyksa dks cgq&lrjh; bz,evkbz lqfoèkk ds lkfk dlvekbt fd;k x;k gs ftls epzsav ds fof'k"v vuqjksèk ij csad ds lsokçnkrk }kjk lfø; fd;k tkrk gsa bavjusv Hkqxrku xsvos ds rgr lqij epzsav xbtksm+% csad us bavjusv Hkqxrku xsvos lsok,a çnku djus dh lqfoèkk Hkh vkjahk dh gsa bl xbtksm+ ds rgr ih,uch esa krk u j us Insurance Business 1. Life Insurance Business: The Bank s earnings from Life-Insurance business during FY 18 amounted to ` 144 crore as against `110 crore during FY 17, showing growth of was ` 5880 crore from policies and total earnings amounted to `502 crore. 2. Non-Life Insurance Business: During FY 18, the Bank entered into tie-ups with three Companies for Non Life Insurance i.e., New Insurance Co. Ltd & Religare Health Insurance Co. Ltd. The revenue earned increased 29% from ` 28 crore in FY 17 to ` 36 crore during FY 18. Depository Services: The Bank earned an income of `74 lakh during FY 18 for providing Depository Services. Online Trading Services: An income of ` lakh was received from the Associates such as M/s. SMC Global Securities Ltd., M/s. IDBI Capital Services Ltd. and M/s. Networth Stock Broking Ltd. on account of Online Trading Activities during FY 18. Merchant Banking: During FY 18, the Bank handled more than 9,98,000 ASBA applications against 187 issues, thereby blocking an amount of ` 2952 crore and earning notional income of more than ` 5 crore with commission income of ` 1.05 crore. Credit Card: There was 25% growth in Credit Card issuance. The Bank s credit card base of 3,19,641 as at ,is the 2nd largest amongst PSBs. During FY 18, the Bank launched its new credit card variant i.e., PNB RuPay Platinum Credit Card with death/total disability insurance cover. The Bank also launched PNB INSTA PAY EMI at POS and E-commerce scheme i.e. PRE-PURCHASE EMI towards facilitating cardholders to convert purchases into EMI at the time of purchase of products itself. ` 25 crore from the credit card issuance business. Merchant Acquiring Business: As at 31st March 2018, the Bank has installed 56,746 PoS terminals and integrated 493 Internet Payment Gateways. Multi level EMI facility in PoS terminals: PoS which is activated by the service provider of the Bank Super Merchant Alliance under Internet Payment Gateway: The Bank also started a facility to provide Internet Payment Gateway Services. Customers 15 2 PNB Full AR indd Jul-18 4:27:12 PM

30 ds- okys xzkgdksa dks bavjusv Hkqxrku xsvos lsok,a çnku dh tkrh gsaa Hkkjr D;wvkj dksm vksj Hkhe vkèkkj is% csad us Hkkjr D;wvkj dksm vksj Hkhe vkèkkj is IysViQkWeZ ykwup fd, gsa tks de udnh okyh vfkzo;olfkk cukus dh fn'kk esa ljdkj }kjk lapkfyr ubz ifj;kstuk,a gsaa 47]535 O;kikfj;ksa dks bl IysViQkWeZ ds rgr 'kkfey fd;k x;ka ljdkjh dkjksckj jk"vªh; jktekxz çkfèkdj.k (,u,p,vkbz) us iqklvsx tkjh dj okgulokfe;ksa dks Vksy Iyktk ls fparkeqùkq vkokxeu djus dh lqfoèkk çnku djus dh fn'kk esa bz&vksy laxzg dk;zøe vkjahk fd;k gsa rnuqlkj] csad us,u,p,vkbz ds jk"vªh; bysdvªkwfud Vksy laxzg (,ubzvhlh) dk;zøe dks liqyrkiwozd dk;kzfuor fd;k gsa csad okgulokfe;ksa dks iqklvsx tkjh djus ds fy, tkjhdrkz ds :i esa,ubzvhlh esa Hkkxhnkjh dj jgk gs vksj fudv Hkfo"; esa vu; Vksy Iyktk çkir djus dh ;kstuk ds lkfk çk;ksfxd vkèkkj ij,d Vksy Iyktk (eknk&ukljh] teew) dk igys gh vfèkxzg.k dj pqdk gsa ljdkjh dkjksckj ds varxzr vu; xfrfofèk;ka fueukuqlkj gsa_ 1- ljdkjh fohkkxksa }kjk fuckzèk bz& jhn ds fy, ç.kkfy;ksa ds,dhdj.k gsrq ljdkjh bz&ekdzsv ds lkfk xbtksm+a 2- ½.k mriknksa ds forj.k gsrq bafm;k ikslv isesav csad (vkbzihihch) ds lkfk lk>snkjh gsrq le>ksrk okrkz vafre pj.k esa gsa 3- C;kt lfclmh] ekftzu jkf'k] lhthvh,e,lbz 'kqyd vkfn forfjr djus ds fy, glrf'kyi fohkkx dks dsaæhñr vkwuykbu laxzg.k,oa forj.k (lhvkslhmh) iksvzy miycèk djk;k x;k gsa,y- Vªstjh ifjpkyu ldy fuos'k 31 ekpz 2017 ds `1]83]297 djksm+ ls c<+ dj 7-65» dh o"kz&nj&o"kz o`f¼ ntz djrs gq, 31 ekpz 2018 ij `1]97]328 djksm+ jgka foùkh; o"kz*18 esa vkslr fuos'k `2]03]844 djksm+ jgs tks rqyukred :i ls finys o"kz dh blh vofèk esa `1]75]774 djksm+ FksA fuos'k iksvziqksfy;ks ls C;kt vk; foùkh; o"kz*17 ds `12]439 djksm+ ls c<+ dj foùkh; o"kz*18 esa `13]806 djksm+ gks xbza csad us iwjs foùkh; o"kz ds nksjku ljdkjh ckam] xsj&,l,yvkj ckam vksj bfdovh esa lfø; dkjksckj fd;ka dqy O;kikfjd ykhk (MsfjosfVOl lfgr) foùkh; o"kz*17 ds `2654 djksm+ ls c<+ dj foùkh; o"kz*18 ds fy, `3]254 djksm+ gks x;ka fuf'pr vk; foùkh; o"kz*18 ds nksjku] csad us fuf'pr vk; fy rksa esa fuos'k dh fcøh ls `1]455 djksm+ dk O;kikfjd ykhk vftzr fd;k tks rqyukred :i ls finys o"kz dh blh vofèk ds nksjku `2214 djksm+ Fkk D;ksafd foùkh; o"kz*18 ds mùkjkèkz ds nksjku çfriqy esa o`f¼ gksrh xbza bfdovh% csad us finys o"kz dh rqyuk esa 102-9» dh o`f¼ ntz djrs gq, bl o"kz `340 djksm+ dk O;kikfjd ykhk vftzr fd;ka blds vfrfjùkq] csad us ih,uch gkmflax iqkbusal fyfevsm (ih,uch,p,iq,y) esa viuh va'kèkkfjrk dh fcøh ls `1232 djksm+ dk,dckjxh ykhk Hkh vftzr fd;ka foùkh; o"kz*18 ds fy, bfdovh am esa dqy ykhk who are non-account holders are provided Internet Payment Gateway Services under this tie-up. BHARAT QR CODE & BHIM AADHAAR PAY: The Bank launched Bharat QR Code and BHIM Aadhaar Pay platforms, a new Government driven project towards creation of a less cash economy. Under the platform, 47,535 merchants were on-boarded. K. Government Business National Highways Authority of India (NHAI) launched E-Toll collection programme for hassle free transit at toll the Bank successfully implemented the National Electronic Toll Collection (NETC) programme of NHAI. The Bank is participating in NETC as issuer for issuing FAStags to (Mada-Nasri, Jammu) on pilot basis with plans to acquire more in the near future. Further developments under Government Business are as under: 1. Tie-up with Government e-market for integration of systems for seamless e-procurement by Government Departments. 2. Talks are at an advanced stage for the partnership with Indian Postal Payments Bank (IPPB) for distributing of credit products. 3. Centralised on-line Collection & Disbursement (COCD) Portal extended to Department of Handicrafts for disbursing Interest subsidy, Margin Money, CGTMSE Fee, etc. L. Treasury Operations Gross Investment as at 31st March 2018 stood at ` 1,97,328 crore up from ` 1,83,297 crore as at 31st March 2017 registering a YoY growth of 7.65%. The average investments in FY 18 were ` 2,03,844 crore as against ` 1,75,774 crore in corresponding period last year. The Interest income from investment portfolio increased to `13,806 crore in FY 18 from ` 12,439 crore in FY 17. The Bank actively traded in sovereign bonds, Non-SLR bonds `2654 crore in FY 17 to ` 3254 crore in FY 18. Fixed Income (SLR/NSLR): During FY 18, the Bank ` 1455 crore from sale of ` 2214 crore during corresponding period previous year as yields started moving northwards during later half of FY 18. Equity: The Bank booked ` registering a growth of 102.9% over previous year. ` 1232 crore from sale of stake in PNB-Housing Finance amounted to ` 1573 crore while the dividend income for 16 2 PNB Full AR indd Jul-18 4:27:12 PM

31 `1573 djksm+ jgk tcfd ykhkka'k vk; `139 djksm+ jgha fons'kh eqæk% O;kikjh dkjksckj,oa ek=kk c<+kus ij tksj fn, tkus vksj fofhkuu xzkgd dsafær igyksa ds dkj.k,dlpsat ykhk foùkh; o"kz*17 ds `547 djksm+ ls c<+ dj foùkh; o"kz*18 esa `724 djksm+ gks x;ka,e- xzkgd lsok foùkh; o"kz*18 ds nksjku] csad us dsaæhñr f'kdk;r fuokj.k çcaèku ç.kkyh (lhthvkj,e,l) uked vkwuykbu f'kdk;r fuokj.k çcaèku dk;zøe 'kq: fd;ka xzkgd csad dh osclkbv] bavjusv csafdax lsok] eksckby csafdax lsok o eksckby,si ds ekè;e ls lhthvkj,e,l esa viuk vuqjksèk@f'kdk;r ntz dj ldrs gsaa lhkh eamy dk;kzy;ksa vksj 1]862 ls vfèkd,l,ih lefkz 'kk kvksa dks lhthvkj,e,l esa çfo"v fd;k x;k gs ftlesa xzkgd dks rqjar gh,d Lopkfyr ikorh çkir gksrh gs vksj og viuh f'kdk;r dks VªSd Hkh dj ldrk gsa xzkgdksa dks çnku dh tkus okyh lsokvksa dh xq.koùkk ij è;ku nsus vksj buesa lqèkkj gsrq çkir iqhmcsd@lq>koksa ij xahkhjrkiwozd fopkj djus ds fy, lhkh 'kk kvksa vksj eamy dk;kzy;ksa esa xzkgd lsok lfefr;ka xfbr dh xbz gsaa csad us 'kk kvksa }kjk çnku dh tk jgh lsok ds ekudksa dk vkdyu djus gsrq mudk xqir fujh{k.k djus ds fy, fofhkuu ç'kklfud Lrjksa ij vfèkdkfj;ksa dh Vheksa dk xbu fd;k gsa foùkh; o"kz*18 ds nksjku] Hkkjr Hkj esa,sls 6695 fujh{k.k fd, x, vksj fujh{k.kdrkz vfèkdkfj;ksa }kjk fd, x, voyksdu lqèkkjkred dne mbk, tkus gsrq lacafèkr 'kk k rfkk eamy dk;kzy; ds lkfk lk>k fd, x,a lhkh 53]331 f'kdk;rksa (vfkkzr fnukad dks yafcr 315 f'kdk;rsa vksj foùkh; o"kz*18 ds nksjku çkir 53]016 f'kdk;rsa) dk f'kdk;rdrkzvksa dh larqf"v ds vuqlkj fuokj.k fd;k x;ka fnukad ij yafcr jgh 1862 f'kdk;rksa dk Hkh ckn esa fuokj.k dj fn;k x;k gsa,u- jkthkk"kk uhfr dk dk;kzuo;u csad us Hkkjr ljdkj] x`g ea=kky;] jkthkk"kk fohkkx }kjk foùkh; o"kz*18 ds fy, fuèkkzfjr vfèkdka'k ekunamksa dks gkfly fd;ka foùkh; o"kz*18 ds nksjku] csad dks fganh ds ç;ksx esa mrñ"v çn'kzu ds fy, dbz iqjldkj fn, x,] ftuesa Hkkjr ljdkj dh lokzspp iqjldkj ;kstuk ^jkthkk"kk dhfrz 'khym* 'kkfey gsa blds vfrfjùkq] ns'k ds fofhkuu LFkkuksa esa xfbr uxj jkthkk"kk dk;kzuo;u lfefr;ksa rfkk vu; xsj ljdkjh laxbuksa us Hkh csad dks ^d* {ks=k esa 72 iqjldkj] ^ * {ks=k esa 71 iqjldkj vksj ^x* {ks=k esa 27 iqjldkj çnku fd,a gekjs LVkiQ lnl;ksa us Hkh O;fÙkQxr :i ls 40 iqjldkj vftzr fd,a vks- ih,uch dh vuq"kafx;ka vksj {ks=kh; xzkeh.k csad,- ih,uch fxyv~l fyfevsm foùkh; o"kz*18 ds nksjku daiuh dk djiwoz ykhk `55-28 djksm+ jgka Vªstjh fcyksa esa] daiuh us o"kz ds iwokz¼z vksj mùkjk¼z esa Øe'k% 42-48» vksj 40-91» dks vftzr djrs gq, 40» ds çfrc¼rk vuqikr ls vfèkd dks çkir fd;ka 31 ekpz 2018 FY 18 stood at ` 139 crore. Forex: ` 547 crore in FY 17 to ` 724 crore in FY 18 due to thrust on increasing merchant turnover and volume, and also due to various customer-centric initiatives. M. Customer Care During FY 18, the Bank introduced an On-line Grievance Grievance Redressal Management System (CGRMS). Customers can lodge their requests/complaints in the CGRMS through Bank s website, Internet Banking Service, Mobile Banking Service and Mobile App. are entered in CGRMS wherein the customer gets an immediate automatic acknowledgement and can keep a track of his complaint also. Customer Service Committees have been set up in quality of services rendered and to critically examine the feedback/suggestions for improvement. Customer Care Centre at various administrative levels to pay incognito visit to branches to assess their standard of service. During FY 18, 6695 such visits were made across India and observations steps. All 53,331 complaints (i.e. 315 complaints outstanding as on and 53,016 complaints received during FY 18), were redressed to the satisfaction of the complainants complaints pending as on have since been resolved. Government of India, Ministry of Home Affairs, Department excellent performance in the use of Hindi which includes Implementation Committees situated in different locations O. PNB s Subsidiaries and Regional Rural Banks a. PNB Gilts Limited ` crore during FY 18. In Treasury Bills, the Company exceeded the committed ratio of 40%, achieving 42.48% and 40.91% in H1 and H2 respectively. The 17 2 PNB Full AR indd Jul-18 4:27:13 PM

32 dh flfkfr ds vuqlkj] daiuh dk dqy VuZvksoj vuqikr (f}rh;d cktkj) Vªstjh fcyksa ds fy, 83 xquk vksj ljdkjh fnukafdr çfrhkwfr;ksa ds fy, 284 xquk jgk tks vkjchvkbz }kjk U;wure Øe'k% 10 xquk vksj 5 xquk fuèkkzfjr gsa ch- iatkc us'kuy csad bavjus'kuy fyfevsm (ih,uchvkbz,y) foùkh; o"kz*18 ds fy, çkoèkku] dj o ykhkka'k iwoz ifjpkyu ykhk foùkh; o"kz*17 ds $18-80 fefy;u ls $6-87 fefy;u?kvdj foùkh; o"kz*18 esa $11-93 fefy;u jg x;ka dqy vk; $66-68 fefy;u ls $21-52 fefy;u (32-27»)?kVdj $45-16 fefy;u jg xbza fuoy C;kt vk; esa $4-51 fefy;u rfkk fuoy O;kikfjd vk; esa $2-30 fefy;u dh deh vkbza de vk;,oa ykxr esa ekewyh deh ds dkj.k ykxr vk; vuqikr 46-70» ls c<+dj 56-39» gks x;ka lh- iatkc us'kuy csad buoslvesav lfozlst fyfevsm (ih,uchvkbz,l,y) 31 ekpz*18 dks lekir gq, o"kz ds nksjku] daiuh us `9-21 djksm+ dh dqy vk; ds lkfk ` 6-00 djksm+ dh 'kqyd vkèkkfjr vk; vftzr dha djiwoz ykhk (ihchvh) foùkh; o"kz*17 ds `6-33 djksm+ dh rqyuk esa foùkh; o"kz*18 ds fy, `3-90 djksm+ jgka Mh- Mªd ih,uch csad fyfevsm HkwVku csad dk dqy dkjksckj fnukad ds `1435 djksm+ ls c<+dj 20-23» dh o"kz&nj&o"kz o`f¼ n'kkzrs gq, fnukad ij `1726 djksm+ gks x;ka fnukad ij csad dk dklk vuqikr 47-85» jgka csad orzeku esa 7 'kk kvksa vksj 21,Vh,e ds usvodz ds lkfk lsok,a çnku dj jgk gsa csad dk ykhk foùkh; o"kz*17 ds `17-62 djksm+ ls c<+dj foùkh; o"kz*18 ds nksjku `18-99 djksm+ gks x;k] tks 7-78» dh o"kz&nj&o"kz o`f¼ n'kkzrk gsa bz- {ks=kh; xzkeh.k csad (vkjvkjch) csad ikap {ks=kh; xzkeh.k csadksa dks çk;ksftr djrk gs vksj çr;sd vkjvkjch esa ih,uch ds LokfeRo dk vuqikr 35» gsa fnukad dh flfkfr ij {ks=kh; xzkeh.k csadksa dk çn'kzu (jkf'k ` djksm+ esa) {ks=kh; xzkeh.k csadksa dk 31 ekpz*17 31 ekpz*18 o"kz&nj&o"kz çn'kzu (vadsf{kr) (vadsf{kr) o`f¼» lexz tekjkf'k;ka lexz vfxze lexz 'kq¼ ykhk lhch,l ds varxzr 'kk k,a 100% 100% çfr dezpkjh ykhk (`yk ) gkfu esa pyus okyh 'kk kvksa dh la[;k (12 ekg ;k blls vfèkd iqjkuh) Company s total turnover ratio (secondary market) stands at 83 times for treasury bills and 284 times for government-dated securities as on March 31, 2018 against the minimum RBI stipulation of 10 times and 5 times respectively. b. Punjab National Bank International Limited (PNBIL) dividends for FY 18 decreased by $6.87 million to $11.93 million in FY 18 from $18.80 million in FY 17. The total income decreased by $21.52 million (32.27%) from $ million to $ million. Net Interest Income fell by $.4.51 million and Net trading income by $ 2.30 million. The Cost to Income Ratio increased to 56.39% from 46.70% due to lower income and slight reduction in cost. c. Punjab National Bank Investment Services Limited (PNBISL) During the year ended as on 31st March 18, the Company earned Fee Based Income of ` 6.00 crore with a total income of ` (PBT) for FY 18 stood at ` 3.90 crore as against `6.33 crore for FY 17. d. DRUK PNB Bank Ltd. Bhutan Total Business of the Bank increased to ` 1726 crore as on from `1435 crore as on , showing a YoY growth of 20.23%. CASA Ratio of the Bank stood at 47.85% as on The Bank is currently operating with a Bank increased from ` crore during FY 17 to ` crore during FY 18, showing a YoY growth of 7.78%. e. Regional Rural Banks (RRBs) There are Five Regional Rural Banks which are sponsored by the Bank and PNB s proportion of ownership is 35% in each RRB. Performance of RRBs as on Performance of RRBs 31st March 17 (Audited) 31st March 18 (Audited) (Amt. in ` crore) YoY Growth% Aggregate Deposits Aggregate Advances Branches under CBS 100% 100% (` lakh) No. of Loss Making Branches (being 12 month old or more) PNB Full AR indd Jul-18 4:27:13 PM

33 ih- iqjldkj vksj leeku csad us bl nksjku fofhkuu çfrf"br?kjsyw,oa fons'kh iqjldkjnk=kh lalfkkvksa ls dbz xksjoiw.kz iqjldkj thrs gsa ftuesa ls çeq gsa & ljdkjh ;kstuk Hkkxhnkjh&çèkku ea=kh eqæk ;kstuk (ih,e,eokbz) ds varxzr lkoztfud {ks=k ds lozjs"b csad ds fy, Mu,aM czsmlvªhv csafdax iqjldkj 2017 rfkk xzkeh.k fodkl ea=kky;] Hkkjr ljdkj ls o"kz 2016&17 ds fy, cm+h Js.kh ds csadksa ds varxzr,l,pth&csad fyadst esa jk"vªh; iqjldkja ih,uch us ^n csadj* }kjk o"kz 2017 gsrq?kksf"kr fd, x, fo'o ds 'kh"kz 1000 csadksa ds chp lexz :i ls 191oha jsad ds lkfk jk"vªh;ñr csadksa ds chp viuk 'kh"kzlfk o lkoztfud {ks=k ds csadksa ds chp nwljk LFkku iqu% vftzr dj fy;k gsa D;w- csad dh Hkkoh dkjksckj ;kstuk foùkh; o"kz*18 lqèkkj vksj iqu#¼kj dk o"kz FkkA vkffkzd n`f"vdks.k ls] osf'od ifjflfkfr;ksa esa lqèkkj gqvk tcfd foùkh; o"kz*18 ds mùkjk¼z esa Hkkjrh; vfkzo;olfkk esa vfèkd o`f¼ nj ds ladsr fn kbz fn,a csafdax ds n`f"vdks.k ls] Hkkjrh; csafdax ekwmy esa lqèkkj ykus ds fy, dbz mik;ksa dh?kks"k.kk dh xbza lkoztfud {ks=k ds csadksa ds fy, `2-11 yk djksm+ ds iquizwathdj.k isdst dh?kks"k.kk ds lkfk csafdax {ks=k esa lqèkkj dh çfø;k vkjahk gqbza ljdkj vksj fofu;ked us Rofjr lekèkku ij tksj nsrs gq, fnokfy;kiu rfkk ½.k'kksèku v{kerk lafgrk (vkbzchlh) ds rgr nckoxzlr vkflr;ksa ls fuivus ij Hkh è;ku dsafær fd;ka dbz varjjk"vªh;,tsafl;ksa us mrikndrk c<+kus o futh fuos'k dks çksrlkfgr djus ds mís'; ls vkjahk fd, x, lajpukred lqèkkjksa ds fujarj dk;kzuo;u ls o`f¼ esa c<+ksùkjh gksus ds lkfk Hkkjrh; vfkzo;olfkk gsrq n`f"vdks.k vuqdwy jgus dk vuqeku yxk;k gsa foùkh; {ks=k rfkk oklrfod vfkzo;olfkk ds chp etcwr lgc¼rk dks ns rs gq, ;g Hkkjrh; csafdax {ks=k ds fy, Hkh 'kqhk ladsr nsrk gsa iquizwathdj.k ;kstuk rfkk dsaæh; ctv dh?kks"k.kkvksa lfgr fofhkuu lqèkkj mik;ksa us tokcnsg rfkk fteesnkj csafdax dh fn'kk esa ^laofèkzr igq p vksj lsok mrñ"vrk dk;zøe (bz,,lbz)* ds fy, folr`r :ijs k fuèkkzfjr dh gsa csad us O;kikfjd mrñ"vrk ds fy, yksxksa] çfø;kvksa,oa mriknksa esa cnyko ykus okyh fe'ku ifjorzu uked çfø;k dk vkjahk fd;k gs] ftlesa csgrj igqap] n{krk vksj mrikndrk ds ekè;e ls vfèkd ykhkçnrk ij tksj nsus okys nl iqksdl {ks=k 'kkfey gsaa csad vius fo'kky vkdkj] O;kid forj.k usvodz vksj fmftvyhdj.k dh fn'kk esa etcwr çokg ds lkfk vfkzo;olfkk esa ekstwn o`f¼ ds voljksa dk ykhk mbkus dh vpnh flfkfr esa gsa orzeku ifjflfkfr;ksa esa] csad,sls lek;kstuksa ij è;ku dsafær dj jgk gs tks tksf e çcaèku dks csgrj cukus rfkk tokcnsgh o ykhkçnrk dks c<+kus ds fy, vuqdwy gsaa csad viuh vkarfjd çfø;kvksa dh Hkh jh&bathfu;fjax dj jgk gs vksj mugsa vfèkd dq'ky] lqn`<+,oa vfhkuo çks ksfxdh muufr ij vkèkkfjr cuk jgk gs ftlls xzkgdksa dks csgrj vuqhko çkir gksxka vxys o"kz dh dkjksckjh j.kuhfr iwath laj{k.k ds lkfk dkjksckj esa o`f¼ çkir djus ij vkèkkfjr gksxha qnjk ½.kksa esa o`f¼] olwyh] iksvziqksfy;ks ds eafku vksj xq.koùkkiw.kz vkflr;ksa ij è;ku dsafær djrs gq, buds ekè;e ls iwath laj{k.k ij cy fn;k tk,xka csad dh P. Awards and Accolades The Bank won many prestigious awards from prestigious domestic and overseas institutions, prominent ones being, Dun & Bradstreet Banking Awards 2017 for Best Public Sector Bank under Government Scheme participation- Pradhan Mantri Mudra Yojana (PMMY) and National Award in SHG-Bank Linkage for the year under Large Category Bank by Ministry of Rural Development, Govt. of India. Banks and 2nd place amongst Public Sector Banks (PSBs) with overall rank at 191st amongst Top 1000 World Banks by The Banker in Q. Future Business Plan of the Bank The FY 18 was a year of reforms and revival. On the economic front, global conditions improved while the Indian economy showed signs of greater growth momentum in the second half of FY 18. On the banking front, a host of measures were announced to revamp the Indian banking model. The reform process in the banking sector started with the `2.11 lakh crore for Public Sector Banks (PSBs). The Government and the Regulator also focussed on tackling the stressed assets under the Insolvency & Bankruptcy Code (IBC) with emphasis on quick resolution. Many international agencies have forecast a favourable outlook for the Indian Economy with improved growth on the back of continued implementation of structural reforms that aim at raising productivity and incentivising private investment. This augurs well for the Indian banking sector sector and the real economy. plan and announcements in the Union Budget have set detailed contours for Enhanced Access and Services Excellence (EASE) towards responsive and responsible banking. The Bank launched MISSION PARIVARTAN a People, Processes & Products transformation exercise for business excellence encompassing ten focus areas and strong push towards digitalisation is well positioned to take advantage of the growth opportunities across the economy. Under the present circumstances, the Bank is focusing on adjustments that are conducive to improving The Bank is also re-engineering its internal processes, on innovative technology advancements to enhance customers experience. The Business Strategy for next year will be based upon 'Business Growth with capital conservation'. The thrust will be on conservation of Capital through focus on Retail Credit growth, recovery, churning of portfolio and increasing 19 2 PNB Full AR indd Jul-18 4:27:13 PM

34 yxhkx 63» 'kk k,a xzkeh.k vksj vèkz'kgjh {ks=kksa esa flfkr gsa vksj xzkeh.k ir etcwr jgus ds lkfk fv;j&3 vksj fv;j&4 ds 'kgjksa dks xzkeh.k foùkiks"k.k ds fy, yf{kr fd;k tk,xka xzkeh.k ½.k Ñf"k dk foùkiks"k.k djus ds lkfk&lkfk xzkeh.k qnjk laoxz esa Hkh volj miycèk djk,axsa vkus okys le; esa] csad vkflr xq.koùkk lacaèkh fparkvksa dk lkeuk djus vksj ½.k o`f¼ dks iqu% cy çnku djus ds fy, vius rqyu i=k dks lqn`<+ djus gsrq vius lesfdr ç;kl tkjh j sxka csad çfrlièkhz n{krk dks iksf"kr djus ds lkfk&lkfk i;zos{k.k] fuxjkuh o ys kijh{kk ç.kkfy;ksa dks etcwr djus ij Hkh è;ku dsafær j sxka lkfk gh] csad yf{kr j.kuhfrd igyksa ds ekè;e ls fmftvyhdj.k dks c<+kok nsus] çks ksfxdh&l{ke foùkh; uokpkjksa dk çcaèku djus vksj lkbcj lqj{kk tksf eksa ls fuivus gsrq ç;kljr jgsxka ;s dk;z fgrèkkjdksa dks Bksl o fvdkå rjhds ls csgrj çfriqy nsus dh iwokzo';drk gsaa vkj- funs'kd eamy 31 ekpz 2018 dh flfkfr ds vuqlkj] csad ds funs'kd eamy esa 4 iw.kzdkfyd funs'kdksa lfgr dqy 11 funs'kd FksA iw.kzdkfyd funs'kdksa esa,d çcaèk funs'kd,oa lhbzvks lfgr rhu dk;zikyd funs'kd 'kkfey FksA foùkh; o"kz*18 ds nksjku] funs'kd eamy dh lajpuk esa fueufyf r ifjorzu gq,% Jh lquhy esgrk dks fnukad ls Jherh m"kk vuarlqcze.;u ds LFkku ij csad ds çcaèk funs'kd,oa lhbzvks ds :i esa fu;qùkq fd;k x;ka mugksaus fnukad dks dk;zhkkj xzg.k fd;ka Jherh m"kk vuarlqcze.;u bykgkckn csad esa çcaèk funs'kd,oa lhbzvks ds :i esa fu;qùkq gksus ds dkj.k fnukad dks csad dh çcaèk funs'kd,oa lhbzvks ds in ls dk;zeqùkq gqbzaa MkW jke,l laxkiwjs us fnukad dks dk;zikyd funs'kd ds :i esa viuk dk;zdky iwjk fd;k vksj vfèkof"kzrk dh vk;q çkir djus ij dk;zeqùkq gq,a Jh fyaxe osadv çhkkdj dks fnukad ls csad ds funs'kd eamy esa dk;zikyd funs'kd ds :i esa fu;qùkq fd;k x;ka Jh jfo feùky dks Jh vfuy dqekj kph ds LFkku ij fnukad ls csad ds funs'kd eamy esa Hkkjr ljdkj ds ukfer funs'kd ds :i esa fu;qùkq fd;k x;ka Jh vfuy dqekj kph fnukad dks funs'kd ds in ls dk;zeqùkq gq,a Jh lat; oekz dks fnukad ls rhu o"kz dh vofèk ds fy, csad ds funs'kd eamy esa 'ks;jèkkjd funs'kd ds :i esa fuokzfpr fd;k x;ka funs'kd eamy iwoz çcaèk funs'kd,oa lhbzvks Jherh m"kk vuarlqcze.;u] iwoz dk;zikyd funs'kd MkW jke,l laxkiwjs rfkk Hkkjr ljdkj ds iwoz ukfer funs'kd Jh vfuy dqekj kph }kjk fd, x, cgqewy; ;ksxnku ds fy, mudh ljkguk djrk gsa quality assets. Nearly 63% of the bank branches are in rural and semi-urban areas and with the rural consumption story being robust Tier 3 and Tier 4 cities will be targeted Going forward, the Bank will continue its concerted efforts in addressing the asset quality concerns and strengthening its balance sheet to reinvigorate credit growth. The Bank will also maintain focus on strengthening supervisory, monitoring and audit systems besides nurturing promoting digitalisation, managing technology-enabled risks through targeted strategic initiatives. These actions are the prerequisite for delivering better returns to the stakeholders, in a tangible and sustainable way. R. Board Of Directors As on 31st March 2018, there were 11 Directors including 4 whole time Directors i.e. One Managing Director & CEO and three Executive Directors as on During FY 18, the following changes took place in the composition of Board of Directors: Shri Sunil Mehta was appointed as Managing Director & CEO of the Bank w.e.f in place of Smt. Usha Ananthasubramanian. He Managing Director & CEO on on account of her appointment as Managing Director & CEO in Allahabad Bank. Dr. Ram S. Sangapure completed his tenure as the age of superannuation on Shri Lingam Venkata Prabhakar was appointed as Executive Director on Board of the Bank w.e.f Shri Ravi Mital was appointed as Government Nominee Director on the Board of the Bank w.e.f in place of Shri Anil Kumar Khachi who ceased to be Director from Shri Sanjay Verma was elected as Shareholders Director on the Board of the Bank for a period of three years w.e.f The Board wishes to place on record its appreciation for the valuable contribution made by Smt. Usha Ananthasubramanian, Managing Director & CEO, Dr. Ram S Sangapure, Executive Director and Shri Anil Kumar Khachi, Government Nominee Director PNB Full AR indd Jul-18 4:27:13 PM

35 ,l- funs'kdksa dk mùkjnkf;ro oùkqo; funs'kdx.k iqf"v djrs gsa fd 31 ekpz*18 dks lekir gq, o"kz gsrq okf"kzd ys ksa dks cukus esa% egroiw.kz fopyu] ;fn dksbz gsa] ds lacaèk esa mfpr Li"Vhdj.k nsrs gq, ykxw ys k ekudksa dk ikyu fd;k x;k gs_ Vh- Hkkjrh; fjtoz csad ds fn'kkfunzs'kkuqlkj cukbz xbz ys kadu uhfr;ksa dk n`< vuqikyu fd;k x;k gs_ ;Fkksfpr,oa foosdiw.kz fu.kz; o vkadyu fd, x, gsa rkfd foùkh; o"kz ds var ij csad dh flfkfr vksj 31 ekpz*18 dks lekir gq, o"kz ds fy, csad ds ykhk dks lgh o Li"V :i ls n'kkz;k tk lds_ Hkkjr esa csadksa ij ykxw dkuwuksa ds çkoèkkuksa ds vuqlkj ;Fkksfpr ys k vfhkys ksa dks leqfpr o i;kzir lkoèkkuh ds lkfk cuk;k x;k gs_ bu ys ksa dks dk;z'khy lalfkk fl¼kar ds vkèkkj ij rs;kj fd;k x;k gsa vkhkkj csad dks viuk cgqewy; lg;ksx,oa lrr laj{k.k çnku djus rfkk blesa viuk fo'okl cuk, j us ds fy, funs'kd eamy Hkkjr ljdkj] Hkkjrh; fjtoz csad] Hkkjrh; çfrhkwfr,oa fofue; cksmz] LVkWd,Dlpsatksa] csad ds xzkgdksa] vke turk rfkk 'ks;jèkkjdksa ds çfr vkhkkj O;ÙkQ djrk gsa csad ds lhkh Lrjksa ij dk;zjr LVkiQ lnl;ksa }kjk fd, x, cgqewy; ;ksxnku gsrq funs'kd eamy mudh ç'kalk djrk gs rfkk Hkkoh y{;ksa dks çkir djus esa mudh vuojr lghkkfxrk dh vk'kk djrk gsa S. Directors Responsibility Statement accounts for the year ended 31st March 18: The applicable Accounting Standards have been followed alongwith proper explanation relating to material departures, if any; The accounting policies, framed in accordance with the guidelines of the Reserve Bank of India, were consistently applied; Reasonable and prudent judgment and estimates were made so as to give a true and fair view of the 31st March 18; maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks in India, and; The accounts have been prepared on the principle of going concern basis. T. Acknowledgement The Board expresses thanks to the Government of India, Reserve Bank of India, Securities and Exchange Board of India, Stock Exchanges, Bank s customers, public and the shareholders for valuable support, continued patronage The Board wishes to place on record its appreciation for the valuable contribution made by the members of the Bank s staff at all levels and looks forward to their continued involvement in achieving the future goals. funs'kd eamy ds fy, vksj mudh vksj ls For and on behalf of Board of Directors lquhy esgrk çcaèk funs'kd,oa lhbzvks Sunil Mehta Managing Director & CEO 21 2 PNB Full AR indd Jul-18 4:27:14 PM

36 çcaèku ifjppkz,oa fo'ys"k.k,- vks ksfxd lajpuk,oa fodkl % Hkkjrh; csafdax m ksx esa okf.kft;d csad (lkoztfud {ks=k ds csad] futh {ks=k ds csad vksj fons'kh csad)] lgdkjh csad rfkk {ks=kh; xzkeh.k csad 'kkfey gsaa foùkh; o"kz*17 esa vkjahk gksus okys fofhkuu csadksa tsls y?kq foùkh; csad (,l,iqch) vksj Hkqxrku csadksa (ihch) ds lkfk fjtoz csad us eq[; :i ls cqfu;knh <kapk {ks=k vksj y?kq eè;e vksj dkwikzsjsv O;olk; dks mèkkj nsus ds fy, Fkksd vksj nh?kzdkfyd foùkh; csad (MCyw,yVh,iQ) dh LFkkiuk ij vfèkd è;ku nsus ds ç;kstu dh ryk'k vkjahk dj nh gsa ; fi Hkkjrh; vfkzo;olfkk nqfu;k dh lcls rsth ls c<+rh gqbz vfkzo;olfkkvksa esa ls gs vksj ;g tqykbz] 2017 ls foeqæhdj.k rfkk eky vksj lsok dj (th,lvh) ds dk;kzuo;u ds {kf.kd çhkko ds dkj.k foùkh; o"kz*18 dh igyh frekgh esa vkaf'kd :i ls?kvdj 5-7» gks xbza igyh frekgh esa fxjkov ds ckn] foùkh; o"kz*18 dh nwljh frekgh esa ldy?kjsyw mrikn esa Øe'k% 6-5» vksj foùkh; o"kz*18 dh rhljh frekgh esa 7-2» dh o`f¼ gqbza csafdax fofu;eu vfèkfu;e esa la'kksèku fd;k x;k Fkk ftlesa fnokfy;k,oa èku 'kksèku v{kerk lafgrk 2016 ds çkoèkkuksa ds rgr pwd ds lacaèk esa fnokfy;k çlrko çfø;k vkjahk djus ds fy, fdlh Hkh fo'ks"k csafdax daiuh dks funzs'k tkjh djus ds fy, vkjchvkbz dks vfèkñr djus gsrq dsaæ ljdkj dks 'kfùkq;ka çnku dh xbza nckoxzlr vkflr;ksa ds lekèkku ls lacafèkr lhkh iwoz ;kstuk,a vksj fn'kkfunzs'k okil ys fy, x, FksA vkbzchlh ds rgr `20 fcfy;u vksj blls vfèkd ds vutzd krksa dks lekèkku gsrq 180 fnu dh le; lhek nh tk,xh tcfd vu; dks mudh vfrns; vofèk ds vuqlkj oxhzñr fd;k tk,xk rfkk cksmz vuqeksfnr uhfr;ksa ds vuqlkj gy fd;k tk,xka ifj.kkelo:i vkjchvkbz dh vkarfjd lykgdkj lfefr us jk"vªh; daiuh fofèk fvªc;wuy dks 2 Vªkap esa 41 krksa dk lanhkz fn;ka vfkzo;olfkk dks lqèkkjus vksj O;ofLFkr djus ds fy, ç;klksa ds pyrs] ns'k oymz csad bzt vkwiq Mwbax fctusl bamsdl esa 30 fcunqvksa esa vkxs c<+rs gq, 100osa jsad ij igq p x;k gsa ØsfMV jsfvax daiuh] ewmht us Hkh Hkkjr dh jsfvax dks ch,,3 ls ch,,2 esa v ru fd;k gsa ljdkj us lkoztfud {ks=k ds csadksa (ih,lch) gsrq muds rqyu i=k dks lqn`<+ djus ds fy, ` 2-11 fvªfy;u ds iquizwathdj.k isdst dh?kks"k.kk dha ;g lqfuf'pr djus ds fy, fd vkffkzd çfriqy esa ifjofrzr gs] mùkjnk;h vksj çfrfø;k'khy ih,lch dk;kzuo;u gsrq en&okj le; lhek ds fy, lqèkkj,tsamk muur igqap vksj lsok mrñ"vrk (bz,,lbz) dks vkjahk fd;k x;k gsa ;s lqèkkj,tsamk N% cm+s fo"k;ksa ij vkèkkfjr gs tks rhl dk;zfcunqvksa esa fohkkftr gs vksj ftlesa 62 ens 'kkfey gsaa Hkkjr ljdkj }kjk?kksf"kr iwath fuos'k mu csadksa ij fuhkzj djsxk tks lqèkkjksa,oa lqèkkj,tsamk ij vius dk;zfu"iknu ds fy, opuc¼ gsa iwathxr olrqvksa ds c<+rs mriknu] c<+rs vk;kr vksj csgrj osf'od ekax esa fujarj folrkj esa çfrfcafcr fuos'k xfrfofèk esa fn kbz nsus okys iqu#¼kj ladsrksa ds lkfk vfkzo;olfkk okil Vªsd ij vk xbz gsa ½.k dkjksckj esa o`f¼ gqbz gs vksj ;g lgk;d iwath cktkj ls vfèkd tqrkbz tk jgh gsaa fcx MsVk] vkfvzfiqf'k;y bavsfytsal (,vkbz) vksj jkscksfvdl Hkkjrh; csafdax ifjn`'; esa vkus okys u, ifjorzu gsaa rfkkfi] rsy dh c<+rh dherksa ds dkj.k eqækliqhfr ds leeq tksf e MANAGEMENT DISCUSSION & ANALYSIS a. Industry Structure & Developments Indian banking industry comprises of Commercial Banks (Public Sector, Private Sector, and Foreign Banks), Co-operative Banks and Regional Rural Banks. With differentiated banks such as Small Finance Banks and Payment Banks commencing operations in FY 17, the Reserve Bank of India (RBI) has started exploring the scope for setting up Wholesale and Long Term Finance Banks focused primarily on lending to infrastructure sector and small, medium and corporate business. Although amongst the fastest growing large economies of the world, the Indian economy slowed down in Q1 FY 18 and the transitory impact of the implementation of the Goods and Services tax (GST) from July After Q2 FY 18 and Q3 FY 18 to 6.5% and 7.2% respectively. The Banking Regulation Act was amended under the provisions of the Insolvency and Bankruptcy Code, 2016, conferring powers upon the Central Government for banking company to initiate steps in respect of a default. All the earlier schemes and guidelines pertaining to the Resolution of Stressed Assets were withdrawn. Under IBC, NPA Accounts of ` 20 billion and above would be given a 180-day time plan for resolution while others resolved in accordance with the Board approved policies. As a result, the Internal Advisory Committee of the RBI referred 41 accounts in 2 tranches to the National Company Law Tribunal. economy, the country leaped forward by 30 spots to land at 100th rank in World Bank s Ease of Doing Business Index. Credit Rating Company, Moody s also upgraded India s Sovereign Rating to Baa2 from Baa3. The Government announced a ` package for Public Sector Banks (PSBs) to strengthen their Balance Sheets. To ensure that this translates into economic returns, a reform agenda, Enhanced Access & Service Excellence (EASE) for Responsive & Responsible PSBs and an item-wise time frame for its implementation was introduced. This reform agenda is based on Six Broad Themes divided into Thirty Action Points further comprising of Sixty two items. Capital infusion, as announced by the Government of India, would depend upon banks committing to the reforms and their performance on this reform agenda. The economy is back on track with revival signs visible in in capital goods production, rising imports and improved global demand. Credit off-take has picked up and there is the new evolution themes in the Indian banking landscape PNB Full AR indd Jul-18 4:27:14 PM

37 ch- mriuu gks jgs gsa tks pkyw krk rfkk jktdks"kh;?kkvs ij çfrdwy çhkko Mky ldrs gsaa lkeku; :i ls Hkkjrh; vfkzo;olfkk rfkk Hkkjrh; csafdax ds fy, gky gh ds èkks kèkm+h ekeys tks m ksx ds le{k vk jgs gsa,d vr;ar fpark dk fo"k; gsa blus tksf e çcaèku,oa èkks kèkm+h dk irk yxkus okyh fø;kvksa ij lansg mtkxj fd;k gsa csafdax ifjn`'; rsth ls fodflr gks jgk gs vksj fofhkuu pquksfr;ksa dk lkeuk dj jgk gsa csafdax m ksx ds le{k miflfkr pquksfr;ka folr`r ifjis{k esa vdlj dfbu çrhr gksrh gsa ysfdu ;fn dksbz cm+h lksp j rk gs,oa cqf¼eùkk ls dk;z djrk gs rks ;g pquksfr;ka fofoèk volj çnku djrh gsaa pquksfr;ksa dk fohkktu djds] voljksa dk ykhk mbkdj rfkk dbz NksVs&NksVs mik;ksa }kjk dkjzokbz j.kuhfr cuk dj liqyrk çkir dh tk ldrh gsa ubz #ijs k ds vkjehk ds lkfk] vutzd vkflr;ksa esa çkjafhkd o`f¼ ds i'pkr èkhjs&èkhjs blesa fxjkov vkus dh meehn gsa o`f¼] fu;kzr] dkwikzsjsv yhojst rfkk nokcxzlr vkflr;ksa ds lekèkku foùkh; o"kz*19 esa çeq fuxjkuh {ks=k gksaxsa volj,oa tksf e foùkh; o"kz*19 esa] NksVs jkf'k ds vfxzeksa ls vfèkdre fodkl ds lkfk foùkh; o"kz*19 esa ½.k esa nksgjs vadksa dh o`f¼ gksuh vkjahk gks xbz gsa fv;j&ii vksj fv;j&iii 'kgjksa ij tksj nsus ds lkfk bu vfxzeksa ij è;ku fn, tkus ls dkjksckj ds volj dks c<+k;k tk,xka foùkh; o"kz*19 dh vofèk csafdax ç.kkyh esa fmftvy igyksa ds folrkj ds lkfk ifjorzu dk nksj gksxka tks tek o`f¼ dks c<+kus esa Hkh egroiw.kz Hkwfedk fuhkk,xka osf'od vkffkzd xfrfofèk us fodflr vksj mhkjrs cktkj vfkzo;olfkk nksuksa esa xfr çkir dh gs] rfkkfi foùkh; cktkj vflfkjrk rfkk lahkkfor O;kikj ;q¼ rjk isnk djrs gsaa?kjsyw i{k esa] iwozoùkhz çeq lajpukred igyksa ls fodkl çfø;k dks lqn`<+ djus dh lahkkouk gsa vks ksfxd mriknu,oa fuos'k O;; esa o`f¼ ls foùkh; o"kz*19 esa vfkzo;olfkk dks c<+kok feysxka ubz fnokfy;k,oa èku 'kksèku v{kerk lafgrk (vkbzchlh)] csad iquizwathdj.k ;kstuk vksj vkèkkjhkwr lajpuk ds çfr ljdkj ds ç;kl fuos'k dh ekax vksj ½.k o`f¼ esa ldkjkred çhkko gksus pkfg,a lkfk gh] csafdax ç.kkyh dks lqn`<+ djus ds ç;kl,oa fujarj dkwikzsjsv ykhk mbkus ls futh fuos'k dks lqn`<+ djus dh meehn gsa dsaæh; ctv uhfr?kks"k.kkvksa dk mís'; mpp k jhn ewy;ksa] Ñf"k cktkj lqèkkjksa] iqly chek] vksj flapkbz rfkk yksftflvd esa fuos'k lfgr xzkeh.k vk; esa Hkh o`f¼ djuk gsa Ñ"kdksa ds fy, vfèkd Ø; 'kfùkq rfkk etcwr xzkeh.k etnwjh xzkeh.k mihkksx ds fy, vpnh lahkkouk,a fn rh gsaa,e,l,ebz] Ñf"k vksj qnjk vfxzeksa ds rgr ½.k o`f¼ ds fy, vfkzo;olfkk esa iqu#¼kj ds lkfk csgrj volj gksaxsa rfkkfi]?kjsyw ekspzs ij] eqækliqhfr ncko c<+us ls] mpp jktdks"kh;?kkvs ds lkfk&lkfk c<+rs ½.k Hkkj ls vksj ½.k,oa lexz fodkl ij csafdax {ks=k ds èkks kèkm+h ds lahkkfor udkjkred çhkko ds dkj.k vkarfjd :i ls vèkksxkeh tksf e mriuu gks ldrs gsaa osf'od Lrj ij O;kikj ruko] HkwxHkhZ; vfuf'prrk vksj iqsm nj esa o`f¼ dqn vu; tksf e dkjd gsaa due to rising oil prices which could adversely impact the Another pressing concern for the Indian economy in general and Indian banking in particular are the recent fraud cases surfacing before the industry. This has raised concerns on risk management and fraud detection practices. The Banking landscape is fast evolving and overcoming various challenges. The challenges facing the banking industry can often appear daunting when viewed as a whole but can offer various opportunities if one thinks big and acts swiftly. The key to delivering success is to dissect into a number of small steps. With the introduction of the new framework, Non Performing Assets after an initial increase are expected to steadily go down. The key monitorables in FY 19 will be growth in credit and exports, corporate leverage, recoveries and the stressed assets resolution. b. Opportunities and Threats Credit which has started picking up is likely to see double digit growth in FY 19 with maximum growth coming from Small Ticket Advances. Focus on these advances with a thrust on Tier-II and Tier-III cities will enhance business in the banking system, which will also be instrumental in enhancing deposits growth. The Global economic activity has gathered momentum, both in advanced and emerging market economies, though threat. On the domestic front, the key structural initiatives which were taken in the past are likely to strengthen the growth process. An uptick in industrial production and investment spending is likely to propel the economy forward in FY 19. The new Insolvency and Bankruptcy push in infrastructure sector should have a positive impact on investment demand and credit growth. Further, efforts to strengthen the banking system and continued corporate deleveraging is expected to bolster private investment. Union Budget policy announcements also are aimed at spurring rural incomes with higher food procurement prices, agriculture market reforms, crop insurance, and investment in irrigation and logistics. More purchasing power with the farmers and stronger rural wages augur well for rural consumption. With the revival in the economy, there will be better opportunities for credit growth under MSME, Agriculture and Retail Advances. However, on the domestic front, downside risks may potential negative impact of the banking sector frauds on credit and overall growth. Globally, rising trade tensions, geopolitical uncertainty and increase in Fed rate are some of the other risk factors PNB Full AR indd Jul-18 4:27:14 PM

38 lh- pquksfr;ksa ds ckotwn csad viuh fodkl dh dfkk dks cjdjkj j us esa l{ke Fkk rfkk `10 yk djksm+ ls vfèkd ds ldy?kjsyw O;kikj esa ubz miyfcèk dks çkir djus esa l{ke FkkA foùkh; o"kz*19 esa iwath laj{k.k ds lkfk dkjksckj fodkl ij è;ku fn;k tk,xka xzkeh.k foùk iks"k.k ds fy, fv;j&3 vksj fv;j&4 'kgjksa esa xzkeh.k,oa vèkz 'kgjh 'kk kvksa dk ykhk mbkus ls dkjksckj esa fodkl gksxka xzkeh.k ½.k Ñf"k foùkiks"k.k vksj xzkeh.k qnjk amksa esa volj çnku djsxka csadksa ds fy, mèkkj nsus ds lkfk&lkfk vfkzo;olfkk esa fodkl dks c<+kok nsus ds fy, NksVs jkf'k ds vfxze O;kogkfjd fodyi cus jgs gsaa Ñf"k vfxzeksa],e,l,ebz vfxzeksa vksj qnjk ½.k ij è;ku fn;k tk,xka Ñf"k foùkiks"k.k ds fy, Ñf"k fuos'k ½.k] mpp&ewy; lac¼ xfrfofèk foùkiks"k.k,oa lqn`<+rk rfkk fo'ks"k Ñf"k&foÙk 'kk kvksa ds iqufuzekz.k ij vfèkd è;ku nsuk gksxka,e,l,ebz ½.k nsus ds fy,] DyLVj vkèkkfjr foùkiks"k.k dks c<+kok fn;k tk,xk] çfø;k Lopkfyr dh tk,xh vksj vko';drk vkèkkfjr vfkok vko';drkuqlkj mrikn le; ij vkjahk fd, tk,axsa,e,l,ebz vfxze ds fy, 'kk k,a fof'k"v {ks=k esa lahkkfor {ks=kksa ij è;ku dsafær djsaxha fmftvyhñr vuqdwfyr mriknksa ij vfèkd ykhk ysuk qnjk iksvziqksfy;ks c<+kus dh j.kuhfr gksxha lkfk gh] ekstwnk xzkgdksa ds fy, çfr&foø; ij Hkh è;ku dsafær fd;k tk,xka iwath fuekz.k ds lkfk iwath laj{k.k Hkh egroiw.kz gs rfkk,ulh,yvh krksa esa rsth ls lekèkku ds fy, qnjk ½.k o`f¼ ij è;ku dsfuær djuk rfkk xq.koùkk vkflr;ksa dks c<+kuk eq[; è;ku fn, tkus okys {ks=k gksaxsa mpp,uih, ds lekèkku ds fy,] lhkh Lrjksa ij çhkkoh mi;ksx ds fy,,dhñr iwoz&lohñfr fuxjkuh midj.k dk çhkkoh <ax ls mi;ksx fd;k tk,xk rkfd bu mik;ksa }kjk mèkkj krksa dh detksfj;ksa dks le; ij le>k tk ldsa lkfk gh] dk;z{kerk dks c<+kus ds fy, lksflzax vksj ½.kksa dh çkjfehkd leqfpr lkoèkkuh vksj budk çlaldj.k] fuxjkuh rfkk olwyh tsls fofhkuu vk;keksa dks viuk;k tkuk pkfg,a am&okj vfkok mrikn&okj dk;zfu"iknu csad ds dqn çeq dkjksckjh {ks=kksa ds fo'ys"k.k uhps fn, x, gsa % i. lalkèku laxzg.k csad dh dqy tekjkf'k;ksa esa 3-3» dh o"kz&nj&o"kz o`f¼ ds lkfk ekpz*18 ds var rd ` 6]42]226 djksm+ dh o`f¼ gqbza?kjsyw tekjkf'k;ksa esa dklk tekjkf'k;ksa dh fgllsnkjh 43-85» jgha ii. le;iwoz vkgj.k dh lqfoèkk ds fodyi ds fcuk] ysfdu C;kt dh ojh;rk nj ds lkfk ih,uch mùke,d ubz lkofèk tek ;kstuk vkjahk dh xbza rd ;kstuk ds rgr `4]666 djksm+ tqvk, x, FksA çfrlièkhz cus jgus vksj ykhkdkjh osru krksa dh jhn ds fy,] pkj u, osru krs ;kstuk vfkkzr lkeku;] xksym] çhfe;e vksj IySfVue dk vkjahk fd;k x;ka rd ksys x,,sls krksa dh la[;k Fkh] ftlus 89 djksm+ #i;s tqvk,a ½.k fofu;kstu,oa forj.k csad ds fuoy vfxze esa ekpz*17 ds 3-4» dh o"kz&nj&o"kz dh o`f¼ ds lkfk ` djksm+ ls ekpz*18 esa ` djksm+ dh o`f¼ gqbza ekpz*18 esa lekir gq, o"kz gsrq csad dk vfxzeksa ij çfriqy 7-49» jgka y?kq m ksx (,l,lvkbz) vksj xsj&,l,lvkbz Js.kh ls lacafèkr The Bank was able to keep its growth story intact despite the challenges and was able to cross the new landmark of ` 10 lakh crore in Gross Domestic Business. The focus in FY 19 will be on Business Growth with Capital Conservation. Business growth will come from leveraging Rural and Semi Urban (RuSu) branches in Tier 3 and Tier 4 cities for rural Small Ticket Advances continue to be a practical alternative for the banks to push lending as well as to fuel growth in the economy. Focus will be on Agriculture advances, MSME shall be more on agriculture investment credit, hi-value will be automated and need-based & tailor-made products will continue to be launched from time to time. Branches products will be the strategy to increase the retail portfolio. Further, cross selling to the existing customers will also be focused upon. Along with generation of capital, conservation of capital is equally important and for this, faster resolution in NCLT accounts, focus on Retail Credit growth and increasing quality assets will be the focus areas. For resolution of high NPAs, post-sanction monitoring tools will be integrated borrowal accounts are captured timely. Further, different verticals have been set up for sourcing and initial due diligence of loans and their processing, monitoring and c. Segment-wise or Product wise Performance The performance of some of the major business segments i. Resource Mobilization The Total deposits of the Bank increased to ` 6,42,226 crore as at the end of Mar 18 with a YoY growth of 3.3%. The share of CASA deposits in Domestic Deposits stood at 43.85%. A new Fixed Deposits scheme PNB UTTAM was introduced without the option of premature withdrawal facility but with preferential rate of interest. As on , ` 4,666 crore and procure remunerative salary accounts, four new and Platinum were introduced. Till , the number of ` 89 crore. ii. Credit Deployment and Delivery Net Advances of the Bank increased to ` 4,33,735 crore in March 18 from ` 4,19,493 crore in March 17 with a YoY growth of 3.4%. Yield on Advances of the Bank stood at 7.49% for the year ended March 18. The Bank has 442 accounts under Technology Upgradation 24 2 PNB Full AR indd Jul-18 4:27:14 PM

39 iii. iv. çks ksfxdh muu;u fufèk ;kstuk (Vh;w,iQ,l) ds varxzr csad esa yxhkx 442 krs gsaa foùkh; o"kz*18 ds nksjku] csad dks VsDlVkby ea=kky; (,evksvh)ls `90-56 djksm+ dh Vh;w,iQ,l lfclmh çkir gqbz gs rfkk bls ik=k mèkkjdrkzvksa esa forfjr fd;k x;k gsa ½.k lewgu foùkh; o"kz*18 ds nksjku] csad us `15773 djksm+ ds dqy ½.kksa ds gsrq eatwjh nh ftlesa ih,uch dk fgllk `3869 djksm+ FkkA lkfk gh rduhdh çdks"b us ` djksm+ ds dqy ½.kksa ds rduhdh vkffkzd O;ogk;Zrk (VhbZoh) vè;;u dk lapkyu fd;k ftlesa ih,uch dk fgllk ` djksm+ FkkA foùkh; o"kz*18 ds nksjku rduhdh çdks"b }kjk lapkfyr VhbZoh vè;;uksa ls dqy vk; rfkk dkwjiksjsv ekdzsfvax,am flafmds'ku çdks"b }kjk ifj;kstukvksa dk lewgu `16-81 djksm+ ntz dh xbza qnjk ½.k qnjk vfxze csad dk çeq {ks=k cuk jgsxka foùkh; o"kz*18 esa] csad ds dqy qnjk ½.k esa chrs o"kz 14-15» dh rqyuk esa o"kz&nj&o"kz 15-47» dh o`f¼ dks ntz djrs gq, foùkh; o"kz*17 ds `65982 djksm+ ls `76188 djksm+ dh o`f¼ gqbza vkokl] okgu vksj f'k{kk {ks=k ds varxzr Øe'k% 17»] 9» vksj 13» dh o`f¼ gqbza isa'kujksa ds ½.k esa chrs o"kz 18-82» dh rqyuk esa 22-14» dh o`f¼ gqbza foùkh; o"kz*18 ds nksjku] csad us ih,uch esdl lsoj ;kstuk vkjahk dh gs tks vksojmªkýv ds :i esa vkokl ½.k çnku djrk gs tgka mèkkjdrkz vius vfèk'ks"k fufèk j ldrk gs vksj C;kt dk Hkkj de djrk gsa f'k{kk ½.k ds varxzr u, xq.koùkk dkjksckj lafpr djus ds fy,] bafm;u balvhvôwv vkwiq esustesav (vkbzvkbz,e) }kjk nh xbz nwjlfk f'k{kk fofèk ds rgr dk;zikydksa] m fe;ksa rfkk O;kolkf;;ksa ds fy, bz&ikslv xzstq,v çksxzke dks ih,uch çfrhkk ds rgr 'kkfey fd;k x;k gsa ½.k ij csgrj fu;a=k.k ds fy, bz&osnk vkjehk fd;k x;k Fkk tks dk;kzsrj LohÑfr] ½.k çlaldj.k vksj nlrkosthdj.k ds iwoz forj.k lr;kiu dh çfø;k gsa v. çkfkfedrk {ks=k 1- jk"vªh; y{;ksa dh çkfir% csad fujarj finys 3 o"kks± ls çkfkfedrk {ks=k] Ñf"k rfkk vu; mi{ks=kksa (y?kq ½.k dks NksM+dj) ds varxzr jk"vªh; y{;ksa dks çkir dj jgk gsa çkfir;ka fueukuqlkj gsa%& jk"vªh; y{;ksa dh çkfir (=ksekfld okf"kzd vkslr vkèkkj ij),,uchlh dk» y{; ekpz 31] ekpz 31] ekpz 31] * çkfkfedrk {ks=k ½.k ftuesa ls% Ñf"k {ks=k detksj oxks± ds fy, ½.k efgyk ykhkkffkz;ksa dks ½.k NksVs vksj lhekar fdlkuksa dks ½.k (7) iii. Fund Scheme (TUFS) pertaining to Small Scale Industry (SSI) and Non-SSI category. During FY 18 the Bank received TUFS subsidy amounting to ` crore from Ministry of Textile (MOT) and the same was disbursed to the eligible borrowers. Loan Syndication During FY 18, the Bank gave approvals for Syndication/ Appraisal of debt aggregating ` 15,773 crore with PNB s share being ` 3869 crore. Further, Technical Cell conducted Techno Economic Viability (TEV) Study of debt aggregating ` crore where PNB s share was ` crore. Total Income booked out of TEV Studies conducted by Technical Cell during FY 18 and projects being syndicated by Corporate Marketing & Syndication Cell stood at ` crore. iv. Retail Credit Retail Advances continue to remain the thrust area of the Bank. In FY 18, Total Retail credit of the Bank increased to ` 76,188 crore from ` 65,982 crore in FY 17 registering a YoY growth of 15.47% against 14.15% in the previous year. The YoY growth under Housing, Vehicle and Education was 17%, 9% and 13% respectively. YoY growth in loan to pensioners was 22.14% as against 18.82% in the previous year. During FY 18, the Bank introduced PNB MAX SAVER scheme which offers housing loan in the form of overdraft where borrowers can park their surplus fund and reduce interest burden. To garner fresh, quality business under Education Loans, E-Post Graduate Programme in Management for executives, entrepreneurs and professionals under Distance learning mode offered by Indian Institute of Management (IIM) has been included under PNB PRATIBHA. To have a better control on lending, e-veda was introduced which is a process of post sanction, pre disbursement validation of loan processing and documentation. v. Priority Sector 1. National Goals Achievement: The Bank has been achieving the National Goals under Priority Sector, Agriculture and other sub-sectors (except Micro credit) continuously for past 3 years. The achievements stand as under:- Achievement Of National Goals (Quarterly Annual Average Basis) % age to ANBC Target Mar 31, 2016 Priority Sector Credit Mar 31, 2017 Mar 31, 2018* Of which: Agriculture Sector Credit to Weaker Sections Credit to Women Loan to Small & Marginal Farmers (7) PNB Full AR indd Jul-18 4:27:15 PM

40 ,,uchlh dk» y{; ekpz 31] ekpz 31] lw{e m e dks ½.k (7) ekpz 31] 2018* *foùkh; o"kz 2017&18 ds fy, =ksekfld okf"kzd vkslr,,uchlh% ` djksm+a lhkh miyfcèk;ka =ksekfld okf"kzd vkslr vkèkkj ij gsa rfkk `8340 djksm+ dh ih,l,ylh dh fcøh ds ckn dh gsaa =ksekfld okf"kzd vkslr vkèkkj ij jk"vªh; y{; Øe'k% `1]45]695 djksm+ rfkk `65]563 djksm+ dh rqyuk esa 31 ekpz 2018 rd çkfkfedrk {ks=k ds rgr cdk;k jkf'k `1]69]772 djksm+ rfkk Ñf"k ds rgr `69]207 djksm+ gsa dks çkfkfedrk {ks=k] Ñf"k rfkk mi{ks=kksa dh cdk;k flfkfr fueukuqlkj gs%& (jkf'k djksm+ esa) çkfkfedrk {ks=k ½.k ftuesa ls Ñf"k {ks=k ,e,l,ebZ çkfkfedrk) vu; detksj oxks± ds fy, ½.k efgyk ykhkkffkz;ksa dks ½.k NksVs vksj lhekar fdlkuksa dks ½.k lw{e m e dks ½.k foùkh; o"kz*18 ds çeq dk;zfu"iknu% csad us `8340 djksm+ ds çkfkfedrk {ks=k ½.k çek.ki=k dh fcøh dh ftuesa ls `4315 djksm+ ih,l,ylh&y?kq,oa ekftzuy fdlkuksa dh Js.kh ls Fks vksj 'ks"k ih,l,ylh&lkeku; dh Js.kh ls Fks rfkk `14-45 djksm+ dh vk; vftzr dh x;ha y?kq k çlaldj.k bdkb;ksa ds foùk&iks"k.k ds fy, ih,uch mrd"kz ;kstuk% vko';drk vkèkkfjr lkofèk ½.k ;k dk;z'khy iwath ½.k `20 yk rda bl ;kstuk dks vlaxfbr xzkeh.k k çlaldj.k cktkj dks VSi djus ds fy, vkjahk fd;k x;k gs ftlesa LVªhV foøsrk Hkh 'kkfey gsa iqly ½.k@dslhlh vksj vu; Ñf"k ½.k gsrq `20 yk rd dh LohÑr lhek ds fy, Ñf"k vfxzeksa dh C;kt nj esa la'kksèkua k vksj Ñf"k çlaldj.k bdkb;ksa dh lhkh Jsf.k;ksa ds foùkiks"k.k ds fy, ykxw nj ds 50» rd çlaldj.k@vfxze 'kqyd esa NwVA t;iqj ftyk nqxèk mriknd lgdkjh la?k fyfevsm] t;iqj (t;iqj Ms;jh) ds lkfk VkbZ&vi O;oLFkkA es0@ VªSDVj çkbosv fyfevsm ds lkfk le>ksrka NÙkhlx<+ jkt; esa k vksj Ñf"k vkèkkfjr m ksxksa (jkbl 'ksfyyax] fefyax] isîóh ickzsbfyax br;kfn) ds fy, csad xkjavh % age to ANBC Target Mar 31, 2016 Loan to Micro Enterprises (7) Mar 31, 2017 Mar 31, 2018* *Quarterly annual average ANBC for the Financial Year : ` crore. All achievement is on the basis of quarterly annual average basis and after taking impact of sale of PSLC to the tune of ` 8340 Cr. On quarterly annual average basis the outstanding under Priority Sectors as on 31st March 2018 is ` 1,69,772 crore and ` 69,207 crore under Agriculture against National Goal of ` 1,45,695 crore and ` 65,563 crore respectively. The outstanding position of Priority Sector, Agriculture and Sub-sectors as on is as under:- (Amt. in crore) Parameter Priority Sector Credit Of which: Agriculture Sector MSME (Priority) Others Credit to Weaker Sections Credit to Women Loan to small & marginal farmers Loan to Micro enterprises Performance Highlights of FY 18: to the tune of ` 8340 crore, out of which ` 4315 Crore was in the category of PSLC-Small & Marginal Farmer and rest in the category of PSLC-General and earned an income of ` crore. Processing Units: a need based Term Loan or Working Capital loan upto ` 20 lakh was launched to includes street vendors. Revision in rate of interest in Agriculture Advances for sanctioned limit upto ` 20 Lakh for Crop Loans/ KCC and other agriculture loans. Concession in processing/upfront fee upto 50% of Food and Agro Processing Units. Tie-up arrangement with Jaipur Zila Dugdh Utpadak Sahkari Sangh Limited, Jaipur (Jaipur Dairy). Tie up agreement with M/s Preet Tractors Pvt. Ltd. Concession in Performance BG commission from present 0.50% per quarter to 0.30% per quarter in 26 2 PNB Full AR indd Jul-18 4:27:15 PM

41 dh deh'ku esa orzeku ds 0-50» çfr frekgh ls 0-30» çfr frekgh rd NwV nh xbza Chhattisgarh state for food & agro based industries (rice shelling, milling, paddy parboiling, etc.) vi. dslhlh lqfoèkk dk ykhk ysus okys fdlkuksa dks çèkkuea=kh lqj{kk chek ;kstuk (ih,e,lchokbz) ds rgr doj fd;k tk jgk gsa lksj iafiax lsv dks lapkfyr dj Ñf"k esa ÅtkZ ds osdfyid lzksr dks c<+kok nsus ds fy, caèkd gsrq Hkwfe dh vko';drk dks `5 yk rd ds ½.k ij NwV nh xbz gsa xzkeh.k HkaMkj.k rfkk k vksj Ñf"k çlaldj.k gsrq foùkiks"k.k ds fy, vkjvksvkbz esa NwV nh x;h gsa lw{e] y?kq vksj eè;e m e (,e,l,ebz) ekpz*18 ds var rd] ekpz*17 dh lekfir ls o"kz&nj&o"kz 6-50» dh o`f¼ ds lkfk,e,l,ebz {ks=k ds fy, ½.k `86]899 djksm+ jgk rfkk lw{e] y?kq vksj eè;e m eksa ds fy, ½.k `72]246 djksm+ jgk (o"kz&nj&o"kz 8-89»)A 31 ekpz*18 rd csad esa (o"kz&nj&o"kz 12-75») dh o`f¼ ds lkfk lw{e m eh krksa dh o`f¼ gqbz tcfd çèkkuea=kh gkbz ysoy VkLd iqkslz dh fliqkfj'kksa ds vuqlkj 10» dh visf{kr o`f¼ gksuh pkfg,a foùkh; o"kz ds nksjku] csad us `1041 djksm+ ds ½.k ifjo;; ds lkfk lhthvh,e,lbz ;kstuk ds rgr ekeyksa dks doj fd;k x;k gsa ekpz*18 rd krksa esa dqy ½.k ifjo;; `4803 djksm+ jgka Hkkjr ljdkj@hkkjrh; fjtoz csad }kjk 7-5» ds y{; dh rqyuk esa csad dh,,uchlh ds çfr'kr ds :i esa lw{e m e vfxzeksa ds rgr cdk;k 9-12» gsa çèkkuea=kh eqæk ;kstuk (ih,e,eokbz) % foùkh; o"kz 2017&18 ds fy, csad us eqæk ;kstuk ds rgr `6837 djksm+ LohÑr fd, vksj foùkh; lsok fohkkx] foùkh; ea=kky; }kjk vkoafvr ctv ds 86» (`7950 djksm+) çkir djus esa l{ke jgka ^LVsaM vi bf.m;k* ;kstuk% o"kz ds nksjku gekjs csad }kjk LVsaM vi bafm;k ds rgr 3674 krksa esa `805 djksm+ dh jkf'k LohÑr dh x;ha csad us 2&4 lirkg ds VuZvjkmaM le; dks de djus ds y{; ds lkfk 414 'kk kvksa esa,e,l,ebz ½.k o`f¼ igy dh 'kq#vkr dh rfkk,e,l,ebz iksvziqksfy;ksa esa o"kz&nj&o"kz vkèkkj ij 30» rd dk fodkl fd;ka csad us bl {ks=k ij è;ku dsafær djus ds fy, lacafèkr {ks=kksa esa dke dj jgs 'kk kvksa ds lkfk esi fd, x, 205 dylvj dh igpku dh gsa ½.k dh lqfoèkk ds fy,] ½.k vkosnu ljyhñr fd;k x;k gs vksj,e,l,ebz gsyiykbu ds ekè;e ls vkosnu vkwuykbu çlrqr djus rfkk,e,lbz lsxesav ds rgr mugsa Vªsfdax dh lqfoèkk çnku dh xbz gsa bl dk;zç.kkyh dks çksrlkfgr djus gsrq ½.k vkosnu vkwuykbu çlrqr djus okys mèkkjdrkzvksa dks vfxze 'kqyd vksj çlaldj.k 'kqyd esa 20» dh fj;k;r nh tkrh gsa,e,l,ebz ds VhvkjbZMh,l IysViQkseZ ij cêðk fd, tkus okys O;kikj çkfir;ksa ds foùkh; iks"k.k ds fy, VhvkjMh,l (O;kikj çkfir;ka NwV ç.kkyh) uhfr dks vafre :i fn;k x;k gsa,e,lbz iksvziqksfy;ks (eqæk vi. The farmers availing KCC facility are now being covered under Pradhan Mantri Suraksha Bima Yojana (PMSBY). To promote alternative source of energy in Agriculture by setting up solar pumping sets, requirement of mortgage of land has been waived for loans upto ` 5 lakh. Rural Godown/Warehouse/Cold Storage and Food & Agro Processing. Micro, Small and Medium Enterprises (MSME) As at the end of Mar 18, the credit to MSME sector stood at ` 86,899 crore, with a YoY growth of 6.50% over Mar 17 with advances to Micro & Small enterprises at ` 72,246 crore (YoY growth 8.89%). The Bank added 87,201 Micro Enterprises Accounts till 31st March 18, (YoY growth of 12.75%) against the required growth of 10% in terms of Prime Minister High Level Task Force recommendations. under the CGTMSE scheme with the credit outlay of ` 1041 crore. The total outlay as on March'18 stands at accounts with amount of ` 4803 crore. The outstanding under Micro Enterprise advances as a percentage of ANBC of the Bank is 9.12% as against the target of 7.5% by Government of India/ Reserve Bank of India. Pradhan Mantri Mudra Yojana (PMMY): For FY , Bank has sanctioned ` 6837 crore and achieved 86% of the budget (` 7950 crore) allotted by Department of Financial services, Ministry of Finance. Stand Up India scheme: An amount of ` 805 crore in 3674 accounts was sanctioned during the year under the Stand Up India Scheme by our Bank. Bank has 414 MSME Credit Growth Initiative branches with goals to reduce the turnaround time to 2-4 weeks and to grow the MSME portfolio by 30% on a YoY basis. mapped with branches working in the concerned areas to give focused attention to MSME sector. and facility of submission of application on-line through MSME Helpline and tracking them under MSE segment has been provided. A concession of 20% in upfront fee and processing fee is extended to borrowers who submit application on-line to encourage the practice. TReDS (Trade Receivables Discounting System) policy of ` 1566 crore from SIDBI against MSE portfolio (other 27 2 PNB Full AR indd Jul-18 4:27:15 PM

42 vii. Mh- ds vfrfjùkq) ds foijhr,lvkbzmhchvkbz ls `1566 djksm+,oa lw{e bdkb;ksa ds fodkl ls ` djksm+ dk iqufozùk çkir gqvk gs rfkk eqæk iksvziqksfy;ksa ds foijhr iqufozùk,tsalh dks viuk;k x;k gsa us'kuy ØsfMV xkjavh VªLVh daiuh fyfevsm (,ulhthvhlh) ls igyk iksvziqksfy;ksa `29-16 djksm+ dk pwd nkok çkir fd;k x;ka csad us ½.k lqfoèkk dks xzkgdksa ds vfèkd vuqdwy cukus ds fy, ^vkwuykbu vkosnu rfkk Vªsfdax fllve* dk v ru fd;k gsa csad ds ekstwnk,e,l,ebz mèkkjdrkzvksa }kjk,iqvkjvkj vkosnuksa dks çlrqr djus ds fy, vkwuykbu iksvzy dks fodflr fd;k x;k gs vksj bls ykbo cuk;k x;k gsa foùkh; lekos'ku foùkh; lekos'ku ds vius y{; dks çkir djus ds fy, csad fofhkuu mik; dj jgs gsaa foùkh; o"kz*18 ds nksjku foùkh; lekos'ku ds fy, fueufyf r igysa dh xbz%,- ih,uch osclkbv esa miycèk lqjf{kr osc ist ds ekè;e ls vksvhih vkèkkfjr vkèkkj lhfmax rfkk çek.khdj.ka ch- lh- Mh- 'kk kvksa esa ekstwn xzkgdksa dk ck;ksesfvªd vkèkkj ij vkèkkj lhfmax,oa çek.khdj.ka vkbzvkbzch,iq ;k bu&gkml çek.ku ds ekè;e ls lhkh csad fe=kksa dks çf'k{k.k vksj çek.khdj.ka chlh LFkkuksa ds vfrfjùkq,vh,e] bavjusv csafdax ij ifjpkfyr vkèkkj lhfmax lqfoèkka bz- chlh LFkkuksa ij vvy isa'ku ;kstuk (,ihokbz) iathdj.k lqfoèkk 'kq: dh xbza,iq- chlh psuy ds ekè;e ls ih,uch esvykbiq mrikn% ih,uch esvykbiq mrikn esv xzkeh.k vkj; dk vkjahk fd;k x;k rfkk orzeku esa rhu vapyksa esa çkjafhkd vkèkkj ij py jgk gsa lkekftd lqj{kk ;kstuk,a% dsaæh; ctv 2015&16 ds?kks"k.kk ds ifj.kkelo:i] ekuuh; çèkkuea=kh us fnukad dks rhu lkekftd lqj{kk ;kstuk,a vkjahk dha ;kstukvksa ds rgr çxfr fueukuqlkj gs % & i) çèkkuea=kh lqj{kk chek ;kstuk ¹ih,e,lchokbZº & fnukad dks ih,e,lchokbz ds rgr ukekafdr xzkgdksa dh la[;k gsa ii) çèkkuea=kh thou T;ksfr chek ;kstuk ¹ih,etstschokbZº% rd ih,etstschokbz ds rgr ukekafdr xzkgdksa dh la[;k gsa iii) vvy isa'ku ;kstuk ¹,ihokbZº%,ihokbZ ;kstuk ds rgr rd ukekadu rd igq p x, gsaa vkmvyqd foùkh; o"kz*19 esa vuqdwy?kjsyw vksj osf'od i;kzoj.k ls ykhkkfuor gksdj vfkzo;olfkk esa xfr vkus dh lahkkouk gsa Hkkjrh; fjtoz csad ds vuqekuksa ds vuqlkj ldy?kjsyw mrikn dh o`f¼ foùkh; o"kz*18 esa 6-6» ls foùkh; o"kz*19 esa 7-4» rd gksus dk vuqeku gs& leku :i ls larqfyr tksf eksa ds lkfk,p1 esa 7-3&7-4» dh rfkk,p2 esa 7-3&7-6» dh jsat esaa vfèkd ½.k forj.k] çkfkfed cktkj ls tqvk, Vii. than MUDRA) and ` crore from Micro Units of ` crore from National Credit Guarantee Trustee Company Ltd (NCGTC) has been obtained. The Bank has upgraded to a more user friendly Online Loan Application & Tracking System. Online portal for submission of FRR applications by existing MSME borrowers of the Bank has been developed and made live. Financial Inclusion: Bank has been taking various steps towards meeting its a. OTP Based Aadhaar seeding and authentication of accounts through secure web page is available as link on PNB website. b. Biometric based Aadhaar seeding and authentication of existing customers at branches. d. Aadhaar seeding facility is operational at BC locations in addition to branches, ATM, Internet Banking. e. Atal Pension Yojana (APY) registration facility introduced at BC locations. f. PNB MetLife product through BC channel: PNB MetLife product Met Gramin Ashray launched and presently running on a pilot basis in three Zones. Social Security Schemes: Consequent upon announcement in Union Budget , Hon ble Prime Minister launched three social security schemes on The progress under the schemes is as under:- i) Pradhan Mantri Suraksha Bima Yojana (PMSBY) As on , Number of customers enrolled under PMSBY is ii) Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) As on , Number of customers enrolled under PMJJBY is iii) Atal Pension Yojana (APY): The Number of enrolment under APY scheme as on is d. Outlook from conducive domestic and global environment. As per RBI projections, GDP growth is projected to strengthen from 6.6% in FY 18 to 7.4% in FY 19 in the range of % in H1 and % in H2, with risks evenly balanced. The factors which have instilled growth are improved 28 2 PNB Full AR indd Jul-18 4:27:15 PM

43 bz- cm+s lalkèku] lkoztfud {ks=k ds csadksa ds iquizwathdj.k rfkk fnokfy;k,oa èku 'kksèku {kerk lafgrk (vkbzchlh) ds rgr nokcxzlr vkflr;ksa dk lekèkku fodkl dks c<+kok nsus okys dkjd gsaa osf'od vksj?kjsyw fodkl esa rsth ykus ls fu;kzr dks çksrlkfgr fd;k tk ldrk gs ftlls cqfu;knh <kaps {ks=k dks c<+kok feysxka rsy dh dherksa esa o`f¼ eqækliqhfr ds lacaèk esa dqn vk'kadk,a mriuu dj ldrh gs ysfdu ;g vkjchvkbz ds deiqvz ysoy ds Hkhrj jgus dh lahkkouk gsa Hkkjrh; flfkjrk&eqækliqhfr] jktdks"kh;?kkvs vksj pkyw krk?kkvs ds ladsrd varjjk"vªh; ÅtkZ dh dherksa ds çfr laosnu'khy gsa tks vfkzo;olfkk ds fy, dqn pquksfr;ksa dk lkeuk dj ldrs gsaa csafdax {ks=k esa ljdkj dh iquizwathdj.k ;kstuk ls lefkzu çkir gksus dh rfkk vkbzchlh ds rgr nokcxzlr vkflr;ksa ds lekèkku dh lahkkouk gsa tksf e,oa fpark,a csad vklkuh ls le>s tkus okys mriknksa vksj {ks=kksa esa vius usr`ro n`f"vdks.k dk fuekz.k djsxk rfkk csad ds ikl lhfer ls de tksf e Lrj ds iwoz fuèkkzfjr tksf e ekud gksaxsa mpp tksf e okys {ks=kksa esa csad vius tksf e dks lhfer dj nsxka vkj,vkjvkslh #ijs k ds ekè;e ls fy, x, tksf e vksj vkflrvksa ij çfriqy ds chp larqyu dks LFkkfir dj çfriqy dks vuqdwyre cukus ij Hkh è;ku dsfuær djsxka csad ½f.k;ksa dh foùkh; flfkfr dh lqn`<+ fuxjkuh djus vksj iwath ds laj{k.k dks lqfuf'pr djus ds lkfk xq.koùkk vkflr;ksa dks vkdf"kzr dj dkjksckj esa o`f¼ }kjk csad 'ks;jèkkjd ewy; dks vfèkdre djus gsrq cktkj fgllsnkjh dks c<+krk gsa csad ds ikl ½.k tksf e çcaèku ÚseodZ gs rfkk csad us vkarfjd ½.k tksf e ewy;kadu ekwmyksa dk fodkl fd;k gsa ;s jsfvax ekwmy mèkkjdrkzvksa ds ½.k tksf e ewy;kadu dh oskkfud fofèk miycèk djkrs gsaa csad vius jsfvax ekwmy dh çhkkodkfjrk lqfuf'pr djrs gq, budk vkofèkd osèkhdj.k Hkh djrk gsa csad vius ØsfMV tksf e jsfvax ekwmy dh lqn`<+rk dk ijh{k.k gsrq ekbxzs'ku,oa fmiqkwyvj nj fo'ys"k.k Hkh vk;ksftr djrk gsa jsfvax ekwmyksa ds vkmviqv csad ds fu.kz; çfø;k (vfkkzr ØsfMV iksvziqksfy;ks dh ys kijh{kk] leh{kk vksj fuxjkuh ds vfrfjùkq eatwjh] ewy; fuèkkzj.k] ½.k 'kfùkq;ka) ls tqm+s gsaa csad us de tksf e] eè;e tksf e rfkk mpp tksf e Jsf.k;ksa ds vuqlkj,d okafnr iksvziqksfy;ksa forj.k fuèkkzfjr fd;k gs rfkk okafnr iksvziqksfy;ks dh rqyuk esa oklrfod iksvziqksfy;ks ds dk;zfu"iknu dh fuxjkuh dh tkrh gs vksj =ksekfld vkèkkj ij ½.k tksf e çcaèku lfefr dks lwfpr fd;k tkrk gsa csad us fjvsy csafdax rfkk,l,ebz {ks=k vfxzeksa ds lacaèk esa Ldksfjax ekwmyksa dk fodkl Hkh fd;k gsa Ñf"k {ks=k gsrq Hkh Ldksfjax ekwmy dk fodkl fd;k x;k gs vksj bls lhkh 'kk kvksa esa ykxw dj fn;k x;k gsa bu çfø;kvksa us ½.kksa dk 'kh?kz vksj vpwd forj.k djus] ewy;kadu esa,d:irk ykus vksj MkVk dk laxzg,oa fo'ys"k.k djus esa csad dh lgk;rk dh gsa csad esa cktkj tksf e çcaèku dk;ks± ds fy, lqifjhkkf"kr laxbukred lajpuk ekstwn gs tks cktkj tksf e vfkkzr C;kt nj tksf e,oa fons'kh fofue; tksf e ds lexz çcaèku dh çfø;k dh ns js djrh gs vksj blds ekiu,oa fuxjkuh dh dk;zç.kkfy;ksa dks dk;kzfuor djrh gsa Vªstjh ifjpkyu esa tksf e çcaèku gsrq ncko ijh{k.k] vofèk] la'kksfèkr vofèk] oh,vkj tsls lkèkuksa dk çhkkoh :i ls mi;ksx fd;k tk jgk gsa resolution of distressed assets under the Insolvency and Bankruptcy Code (IBC). Accelerating global and domestic growth is likely to encourage exports and provide thrust to infrastructure sector. front but it is likely to remain within RBI s comfort level. energy prices which can pose some challenges for the economy. The Banking sector is likely to get support from distressed assets under IBC. e. Risks & Concerns Bank will build its leadership approach in products and segments which are well understood and have predetermined risk standards of moderate to low risk level. Bank will limit its exposure in high risk areas. Bank will between the risk taken and the return on assets through Risk Adjusted Return on Capital (RAROC) framework. Bank also strives towards improving its market share to through attracting quality assets coupled with strong conservation of capital. The Bank has a Credit Risk Management framework and has developed in-house credit risk rating models. These credit risk rating of borrowers. Bank also undertakes periodic validation exercise of its rating models to ensure default rate analysis to test robustness of its credit risk rating models. Output of rating models is linked to decision besides Audit, Review & monitoring of credit portfolio). The Bank has also set a desired portfolio distribution in terms of Low-Risk, Medium-Risk & High-Risk Categories and the performance of actual portfolio vis-à-vis desired portfolio is monitored and reported to Credit Risk Management Committee at quarterly intervals. Bank has also developed scoring models in respect of Retail banking and SME sector advances. The scoring model for farm sector has also been developed and has been implemented across all the branches. These processes help Bank to achieve quick and accurate delivery of credit, bring uniformity in the appraisal and facilitate storage of data and analysis thereof. structure for market risk management functions, which looks into the process of overall management of market exchange risk, implements methodologies for measuring and monitoring the same. Tools like stress testing, duration, managing risk in the Treasury operations PNB Full AR indd Jul-18 4:27:16 PM

44 fdlh Hkh?kVuk ls fuivus ds fy, csad ds vkflr ns;rk çcaèku dks vxzlfø; fd;k x;k gsa lhkh vkflr;ksa,oa ns;rkvksa ds lacaèk esa vkflr ns;rk dk çcaèku nsfud vkèkkj ij fd;k tkrk gsa vkflr,oa ns;rk mriknksa ds lacaèk esa C;kt njsa oskkfud vkèkkj ij fuèkkzfjr dh tkrh gsaa vko';drk gksus ij fdlh Hkh lahkkfor eqæk ladv ls fuivus ds fy, csad us vkdfled foùk iks"k.k ;kstuk cukbz gsa csad fdlh Hkh rjyrk dh vko';drk dks iwjk djus ds fy, fujarj vkèkkj ij viuh rjy vkflr;ksa dk çcaèku dj jgk gsa csad us,d O;kid vkbzlh,,ih nlrkost fu;r fd, gsa ftls vèkz&okf"kzd vkèkkj ij 'kh"kz çcaèku dks çlrqr fd;k tk jgk gsa vkbzlh,,ih fiyj&i vksj fiyj&ii ds tksf eksa ij fu;a=k.k djrk gs rfkk csad }kjk mtkxj fd, fofhkuu tksf eksa ds çhkko ij lexz n`f"v j rk gs rfkk fofhkuu tksf eksa dks ekius@ewy;kadu djus dk ç;kl djrk gsa tksf e ewy;kadu vksj çcaèku çfø;k dks vkbzlh,,ih nlrkostksa esa 'kkfey fd;k x;k gsa nlrkost,dy vksj lesfdr nksuksa vkèkkj ij rs;kj fd;k tk jgk gsa csad esa lqifjhkkf"kr vksvkj,e uhfr ds lkfk ifjpkyu tksf e çcaèku dk;z gsrq Hkh lqifjhkkf"kr laxbukred lajpuk,oa #ijs k ekstwn gs tks ifjpkyu tksf e ds lexz çcaèku dh çfø;k dh ns js djrh gsa csad ijaijkxr gkfu MkVk ds fo'ys"k.k] tksf e,oa fu;a=k.k Lo&fuèkkZj.k lozs{k.k (vkjlh,l,) egroiw.kz tksf e lwpdksa (dsvkjvkbz) vksj ifjn`';&fo'ys"k.k vkfn }kjk ifjpkyu tksf e dh igpku] vuqeku] fuxjkuh vksj fu;a=k.k@'keu dj jgk gsa fofoèk Lrjksa ij MsVk dsipfjax,oa çcaèk lwpuk ç.kkyh ds fofhkuu igyqvksa dk è;ku j us ds fy, csad us bavjçkbzt okbm MsVk os;jgkml ifj;kstuk ds varxzr dsaæh; lozj ij vkwuykbu ifjpkyu tksf e lekèkku dk Hkh vkjahk fd;k gsa fu;ked fn'kkfunzs'k% csad us csly II/III ds varxzr tksf e Hkkfjr vkflr;ksa (vkjmcy;w,) dh x.kuk ds fy, ½.k tksf e gsrq ekudhñr n`f"vdks.k] cktkj tksf e gsrq ekudhñr vofèk n`f"vdks.k vksj ifjpkyu tksf e gsrq ewy ladsrd n`f"vdks.k dks viuk;k gsa csad igys ls gh ½.k tksf e gsrq vkarfjd jsfvax vkèkkfjr uhao n`f"vdks.k (,iqvkbzvkjch) rfkk ifjpkyu tksf e gsrq ekudhñr n`f"vdks.k (Vh,l,) dks viukus ds lekukarj lapyu esa gsa csad =ksekfld vkèkkj ij Hkkjrh; fjtoz csad dks,iqvkbzvkjch vksj Vh,l, ds vuqlkj viuh iwath vksj vkjmcy;w, dh fjiksvz djrk gsa vkjchvkbz us ifjpkyu tksf e ds fy, muur ekiu n`f"vdks.k (,,e,) ds fy, csad dks lekukarj lapyu dk vuqeksnu fn;k gsa csad us cktkj tksf e gsrq vkarfjd ekwmy n`f"vdks.k (vkbz,e,) rfkk ½.k tksf e gsrq muur vkarfjd jsfvax vkèkkfjr (,vkbzvkjch) n`f"vdks.k dks viukus gsrq vksipkfjd i=k Hkh çlrqr fd;k gsa bl lacaèk esa lhkh vko';d dkjzokbz vkjehk dh tk pqdh gsa vu; çeq igysa% csad us vius eamy dk;kzy;ksa ds tksf e&lek;ksftr dk;ks± dh fuxjkuh vkjehk dj nh gsa eamy çeq ksa ds leesyu] tsm,e leesyu vkfn tsls fofhkuu iqksje ds ekè;e ls vapy çcaèkdksa@eamy çeq ksa dks csgrj vkffkzd çfriqy vftzr djus] dqy ½.k tksf e Hkkfjr vkflr;ksa@dqy ½.k tksf e vuqikr ds fy, Lo;a ds y{; fuèkkzfjr djus vksj blesa o"kz&nj&o"kz vkèkkj ij vkjmcy;w, vuqikr esa fujarj deh ykus dh lykg nh tk jgh gsa csad us viuh LVªsl ijh{k.k uhfr dks iqu% ifjhkkf"kr fd;k gs vksj LVªsl Asset liability management of the Bank is done on a proactive basis to manage any eventuality. The Asset Liability Management in respect of all assets and liabilities is being done on a daily basis. Interest rates in respect of Bank has carried out a contingency funding plan so as to tide over liquidity crunch if need arises. Bank is managing its liquid assets on a continuous basis so as to be able to meet any liquidity requirement. The Bank has in place a comprehensive ICAAP document which is being put up to Top Management on semi-annual basis. ICAAP addresses both the Pillar-I and Pillar-II risks and to have a holistic view of impact of various risks which the Bank is exposed to, an exercise is carried out to quantify/assess various risks. The risk assessment and management processes are covered at length in the ICAAP document. The document is being prepared on both solo and consolidated basis. structure and framework for operational risk management into the process of overall management of operational risk. Bank is identifying, measuring, monitoring and controlling/ data, Risk Control & Self-Assessment Surveys (RCSAs), Key Risk Indicators (KRIs) and Scenario Analysis etc. Bank has also introduced an online OpRisk Solution under Enterprise-wide Data Warehouse Project on a central server to take care of various aspects of data capturing and management information system at various levels. Regulatory Guidelines: The Bank has adopted a Duration Approach for Market Risk and Basic Indicator Approach for Operational Risk for computation of Risk Weighted Assets (RWA) under Basel II/III. The Bank is already under parallel run for Foundation Internal Rating based (FIRB) Approach for Credit Risk and Bank is reporting its capital and RWA as per FIRB and TSA to RBI on a quarterly basis. RBI has also accorded parallel run approval to Bank for Advanced Measurement Approach (AMA) for Operational Risk. Bank has submitted a formal Letter of Intent for adoption of Internal Models Approach (IMA) for Market risk and Advanced Internal Rating Based (AIRB) Approach for Credit Risk. Necessary actions required in this regard have been initiated. Other Major Initiatives Undertaken: The Bank has started monitoring risk-adjusted performance of its Circle economic returns, set self-targets for Total Credit Risk Weighted Assets/Total Credit Exposure ratio and achieve consistent reduction in RWA ratio on year-on-year basis through various forums like Circle Heads conference, ZM conference etc PNB Full AR indd Jul-18 4:27:16 PM

45 E-RBIA software (wherein submission, processing and compliance of RBIA reports is done online) operated through Bank s server has been implemented fully for Quarterly/Regular Audit of Concurrent branches, Nonds irk yxus ij bls de djus lacaèkh xfrfofèk;ksa ds fy, tksm+k gsa ncko ijh{k.k =ksekfld varjky ij fd, tkrs gsa vksj ifj.kke lacafèkr lfefr;ksa ds le{k çlrqr fd, tkrs gsaa fofhkuu lewg bdkb;ksa ds fy, LVªsl ijh{k.k vksj isjsav csad ij muds çhkko dk Hkh fo'ys"k.k fd;k tk jgk gsa csad us vkj,vkjvkslh ÚseodZ fodflr fd;k gsa ;g ½.k lacaèkh fu.kz;ksa dks l{ke djus ds çr;sd ½.k çlrko gsrq iwath ij çfriqy dh rqyuk djus ds fy, csad dks,d gh isekuk çnku djsxka ;g dkjksckj esa vuqekfur tksf e ds vuq:i çfriqy çnku djus esa lgk;d gksxk ftlls laxbu ds ewy; dks c<+k;k tk ldrk gsa ÚseodZ dks laxbu Lrj ij ykxw fd;k x;k gs rfkk vkj,vkjvkslh csapekdz ij ½.k çlrkoksa dk ewy;kadu fd;k tkrk gsa ;g csad dks 'ks;jèkkjdksa ds fy, ewy; mriknu ds vkèkkj ij çlrko dks fiqyvj djus esa lgk;rk djrk gs vksj csad dh vi;kzir iwath dk csgrj mi;ksx djrk gsa csad dk y{; vius Hkfo"; ds fodkl dks lapkfyr djuk vksj vkj,vkjvkslh fl¼kar ds vkèkkj ij iksvziqksfy;ks dk fuekz.k djuk gs rfkk 'ks;jèkkjdksa ds ewy; dks èkhjs&èkhjs c<+kuk gsa csad }kjk,d O;kid fjld,isvkbv ÚseodZ dk fuekz.k fd;k x;k gsa ;s nlrkost csad esa buds çhkkoh dk;kzuo;u ds fy, ç'kklu,oa fuxjkuh ÚseodZ ds lkfk fjld,isvkbv fooj.kksa dks fuèkkzfjr djrs gsaa fjld,isvkbv dks çr;sd ekunamksa ds fy, tksf e lhek rfkk tksf e ds çkjafhkd Lrj ds lkfk fofhkuu ekunamksa ds lanhkz esa ifjhkkf"kr fd;k x;k gsa,iq- vkarfjd fu;a=k.k ç.kkyh i. ½.k ys k ijh{kk rfkk leh{kk foùkh; o"kz* 18 ds nksjku]?kjsyw vksj fons'kh nksuksa ik=k ½.k krksa ds fy, ØsfMV vkwfmv fd;k x;k FkkA,yvkj,e uhfr ds lanhkz esa] foùkh; o"kz*18 esa] o"kz esa de ls de 30» ls 40» rd uhfr dh vko';drkvksa ds lkfk&lkfk vkjchvkbz ds foijhr csad ds 'kq¼ ekud ØsfMV dk vuqekfur dojst 49-05» gsa csad ØsfMV vkwfmv ds bz&vkwfmv dh çfø;k 'kq: djsxh tks ØsfMV vkwfmv ds isijysl] çhkkoh] lvhd vksj le; cpkus okys Vwy gsa ii. vkarfjd ys k ijh{kk o"kz ds nksjku vkwulkbv vkjchvkbz, ds fy, çksxzke dh xbz 5148 'kk kvksa@bdkb;ksa esa tksf e vkèkkfjr vkarfjd ys k ijh{kk (vkjchvkbz,) vk;ksftr dh xbz FkhA lwpuk lqj{kk (vkbz,l) ys k ijh{kk 85 dk;kzy;ksa@bdkb;ksa esa vkjchvkbz, ds lkfk vk;ksftr dh xbz FkhA foùkh; o"kz]18 esa 1608 'kk kvksa@lsok bdkb;ksa esa laxkeh@lrr ys k ijh{kk vk;ksftr dh xbz] ftlesa ls 825 'kk kvksa@bdkb;ksa dks vkarfjd ys k ijh{kdksa }kjk laxkeh@lrr ys k ijh{kk ds vèkhu fd;k x;k Fkk vksj 783 'kk kvksa@lsok bdkb;ksa dks ckgjh ys k ijh{kdksa (lh, iqez]isuyc¼ lsokfuo`ùk vfèkdkfj;ksa) }kjk laxkeh ys k ijh{kk ds vèkhu fd;k x;k Fkk tks csad ds dqy dkjksckj dk 77» doj djrs gsaa 6480 'kk kvksa dks vk;@jktlo ys k ijh{kk ds vèkhu fd;k x;k Fkk] ftlesa frekgh vkèkkj ij vk;@jktlo ys k ijh{kk ds fy, fpfugr~ 'kk k,a 'kkfey FkhaA ^bz&vkjchvkbz, lkwývos;j (ftlesa vkjchvkbz, fjiksvz dk çlrqfrdj.k] çlaldj.k vksj vuqikyu vkwuykbu fd;k tkrk gs) csad ds lozj ds ekè;e ls lapkfyr laxkeh 'kk kvksa ds frekgh@lrr ys k ijh{kk] it to mitigating actions on detection of stress. Stress tests are undertaken at quarterly intervals and results placed to respective committees. Stress test for various group entities and their impact on the parent Bank are also being The Bank has developed RAROC framework. It shall provide Bank a single scale for comparing the return on capital for each credit proposal to enable credit decisions. It shall help in providing returns commensurate with the level and credit proposals are evaluated on RAROC on the value generation for shareholders and make better use of Bank s scarce capital. Bank aims to drive its future growth and build portfolio on the basis of RAROC principle and enhance shareholder s value gradually. A comprehensive Risk Appetite Framework has been put in place by the Bank. The document sets out the Risk Appetite Statement along with governance and monitoring framework for its effective implementation within the parameters along with the Risk limit and Risk threshold level for each parameter. f. Internal Control System i. Credit Audit and Review During FY 18, Credit audit was undertaken for all eligible loan accounts both domestic and overseas. In terms of LRM Policy, during FY 18, the expected coverage is 49.05% of Bank s net standard credit as against the RBI as well as policy requirement of at least 30% to 40% in a year. The Bank will also start the process of e-audit of Credit Audit which is a paperless, effective, accurate and time saving tool of Credit Audit. ii. Internal Audit Risk Based Internal Audit (RBIA) was conducted in 5148 branches/ units programmed for onsite RBIA during the year. Information Security (IS) Audit was conducted in 85 was conducted in 1608 branches/service units in FY 18, of which 825 branches/units were subject to concurrent/ continuous audit by Internal Auditors and 783 branches/ service units were subject to concurrent audit by External covering 77% of the total business of the Bank branches were subject to income/revenue audit, which a quarterly basis PNB Full AR indd Jul-18 4:27:16 PM

46 xsj&fof'k"v 'kk kvksa ds lkfk&lkfk fu;fer :i ls xsj&fof'k"v ys k ijh{kk ds fy, Hkh iw.kzr% ykxw fd;k x;k gsa jktlo ys kijh{kk dh nsfud@ekfld@frekgh fjiksvz Hkh bz&vkjchvkbz, ds varxzr 'kkfey dh tkrh gsa bz&vkjchvkbz, VsEiysV~l esa la'kksèku ds ekè;e ls iqsek fn'kkfunzs'kksa dk vuqikyu leorhz ys kijh{kk dk vfhkuu fgllk cuk fn;k x;k gsa iqsek ys k ijh{kk lkeku;r% okf"kzd vkèkkj ij vk;ksftr dh tkrh gsaa Concurrent Audit Branches. Daily/Monthly/Quarterly reports of Revenue Audit are also covered under e-rbia. Compliance of FEMA guidelines has been made an e-rbia templates. FEMA Audit ordinarily is conducted on an annual basis. As per the directions of RBI/DFS, Ministry of Finance, through its Internal Audit workforce in 6883 branches, East and Left Wing Extremism affected areas. Reports vkjchvkbz@mh,iq,l] foùkh; ea=kky; ds funzs'kksa ds vuqlkj] csad us 6883 'kk kvksa esa vius vkarfjd ys kijh{kk dk;zcy ds ekè;e ls,lch,u (fufnz"v csad uksv~l) ys kijh{kk dh] ftlesa lhek ij flfkr 'kk k,a] mùkj&iwoz ds nwj&njkt {ks=kksa esa flfkr 'kk k,a] okeiafkh vfrokn çhkkfor {ks=kksa dh 'kk k,a 'kkfey gsaa dqn fpfugr ekeyksa esa fjiksvzs tsujsv dh xbz gsa rfkk bugsa ysunsu dh leh{kk vksj fuxjkuh ds fy, eamy dk;kzy;ksa esa miycèk djk;k x;k gs] ftlesa,lch,u lr;kiu 'kkfey gsa vius xzkgd dks tkfu, (dsokbzlh)@èku 'kksèku fuokj.k (,,e,y) lhkh ekstwnk vkwijsfvo krs dsokbzlh vuqikfyr gsaa fof'k"v xzkgd igpku dksm (;wlhvkbzlh) lhkh xzkgdksa dks fufnz"v fd;k x;k gs rfkk xzkgd dh,d ls vfèkd vkbzmh] ;fn dksbz gs] dk ekstwnk xzkgdksa dh fof'k"v igpku vfkkzr isu vksj vkèkkj la[;k ds vkèkkj ij foy; dj fn;k x;k gsa euh ykwamfjax ifjçs{; ls xzkgd ds ysu&nsu dh fuxjkuh gsrq LohÑfr@ okwp lwfp;ksa esa u, xzkgdksa dks LdSu djus ds fy,,,e,y fllve ykxw fd;k x;k gsa dsokbzlh@,,e,y@lh,iqvh ekeyksa ij iqhym LVkiQ dks tkx:d@v ru djus ds fy, fu;fer çf'k{k.k vksj dk;z'kkyk,a vk;ksftr dh tkrh gsaa iii. iii. Know Your Customer(KYC)/Anti Money Laundering (AML) All existing operative accounts are KYC compliant. Unique to all the customers and multiple customer IDs, if any, maintained by existing customers have since been merged number. AML System has been implemented for monitoring of customer s transactions from Money Laundering perspective and for scanning new customers against Sanctions/ Watch lists. Regular trainings and workshops AML/CFT matters. iv. çcaèku ys kijh{kk tksf e vkèkkfjr çcaèku ys kijh{kk ds nk;js ds rgr lhkh ç'kklfud dk;kzy;ksa dks U;wu tksf e okys dk;kzy;ksa vksj lhkh çèkku dk;kzy;ksa tks fd nks o"kz esa,d ckj ekmz vkwfmv ds vèkhu gs (mpp tksf e jsfvax ds ç-dk- çhkkx dks NksM+dj okf"kzd vkèkkj ij ys k ijh{kk dh tk,xh) csad }kjk okf"kzd vkèkkj ij ys kijh{kk dh tkrh gsa mpp o vfr mpp tksf e okys ç'kklfud dk;kzy;ksa dh =ksekfld çxfr fjiksvz (D;wihvkj) dks vkwfmv fjiksvz dh lekfir ds ckn vxyh ys kijh{kk ds vkjahk gksus ls igys eaxokbz tkrh gsa foùkh; o"kz*18 ds nksjku] csad us mùkq lwph esa fn, x, vu; dk;ks± dh ys kijh{kk ds vfrfjùkq vuqeksfnr okf"kzd ys kijh{kk dk;zøe ds vkèkkj ij ekmz }kjk 36 ç-dk-çhkkxksa] 76 eamy dk;kzy;ksa] 13 vapy dk;kzy;ksa] 13 vapy ys kijh{kk dk;kzy;ksa] 6 çf'k{k.k çfr"bkuksa] 5 {ks=kh; xzkeh.k csadksa vksj 2?kjsyw vuq"kafx;ksa vksj 2 fons'kh vuq"kafx;ksa dh Hkh çcaèku ys kijh{kk vk;ksftr dh xbza v. lrdzrk csad us lrdzrk ekeyksa dh rqjar igpku djus vksj dsaæh; lrdzrk vk;ksx (lhohlh) ds fn'kkfunzs'kkuqlkj vuq'kklukred dk;zokgh dks le; ij iw.kz djuk lqfuf'pr djus ds fy, lrdzrk ds ekeyksa ij viuk è;ku dsfuær fd;k gsa iv. Management Audit Management Audit are audited by the Bank on an annual subject to MARD audit once in two years (except HO Divisions of High Risk rating which shall be audited on a yearly basis). Quarterly Progress Report (QPR) of the administrative closure of audit report before the start of next audit. During the year FY 18 based on approved Annual Audit Plan, MARD conducted management audit of 36 HO Rural Banks and 2 Domestic Subsidiaries and 2 Overseas Subsidiaries. v. Vigilance The Bank continued its emphasis on vigilance matters to action in accordance with Central Vigilance Commission (CVC) guidelines are completed in time PNB Full AR indd Jul-18 4:27:16 PM

47 O;kid vuqorhz dk;zokgh o fujarj fuxjkuh ds dkj.k dks dqy cdk;k@'ks"k lrdzrk ekeyksa dh la[;k 472 Fkh ftlesa ls dsoy 8 ekeys gh 1 o"kz ls vfèkd ds le; ls yafcr gsaa foùkh; o"kz*18 ds nksjku] 30 vùkqwcj] 2017 ls 4 uoecj] 2017 rd csad dh vuq"kafx;ksa lfgr lhkh dk;kzy;ksa esa lrdzrk tkx:drk lirkg (oh,mcy;w) euk;k x;ka dsuæh; lrdzrk vk;ksx (lhohlh) us vuq'kklukred dk;zokgh ds le; ij iwjk gksus "dh Js.kh esa mrñ"v ;ksxnku ds fy, ih,uch dks lrdzrk mrñ"vrk iqjldkj & 2017 çnku fd;k gsa oh,mcy;w ds volj ij csad ds lrdzrk fohkkx }kjk gsamcqd vkwu foftysal esvlz Hkh tkjh fd;k x;k FkkA lwpuk dk vfèkdkj vfèkfu;e ls dh vofèk ds nksjku csad dks 6412 vkosnu çkir gq, ftuesa ls 4589 vkosndksa }kjk ekaxh xbz lwpuk mugsa miycèk djkbz xbz tcfd 1733 vkosnu vfèkfu;e ds varxzr ik=k ugha ik, x,a dks 335 vkosnu fulrkj.k ( dks 245 vkosnu) gsrq cdk;k Fks] ftugsa fuèkkzfjr le;kofèk ds Hkhrj fulrkfjr dj fn;k x;ka th- ifjpkyu dk;zfu"iknu ds lacaèk esa foùkh; dk;zfu"iknu ij ppkz ekpz*18 ds var rd csad dk dqy dkjksckj ` djksm+ ij igq p x;k tks `34764 djksm+ rfkk o"kz&nj&o"kz 3-3» dh iw.kz o`f¼ dks n'kkzrs gsaa,p- fu;ksftr O;fDr;ksa dh la[;k lfgr ekuo lalkèku@vks ksfxd lacaèk ekspzs ij egroiw.kz fodkl i. ekuo lalkèku çcaèku% ekpz] 2018 ds var esa vuq"kafx;ksa lfgr csad ds dqy dezpkfj;ksa dh la[;k 74]897 FkhA laoxz&okj dezpkfj;ksa dh la[;k laoxz ekpz 2017 ekpz 2018 la[;k dqy LVkiQ dk» la[;k dqy LVkiQ dk» vfèkdkjh fyfid vèkhulfk (ihvh,l lfgr) dqy vkj{k.k uhfr csad vuqlwfpr tkfr;ksa] vuqlwfpr tutkfr;ksa vksj vu; finm+k oxz gsrq ljdkj }kjk le; ij ;FkkfuèkkZfjr vkj{k.k uhfr dk vuqikyu djrk gsa,llh@,lvh@vkschlh dezpkfj;ksa dh la[;k laoxz ekpz*2017 ekpz*2018,llh,lvh vkschlh,llh,lvh vkschlh vfèkdkjh fyfid Due to vigorous follow up and continuous monitoring the total outstanding vigilance cases as on were 472 with only 8 cases pending for more than one year. During the year FY 18, Vigilance Awareness Week (VAW) was observed from 30th October, 2017 to 4th November, Central Vigilance Commission (CVC) conferred Vigilance Excellence Award to PNB for Outstanding Contribution in the category of Timely Completion of Disciplinary Proceedings. Handbook on Vigilance Matters was also released by the Vigilance Department of the Bank on the occasion of VAW. Right to Information Act During the period to , the Bank received 6412 applications and provided requisite information to 4589 applicants while 1733 applications were found exempted under the provision of the Act. 335 applications were outstanding as on (245 applications as on ) for disposal, which were subsequently disposed off within the prescribed timeframe. g. Discussion on Financial performance with respect to operational performance The Bank s Total Business reached ` 10,75,961 crore at the end of March 18 showing an absolute increase of ` 34,764 crore and a YoY growth of 3.3%. h. Material Developments in Human Resources/Industrial Relations front including number of people employed i. Human Resources Management: Total number of employees including those in the subsidiaries was 74,897 at the end of March Cadre Wise Staff Strength Cadre March 2017 March 2018 Number %age of Total staff Number %age of Total staff Clerks Sub Staff (incld. PTS) Total Reservation Policy The Bank follows the reservation policy for SCs, STs and OBCs as prescribed by Government of India from time to time. Strength of SC/ST/OBC Employees Cadre March 17 March 18 SC ST OBC SC ST OBC Clerks PNB Full AR indd Jul-18 4:27:16 PM

48 laoxz ekpz*2017 ekpz*2018,llh,lvh vkschlh,llh,lvh vkschlh vèkhulfk (ihvh,l lfgr) dqy inksuufr;ka dks Ldsy I ls Ldsy VII rd dh inksuufr dh leiw.kz çfø;k laiuu gks xbza djksckj ij çhkko de djus ds fy,] vapy çcaèkd] eamy çeq ],ylhch çeq tsls egroiw.kz Hkwfedkvksa dh O;oLFkk dh xbz gs rkfd orzeku foùkh; o"kz esa fujarjrk lqfuf'pr djus ds fy, bu inksa ij dksbz lsokfuo`fùk u gksa fofhkuu laoxks± esa inksuur vfèkdkfj;ksa dh la[;k fueukuqlkj gs% Ldsy VI ls VII 20 Ldsy V ls VI 61 Ldsy IV ls V 144 Ldsy III ls IV 431 Ldsy II ls III 865 Ldsy I ls II 1456 foùkh; o"kz*18 ds nksjku] fueufyf r dezpkfj;ksa dh Hkh odzesu dsmj esa inksuufr gqbz % 1- fyfid ls vfèkdkjh dfu"b çcaèku Ldsy&I % 1382 (ofj"brk psuy) 679 (p;ukred psuy) 2- vèkhulfk ls fyfid % 1238 dezpkfj;ksa dh vk;q çksiqkby finys dqn o"kks± esa dezpkfj;ksa dh vkslr vk;q de gks xbz gsa finys ikap o"kks± esa laoxz&okj vkslr vk;q dk fooj.k fueukuqlkj gs% dks vkslr vk;q vfèkdkjh fyfid vèkhulfk dqy 31 ekpz ekpz ekpz ekpz ekpz vks ksfxd lacaèk csad esa vks ksfxd lacaèk lksgknziw.kz jgs blfy, odzesu ;wfu;u@vkwfiqlj,lksfl,'ku }kjk mbk, x, eqíksa ij rrdky è;ku fn;k tkrk gsa fofhkuu eqíksa ij ppkz djus vksj mugsa lqy>kus ds fy, dne mbkus gsrq o"kz ds nksjku cgqer çkir vfèkdkjh,lksfl,'ku@odzesu ;wfu;u ds çfrfufèk;ksa ds lkfk fofoèk csbdsa vk;ksftr dh tkrh gsaa dk;zlfky ij fofoèkrk csad dk;zlfky ij fofoèkrk dks egro nsrk gs rfkk fofoèk lewgksa vfkkzr~ efgyk] fodykax rfkk vuqlwfpr tkfr@vuqlwfpr tutkfr Cadre March 17 March 18 SC ST OBC SC ST OBC Sub Staff (incld. PTS) Total Promotions The entire promotion process from Scale I upto Scale VII has been concluded on in one go. roles like Zonal Managers, Circle Heads, LCB Heads have been done so that there will be no retirements in these positions in the present Financial Year thereby ensuring is as under: Scale VI to VII 20 Scale V to VI 61 Scale IV to V 144 Scale III to IV 431 Scale II to III 865 Scale I to II 1456 The following employees in workmen cadre were also promoted during the year FY 18: (Seniority Channel) 679 (Selectivity Channel) 2. Sub staff to Clerks : 1238 The average age of employees has come down over the years. The movement of cadre-wise average age in the Average age as on Clerical Substaff All 31st March st March st March st March st March Industrial Relations Industrial relations in the Bank continued to be cordial with attended to immediately. Various meetings were held with Workmen Union during the year to discuss various issues and taking steps to resolve the same. Diversity at workplace The Bank values Diversity at workplace and takes 34 2 PNB Full AR indd Jul-18 4:27:17 PM

49 dezpkfj;ksa ds fodkl dh vko';drkvksa dks igpkuus vksj iwjk djus ds fy, igy djrk gsa fofoèkrk lewg ds fodkl ds fy, fofhkuu dk vk;kstu fd;k x;ka blds vfrfjdr] dk;zlfky ij fofoèkrk dks 'kkfey djus dh fn'kk esa] ean n`f"v (VI) l{ke lkwývos;j rfkk lhch,l mi;ksxdrkz çksiqkby csad esa ykxw fd, x, gsaa isu bafm;k ds vkèkkj ij lhkh xahkhj :i ls n`f"vghu dezpkfj;ksa dks lg;ksx rfkk çf'k{k.k çnku fd;k tk jgk gsa foùkh; o"kz*18 ds nksjku ubz igysa csad bz&yfuzax esa viuh rduhdh igy Hkh c<+k jgk gs tks dks ih,uch ;wfuo ds vkjahk ds lkfk 'kq: gqvk tks LekVZ iqksu ij,sii esa miycèk gs vksj blesa vkwfm;ks dh lgk;rk ls NksVs ikb dks lfeefyr fd;k x;k gs] ih,uch ukwyst ikdz],d Kku dks"k ftlesa dezpkfj;ksa ds lansgksa dk rsth ls lekèkku ds fy, fofhkuu fo"k;ksa ij lesfdr fn'kkfunzs'k 'kkfey gsa vksj ih,uch lkjka'k ftlesa foi.ku midj.k ds lkfk ÚaVykbu dks l'kùkq cukus ds fy, lhkh çeq csafdax mriknksa vksj lsokvksa dk lkj 'kkfey gsa lkfk gh] vkld, Dos'pu uked,d ubz O;kogkfjdrk fodflr dh xbz gs] ftlesa dezpkjh ladk; lnl;ksa ls 24?kaVs Li"Vhdj.k çkir djus ds fy, vius lansg dks vkwuykbu j ldrs gsaa csad esa vlslesav ÚseodZ 360 fmxzh vkjahk fd;k x;k gs ftlds ekè;e ls,pvkj fo'ysf"kdh dk mi;ksx dj ekuo iwath ds b"vre mi;ksx ds fy, O;ogkfjd çfrlièkkz dh igpku dh tk jgh gsa çks ksfxdh] lks'ky ehfm;k] ubz ih<+h dh ekufldrk vksj vis{kk,a o ekstwnk #>kuksa tsls fo"k;ksa ij ;qok dezpkfj;ksa ds lkfk ckrphr djus ds fy,,d ofj"b dk;zikyd dks l{ke djus ds fy, egkçcaèkdksa ds p;u gsrq fjolz esuvfjax voèkkj.kk ykxw dh xbza uoksn; esuvfjax dk;zøe muds dsfj;j ds egroiw.kz le; esa dezpkfj;ksa ds vksfj,avs'ku vksj upzfjax gsrq fujarj tkjh gsa orzeku esa bl dk;zøe ds rgr 3160 lykgdkjksa }kjk 5448 dezpkfj;ksa dk ekxzn'kzu fd;k tk jgk gsa csad us,pvkj,e,l (ekuo lalkèku çcaèku ç.kkyh) ds ekè;e ls bz&môwvh 'khv uked vkwuykbu MÔwVh 'khv çcaèku ç.kkyh dh 'kq:vkr djds dezpkfj;ksa dh MÔwVh vlkbuesav dh çfø;k dks fmftvy fd;k gsa csad esa lhkh Lrjksa ij bz&môwvh 'khv ç.kkyh liqyrkiwozd dk;kzfuor dh xbz gsa csad us dezpkjh lec¼rk rfkk dezpkfj;ksa ds chp lacaèk dh Hkkouk dks c<kusa ds Øe esa Øe'k% lkalñfrd vksj sy xfrfofèk;ksa ds lacaèk esa,d uhfr Hkh is'k dh gs A çf'k{k.k xfrfofèk;ka csad esa mùkjkfèkdkj ;kstuk ds,d Hkkx ds :i esa rfkk ofj"b@'kh"kz dk;zikyd xzsm vfèkdkfj;ksa ds chp çcaèku xq.koùkk dks c<+kus ds fy,] csad us,d dk;zikyd fodkl dk;zøe,d çfrf"br çf'k{k.k lalfkku chd;w vdkneh }kjk vk;ksftr djok;k x;k ftlesa 45 Mhth,e vksj th,e us Hkkx fy;k rfkk,uvkbzch,e iq.ks esa,th,e ds fy, nks dk;zøe vk;ksftr fd, x, ftuesa 84 ofj"b dk;zikyd 'kkfey gq,a lh,llh us 11 çcaèku fodkl dk;zøe Hkh vk;ksftr fd, ftuesa 324 ofj"b vfèkdkfj;ksa dks çf'k{k.k fn;k x;k vksj vu; lhkh çf'k{k.k dsaæksa us vxys mpp dsmj esa inksuur fd, x, lhkh dezpkfj;ksa ds fy, çcaèku fodkl dk;zøe Hkh vk;ksftr fd;ka needs of the Diverse groups namely women, Differently abled and SC/ST employees. Various conclaves/seminars were conducted for development of diversity group. Further, as a step towards promoting inclusion of diversity at workplace, Visually Impaired (VI) Enabled software and Support and training is being provided to all severely visually impaired employees on PAN India basis. New Initiatives during FY 18 The Bank is also augmenting its technological initiatives in e-learning which started with launch of PNB Univ. on , an App accessible on smart phones, comprising of short lessons with audio support. This was followed by PNB Knowledge Park, a knowledge repository covering consolidated guidelines on various topics for faster resolution of doubts of the employees and PNB SARANSH containing gist of all major banking products & services for empowering frontline with marketing tools. Also, a new functionality named Ask a Question has been developed wherein employees can place their with turnaround time of 24 hours. A 360 degree Competency Assessment Framework has of behavioral competencies is being done for optimum Reverse Mentoring concept implemented for General Managers to enable a Senior Executive to interact with young employees on topics such as technology, social media, new generation mindsets, expectations and current trends. Navodaya Mentoring Program continues to provide Orientation and Nurturing to employee at their crucial career junctures. At present 5448 employees are being mentored by 3160 mentors under this program. the employees by introduction of an online Duty Sheet Management System titled e- duty Sheet through Bank s HRMS (Human Resource Management System). The eduty Sheet system has successfully been implemented at all levels in the Bank. The Bank also introduced a policy with regards to Cultural & Sports Activities in order to enhance Employee Engagement and to create a sense of belongingness amongst employees. Training Activities As a part of succession planning in the Bank and to enhance Management qualities amongst Senior/Top Executive Development Programme, from BQ Academy a reputed training institute in which 45 DGMs and GMs participated. Two programmes for AGMs were conducted at NIBM Pune which was attended by 84 Senior Executives. CSC also conducted 11 Management Development Programmes all other Training Centres also conducted Management Development Programmes for all the employees who were promoted in next higher cadre PNB Full AR indd Jul-18 4:27:17 PM

50 csad dh çf'k{k.k uhfr çr;sd o"kz 60» dezpkfj;ksa dks çf'k{k.k çnku djus dh ifjdyiuk djrh gsa bl mís'; dks iwjk djus dh fn'kk esa foùkh; o"kz*18 ds nksjku] csad us vkarfjd çf'k{k.k ds ekè;e ls dezpkfj;ksa ds fy, Je fnuksa dk çf'k{k.k fn;k x;ka blds vykok] ih,uchvkbzvkbzvh] y uå (5732) vksj Hkkjr ds çfrf"br lalfkkuksa esa 7186 odzesu@vfèkdkfj;ksa dks Je fnuksa dk çf'k{k.k fn;k x;k gsa dqn vfèkdkfj;ksa dks fons'kksa esa Hkh çf'k{k.k çkir gqvk gsa çf'k{k.k dsuæksa us foùkh; o"kz*18 esa ifj;kstuk fiqusdy&v10 ekbxzs'ku ij lhkh ik=k dezpkfj;ksa dks çf'k{k.k fn;k gsa {kerk fuekz.k {kerk fuekz.k lfefr rfkk vkjchvkbz vksj vkbzch, funzs'kksa dh fliqkfj'kksa ds vuq:i] dk;kzred {ks=kksa esa egroiw.kz fteesnkfj;ksa dks lahkkyus ls igys dezpkfj;ksa }kjk lalfkkuksa ls çek.ku ikbôøe vfuok;z :i ls djuk gksxka çek.ku ikbôøeksa esa Hkkx ysus ds fy, csad us Vªstjh] tksf e] ys k vksj ØsfMV ds {ks=kksa esa çkfkfedrk ij 119 ;ksx; dezpkfj;ksa dks lwphc¼ fd;k gsa vkwu&yksds'ku çf'k{k.k 342 vkwu&yksds'ku dk;zøe vk;ksftr fd, x, gsa] ftlesa dezpkfj;ksa dks lkwýv dks'ky lfgr ÚaV ykbu LVkiQ vksj ihvh,l],y,ih,l] ubz vkbzvh igyksa],mhlh,oa eksckby csafdax],uih, çcaèku] ØsfMV jsfvax ij dk;zøe] tksf e ewy;kadu] bz&uhykeh br;kfn esa çf'k{k.k fn;k x;k gsa bz&yfuzax ih,uch ;wfuo] csad dk fof'k"v bz&yfuzax IysViQkeZ ns'k rfkk ns'k ds ckgj dk;zjr lhkh dezpkfj;ksa ds fy, 24X7 lqyhk gs_,d eksckby,si Hkh ykwup fd;k x;k gs tks lh us dk,d bavjsfdvo eksm gs ftlesa fofhkuu iqksdl {ks=kksa tsls ØsfMV] fons'kh eqæk] qnjk csafdax] lhch,l@vkbzvh] dsokbzlh],,e,y] chlh,lchvkbz ekdzsfvax] tksf e çcaèku],uih, dk lekèkku vkfn csafdax fo"k;ksa dks 'kkfey fd;k x;k gsa ih,uch ;wfuo (bz&yfuzax iksvzy) esa vimsv fd, x, dqy 20 ikbôøe gsa ftuesa 122 fo"k;ksa ij 5169 LykbM gsaa 31&03&2018 dks dqy fof'k"v mi;ksxdrkz 63]795 gsaa foùkh; o"kz*18 ds nksjku dqy 68]643,si MkmuyksM fd, x, vksj dezpkfj;ksa }kjk o"kz ds nksjku dqy 26]25]048 fgv fd, x,a Hkkoh fn'kk foùkh; o"kz 2018 csafdax m ksx ds fy,,d?kvukiw.kz o"kz FkkA fnokfy;k vksj èku 'kksèku v{kerk lafgrk us mèkkj vksj ½.k dh lalñfr dks cny fn;k gsa igys cm+s nckoxzlr krksa dks lqy>k fn;k x;k gs rfkk,ulh,yvh@vkbzchlh fudv Hkfo"; esa,sls vksj lekèkkuksa ds fy, vk'kk ds }kj ksys gsaa dkjksckj esa flfkjrk rfkk ykhkçnrk esa lqèkkj ykus gsrq csad foùkh; o"kz*19 ds fy, iwath laj{k.k ds lkfk fodkl ij è;ku dsfuær dj jgk gsa mpp nj de tksf e Hkkfjr vkflr;ksa ds xzkgdksa dks ½.k çnku dj de iwath ds ekè;e ls dkjksckj dks c<+kus dh j.kuhfr gsa csad iwath c<+kus ds fy, dbz vu; fodyiksa ij Hkh dke dj jgk gsa nckoxzlr vkflr;ksa dk 'kh?kz lekèkku] c<+rh vkffkzd xfrfofèk] csgrj xzkeh.k ekax dh vk'kk,a] vksj foùkh; ekikadksa esa lqèkkj ds lkfk ;g meehn dh tkrh gs fd foùkh; o"kz*19 csafdax {ks=k ds fy, ykhk ds ekeys esa csgrj gksxka vkxs c<+rs gq,] çeq Hkwfedk dh iqf"v ds fy, csad n{krk] ½.k fuxjkuh] tksf e çcaèku vksj vkarfjd lalkèkuksa esa lqèkkj djus ds ç;kl djsxka Training Policy of the Bank envisages a training reach of objective, during the year FY 18, Bank imparted 2,70,213 man days training to 91,260 employees through in-house training. In addition, 15,616 man days training has been (5732) and at reputed outside Institutes in India. A few Executives have also received training overseas. Training Centres have imparted training to all the eligible employees on project Finacle-v.10 migration in FY 18. Capacity building In line with recommendations of the Committee on Capacity Building and on RBI and IBA directives, the employees before assuming key responsibilities in the functional areas, the Institutes. The Bank shortlisted 119 eligible employees, on priority, in the areas of Treasury, Risk, Accounts and On location Training 342 On-Location programmes have been conducted, in which employees have been imparted training on different modules, including Soft Skills for front line Staff & PTS, LAPS, New IT Initiatives, programmes on ADC & Mobile Banking, NPA Management, Credit Rating, Risk assessment, e-auction etc. e-learning PNB UNIV, Bank s exclusive e-learning platform is accessible 24X7 to all employees across the country and abroad. A mobile App has also been launched which is an interactive mode of learning that covers banking topics Retail Banking, CBS/IT, KYC, AML, BCSBI Marketing, Risk Management, Resolution of NPAs etc. Total courses updated in PNB Univ (e-learning portal) are 20 wherein 122 topics carry 5169 slides. Total Distinctive Users as on are 63,795. During the year FY 18 Total Apps downloaded were 68,643 and total hits during the year by the staff were 26,25,048. Way Forward The Financial year 2018 was an eventful year for the Banking industry. The Insolvency and Bankruptcy Code large stressed Asset account has been resolved and NCLT/IBC has opened the doors of hope for more such resolutions in near future. The Bank is focusing on Growth with Capital Conservation for the FY 19 towards sustainable increase Business through less capital by lending to high rated low Risk Weighted Assets (RWAs) customers. Bank is also working on various other options for augmenting capital. With faster resolutions of stressed assets, rising economic activity, expectation of better rural demand and in terms of earnings for the banking sector. Looking ahead, Bank s endeavor will be to improve 36 2 PNB Full AR indd Jul-18 4:27:17 PM

51 ys kijh{kdksa dk çek.ki=k iatkc us'kuy csad ds lnl;x.k dks geus lecfuèkr o"kz ds fy, ykxw csad ds 'ks;jcktkj ds gq, lwphdj.k djkj lsch( lwphdj.k nkf;ro,oa çdvhdj.k vko';drk;sa) fofu;eu] 2015 (,yvksmhvkj lsch ) fofu;eu) esa ;FkkfufnZ"V 31 ekpz 2018 dks lekir gq, o"kz ds fy;s fuxfer 'kklu dh 'krks± dk itkac us'kuy csad }kjk vuqikyu fd, tkus dh tk p dh gs A fuxfer 'kklu dh 'krks± ds vuqikyu dh fteesnkjh çcaèku dh gs A gekjh tkap Hkkjrh; lunh ys kdkj lalfkku }kjk tkjh fuxfer 'kklu ds çek.ku ij uksv dk vuqikyu fd;k x;k gs vksj fuxfer 'kklu dh 'krks± ds vuqikyu ds lqfu'p; gsrq csad }kjk vaxhñr dk;zi¼fr;ksa rfkk muds fø;kuo;u rd gh lhfer gs A ;g u rks ys k ijh{kk gs vksj u gh csad dh foùkh; foojf.k;ksa ij jk; dh vfhko;fùkq gsa gekjh jk; esa rfkk gesa nh x;h lwpuk,oa gesa fn;s x;s Li"Vhdj.kksa rfkk fueufyf r ds fo"k;kèkhu gsa% Lora=k funs'kdksa dk b"vre la;kstu fofu;e 17 (i)ch o lsch (,yvksmhvkj) fofu;eu] 2015 ds fofu;e 18 (i) ch dh 'krks± esa ys kijh{kk lfefr dh ijh{kk dh lajpuk esa l[rh ugha cjrh xbz gsa çcuèku dh jk;] funs'kdksa dh fu;qfùkq] cksmz dk lafoèkku vksj ys k ijh{kk lfefr csafdax deifu;k ( miøeksa dk vtzu,oa varj.k) vfèkfu;e] 1970 o Hkkjrh; fjtoz csad ds MsfjosfVOl }kjk 'kkflr gsa ge çekf.kr djrs gsa fd csad fuxfer 'kklu ds layxu mi;zqùkq lwphc¼ djkj@ lsch fofu;eu ds lhkh egroiw.kz iþyqvksa dk bl gn rd vuqikyu djrk gs fd blls csaddkjh fofu;eu vfèkfu;e 1949 vksj csaddkjh deiuh (miøeksa dk vtzu,oa varj.k) vfèkfu;e 1970 dk myya?ku ugha gksrk gs A ge voxr djkrs gsa fd LVsdgksYMlZ fjys'kuf'ki lfefr }kjk j s x, fjdkmks± ds vuqlkj csad ds fo#¼ funs'kdksa dh,d Hkh f'kdk;r,d ekg ls vfèkd yfecr ugha jgha ge ;g Hkh lwfpr djrs gsa fd bl çdkj dk vuqikyu u rks csad dh Hkkoh O;ogk;Zrk vksj u gh çcaèku }kjk csad dk dkedkt pykus esa mldh n{krk vfkok çhkko'khyrk ds çfr dksbz vk'oklu nsrk gsa Ñrs lwjh,am deiuh Ñrs,lih,eth,aM deiuh Ñrs,edsih,l,aM,lksfl,V~l lunh ys kdkj lunh ys kdkj lunh ys kdkj,iqvkj,u ,l,iQvkj,u lh,iQvkj,u bZ (ih os.kqxksiky) (vons'k xqirk) (çnhi dqekj ykb) lk>snkj lk>snkj lk>snkj lnl; la lnl; la lnl; la Ñrs th,l ekfkqj,oa deiuh Ñrs,pMh,lth,oa,lksfl,V~l lunh ys kdkj lunh ys kdkj,iqvkj,u ,u,iQvkj,u ,u (jktho dqekj oèkkou) (nychj flag xqykvh) lk>snkj lk>snkj lnl; la lnl; la LFkknu % ubz fnyyh fnukad % PNB Full AR indd Jul-18 4:27:17 PM

52 AUDITORS CERTIFICATE ON CORPORATE GOVERNANCE To the Members of Punjab National Bank We have examined the compliance of conditions of Corporate Governance by Punjab National Bank for the year ended on March 31, 2018, as stipulated in SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ( SEBI LODR Regulations ), as applicable during the relevant year. The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was carried out in India, and was limited to procedures and implementation thereof, adopted by the Bank for ensuring the compliance of the conditions In our opinion and to the best of our information and according to the explanations given to us and subject to following: Optimum combination of Independent Directors is not strictly adhered to in the composition of Board of Directors in terms of Regulation 17(1)(b) and Audit Committee in terms of Regulation 18(1)(b) of SEBI LODR Regulations In the opinion of the management, appointment of Directors and constitution of the Board and the audit committee is governed by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and Reserve Bank of India Directives. We certify that the Bank has, in all material aspects, complied with the conditions of Corporate Governance as stipulated in the above mentioned SEBI Regulations to the extent these do not violate the Banking Regulation Act, 1949 and Banking companies (Acquisition and Transfer of Undertakings ) Act, We state that no investor grievance is pending for a period exceeding one month against the Bank as per the records maintained by the Stakeholders Relationship Committee. with which the Management has conducted the affairs of the Bank. FOR SURI & CO. FOR SPMG & CO. FOR MKPS & ASSOCIATES Chartered Accountants Chartered Accountants Chartered Accountants Firm Regn. No S Firm Regn. No C Firm Regn. No E P Venugopal Avadesh Gupta Pradip Kumar Lath Partner Partner Partner (M.NO ) (M.NO ) (M.NO ) FOR GS Mathur & CO. Chartered Accountants Firm Regn. No N Rajiv Kumar Wadhawan Partner (M.NO ) FOR HDSG & Associates Chartered Accountants Firm Regn. No N Dalbir Singh Gulati Partner (M.NO ) Place: New Delhi Date: PNB Full AR indd Jul-18 4:27:25 PM

53 fuxfer 'kklu ij fjiksvz Report on Corporate Governance 39 2 PNB Full AR indd Jul-18 4:27:37 PM

54 fuxfer 'kklu lacaèkh fjiksvz 1- fuxfer 'kklu dk n'kzu 'kkl=k csad fuos'kdksa,oa vu; LVsdgksYMjksa dk fo'okl] ikjnf'kzrk dk mpp ekud fuèkkzfjr djus] dk;z{kerk esa lqèkkj o laxbu dh çxfr ds fy, usfrd :i esa fo'okl djrk gsa csad O;kolkf;drk o mùkjnkf;ro ij vkèkkfjr fuxfer 'kklu dh çfkkvksa dk dm+kbz ls ikyu djus ds fy, çfrc¼ gsa gekjk fuxfer <kapk dkjksckj] ifjpkyu,oa çdvhdj.k dk;z'ksyh mdr fuxfer 'kklu ds n'kzu ij iw.kzr;k vkèkkfjr gsa csad,d fuxfer fudk; vksj lwphc¼ bdkbz gs vksj bl çdkj ;g Hkkjrh; fjtoz csad (vkjchvkbz)] csafdax deiuh (miøeksa dk vfèkxzg.k vksj glrkarj.k) vfèkfu;e] 1970 (vfèkfu;e) vksj lsch (lwphc¼rk nkf;ro vksj çdvhdj.k vko';drk,a) fofu;eu] 2015 }kjk vfèkfu;e vksj vkjchvkbz fn'kkfunzs'kksa dk myya?ku u fd, tkus dh lhek rd fofu;fer gksrk gsa csad dk funs'kd eamy lhkh LVsdgksYMªksa tsls 'ks;jèkkjdksa] dezpkfj;ksa] xzkgdksa vksj O;kid lekt ds ewy;ksa dk vuqdwyu djus dk ç;kl djrk gs A 2- funs'kd e.my cksmz dk xbu csaddkjh fofu;e vfèkfu;e 1949 ds lac¼ çkoèkkuksa] csaddkjh deifu;ka (miøeksa dk vtzu,oa varj.k) vfèkfu;e] 1970 ;Fkk la'kksfèkr vksj jk"vªh;ñr csad (çcaèku,oa fofoèk çkoèkku) ;kstuk] 1970] ;Fkkla'kksfèkr ds vuqlkj fd;k x;k gs A ds vuqlkj funs'kd eamy dh lajpuk mudh fu;qfdr frffk] Js.kh] vu; èkkfjr cksmz flfkfr br;kfn fueuor nh xbz gs% 40 Ø- lafuns'kd dk uke fu;qfdr frffk Js.kh csad ds cksmz dh mi lfefr;ksa esa lnl;rk vu; deifu;ksa esa ys k ijh{kk lfefr,oa 'ks;jèkkjdksa@funs'kdksa dh f'kdk;r lfefr dh lnl;rk funs'kd }kjk èkkfjr 'ks;jksa dh la- 1- Jh lquhy esgrk] xsj & xsj & dk;zikyd 06 1) vkbzvkbz,e,y,lsv,mokbztjh 'kwu; dk;zikyd vè;{k çk- fy- 2- Jh lquhy esgrk] çcaèk dk;zikyd 16 'kwu; 'kwu; funs'kd,oa eq[; dk;zikyd vfèkdkjh 3 Jh ds oh czãkth jko dk;zikyd 15 'kwu; Jh latho 'kj.k dk;zikyd 13 'kwu; 'kwu; 5 Jh,y oh çhkkdj dk;zikyd 16 'kwu; 'kwu; 6 Jh jfo feùky xsj dk;zikyd (ljdkjh vkfèkdkfjd funs'kd) 7 MkW jch,u- fejk xsj dk;zikyd (Hkk-fj-cSad vkfèkdkfjd funs'kd) 8 Jh egs'k ckcw xqirk xsj dk;zikyd (lh, funs'kd) 9 lqjh gh# ehjpunkuh 'ks;jgksymj funs'kd 11 1) tujy ba';ksjsal daiuh fyfevsm 'kwu; 05 'kwu; 'kwu; 08 'kwu; 'kwu; VkVk VsyhlfoZl (egkjk"vª) fy- 2- VkVk DE;wfuds'ku isesav lksy;w'ku fy- 3- jsfyxs;j gsyfk ba';ksjsal d- fy- 4- #V dksikzsjsv fy- 5- Mh,iQ,e iqwm fy ,l,e,y bz'kqtw fy Jh lqèkhj uk;j 'ks;jgksymj funs'kd 11 Jh lat; oekz 'ks;jgksymj 05 'kwu; 100 funs'kd csad us bl ckr dh iqf"v dh gs fd dksbz Hkh funs'kd varj lacafèkr ugha gsa csad us vius Lora=k funs'kdksa ds fy, csad dh osclkbzv ij ifjp;kred dk;zøe Mkyk gsa 2 PNB Full AR indd Jul-18 4:27:37 PM

55 Report on Corporate Governance 1. Corporate Governance Philosophy practices based on openness, professionalism and accountability. Our corporate structure, business, operations and disclosure practices have been strictly aligned to the above Corporate Governance Philosophy. The Bank being a body corporate and a listed entity is regulated by Reserve Bank of India (RBI), The Banking Companies (Acquisition and Transfer of Undertakings), Act, 1970 (The Act) and SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 to the extent these do not violate the Act and RBI guidelines. large. 2.. Board of Directors The Board of the Bank is constituted in accordance with the provisions of the Banking Companies (Acquisition and Transfer of Regulation Act, Composition of the Board of Directors as on with date of their appointment, category, other board positions held etc. is given below: S. No. Name of Director 1 Sh. Sunil Mehta Non-Executive Chairman 2 Sh. Sunil Mehta Managing Director & CEO Date of Category of Appointment Director Membership/ Chairmanship / Membership Chairman ship of of Audit Committee and Sub-Committees Share-holders / Investors of Board of the Grievance Committee in Bank other Companies Non-Executive 06 1) IIML Asset Advisers Pvt. Ltd. No. of Shares held by Director Executive 16 Nil Nil 3 Sh. K. V. Brahmaji Rao Executive 15 Nil Sh. Sanjiv Sharan Executive 13 Nil Nil 5 Sh. L. V. Prabhakar Executive 16 Nil Nil 6 Sh. Ravi Mital Non-Executive 11 1) General Insurance Co Ltd Nil Director) 7 Dr. Rabi N. Mishra Non-Executive 05 Nil Nil Director) 8 Sh. Mahesh Baboo Gupta Non-Executive (CA Director) 08 Nil Nil 9 Ms. Hiroo Mirchandani Shareholder Director 10 Sh. Sudhir Nayar Shareholder Director 11 Sh. Sanjay Verma Shareholder Director Nil 05 1) TataTeleservices (Maharashtra) Ltd. 2)Tata Communications Payment Solutions Ltd. 3)Religare Health Insurance Co. Ltd. 4)Roots Corp. Ltd. 5) DFM Foods Ltd ) SML ISUZU Ltd Nil PNB Full AR indd Jul-18 4:27:37 PM

56 2-2 o"kz ds nksjku fueufyf r lnl; funs'kdksa dk dk;zdky lekir gqvk % Øe funs'kd dk uke funs'kd dh Js.kh lekiu frffk dkj.k la0 1 lqjh m"kk vuarlqczã.;u çcaèk funs'kd,oa lhbzvks Mh,iQ,l }kjk çfrlfkkfir 2 MkW- jke,l laxkiwjs dk;zdkjh vfèkdkjh vfèkof"kzrk ij lsokfuo`r 3 Jh vfuy dqekj kph xsj dk;zikyd (ljdkjh vfèkdkjh funs'kd) Mh,iQ,l }kjk çfrlfkkfir 2-3 foùkh; o"kz esa vk;ksftr cksmz dh csbdksa dk C;kSjk Øe la0 csbd dh frffk cksmz esa funs'kdksa dh dqy la[;k csbd esa miflfkr funs'kdksa dh la[;k foùkh; o"kz ds nksjku cksmz dh csbdksa rfkk xr okf"kzd vke csbd (,th,e) esa lnl; & funs'kdksa dh miflfkfr dh la[;k Øe lafuns'kd dk uke o"kz ds nksjku vk;ksftr csbdksa dh la[;k ftruh csbdksa esa miflfkr gq, finyh vke okf"kzd csbd esa miflfkfr 1- Jh lquhy esgrk] xsj & dk;zikyd vè;{k gk 2- Jh lquhy esgrk],emh,oa lhbzvks gka 3- lqjh m"kk vuarlqczã.;u ykxw ugha 4- Jh ds oh czãkth jko gka 5- MkW jke,l laxkiwjs gk 6- Jh latho 'kj.k gk 7- Jh,y oh çhkkdj ykxw ugha 8- Jh vfuy dqekj kph ugha 9- Jh jfo feùky ykxw ugha 10- MkW jch,u fejk ugha 11- Jh egs'k ckcw xqirk gk 12- lqjh gh# ehjpunkuh gk 13- Jh lqèkhj uk;j gk 14- Jh lat; oekz ugha ykxw ugha % mfpr vofèk ds nksjku funs'kd ugha Fks A 42 2 PNB Full AR indd Jul-18 4:27:38 PM

57 2.2 The following members ceased to be the Directors during the year: S. No. Name of Director Category of Director Date of cessation Reason 1 Smt.Usha Ananthasubramanian Managing Director & CEO Replaced by DFS 2 Dr. Ram S Sangapure Executive Retired on Superannuation 3 Sh. Anil Kumar Khachi Non Executive Replace by DFS 2.3 Board meetings were held during the year as per details given below: S. Date of the Meeting Total No. of Directors on the Board No. of Directors present in the meeting No The total number of Board meetings & last Annual General Meeting (AGM) attended by Directors during the Financial Year are as under: S. No. Name of Director Board Meetings held during their tenure Board Meetings attended Attendance in last AGM 1 Sh. Sunil Mehta, Non-Executive Chairman Yes 2 Sh. Sunil Mehta, MD & CEO Yes 3 Ms. Usha Ananthasubramanian N.A. 4 Sh. K. V. Brahmaji Rao Yes 5 Dr. Ram S. Sangapure Yes 6 Sh. Sanjiv Sharan Yes 7 Sh. L. V. Prabhakar N.A. 8 Sh. Anil Kumar Khachi No 9 Sh. Ravi Mital N.A. 10 Dr. Rabi N. Mishra No 11 Sh. Mahesh Baboo Gupta Yes 12 Ms. Hiroo Mirchandani Yes 13 Sh. Sudhir Nayar Yes 14 Sh. Sanjay Verma No N.A.: Not a director during the relevant period PNB Full AR indd Jul-18 4:27:38 PM

58 2-5 foùkh; o"kz ds nksjku fu;qdr funs'kdksa dk laf{kir çksiqkby fueuor gs % Jh lquhy esgrk Jh lquhy esgrk us fnukad dks çcaèk funs'kd,oa lhbzvks ds :i esa dk;zhkkj xzg.k fd;k FkkA bugksaus Ñf"k esa LukrdksÙkj] foùk esa,ech, vksj lfvziqkbm,lksfl,v vkwiq bafm;u baflvvôwv vkwiq csadlz (lh,vkbzvkbzch) dh ijh{kk Hkh mùkh.kz dh gsa buds ikl 'kk kvksa] vapy dk;kzy;ksa vksj çèkku dk;kzy; Lrj ij fofhkuu ç'kklfud vksj dk;kzred {kerkvksa esa 35 ls vfèkd o"kks± dk le`¼ vuqhko gsa bugksaus vius csafdax dfj;j dh 'kq#vkr,d Ñf"k iqhym vfèkdkjh ds :i esa 1982 esa bykgkckn csad esa dh FkhA,eMh,oa lhbzvks ds in ij dk;zhkkj xzg.k djus ls iwoz vki dkwikzsjs'ku csad ds dk;zikyd funs'kd FksA Jh,y oh çhkkdj Jh,y oh çhkkdj us fnukad dks iatkc us'kuy csad ds dk;zikyd funs'kd ds :i esa dk;zhkkj xzg.k fd;k gsa bugksaus Ñf"k esa LukrdksÙkj vksj lfvziqkbm,lksfl,v vkwiq bafm;u baflvvôwv vkwiq csadlz (lh,vkbzvkbzch) dh ijh{kk Hkh mùkh.kz dh gsa buds ikl jk"vªh;ñr csadksa dk 32 ls vfèkd o"kks± dk vuqhko gsa Jh jfo feùky Jh jfo feùky chbz],e fiqy dks fnukad ls vxys vkns'k rd funs'kd ds :i esa ukfer fd;k x;k gsa buds ikl fofhkuu inksa ij 32 o"kks± ls vfèkd dk ç'kklfud vuqhko gsa Jh lat; oekz Jh lat; oekz] ch,llh (xf.kr)],ech, dks 'ks;jèkkjd funs'kd ds :i esa fnukad dks rhu lky ds fy, fuokzfpr fd;k x;k gsa os ebz 1999 ls vkbzvkbz,e vgenkckn esa,lksfl,v çksiqslj jgsa vkbzvkbz,e vgenkckn esa Tokbu djus ls iwoz] os tsfo;j balvhvôwv vkwiq esustesav] Hkqous'oj esa vdvwcj 1991 ls ebz 1993 rd,lksfl,v çksiqslj FksA og vxlr 2013 ls vxlr 2016 rd iatkc,am flaèk csad ds Lora=k funs'kd jgsa 3- cksmz dh mi lfefr;k Hkkjrh; fjtoz csad@lsch@dkwikzsjsv ç'kklu vksj tksf e çcaèku ij Hkkjr ljdkj ds fn'kkfunzs'kksa ds lanhkz esa dk;zuhfrd egro ds fofhkuu {ks=kksa dks ns us ds fy, csad ds funs'kd eamy }kjk funs'kdksa vksj@;k vfèkdkfj;ksa dh fofhkuu mi&lfefr;ksa dk xbu fd;k gsa 3-1 cksmz dh ys k&ijh{kk lfefr (,lhch) Hkkjrh; fjtoz csad ds ifji=k la0-mhvks,l l0- chlh@3@ @97 fnukad ] vksj Hkkjrh; fjtoz csad dh vu; ekstwnk fn'kkfunzs'kksa vksj lsch (,yvksmhvkj) fofu;eu] 2015 dh vis{kkuqlkj csad }kjk cksmz dh ys kijh{kk lfefr (,-lh-ch-) dk xbu fd;k x;k gsa lfefr ds eq[; dk;z fueuor gsa%& funzs'k nsuk,oa laxbu] lapkyu] vkarfjd ys k ijh{kk dh xq.koùkk fu;a=k.k lfgr csad ds lexz ys k ijh{kk dk;ks± dh fuxjkuh o csad dh lkafofèkd@cká ys k ijh{kk dk;ks±,oa Hkkjrh; fjtoz csad ds fujh{k.k ds lacaèk esa vuqorhz dkjzokbz djuka Year is given below: Sh. Sunil Mehta Director & CEO on He is a Post Graduate of Indian Institute of Bankers (CAIIB). He has over 35 years of rich experience in various administrative and in Prior to assuming the position of MD & CEO, he was Executive Director of Corporation Bank. Sh. L. V. Prabhakar Director of Punjab National Bank on He holds of Indian Institute of Bankers (CAIIB). He has over 32 Shri Ravi Mital Shri Ravi Mital, B.E., M. Phil, was nominated as Director w.e.f till further orders. He has over 32 years of Administrative experience in various capacities. Shri Sanjay Verma Shri Sanjay Verma, B.Sc.(Maths), MBA was elected as Shareholder Director on for a period of three years. He is Associates Professor at IIM Ahmedabad since May Prior to joining IIM, Ahmedabad, he was Associate Professor at Xavier Institute of Management, Bhubneswar from Oct 1991 to May He was independent Director of Punjab & Sind Bank from August 2013 to August Sub-Committees of the Board The Board of Directors of the Bank has constituted various Sub-Committees of Directors and / or Executives to look into different areas of strategic importance in terms of Reserve Bank of India / SEBI / Government of India guidelines on Corporate Governance and Risk Management. 3.1 Audit Committee of the Board (ACB) The Audit Committee of the Board (ACB) has been constituted by the Bank in terms of Reserve Bank of India (RBI) circular No.DOS. No. BC/3/ /97 dated , and other extant guidelines of RBI and as required under SEBI (LODR) Regulations The main functions of the Committee are as under:- Providing direction and overseeing the total audit operationalisation, quality control of internal audit and inspection and follow up on the statutory/ external audit of the Bank and inspections of RBI PNB Full AR indd Jul-18 4:27:38 PM

59 foùkh; LVsVesaVksa o fjiksvks± ds lacaèk esa dsuæh; lkafofèkd ys k ijh{kdksa ls fopkj&foe'kz djuk vksj ykax iqkez vkwfmv fjiksvz esa mbk, x, lelr ekeyksa ij vuqorhz dkjzokbz djuka csad ds vkarfjd fujh{k.k@ys k ijh{kk lacaèkh dk;ks± & vuqorhz dkjzokbz ds :i esa ç.kkyh] xq.koùkk,oa çhkko'khyrk dh leh{kk djuka ;g lqfuf'pr djus ds fy, foùkh; fooj.k lgh] i;kzir vksj fo'oluh; gs] csad dh foùkh; fjiksfvzax çfø;k dh fuxjkuh vksj bldh foùkh; lwpukvksa dk çdvhdj.ka ys[kk uhfr;ksa esa ifjorzu rfkk cksmz dks vuqeksnukfkz çlrqr djus ls iwoz] çcaèku ds lkfk] okf"kzd foùkh; fooj.kksa vksj ys k uhfr;ksa esa ifjorzu dh leh{kk djuka lec¼ ikvhz VªktsD'kuksa dh leh{kka lkoztfud {ks=k ds csdksa ds ekstwnk ykxw lsch (,yvksmhvkj) fofu;eu] 2015 dh 'krkzuqlkj dk;z dk fuivku djuka deiuh lfpo lsch (,yvksmhvkj) fofu;eu] 2015 dh fofu;e 18(1) (bz) dh 'krkzuqlkj lfefr ds lfpo ds #i esa dk;z djrs gsaa dh flfkfr ds vuqlkj lfefr dh lajpuk 1- Jh lqèkhj uk;j & lfefr ds vè;{k 2- Jh,y oh çhkkdj 3- Jh jfo feùky 4- MkW jch,u- fejk 5- Jh egs'k ckcw xqirk foùkh; o"kz ds nksjku vk;ksftr csbdksa ds C;kSjs % Ø- lacsbd dh rkjh lfefr esa funs'kdksa dh dqy la[;k csbd esa miflfkr funs'kdksa dh la[;k To interact with Statutory Central Auditors in respect of approval of quarterly/annual Financial Statements and Reports and also follow up on all the issues raised in the Long Form Audit Report. To review the internal inspection/audit function of the Bank the system, its quality and effectiveness in terms of follow up. To review with the Management, the Annual Financial Statements and auditors report thereon before submission to the Board for approval and also about the changes in the Accounting Policies. To review related party transactions. To discharge the functions in terms of the SEBI (LODR) Regulations, 2015 to the extent applicable to Public Sector Banks. The Company Secretary acts as Secretary to the Committee in terms of Regulation 18 (1) (e) of SEBI (LODR) Regulations, Composition of the Committee as on : 1. Sh. Sudhir Nayar - Chairman of the Committee 2. Sh. L. V. Prabhakar 3. Sh. Ravi Mital 4. Dr. Rabi N. Mishra 5. Sh. Mahesh Baboo Gupta Details of meetings held during the Financial Year: S. No. Date of the Meeting Total No. of Directors of the Committee No. of Directors present in the Meeting PNB Full AR indd Jul-18 4:27:39 PM

60 foùkh; o"kz ds nksjku lnl;&funs'kdksa }kjk csbdksa esa Hkkx ysus dh la[;k Ø- lafuns'kd dk uke dk;zdky ds fdruh nksjku vk;ksftr csbdksa esa csbdksa dh la[;k miflfkr gq, 1- Jh lqèkhj uk;j Jh ds oh czãkth jko Jh,y oh çhkkdj Jh vfuy dqekj kph MkW jch,u- fejk Jh jfo feùky Jh egs'k ckcw xqirk tksf e çcaèku lfefr tksf e çcuèku lfefr (vkj,elh) tksf e çcuèku ij Hk-fj-cSad i=k la- MhchvksMh la-chih- BP&520@ @2002&03 fnukd lsch fofu;eu (,yvksmhvkj)] 2015 ds vuqlkj xfbr dh xbz gsa lfefr csad ds lelr tksf e ds çcuèku ds fy, mùkjnk;h gs] csad dh tksf e çcuèku ikwfylh ;kstuk cukrh gs ftlesa ½.k] ekdzsv rfkk vkwijs'kuy fjld] fjld bafvxzs'ku] mùke tksf e çcuèku çsfdvl dks fø;kafor rfkk csad dh fofhkuu tksf e lhekvksa dks fuèkkzfjr djrh gsa dh flfkfr ds vuqlkj lajpuk 1- Jh lquhy esgrk] xsj & dk;zikyd vè;{k & lfefr ds vè;{k 2- Jh lquhy esgrk],emh,oa lhbzvks 3- Jh ds oh czãkth jko 4- Jh latho 'kj.k 5- Jh,y oh çhkkdj 6- Jh egs'k ckcw xqirk 7- Jh lqèkhj uk;j foùkh; o"kz ds nksjku vk;ksftr csbdksa esa lnl; & funs'kdksa ds miflfkr gksus dh la[;k Ø la- funs'kd dk uke dk;zdky ds nksjku vk;ksftr csbdksa dh la[;k ftruh csbdksa esa miflfkr gq, 1- Jh lquhy esgrk xsj & dk;zikyd vè;{k 2- Jh lquhy esgrk 05 04,eMh,oa lhbzvks 3- Jh ds oh czãkth jko MkW- jke,l-laxkiwjs Jh latho 'kj.k Jh,y oh çhkkdj Jh egs'k ckcw xqirk lqjh gh# ehjpunkuh Jh lqèkhj uk;j No. of meetings attended by Member-Directors during the Financial Year: Sl. No. Name of Director Meetings held during their tenure Meetings attended 1. Sh. Sudhir Nayar Sh. K. V. Brahmaji Rao Sh. L. V. Prabhakar Sh. Anil Kumar Khachi Dr. Rabi N. Mishra Sh. Ravi Mital Sh. Mahesh Baboo Gupta Risk Management Committee Risk Management Committee (RMC) has been constituted as per RBI letter DBOD No. BP-520/ / dated on risk management and Regulation 20 of SEBI (LODR) Regulations The committee has overall responsibility of managing entire risk of the bank, devising suitable risk management policy including credit, market and operational risks, risk integration, implementation of best risk management practices and setting up various risk limits of the bank. Composition as on : 1. Sh. Sunil Mehta, Non-Executive Chairman - Chairman of the Committee 2. Sh. Sunil Mehta, MD & CEO 3. Sh. K. V. Brahmaji Rao 4. Sh. Sanjiv Sharan 5. Sh. L. V. Prabhakar 6. Sh. Mahesh Baboo Gupta 7. Sh. Sudhir Nayar No. of meetings attended by Member-Directors during the Financial Year: S. No. Name of Director Meetings held during their tenure Meetings attended 1. Sh. Sunil Mehta, Non Executive Chairman 2. Sh. Sunil Mehta, MD & CEO 3. Sh. K. V. Brahmaji Rao Dr. Ram S Sangapure Sh. Sanjiv Sharan Sh. L. V. Prabhakar Sh. Mahesh Baboo Gupta Ms Hiroo Mirchandani Sh. Sudhir Nayar PNB Full AR indd Jul-18 4:27:39 PM

61 3-3 LVsdgksYMj fjys'kuf'ki desvh lfefr lsch fofu;eu (,yvksmhvkj)] 2015 ds fofu;e 20 dh 'krkzuqlkj xfbr dh xbz gsa lfefr 'ks;jèkkjdksa vksj ckamèkkjdksa dh f'kdk;rksa dh fuxjkuh vksj mudk fuivku rfkk vu; lqj{kk èkkjdksa dks ns rh gs A dh flfkfr ds vuqlkj lajpuk 1- lqjh gh# ehjpunkuh & lfefr dh vè;{k 2- Jh ds oh czãkth jko 3- Jh,y oh çhkkdj foùkh; o"kz ds nksjku vk;ksftr csbdksa esa lnl;&funs'kdksa dh miflfkfr dh la[;k Ø- lafuns'kd dk uke dk;zdky ds ftruh nksjku vk;ksftr csbdksa esa csbdksa dh la[;k miflfkr gq, 1 lqjh gh# ehjpunkuh Jh ds oh czãkth jko Mk- jke,l laxkiwjs Jh,y oh çhkkdj Jh lqèkhj uk;j Jh cychj flag] daiuh lfpo dks lsch fofu;eu (,yvksmhvkj) 2015 ds fofu;e 6(1) ds vuqlj.k esa vuqikyuk vfèkdkjh gsa A o"kz ds nksjku 'ks;jèkkjdksa@ckamèkkjdksa ls çkir f'kdk;rksa dh flfkfr % o"kz 2017&18 ds nksjku çkir f'kdk;rksa dh dqy la[;k & 09 'ks;jèkkjdksa dh larqf"v rd f'kdk;rksa dk fuivku u gksus dh la[;k & 'kwu; fnukad rd yfecr f'kdk;rksa dh la[;k & 'kwu; 3-4 ukekadu lfefr fofu;e 19 ds lsch fofu;eu (,yvksmhvkj)] 2015 rfkk vkjchvkbz i=k la0-46&47@ @2007&08 fnukad ds vkèkkj ij csad ds cksmz ds fy, 'ks;jèkkjd funs'kdksa ds pquko ds fy, ukekadu çlrqr djus okys meehnokjksa ds lecuèk esa mi;qdr rfkk leqfpr ekudksa dk vuqikyu lqfuf'pr djus ds fy, vksj pquko vk;ksftr djus gsrq ukekadu lfefr xbu fd;k x;k gsa dh flfkfr vuqlkj lajpuk 1- Jh lquhy esgrk xsj & dk;zikyd vè;{k & lfefr ds vè;{k 2- Jh jfo feùky 3- Jh egs'k ckcw xqirk 4- Jh lqèkhj uk;j foùkh; o"kz 2017&18 ds nksjku vk;ksftr ukekadu lfefr dh,d csbda 3.3 Stakeholders Relationship Committee The Committee has been constituted in terms of Regulation 20 of SEBI (LODR) Regulations, The Committee looks into the mechanism of redressal of grievances of shareholders, bondholders and other security holders. Composition as on : 1. Ms. Hiroo Mirchandani - Chairperson of the Committee 2. Sh. K. V. Brahmaji Rao 3. Sh. L. V. Prabhakar No. of meetings attended by Member-Directors during the Financial Year: S No. Name of Director Meetings held during their tenure Meetings attended 1. Ms. Hiroo Mirchandani Sh. K. V. Brahmaji Rao Dr. Ram S. Sangapure Sh. L. V. Prabhakar Sh Sudhir Nayar Shri Balbir Singh, Company Secretary, is the Compliance Regulations, Status of Shareholders /bondholders complaints received during the year: Total no. of complaints received during No. of complaints not resolved to the satisfaction of shareholders Nil No. of complaints pending as on Nil 3.4 Nomination Committee The Nomination committee has been constituted as per Regulation 19 of SEBI (LODR) Regulations, 2015 and RBI letter No. 46&47/ / dated respect of candidates submitting nominations for election as Shareholder Director(s) on the Board of Bank, as and when elections are held. Composition as on : 1. Sh. Sunil Mehta, Non-Executive Chairman - Chairman of the Committee 2. Sh. Ravi Mital 3. Sh. Mahesh Baboo Gupta 4. Sh. Sudhir Nayar One meeting of the Nomination Committee was held during PNB Full AR indd Jul-18 4:27:39 PM

62 foùkh; o"kz ds nksjku lnl;&funs'kdksa dh csbdksa esa miflfkfr la[;k% Øe lafuns'kd ds uke dk;zdky ds nksjku vk;ksftr csbdksa dh la[;k csbdksa esa miflfkfr 1- Jh lquhy esgrk xsj & dk;zikyd vè;{k 2- Jh vfuy dqekj kph Jh egs'k ckcw xqirk Jh lqèkhj uk;j cksmz dh ikfjjfed lfefr ljdkj }kjk fnukad ds i=kkpkjksa }kjk fuèkkzfjr xq.kkred vksj ek=kkred isjkehvjksa ds vkèkkj ij] lfefr csad ds çcuèk funs'kd rfkk dk;zikyd funs'kdksa ds çksrlkgu ds Hkqxrku ds fu.kz; gsrq iw.kzdkfyd funs'kdksa dh leh{kk djrh gsa csad ds iw.kzdkfyd funs'kdksa dk ikfjjfed,evks,iq fn'kkfunzs'kksa }kjk 'kkflr gsa Mh,iQ,l],evks,iQ }kjk muds i=k fnukad ds ekè;e ls fn'kkfunzs'kksa dks ifjofrzr fd;k x;k vksj ;g lwfpr fd;k x;k fd bldk dk;zfu"iknu lfpo (foùkh; lsok) }kjk ewy;kafdr fd;k tk,xka blds vfrfjdr] ;g lykg nh xbz fd ih,lch ds ds fy, çksrlkgu lajpuk fopkjkèkhu gs vksj bugsa ;Fkk le; lwfpr fd;k tk,xka dh flfkfr vuqlkj lajpuk 1- Jh lquhy esgrk xsj & dk;zikyd vè;{k & lfefr ds vè;{k 2- Jh jfo feùky 3- MkW jch,u- fejk 4- Jh lat; oekz foùkh; o"kz 2017&18 ds nksjku lfefr dh dksbz csbd vk;ksftr ugha gqbza 3-6 çcuèku lfefr (,elh) jk"vªh;ñr csadksa dh (çcuèku,oa fofoèk çkoèkku) ;kstuk dh èkkjk 13 ds vuqlkj lfefr xfbr dh xbz gsa lfefr fueufyf r enksa] tks fd,emh & lhbzvks@ç-dk- ½.k vuqeksnu lfefr (,pvkslh,lh) &AAA ds foosdkèkhu vfèkdkjksa ls ijs gsa] ij fopkj djrh gs A,- ½.k çlrkoksa dh LohÑfr (fufèk,oa xsj fufèk) chlh- Mh- ½.k le>ksrk@ cêðs krs çlrko iw th vksj jktlo pz ds vuqeksnukfkz çlrko ifjljksa dk vfèkxzg.k,oa fdjk, ij ysus ds ekunamksa esa fopyu lacaèkh çlrko bz- eqdnek@vihy nk;j djus ls lacafèkr çlrko] mudk cpko djuk br;kfn,iq- ljdkjh,oa vu;u vuqeksfnr çfrhkwfr;ksa] daifu;ksa ds va'ki=kksa No. of meetings attended by Member-Directors during the Financial Year: S No. Name of Director Meetings held during their tenure Meetings attended 1. Sh. Sunil Mehta, Non Executive Chairman 2. Sh. Anil Kumar Khachi Sh. Mahesh Baboo Gupta Sh. Sudhir Nayar Remuneration Committee The Committee constituted as per SEBI (LODR) Regulations, 2015, reviews performance of the whole-time directors to decide payment of incentive for MD & CEO and Executive Directors based on the qualitative and quantitative parameters prescribed by Government of India vide its communication dated Remuneration of Bank s Whole Time Directors is governed by MoF guidelines. The guidelines were changed by DFS, MoF vide their letter dated and it was informed that the performance will be evaluated by Secretary (Financial Services). Further, it was advised that the incentive structure to CMDs/MD & CEO/EDs of PSBs is under consideration and will be advised in due course. Composition as on : 1. Sh. Sunil Mehta, Non-Executive Chairman - Chairman of the Committee 2. Sh. Ravi Mital 3. Dr. Rabi N. Mishra 4. Sh. Sanjay Verma No meeting of the Remuneration Committee was held during Management Committee (MC) The Committee has been constituted in terms of Section Provisions) Scheme 1970/1980. The committee considers following matters which are beyond the discretionary Committee (HOCAC) III:- a) Sanctioning of credit proposals (Fund based & Non- Fund based), b) Loan compromise/write-off proposals, c) Proposal for approval of capital and revenue expenditure, d) Proposals relating to acquisition and hiring of premises including deviation from norms for acquisition and hiring of premises, them etc. f) Proposals for Investments in Government and other 48 2 PNB Full AR indd Jul-18 4:27:40 PM

63 vksj ½.k i=kksa esa fuos'k,oa vamjjkbfvax dk çlrko th- nku ls lecfuèkr çlrko,p- cksmz }kjk çsf"kr vu; dksbz ekeyk dh flfkfr ds vuqlkj lajpuk 1- Jh lquhy esgrk],emh,oa lhbzvks & lfefr ds vè;{k 2- Jh ds oh czãkth jko& lnl; 3- Jh latho 'kj.k & lnl; 4- Jh,y oh çhkkdj & lnl; 5- MkW jch,u- fejk & lnl; 6- lqjh gh# ehjpunkuh & lnl; o"kz ds nksjku 16 csbdksa dk vk;kstu fd;k x;k vksj 2 csbdksa ds chp vfèkdre varjky 39 fnuksa dk jgka foùkh; o"kz ds nksjku lnl; funs'kdksa }kjk csbdksa esa Hkkx ysus dh la[;k Ø- lafuns'kd dk uke dk;zdky ds nksjku vk;ksftr csbdksa dh la[;k fdruh csbdksa esa miflfkr gq, 1- Jh lquhy esgrk],emh,oa lhbzvks 2- lqjh m"kk vuarlqczã.;u Jh ds oh czãkth jko MkW- jke,l- laxkiwjs Jh latho 'kj.k Jh,y oh çhkkdj MkW jch,u fejk lqjh gh# ehjpunkuh Jh lat; oekz ç- dk- ½.k vuqeksnu lfefr (Lrj & AAA) ç- dk- ½.k vuqeksnu lfefr Lrj AAA dk xbu foùk ea=kky; (,evks,iq)] foùkh; lsok,a fohkkx (Mh,iQ,l) dh vfèklwpuk fnukad dh 'krkzuqlkj fd;k x;k gsa ç- dk- ½.k vuqeksnu lfefr Lrj AAA ` 150 djksm+ ls vfèkd vksj ` 400 djksm+ (,dy) rd vksj 300 djksm+ ls vfèkd vksj ` 800 djksm+ (lewg,dlikstj) rd ds ½.k çlrkoksa ij vksj lh,emh@,emh,oa lhbzvks dh iwoz esa fufgr 'kfdr;ksa dh lhek rd vksvh,l@le>ksrk@cêðk krk çlrkoksa ij fopkj djrh gs A dh flfkfr vuqlkj lajpuk % 1- Jh lquhy esgrk],emh,oa lhbzvks & lfefr ds vèõ{k 2- Jh ds oh czãkth jko 3- Jh latho 'kj.k 4- Jh,y oh çhkkdj approved securities, shares and debentures of companies including underwriting, g) Proposals relating to Donations, h) Any other matter referred by the Board. Composition as on Sh. Sunil Mehta, MD & CEO - Chairman of the Committee 2. Sh. K. V. Brahmaji Rao - Member 3. Sh. Sanjiv Sharan - Member 4. Sh. L. V. Prabhakar - Member 5. Dr. Rabi N. Mishra - Member 6. Ms. Hiroo Mirchandani - Member 16 meetings were held during the year and maximum gap between two meetings was 39 days. No. of meetings attended by Member-Directors during the Financial Year: S. No. Name of Director Meetings held during their tenure Meetings attended 1. Sh. Sunil Mehta, MD & CEO 2. Ms. Usha Ananthasubramanian 3. Sh. K. V. Brahmaji Rao Dr. Ram S. Sangapure Sh. Sanjiv Sharan Sh. L. V. Prabhakar Dr. Rabi N. Mishra Ms. Hiroo Mirchandani Sh. Sanjay Verma The HO Credit Approval Committee Level III has (Management and Miscellaneous Provisions) Scheme 1970 and Department of Financial Services (DFS), considers the credit proposals above `150 crore and up to `400 crore (standalone) and above ` 300 crore and up to ` 800 crore (group exposure). The committee also considers OTS/Compromise/Write off proposals to the extent of powers earlier vested with MD & CEO. Composition as on Sh. Sunil Mehta, MD & CEO - Chairman of the Committee 2. Sh. K. V. Brahmaji Rao 3. Sh. Sanjiv Sharan 4. Sh L. V. Prabhakar 49 2 PNB Full AR indd Jul-18 4:27:40 PM

64 cksmz ds lnl;ksa ds vfrfjdr] egkçcaèkd (foùk)] th,e (ØsfMV)] th,e (vkbzvkj,emh) rfkk th,e (vkbzchmh) Hkh lfefr ds lnl; gsaa foùkh; o"kz ds nksjku lnl;&funs'kdksa }kjk csbdksa esa Hkkx ysus dh la[;k Ø- lafuns'kd dk uke muds dk;zdky ds nksjku gqbz csbdsa csbdksa esa Hkkx fy;k 1- Jh lquhy esgrk],emh,oa lhbzvks 2- lqjh m"kk vuarlqczã.;u Jh ds oh czãkth jkwo MkW- jke,l- laxkiwjs Jh latho 'kj.k Jh,y oh çhkkdj olwyh esa çxfr dh fuxjkuh djus ds fy, cksmz dh lfefr lfefr Mh,iQ,l],evks,iQ i=k,iq-la-7@112@2012&chvks, fnukad vksj,iq-la-7@2@2015& olwyh fnukad dh 'krkzuqlkj xfbr dh xbz gs A 'kh?kz olwyh gsrq,uih, çcaèku vksj fofhkuu Vwyksa esa çhkkoh mi;ksx dks lqèkkjus gsrq rjhdksa vksj j.kuhfr;ksa dh leh{kk djuka çwmsfu'k;y cêðs krksa lfgr,uih, olwyh esa gqbz çxfr dh fuxjkuh A MhvkjVh@Mhvkj,Vh ij yafcr ekeyksa@vkjlh dh flfkfr dh leh{kk A ½.k fuxjkuh ra=k vksj vfu;fer@detksj krksa dh leh{kk vksj,uih, dh jksdfkke gsrq dne mbkuk A dh flfkfr ds vuqlkj lajpuk 1- Jh lquhy esgrk],emh,oa lhbzvks & lfefr ds vè;{k 2- Jh ds oh czãkth jko 3- Jh latho 'kj.k 4- Jh,y oh çhkkdj 5- Jh egs'k ckcw xqirk 6- lqjh gh# ehjpunkuh foùkh; o"kz ds nksjku vk;ksftr csbdksa esa lnl; & funs'kdksa dh miflfkfr dh la[;k Ø- lafuns'kd dk uke dk;zdky ds nksjku vk;ksftr csbdksa dh la[;k ftruh csbdksa esa miflfkr gq, 1 Jh lquhy esgrk],emh 11 09,oa lhbzvks 2 lqjh m"kk vuarlqczã.;u Jh ds oh czãkth jko Besides Board members, General Manager (Finance), GMs (Credit), GM (IRMD) and GM (IBD) is also a member of the committee. No. of meetings attended by Member-Directors during the Financial Year: S. No. Name of Director Meetings held during their tenure Meetings attended 1. Sh. Sunil Mehta, MD & CEO 2. Ms. Usha Ananthasubramanian 3. Sh. K. V. Brahmaji Rao Dr. Ram S. Sangapure Sh. Sanjiv Sharan Sh. L. V. Prabhakar Special Committee of the Board to monitor the progress of recovery The Committee has been constituted in terms of DFS, MoF letter F.No.7/112/2012-BOA dated and F.No.7/2/2015-Recovery dated to: Review the ways and strategies to improve NPA to expedite recovery. Monitor the progress of recovery in NPAs including prudential written-off accounts. Review the status of cases/rcs pending at DRTs/ DRATs. Review the credit monitoring mechanism and status of irregular/weak accounts and the steps for prevention of NPAs. Composition as on : 1. Sh. Sunil Mehta, MD & CEO - Chairman of the Committee 2. Sh. K. V. Brahmaji Rao 3. Sh. Sanjiv Sharan 4. Sh. L.V. Prabhakar 5. Sh. Mahesh Baboo Gupta 6. Ms. Hiroo Mirchandani No. of meetings attended by Member-Directors during the Financial Year: S. No. Name of Director Meetings held during their tenure Meetings attended 1. Sh. Sunil Mehta, MD & CEO 2. Ms. Usha Ananthasubramanian 3. Sh. K. V. Brahmaji Rao PNB Full AR indd Jul-18 4:27:40 PM

65 Ø- lafuns'kd dk uke dk;zdky ds ftruh nksjku vk;ksftr csbdksa esa csbdksa dh la[;k miflfkr gq, 4- MkW- jke,l laxkiqjs Jh latho 'kj.k Jh,y oh çhkkdj Jh egs'k ckcw xqirk 8- Jh lqèkhj uk;j lqjh gh: ehjpankuh LoSfPNd pwddrkzvksa dh igpku dh leh{kk ds fy, lfefr lfefr Hkk-fj-cSd ds eklvj ifji=k fnukad rfkk i=k fnukad dh 'krkzuqlkj LoSfPNd pwddrkzvksa dh igpku ds fy, lfefr ds vkns'kksa dh leh{kk djus gsrq xfbr dh xbz A dh flfkfr ds vuqlkj lajpuk 1- Jh lquhy esgrk],emh,oa lhbzvks & lfefr ds vè;{k 2- Jh lqèkhj uk;j 3- Jh lat; oekz foùkh; o"kz ds nksjku vk;ksftr csbdksa esa lnl;&funs'kdksa ds miflfkr gksus dh la[;k Ø- lafuns'kd dk uke dk;zdky ds nksjku vk;ksftr csbdksa dh la[;k fdruh csbdksa esa miflfkr gq, 1- Jh lquhy esgrk],emh,oa lhbzvks 2- lqjh gh: ehjpankuh Jh lqèkhj uk;j Jh lat; oekz ukwu&dkwijsfvo mèkkjdrkzvksa dh oxhzdj.k leh{kk lfefr lfefr Hkk-fj- csd dh vfèklwpuk la0- Mhchvkj-la-lhvkbZMhchlh-54@ @2014&15 fnukad dh 'krkzuqlkj ukwu&dkwijsfvo mèkkjdrkzvksa dh oxhzdj.k leh{kk lfefr ds fu.kz; dh leh{kk gsrq xfbr dh xbz A dh flfkfr ds vuqlkj lajpuk 1- Jh lquhy esgrk],emh,oa lhbzvks & lfefr ds vè;{k 2- Jh jfo feùky 3- Jh lat; oekz foùkh; o"kz 2017&18 esa lfefr dh fdlh csbd dk vk;kstu ugha gqvka 3-11 cksmz dh fo'ks"k lfefr & èkks kèkm+h ekeyksa dh fuxjkuh gsrq lfefr Hkk-fj-cSd dh i=k la0- vkjchvkbz@ Mhch,l-,iQthoh (,iq) la-@1004@ ,@2003&04 fnukad dh S. No. Name of Director Meetings held during their tenure Meetings attended 4. Dr. Ram S. Sangapure Sh. Sanjiv Sharan Sh. L.V. Prabhakar Sh. Mahesh Baboo Gupta Sh. Sudhir Nayar Ms. Hiroo Mirchandani Defaulters The Committee has been constituted in terms of RBI Master Circular dated and letter dated to willful defaulters. Composition as on : 1. Sh Sunil Mehta, MD & CEO - Chairman of the Committee 2. Shri Sudhir Nayar 3. Sh. Sanjay Verma No. of meetings attended by Member-Directors during the Financial Year: S. No. Name of Director Meetings held during their tenure Meetings attended 1. Sh Sunil Mehta, MD & CEO 2 Ms Hiroo Mirchandani Sh. Sudhir Nayar Sh. Sanjay Verma Committee The Committee has been constituted in terms of RBI 15 dated to review the decision of Non- Composition as on : 1. Sh. Sunil Mehta, MD & CEO - Chairman of the Committee 2. Sh. Ravi Mital 3. Sh. Sanjay Verma No meeting of the committee was held during the Financial Year cases The Committee has been constituted in terms of RBI letter no. RBI/ DBS.FGV(F) No./1004/ A/ PNB Full AR indd Jul-18 4:27:41 PM

66 'krkzuqlkj ` 1-00 djksm+ rfkk blls vfèkd] lkfk gh jkf'k dk è;ku fn, fcuk lkbcj èkks kèkm+h ds ekeyksa dh fuxjkuh rfkk leh{kk gsrq ;g fo'ks"k lfefr xfbr dh xbz gs rkfd % ç.kkyhxr =kqfv;ksa dh igpku vksj mugsaa nwj djus ds fy, mik; çlrqr djuk A lhchvkbz@iqfyl tkap dh çxfr dh fuxjkuh] olwyh,oa LVkiQ nkf;ro A èkks kèkm+h dh iqujkzo`fùk jksdus ds fy, mbk, x, lqèkkjkred dneksa dh çhkko'khyrk dh leh{kk A jksdfkke ra=k dks etcwr djus ls lacafèkr fopkj fd, x, vu; mik;ksa dks çlrqr djuk A dh flfkfr ds vuqlkj lajpuk 1- Jh lquhy esgrk] xsj & dk;zikyd vè;{k & lfefr ds vè;{k 2- Jh lquhy esgrk],emh,oa lhbzvks 3- Jh ds oh czãkth jko 4- Jh latho 'kj.k 5- Jh,y oh çhkkdj 6- Jh jfo feùky foùkh; o"kz ds nksjku vk;ksftr csbdksa esa lnl; funs'kdksa ds miflfkr gksus dh la[;k Ø- lafuns'kd dk uke dk;zdky ds nksjku vk;ksftr csbdksa dh la[;k ftruh csbdksa esa miflfkr gq, 1 Jh lquhy esgrk] xsj & dk;zikyd vè;{k 2 lqjh m"kk vuarlqczã.;u Jh lquhy esgrk],emh,oa lhbzvks 4 Jh ds oh czãkth jko MkW- jke,l laxkiwjs Jh latho 'kj.k Jh vfuy dqekj kph Jh jfo feùky Jh,y oh çhkkdj cksmz dh lwpuk çks ksfxdh dk;zuhfr lfefr lfefr Hkk-fj- csd ds ifji=k la0- RBI@2010&11@494@DBS.co.ITC. BC-No-6@ @2010&11 fnukad dh 'krkzuqlkj lfefr xfbr dh xbz A lfefr ds eq[; dk;z bl çdkj gs% lwpuk çks ksfxdh dk;zuhfr vksj ikwfylh nlrkost dk vuqeksnua lqfuf'pr djuk fd çcaèku mi;qdr dk;zuhfr ;kstuk çfø;k çhkkoh <ax ls j jgh gs A çekf.kr djuk fd dkjksckj dk;zuhfr lwpuk çks ksfxdh dk;zuhfr ds lkfk oklrfod :i ls lec¼ gs A lqfuf'pr djuk fd vkbzvh laxbu] lajpuk O;kikj ekwmy vksj mldh fn'kk dk iwjd gsa dated for monitoring and reviewing all fraud cases of `1.00 crore and above, as well as cyber frauds irrespective of the amount, so as to: Identify the systemic lacunae and put in place measures to plug the same. Monitor progress of CBI/Police investigation, recovery & staff accountability. prevent recurrence of frauds. Put in place other measures as may be considered relevant to strengthen the preventive mechanism. Composition as on : 1. Sh. Sunil Mehta, Non-Executive Chairman - Chairman of the Committee 2. Sh. Sunil Mehta, MD & CEO 3. Sh. K. V. Brahmaji Rao 4. Sh. Sanjiv Sharan 5. Sh. L. V. Prabhakar 6. Sh. Ravi Mital No. of meetings attended by Member-Directors during the Financial Year: S. No. Name of Director Meetings held during their tenure Meetings attended 1. Sh. Sunil Mehta, Non Executive Chairman 2. Ms. Usha Ananthasubramanian 3. Shri Sunil Mehta, MD & CEO 4. Sh. K. V. Brahmaji Rao Dr. Ram S. Sangapure Sh. Sanjiv Sharan Sh. Anil Kumar Khachi Sh. Ravi Mital Sh. L. V. Prabhakar I.T. Strategy Committee The committee has been constituted as per RBI circular no. RBI/ /494/DBS.co.ITC. BC.No.6/ / dated The broad functions of the IT Strategy Committee of the Board are to: Approve IT Strategy and policy document. Ensuring that the management has put an effective strategic planning process in place. Ratifying that the business strategy is indeed aligned with IT strategy. complements the business model and its direction PNB Full AR indd Jul-18 4:27:41 PM

67 lqfuf'pr djuk fd dkjksckj dh vkbzvh forj.k osy;w çcaèku] ykxw dh xbz çfø;kvksa vksj çfkkvksa ds vuqlkj gsa A lqfuf'pr djuk fd vkbzvh fuos'k dk ctv Lohdkj ;ksx;a gs A lkefjd y{;ksa dks çkir djus gsrq vko';d vkbzvh lalkèkuksa ds fuèkkzj.k esa çcaèku }kjk ç;qdr i¼fr dh fuxjkuh djuk vksj vkmvlksflzax rfkk vkbzvh lalkèkuksa ds mi;ksx ds fy, mpp Lrjh; fn'kk funzs'k çnku djuk A csad ds fodkl dks cuk, j us ds fy, vkbzvh fuos'k dk mfpr larqyu lqfuf'pr djuk A vkbzvh tksf eksa,oa fu;a=k.kksa dh vksj ls,dlikstj ds ckjs esa tkx:d djuk vksj vkbzvh tksf eksa dh çcaèku ds fuxjkuh dk çhkkoh ewy;kadu djuk A vkbzvh dk;zuhfr;ksa ds ykxwdj.k esa mppre çcaèku ds çn'kzu dk vkadyu djuk A mpp Lrjh; uhfr fn'kkfunzs'k tkjh djuk (tsls tksf e] fufèk;u vfkok lksflzax ls lacafèkr dk;z) fufezr vkbzvh ;k dkjksckj <kaps dh iqf"v djuk rkfd csad Lrj ij vkbzvh ds lesfdr fufèk;u ds fy, laiw.kz vkbzvh ifjn`'; ls vfèkdre dkjksckj osy;w çkir fd;k tk lds vksj vkbzvh tksf eksa dk mfpr çcaèku lqfuf'pr djus gsrq lalkèkuksa dk çcaèku djuk A dkjksckj esa vkbzvh çn'kzu mik;ksa vksj vkbzvh ds ;ksxnku dh leh{kk djuk (vfkkzr~ forj.k vksj çlrkfor osy;w) dh flfkfr ds vuqlkj lajpuk 1- Jh lqèkhj uk;j & lfefr ds vè;{k 2- Jh lquhy esgrk],emh,oa lhbzvks 3- Jh ds oh czãkth jko 4- Jh latho 'kj.k 5- Jh,y oh çhkkdj 6- Jh lquhy esgrk] xsj dk;zikyd vè;{k 7- Jh lat; oekz foùkh; o"kz ds nksjku vk;ksftr csbdksa esa lnl; & funs'kdksa ds miflfkr gksus dh la[;k Ø- funs'kd dk uke vk;ksftr csbdksa ftruh la- dh la[;k csbdksa esa miflfkr gq, 1 Jh lqèkhj uk;j Jh lquhy esgrk],emh,oa lhbzvks 3- Jh lquhy esgrk] xsj dk;zikyd vè;{k 4 Jh ds oh czãkth jko MkW- jke,l-laxkiwjs Jh latho 'kj.k Jh,y oh çhkkdj Jh egs'k ckcw xqirk Jh lat; oekz Ascertaining that management has implemented processes and practices that ensure that the IT delivers value to the business. Ensuring IT investments represented in the IT budgets are acceptable. Monitoring the method that management uses to determine the IT resources needed to achieve strategic goals and provide high-level direction for sourcing and use of IT resources. Ensuring proper balance of IT investments for sustaining Bank s growth. Becoming aware about exposure towards IT risks and controls. And evaluating effectiveness of management s monitoring of IT risks. Assessing senior management s performance in implementing IT strategies. Issuing high level policy guidance (e.g. related to risk, funding and sourcing tasks). be designed, so as to derive the maximum business value from IT overseeing the aggregate funding of IT at a bank level and ascertaining if the management has resources to ensure the proper management of IT risks. Reviewing IT performance measurement and contribution of IT to business goals (i.e. delivering and promised value). Composition as on : 1. Sh. Sudhir Nayar - Chairman of the Committee 2. Sh. Sunil Mehta, MD & CEO 3. Sh. K. V. Brahmaji Rao 4. Sh. Sanjiv Sharan 5. Sh. L. V. Prabhakar 6. Sh. Sunil Mehta, Non-Executive Chairman 7. Sh. Sanjay Verma No. of meetings attended by Member-Directors during the Financial Year: S. No. Name of Director Meetings held during their tenure Meetings attended 1. Sh. Sudhir Nayar Sh Sunil Mehta, MD & CEO 3. Sh Sunil Mehta, Non Executive Chairman 4. Sh. K. V. Brahmaji Rao Dr. Ram S. Sangapure Sh. Sanjiv Sharan Sh. L. V. Prabhakar Sh. Mahesh Baboo Gupta Sh. Sanjay Verma PNB Full AR indd Jul-18 2:09:37 PM

68 3-13 xzkgd lsok lfefr lfefr Hkk-fj- csd ds i=k fnukad dh 'krkzuqlkj frekgh vkèkkj ij csad dh xzkgd lsok leh{kk gsrq xfbr dh xbz A dh flfkfr vuqlkj lajpuk 1- Jh lquhy esgrk],emh,oa lhbzvks & lfefr ds vè;{k 2- Jh ds oh czãkth jko 3- Jh latho 'kj.k 4- Jh,y oh çhkkdj 5- Jh jfo feùky 6- Jh egs'k ckcw xqirk 7- Jh lat; oekz foùkh; o"kz ds nksjku vk;ksftr lnl;h&funs'kdksa }kjk csbdksa esa Hkkx ysus dh la[;k Ø- lafuns'kd dk uke dk;zdky ds nksjku vk;ksftr csbdksa dh la[;k ftruh csbdksa esa miflfkr gq, 1 Jh lquhy esgrk],emh,oa lhbzvks 2 Jh ds oh czãkth jko Mk- jke,l laxkiwjs Jh latho 'kj.k Jh vfuy dqekj kph Jh egs'k ckcw xqirk lqjh gh: ehjpankuh Jh jfo feùky Jh lat; oekz fotu 2022 ds fy, cksmz dh LVhfjax lfefr jk"vªh;ñr csadksa dh (çcuèku,oa fofoèk çkoèkku ) ;kstuk 1970 dh èkkjk 14 ds vuqlkj csad ds çn'kzu ds lkfk foftu 2022 nlrkost ds varxzr fuèkkzfjr y{;ksa dh leh{kk gsrq lfefr xfbr dh xbz gsa varjky dks de djus ds fy, lfefr j.kuhfr cukus ds lkfk&lkfk lecfuèkr ç-dk- dks vxzlj djus ds fy, ekxznf'kzr djrh gsa dh flfkfr ds vuqlkj lajpuk 1- Jh lquhy esgrk],emh,oa lhbzvks & lfefr ds vè;{k 2- Jh ds oh czãkth jko 3- Jh latho 'kj.k 4- Jh,y oh çhkkdj 5- Jh lquhy esgrk] xsj dk;zikyd vè;{k 6- Jh egs'k ckcw xqirk 7- Jh lqèkhj uk;j 3.13 Customer Service Committee The committee has been constituted in terms of RBI letter dated to review customer service of the bank on quarterly basis. Composition as on : 1. Sh Sunil Mehta, MD & CEO - Chairman of the Committee 2. Sh. K. V. Brahmaji Rao 3. Sh. Sanjiv Sharan 4. Sh. L. V. Prabhakar 5. Sh. Ravi Mital 6. Sh. Mahesh Baboo Gupta 7. Sh Sanjay Verma No. of meetings attended by Member-Directors during the Financial Year: S. No. Name of Director Meetings held during their tenure Meetings attended 1. Sh Sunil Mehta, MD & CEO 2. Sh. K. V. Brahmaji Rao Dr. Ram S. Sangapure Sh. Sanjiv Sharan Sh. Anil Kumar Khachi Sh. Mahesh Baboo Gupta Ms. Hiroo Mirchandani Sh. Ravi Mital Sh. Sanjay Verma Steering Committee for Vision 2022 The Committee has been constituted in terms of Section 14 of the Nationali ed Banks (Management and Miscellaneous Provisions) Scheme 1970 to review performance of the Bank vis-à-vis goals set under Vision 2022 document. The Committee deliberates upon strategies to meet the gaps, if any, inter-alia, guiding the concerned HO verticals to move forward. Composition as on : 1. Sh Sunil Mehta, MD & CEO - Chairman of the Committee 2. Sh. K. V. Brahmaji Rao 3. Sh. Sanjiv Sharan 4. Sh. L. V. Prabhakar 5. Sh. Sunil Mehta, Non-Executive Chairman 6. Sh. Mahesh Baboo Gupta 7. Sh. Sudhir Nayar 54 2 PNB Full AR indd 5 16-Jul-18 2:11:13 PM

69 foùkh; o"kz ds nksjku vk;ksftr lnl;&funs'kdksa }kjk csbdksa esa Hkkx ysus dh la[;k Ø- lafuns'kd dk uke dk;zdky ds nksjku vk;ksftr csbdksa dh la[;k ftruh csbdksa esa miflfkr gq, 1 Jh lquhy esgrk],emh,oa lhbzvks 2 Jh ds oh czãkth jko MkW- jke,l laxkiwjs Jh latho 'kj.k Jh lquhy esgrk] xsj dk;zikyd vè;{k 6 Jh egs'k ckcw xqirk Jh lqèkhj uk;j lrdzrk@xsj lrdzrk vuq'kklfud dkjzokbz ekeyksa ds fuivku dh leh{kk gsrq funs'kd lfefr lfefr foùk-ea=kky;] vkffkzd dk;z fohkkx] csafdax çhkkxk lrdzrk vuqhkkx dh i=k la0-10@12@90@vig@cvos fnukad dh 'krkzuqlkj rfkk frekgh vkèkkj ij lrzdrk o xsj&lrdzrk vuq'kklukred dk;zokgh ds ekeyksa ds fuivku dh leh{kk gsrq xfbr dh xbz A dh flfkfr ds vuqlkj lajpuk% 1- Jh lquhy esgrk],emh,oa lhbzvks & lfefr ds vè;{k 2- Jh ds oh czãkth jko 3- Jh latho 'kj.k 4- Jh,y oh çhkkdj 5- Jh jfo feùky 6- MkW jch,u fejk foùkh; o"kz ds nksjku vk;ksftr csbdksa esa lnl;&funs'kdksa ds miflfkr gksus dh la[;k Ø- lafuns'kd dk uke dk;zdky ds nksjku vk;ksftr csbdksa dh la[;k ftruh csbdksa esa miflfkr gq, 1- Jh lquhy esgrk],emh,oa lhbzvks 2- Jh ds oh czãkth jko MkW- jke,l laxkiwjs Jh latho 'kj.k Jh,y oh çhkkdj Jh vfuy dqekj kph Jh jfo feùky MkW jch,u fejk funs'kdksa dh inksuufr lfefr lfefr Hkkjr ljdkj foùk ea=kky;] vkffkzd dk;z fohkkx ds i=k la0- F-No- 4@1@10@96&IR fnukad ds 'krkzuqlkj xfbr No. of meetings attended by Member-Directors during the Financial Year: Sl. No. Name of Director Meetings held during their tenure Meetings attended 1. Sh Sunil Mehta, MD & CEO 2. Sh. K. V. Brahmaji Rao Dr. Ram S. Sangapure Sh. Sanjiv Sharan Sh. Sunil Mehta, Non Executive Chairman 6. Sh. Mahesh Baboo Gupta Sh. Sudhir Nayar Committee of Directors to review disposal of Vigilance/ Non-vigilance Disciplinary action cases The Committee has been constituted in terms of Department of Economic Affairs, Banking Division Vigilance Section, MoF communication no. 10/12/90/VIG/ CVOs dated and reviews disposal of vigilance and non-vigilance disciplinary action cases on quarterly basis. Composition as on : 1. Sh. Sunil Mehta, MD & CEO - Chairman of the Committee 2. Sh. K. V. Brahmaji Rao 3. Sh. Sanjiv Sharan 4. Sh. L. V. Prabhakar 5. Sh. Ravi Mital 6. Dr. Rabi N. Mishra No. of meetings attended by Member-Directors during the Financial Year: S. No. Name of Director Meetings held during their tenure Meetings attended 1. Sh. Sunil Mehta, MD & CEO 2. Sh. K. V. Brahmaji Rao Dr. Ram S Sangapure Sh. Sanjiv Sharan Sh. L. V. Prabhakar Sh. Anil Kumar Khachi Sh. Ravi Mital Dr. Rabi N. Mishra Directors Promotion Committee The Committee has been constituted in terms of Government of India (GoI), MoF, Department of Economic 55 2 PNB Full AR indd Jul-18 2:12:38 PM

70 dh xbz gsa lfefr mpp dk;zikyd xzsm Ldsy VI,oa Ldsy VII esa inksuufr ds fy, meehnokjksa ds lacaèk esa fopkj djrh gs A dh flfkfr ds vuqlkj lajpuk 1- Jh lquhy esgrk],emh,oa lhbzvks & lfefr ds vè;{k 2- Jh jfo feùky 3- MkW jch,u fejk foùkh; o"kz ds nksjku vk;ksftr csbdksa esa lnl; & funs'kdksa ds miflfkr gksus dh la[;k% Ø- lafuns'kd dk uke muds dk;zdky ds ftruh csbdksa nksjku vk;ksftr esa miflfkfr csbdksa dh la[;k gq, Jh lquhy esgrk],emh,oa lhbzvks 2 lqjh m"kk vuarlqczã.;u 3 Jh vfuy dqekj kph Jh jfo feùky MkW jch,u fejk vihyh; çkfèkdkjh o leh{kk çkfèkdkjh lfefr lfefr dk xbu ih,uch vfèkdkjh dezpkfj;ksa (vuq'kklu,oa vihy) fofu;eu 1977 dh 'krkzuqlkj vihyh; çkfèkdkjh@leh{kk çkfèkdkjh ds #i esa dk;z djus gsrq fd;k x;k gsa dh flfkfr ds vuqlkj lfefr dh lajpuk 1- Jh lquhy esgrk],emh,oa lhbzvks & lfefr ds vè;{k 2- Jh ds oh czãkth jko 3- Jh latho 'kj.k 4- Jh,y oh çhkkdj 5- Jh jfo feùky foùkh; o"kz 2017&18 ds nksjku lfefr dh dksbz csbd ugha gqbz 3-18,pvkj ij cksmz dh LVh;fjax lfefr lfefr dk xbu foùk ea=kky;] foùkh; lsok,a çhkkx ds m¼j.k ij csad dh,p vkj ekeyksa ij vè;;u ds fy,.msyoky lfefr dh lalrqfr;ksa dh 'krkzuqlkj fd;k x;k gsa dh flfkfr ds vuqlkj lfefr dh lajpuk 1- Jh lquhy esgrk],emh,oa lhbzvks & lfefr ds vè;{k 2- Jh ds oh czãkth jko 3- Jh jfo feùky foùkh; o"kz 2017&18 ds nksjku lfefr dh dksbz csbd ugha gqbz Affairs letter F.No. 4/1/10/96-IR dated The committee considers promotions from Top Executive Grade Scale-VI to Scale-VII. Composition as on Sh Sunil Mehta, MD & CEO - Chairman of the Committee 2. Sh. Ravi Mital 3. Dr. Rabi N. Mishra No. of meetings attended by Member-Directors during the Financial Year: S. No. Name of Director Meetings held during their tenure Meetings attended 1. Sh. Sunil Mehta, MD & CEO 2. Ms. Usha Ananthasubramanian 3. Sh. Anil Kumar Khachi Sh. Ravi Mital Dr. Rabi N Mishra Appellate Authority & Reviewing Authority Committee The committee has been constituted to consider Appeal and Review cases as Appellate Authority/Reviewing and Appeal) Regulations, Composition as on : 1. Sh. Sunil Mehta, MD & CEO - Chairman of the Committee 2. Sh. K. V. Brahmaji Rao 3. Sh. Sanjiv Sharan 4. Sh. L. V. Prabhakar 5. Sh. Ravi Mital No meeting of the committee was held during the Financial Year Steering Committee of the Board on HR The Committee has been constituted at the instance of DFS, Ministry of Finance, in terms of the recommendations of Khandelwal Committee for studying HR issues of the Bank. Composition as on : 1. Sh. Sunil Mehta, MD & CEO - Chairman of the Committee 2. Sh. K. V. Brahmaji Rao 3. Sh. Ravi Mital No meeting of the committee was held during the Financial Year PNB Full AR indd Jul-18 4:27:42 PM

71 3-19 eq[rkjukek lfefr lfefr csad ds ;ksx; dks tujy ikwoj vkwiq vvkuhz LohÑfr ij fopkj djrh gsa ds vuqlkj lajpuk 1- Jh ds oh czãkth jko & lfefr ds vè;{k 2- Jh latho 'kj.k 3- Jh,y oh çhkkdj 4- Jh egs'k ckcw xqirk 5- Jh lqèkhj uk;j 6- lqjh gh: ehjpankuh foùkh; o"kz ds nksjku vk;ksftr csbdksa esa lnl; funs'kdksa dh miflfkfr dh la[;k % Ø- lafuns'kd dk uke dk;zdky ds ftruh nksjku vk;ksftr csbdksa esa csbdsa miflfkr gq, 1 Jh ds oh czãkth jko Mk- jke,l laxkiwjs Jh latho 'kj.k Jh egs'k ckcw xqirk Jh lqèkhj uk;j lqjh gh: ehjpankuh 'ks;jèkkjd funs'kdksa ds fuokzpu ij fopkj djus ds fy, lfefr & lkoztfud {ks=k ds csadksa }kjk ernku lfefr] Hkkjr ljdkj foùkh; lsok,a çkhkx ds i=k fnukad dh 'krkzuqlkj] csad ds 'ks;j èkkfjr djus okyh bzdkbz;ksa esa funs'kdksa ds pquko ds fy, meehnokjksa ds çksiqkby vksj i`"bhkwfe ij fopkj djds fu.kz; ysus gsrq dh x;h gsa dh flfkfr ds vuqlkj lajpuk 1- Jh lquhy esgrk],emh,oa lhbzvks vè;{k 2- Jh ds oh czãkth jko lnl; 3- Jh latho 'kj.k lnl; 4- Jh,y oh çhkkdj lnl; foùkh; o"kz 2017&18 ds nksjku lfefr dh dksbz csbd ugha gqbza 3-21 'ks;j varj.k lfefr lfefr ih,uch ('ks;j,oa csbdsa) fofu;eu 2000 ds fofu;eu 2, (vkbz) dh 'krkzuqlkj HkkSfrd 'ks;jksa ds varj.k] MqfIydsV 'ks;j çek.k i=k@ u;s çek.k i=k tkjh djus] 'ks;jksa ds laçs"k.k] 'ks;jksa ds iqu% HkkSfrdhdj.k br;kfn dh fuxjkuh,oa vuqeksnu gsrq xfbr dh x;h gs A dh flfkfr ds vuqlkj lajpuk 1- Jh lquhy esgrk],emh,oa lhbzvks & lfefr ds vè;{k 2- Jh,y oh çhkkdj 3- Jh egs'k ckcw xqirk 3.19 Power of Attorney Committee The committee sanctions and allots General Power of Composition as on Sh. K. V. Brahmaji Rao - Chairman of the Committee 2. Sh. Sanjiv Sharan 3. Sh. L. V. Prabhakar 4. Sh. Mahesh Baboo Gupta 5. Sh. Sudhir Nayar 6. Ms Hiroo Mirchandani No. of meetings attended by Member-Directors during the Financial Year: S. No. Name of Director Meetings held during their tenure Meetings attended 1. Sh. K. V. Brahmaji Rao Dr. Ram S. Sangapure Sh. Sanjiv Sharan Sh. Mahesh Baboo Gupta Sh. Sudhir Nayar Ms Hiroo Mirchandani Committee to consider election of Shareholder Directors - voting by Public Sector Banks The Committee, constituted in terms of GoI, DFS letter dated , decides on the candidates for election as directors in entities in which Bank is holding a stake Composition as on : 1 Shri Sunil Mehta, MD & CEO Chairman 2 Shri K.V. Brahmaji Rao Member 3 Shri Sanjiv Sharan Member 4 Shri L.V. Prabhakar Member No meeting of Committee of the Board was held during Share Transfer Committee The Committee has been constituted in terms of Regulation 2A (i) of PNB (Shares and Meetings) Regulations, 2000 to monitor and approve transfers of physical shares, Composition as on : 1. Sh. Sunil Mehta, MD & CEO - Chairman of the Committee 2. Sh. L. V. Prabhakar 3. Sh. Mahesh Baboo Gupta 57 2 PNB Full AR indd Jul-18 4:27:42 PM

72 foùkh; o"kz ds nksjku vk;ksftr csbdksa esa lnl; funs'kdksa dh miflfkfr dh la[;k% Ø- lafuns'kd dk uke dk;zdky ds nksjku vk;ksftr csbdksa dh la[;k ftruh csbdksa esa miflfkr gq, 1 Jh lquhy esgrk],emh,oa lhbzvks 2 lqjh m"kk vuarlqczã.;u Mk- jke,l laxkiwjs Jh lqèkhj uk;j Jh,y oh çhkkdj Jh egs'k ckcw xqirk fmftvy ysunsu dh çxfr dh fuxjkuh djus dh lfefr vkbzch, i=k la[;k ih,l vksj chvh@fmftvy Hkqxrku@3339 fnukad ds lanhkz esa,d lfefr xfbr dh xbz Fkh ftlesa lfpoksa dh lfefr] p;fur csadksa] Hkkjrh; jk"vªh; Hkqxrku fuxe (,uihlhvkbz) rfkk vkjchvkbz us fnukad dks laiuu csbd esa ;g lykg nh Fkh fd fmftvy ysunsuksa dh miyfcèk dh çxfr dh fuxjkuh gsrq cksmz Lrj ij mi&lfefr;ksa dk xbu fd;k tk,a fmftvy csafdax çhkkx ds uksv fnukad 18 flrecj 2017 ds lanhkz esa cksmz csbd fnukad dks lfefr dk xbu fd;k x;ka dh flfkfr ds vuqlkj lajpuk 1- Jh lqèkhj uk;j & lfefr ds vè;{k 2- Jh ds oh czãkth jko 3- Jh latho 'kj.k 4- Jh,y oh çhkkdj 5- Jh jfo feùky 6- lqjh gh: ehjpankuh 7- Jh lat; oekz foùkh; o"kz ds nksjku vk;ksftr csbdksa esa lnl; funs'kdksa dh miflfkfr dh la[;k% Ø- lafuns'kd dk uke dk;zdky ds ftruh nksjku vk;ksftr csbdksa esa csbdksa dh la[;k miflfkr gq, 1 Jh lqèkhj uk;j Jh ds oh czãkth jko Mk- jke,l laxkiwjs Jh latho 'kj.k Jh,y oh çhkkdj Jh jfo feùky lqjh gh: ehjpankuh Jh lat; oekz funs'kdksa dk ikfjjfed % çcaèk funs'kd,oa eq[; dk;zikyd vfèkdkjh vksj dk;zikyd funs'kdksa (4 iw.kzdkfyd funs'kdksa) dks Hkkjr ljdkj ds fu;ekuqlkj osru ds No. of meetings attended by Member-Directors during the Financial Year: S. No. Name of Director Meeting held during their tenure Meeting attended 1 Shri Sunil Mehta, MD & CEO 2 Ms.Usha 2 2 Ananthasubramanian 3 Dr. Ram S. Sangapure Shri Sudhir Nayar Shri L.V.Prabbhakar Shri Mahesh Baboo Gupta Committee to monitor progress of Digital Transactions: The Committee has been constituted in terms of IBA letter no. PS&BT/Digital Payment/3339 dated advising to set up Board level Sub-Committees to monitor progress of achievement in digital transactions as advised by Committee of secretaries, select Banks, National Payments Corporation of India (NPCI) & RBI vide their meeting dated The committee was constituted vide Digital Banking Division Note dated September 18, 2017 at Board Meeting dated Composition as on Sh. Sudhir Nayar - Chairman of the Committee 2. Sh K V Brahmaji Rao 3. Sh. Sanjiv Sharan 4. Sh. L. V. Prabhakar 5. Sh. Ravi Mital 6. Ms. Hiroo Mirchandani 7. Sh. Sanjay Verma No. of meetings attended by Member-Directors during the Financial Year: S. No. Name of Director Meeting held during their tenure Meeting attended 1 Sh. Sudhir Nayar Sh K.V. Brahmaji Rao Dr. Ram S. Sangapure Sh. Sanjiv Sharan Sh. L. V. Prabhakar Sh. Ravi Mital Ms. Hiroo Mirchandani Sh. Sanjay Verma Remuneration of Directors: The Managing Director and CEO and the Executive Directors (Four whole time directors) are being paid 58 2 PNB Full AR indd Jul-18 4:27:43 PM

73 }kjk ikfjjfed dk Hkqxrku fd;k tk jgk gsa çcaèk funs'kd,oa lhbzvks rfkk dk;zikyd funs'kdksa ds ikfjjfed vksj çn'kzu vkèkkfjr çksrlkgu ds Hkqxrku dk C;kSjk fueufyf r gs % foùkh; o"kz 2017&18 ds nksjku Hkqxrku fd;k x;k ikfjjfed % Ø- lauke in Hkqxrku jkf'k (`) ih,iq dk va'knku (`) esfmdy (`) 1- Jh lquhy esgrk ( dks fu;qdr) çcaèk funs'kd,oa eq[; dk;zikyd vfèkdkjh 23,60, ,25, ,12, lqjh m"kk vuarlqczã.;u ( ls bykgckn csad esa LFkkukarfjr) çcaèk funs'kd,oa eq[; dk;zikyd vfèkdkjh 3- Jh ds oh czãkth jko dk;zikyd funs'kd 4- Mk- jke,l laxkiwjs (28- dk;zikyd dks lsokfuo`ùk) funs'kd 5- Jh latho 'kj.k dk;zikyd funs'kd 6- Jh,y-oh- çhkkdj dk;zikyd ( ls fu;qdr) funs'kd 2,76, , ,51, ,23, , ,50,388.00* 2,04, , ,83, ,16, , ,85, , (* lsokfuo`fùk ij xzsp;qbvh vksj yho,uds'kesav 'kkfey gs) fdlh Hkh funs'kd dks o"kz ds nksjku LVkWd vkwi'kal tkjh ugha fd;k x;k gsa lsok laidkzs vksj uksfvl vofèk lfgr fu;qfdr dh vofèk ljdkj dh fn'kkfunzs'kkuqlkj gsa fdlh Hkh funs'kd ds fy, dksbz vyx 'kqyd ns; ugha gsa foùk o"kz 2017&18 ds fy, iw.kzdkfyd funs'kdksa dks çn'kzu vkèkkfjr çksrlkgu Hkqxrku ugha fd;k x;k FkkA csad xsj dk;zikyd funs'kdksa dks cksmz vfkok milfefr;ksa dh csbdksa esa Hkkx ysus ds fy, Hkkjr ljdkj }kjk fuèkkzfjr 'kqyd ds vykok dksbz vu; ikfjjfed ugha nsrka Hkqxrku ;ksx; 'kqyd fueufyf r gs%& csbd çr;sd csbd esa Hkkx ysus ds fy;s ns; 'kqyd (`) cksmz 20,000/- cksmz dh mi&lfefr 10,000/- o"kz 2017&18 ds nksjku xsj&dk;zikyd funs'kdksa dks Hkkx ysus ds fy, dqy iqhl dk Hkqxrku fueuor gs% (iw.kzdkfyd funs'kdksa vksj Hkk-fj- csad ds çfrfufèk funs'kd dks Hkkx ysus ds fy, fdlh çdkj dh iqhl dk Hkqxrku ugha fd;k tkrk)% Øe la0 funs'kd dk uke Hkqxrku dh xbz jkf'k ` esa 1 Jh lquhy esgrk] xsj dk;zikyd vè;{k 5,00,000/- 2 Jh egs'k ckcw xqirk 8,70,000/- 3 lqjh gh: ehjpankuh 5,80,000/- 4 Jh lqèkhj uk;j 10,20,000/- 5 Jh lat; oekz 4,20,000/- S. No remuneration by way of salary as per rules framed by the Government of India. The details of remuneration paid to Managing Director & CEO and Executive Director/s are as under: Name 1. Sh Sunil Mehta (Joined on ) 2. Ms. Usha Ananthasubramanian (Transferred to Allahabad Bank on ) 3. Sh. K. V. Brahmaji Rao Executive Director 4. Dr. Ram S. Sangapure (Retired on ) 5. Sh. Sanjiv Sharan Executive Director 6. Sh L. V. Prabhakar (Joined on ) Designation paid (`) bution (`) `) MD & CEO 23,60, ,25, ,12, MD & CEO 2,76, , ,51, ,23, , Executive 58,50,388.00* 2,04, , Director Executive Director 22,83, ,16, , ,85, , (* includes Gratuity and Leave Encashment on retirement) No stock options have been issued to any Director during the year. Terms of appointment including service contracts and notice period are as per Government guidelines. No severance fee is payable to any Director. No performance linked incentive was paid to the whole- The Bank does not pay remuneration to the Non-Executive India, for attending the meetings of the Board or its subcommittees. The fees payable is as under:- S. No. 1 Sh. Sunil Mehta, Non-Executive Chairman Sitting Fee paid (in `) Meeting per Meeting (`) Board 20,000/- Sub-Committee of Board 10,000/- The total Sitting Fee paid to the Non-Executive Directors during the Year is as under: (No sitting fee is payable to whole time directors and director representing Government of India & RBI): 5,00,000/- 2 Sh. Mahesh Baboo Gupta 8,70,000/- 3 Ms. Hiroo Mirchandani 5,80,000/- 4 Sh. Sudhir Nayar 10,20,000/- 5 Sh. Sanjay Verma 4,20,000/ PNB Full AR indd Jul-18 2:1 :17 PM

74 5- foosdkèkhu vis{kkvksa dk vuqikyu Ø- la- xsj vfuok;z vis{kk,a dk;kzuo;u dh flfkfr,- funs'kd eamy & xsj dk;zikyd vè;{k deiuh ds pz ij vè;{k dk dk;kzy; Hkkjr ljdkj us ls csad ds vè;{k ds #i esa Jh lquhy esgrk dks fu;qdr fd;k gsa lehkkyus ds fy, ik=k gks ldrk gs A ch 'ks;jèkkjdksa ds vfèkdkj & frekgh@okf"kzd foùkh; ifj.kke 'ks;jèkkjdksa ds çr;sd gkmlgksym,u,lbz@ ch,lbz dks Hksts@lekpkj dks foùkh; ifj.kkeksa ds v¼zokf"kzd ifj.kkeksa rfkk xr i=kksa esa çdkf'kr fd;s tkrs gsa rfkk çeq fo'ks"krkvksa lfgr Ng ekg dh egroiw.kz?kvukvksa csad dh osclkbv ij çnf'kzr dk lkjka'k çsf"kr fd;k tk ldrk gs A fd;s tkrs gsa A okf"kzd fjiksvks± dks,th,e ls iwoz 'ks;jèkkjdksa dks Hkstk tkrk gsa lh Mh ys kijh{kk fjiksvz esa la'kksfèkr leefr & lwphc¼ bdkbz vla'kksfèkr ys kijh{kk jk; ds lkfk foùkh; fooj.kh dh,d O;oLFkk dh vksj c<+ ldrh gsa vè;{k,oa eq[; dk;zikyd vfèkdkjh ds in vyx & lwphc¼ bdkbz vè;{k vksj çcaèk funs'kd,oa eq[; dk;zikyd vfèkdkjh ds in ij vyx&vyx O;fDr;ksa dh fu;qdr dj ldrh gsa csad dh okf"kzd foùkh; fooj.kh vudokfyiqkbzm gs A egroiw.kz ys k uhfr;ka,oa ys ksa ij fviif.k;ka vuqlwfp;ksa esa fn, x, gs tks O;k[;kRed çñfr ds gs A Hkkjr ljdkj us vè;{k vksj çcaèk funs'kd,oa eq[; dk;zikyd vfèkdkjh ds in dks fohkkftr dj fn;k gsa rnuqlkj] çcaèk funs'kd,oa eq[; dk;zikyd vfèkdkjh inlfkkfir dj fn, x, gs A bz vkarfjd ys kijh{kd dh fjiksfvzax & vkarfjd ys k egkçcuèkd (fujh{k.k,oa ys k ijh{kk) tks ys k ijh{kk lfefr ijh{kd lhèks ys k ijh{kk lfefr gsrq vkarfjd ys k ijh{kk dk;z dks fjiksvz dj ldrs gs A fjiksvz Hkstrk gs A 6- vke lhkk dh csbdsa 'ks;jèkkjdksa dh finys rhu o"kks± ds nksjku gqbz okf"kzd vke csbdksa (,th,e)vksj vlkèkkj.k vke csbdksa (bzth,e) ds fooj.k bl çdkj gsa % csbd dk fnu] fnukad LFkku çdkj,oa le; pksnoha,th,e iuæoha,th,e eaxyokj] 30 twu] 2015 çkr% cts xq#okj] 30 twu] 2016 çkr% cts ih,uch vkwfmvksfj;e] dsuæh; LVkiQ dkwyst] 8 vamjfgy jksm] flfoy ykbzul] fnyyh & ih,uch vkwfmvksfj;e] dsuæh; LVkiQ dkwyst] 8 vamjfgy jksm] flfoy ykbzul 8] fnyyh & mís'; & dks lekfir o"kz ds fy, csad ds ys k ijhf{kr rqyu i=k rfkk ykhk o gkfu krs ij fopkj&foe'kz] vuqeksnu,oa viukuka & 2014&15 ds fy, ykhkka'k dh?kks"k.kk djuka &,d 'ks;jèkkjd funs'kd dk pqukoa dks lekir o"kz ds fy, csad ds ys k ijhf{kr rqyu i=k rfkk ykhk o gkfu krs ij fopkj&foe'kz] vuqeksnu,oa viukuka 5. Compliance of discretionary requirements Sr. No. A B C D E Non Mandatory requirements The Board - A nonexecutive Chairman may be entitled to maintain a company s expense Shareholders Rights - A half-yearly declaration including summary of the six-months, may be sent to each household of shareholders. in audit report - The listed entity may move towards a regime of Status of implementation Government of India has appointed Sh. Sunil Mehta as Non-Executive Chairman of the Bank w.e.f The quarterly / Annual Financial Results are sent to NSE/BSE, published in newspapers and placed on Bank s website including highlights. Annual reports are also sent to the shareholders before AGM. The Bank s Annual Financial Statements are Accounting Policies and Notes to Accounts are contained in schedules, which are explanatory in nature. Separate Posts of The Government of Chairperson and Chief India has split the The post of Chairman and listed entity may appoint Managing Director & separate persons to the CEO. Accordingly, Nonpost of Chairperson and Executive Chairman and Managing Director or Chief Managing Director & CEO have been posted. Reporting of internal The internal auditor may report directly to the audit committee. General Manager (Inspection & Audit) who is heading the internal audit functions reports to the Audit Committee. 6. General Body Meetings The details of Annual General Meetings (AGM) of shareholders during the last three years are as follows: Type of Meeting Fourteenth AGM Fifteenth AGM Day, Date & Time Tuesday, June 30, 2015 at 10a.m. Thursday, June 30, 2016 at 10a.m. Venue PNB Auditorium, Central Staff College, 8, Underhill Road, Civil Lines, Delhi PNB Auditorium, Central Staff College, 8, Underhill Road, Civil Lines, Delhi Purpose - To discuss, approve & adopt the Audited Balance Sheet of the Bank for year ended To declare Dividend for Election of one Shareholder Director. - To discuss, approve & adopt the Audited Balance Sheet of the Bank for year ended PNB Full AR indd Jul-18 4:27:43 PM

75 csbd dk fnu] fnukad LFkku çdkj,oa le; lksygoha,th,e xq#okj] 29 twu ] 2017 çkr% cts ih,uch vkwfmvksfj;e] dsuæh; LVkiQ dkwyst] 8 vamjfgy jksm] flfoy ykbzul 8] fnyyh & mís'; & dks lekfir o"kz ds fy, csd ds ys k ijhf{kr rqyu i=k,oa ykhk&gkfu krs ij ifjppkz] vuqeksnu,oa viukuka &,d 'ks;jèkkjd funs'kd dk pqukoa mdr okf"kzd vke csbdksa esa dksbz fo'ks"k ladyi çlrqr ugha fd, x,a Mkd ls erkfèkdkj dk ç;ksx (ikslvy csyv) & csad us,slk dksbz dk;z vk;ksftr ugha djk;k gs ftlesa foùkh; o"kz ds nksjku Mkd }kjk ernku dh vuqefr nh x;h gks vksj orzeku esa dksbz dkjksckj ikslv csyv ds ekè;e ls djk;k tkuk çlrkfor ugh gs A 7 - lsch (,yvksmhvkj) fofu;eu 2015 dh vuqlwph V {lh(10)} ds vuqlkj vu; çdvhdj.k 7-1 o"kz ds nksjku,slh dksbz egroiw.kz lecuèkh ikvhz VªkatsD'ku ugha gqbz gs tks fd csd ds fgr dks çhkkfor djsa 7-2 Hkkjrh; fjtoz csad@vkbzlh,vkbz ds fn'kkfunzs'kksa ds vuqlj.k esa csad ds lec¼ ikvhz ysu&nsu dh flfkfr vuqlkj rqyui=k ds krksa ds uksv~l (vuqlwph 18) esa n'kkz, x;s gsaa lacafèkr i{k ds lkfk ysu&nsu djus dh uhfr csd dh osclkbv in/regulatory.html ij nh x;h gs A 7-3 foxr 3 o"kks± ds nksjku iwath cktkj ls lacafèkr ekeyksa ds lacaèk esa lsch@lvkwd,dlpsatksa }kjk csad ij dksbz nam@çfrcaèk ugha yxk;k x;k FkkA 7-4 csad us fofty esdsfute Oghly Cyksvj ikwfylh LFkkfir dh gs vksj fdlh Hkh O;fDr dks ys k ijh{kk lfefr esa vkus ds fy, jksdk ugha x;k gsa 7-5 vfuok;z vko';drkvksa dk ikyu fd;k x;k gs rfkk xsj vfuok;z vko';drkvksa dks xzg.k mdr isjk 5 esa fn;k x;k gsa 7-6 ^esfvfj;y* vuq"kaxh fuèkkzj.k ds fy, ikwfylh gsrq oscfyad gs% deksfmvh ewy; tksf e rfkk deksfmvh gsftax xfrfofèk;k 'kwu; gsa 8- csad dh 3?kjsyw vuq"kafx;ka gs] ;Fkk% i) ih,uch fxyvl fyfevsm ii) ih,uch baoslvesav lfozlst fyfevsm iii) ih,uch ba';ksjsal czks dx fyfevsm* *ih,uch ba'kksjsal czksfdax daiuh xsj&dk;kzred gsa czksfdax ykblsal ljsamj dj fn;k gs vksj deiuh dks lekir djus ds dne mbk fy, x, gsaa ih,uch fxyv~l fy-,d lwphc¼ bzdkbz gs tgk csad ds nks funs'kd deiuh ds cksmz ds Hkh funs'kd gsaa blds vfrfjdr] csad ds ikl nks varjkz"vªh; vuq"kafx;k gs] uker% i) iatkc us'kuy csad (varjkz"vªh;) fyfevsm (ih,uchvkbz,y)] ;wds ii) Mªd ih,uch csad fy- HkwVku Type of Meeting Sixteenth AGM Day, Date & Time Thursday, June 29, 2017 at a.m. Venue PNB Auditorium, Central Staff College, 8, Underhill Road, Civil Lines, Delhi Purpose - To discuss, approve & adopt the Audited Balance Sheet of the Bank for year ended Election of one Shareholder Director. No special resolutions were put through in the above said Annual General Meetings. Postal Ballot - Bank has not conducted any business in and at present no business is proposed to be conducted through postal ballot. 7. Other Disclosures as per Schedule V {C(10)} of SEBI (LODR) Regulations interest with the Bank. 7.2 The Related Party Transactions of the Bank as per RBI /ICAI guidelines are disclosed in the Notes on Accounts (in Schedule 18) of the Balance Sheet as on Policy on dealing with Related Party Transactions is available on Bank s website at Regulatory.html 7.3 No penalties/strictures were imposed on the Bank by SEBI/ Stock Exchanges for non-compliance in respect of matters related to Capital Market during the last three years. 7.4 The Bank has established vigil mechanism, whistle blower policy and no person has been denied access to the audit committee. 7.5 Mandatory requirements are complied with and adoption of non-mandatory requirements are given at para 5 above. 7.6 Web link for the policy for determining material subsidiary is Commodity Price Risks and Commodity hedging activities are Nil. 8. The Bank has three domestic subsidiaries, namely: i) PNB Gilts Ltd. ii) PNB Investment Services Ltd. iii) PNB Insurance Broking Pvt. Ltd.* * PNB Insurance Broking Company is non-functional. The Broking licence has been surrendered and steps are being initiated for winding-up of the Company.. PNB Gilts Ltd. is a listed entity where two of the Directors of the Bank are also Directors on the Board of that Company. Further, the Bank has two international subsidiaries, namely: i) Punjab National Bank (International) Limited (PNBIL), UK ii) Druk PNB Bank Ltd., Bhutan PNB Full AR indd Jul-18 4:27:44 PM

76 9- lapkj ekè;e frekgh foùkh; ifj.kkeksa dks LVkWd,Dlpsat (,u,lbz & ch,lbz) esa çpkj ds fy, Hkstk tkrk gsa foùkh; ifj.kke dkwikzsjsv fokkiu vksj lwpuk,a br;kfn fdugha nks (vaxzsth o fgunh) vr;fèkd ifjpkyu okys lekpkj i=kksa eq[;r% VkbZEl vkwiq bafm;k] fgunqlrku VkbZEl] fctusl LVSUMMZ] iqkbusaf'k;y,dlçsl] bdukwfedl VkbZEl] uohkkjr VkbZEl] fgunqlrku] fctusl LVSUMMZ (fgunh)] nsfud tkxj.k vksj tulùkk esa çdkf'kr fd, tkrs gsa A frekgh@okf"kzd foùkh; ifj.kke vksj lalfkkxr fuos'kdksa@fo'ysa"kdksa dks crk;s x;s çstsavs'kuksa dks csad dh osclkbv ( ds vfrfjdr LVkWd,Dlpsat vksj www. bseindia.com ij n'kkz;k tkrk gs A blds vfrfjdr] foùkh; ifj.kkeksa dks fgrèkkjdksa dks fçav,oa bysdvªkwfud ehfm;k ds ekè;e ls lekpkj fokfir;ksa }kjk Hkh lwfpr fd;k tkrk gs A okf"kzd fjiksvz dks csad dh osclkbv ds vfrfjdr LVkWd,Dlpsat dh osclkbzvksa ij Hkh n'kkz;k tkrk gs A 10- vke 'ks;jèkkjdksa ds fy, lwpuk 10-1 csad ds 'ks;jèkkjdksa dh okf"kzd vke csbd % 17oha okf"kzd vke csbd dk dk;zøe bl çdkj gs % fnu] frffk o le;,th,e uksfvl esa fn, x;s fooj.k ds } LFkku vuqlkj 10-2 foùkh; dsys.mj 2018&19 ds fy, (lehkkfor) fueukafdr lekir vofèk@frekgh foùkh; ifj.kkeksa dk vuqeksnu & 30 twu 2018 dks lekir frekgh & vxlr] 14] 2018 rd 30 flrecj 2018 dks lekir frekgh & uoecj] 14] 2018 rd 31 fnlecj 2018 dks lekir frekgh & iqjojh] 14] 2019 rd 31 ekpz 2019 dks lekir frekgh@o"kz & ys kijhf{kr ys s & 30 ebz 2019 rd 10-3 ykhkka'k dk C;kSjk & foùkh; o"kz 2017&18 ds fy, i) ykhkka'k%& csad ds funs'kd eamy us 2017&18 ds fy, ykhkka'k ds Hkqxrku djus dh fliqkfj'k ugha dh gsa i) ykhkka'k forj.k uhfr%& csad }kjk forfjr dh tkus okyh ykhkka'k jkf'k vksj os ifjflfkfr;ka ftlesa ykhkka'k dh?kks"k.kk ugha dh tk ldrh ds lacaèk esa Hkkjrh; fjtoz csad o Hkkjr ljdkj ds fn'kkfunzs'kksa dks 'kkfey djrs gq, ykhkka'k forj.k uhfr cukbz xbz gsa ;g ykhkka'k forj.k uhfr csad dh osclkbv ij miycèk gsa 9. Means of Communication Financial results, corporate advertisements and notices made to institutional investors/analysts are also placed and www. bseindia.com electronic media. 10. General Shareholders Information 10.1 Annual General Meeting of the shareholders of the Bank: th Annual General Meeting: s er details iven in } Venue G otice 10.2 Financial Calendar (Tentative) for Dividend details Financial Year i) Dividend: ii) Dividend Distribution Policy: and circumstances under which dividend may not in/regulatory.html 62 2 PNB Full AR indd Jul-18 2:16:35 PM

77 10-4 i) LVkWd,Dlpsatksa ij lwphdj.k % csad ds 'ks;j fueufyf r LVkWd,Dlpsatksa esa lwphc¼ gsa %& LVkWd,Dlpsat LVkWd dksm lwphdj.k dh vkjfehkd frffk us'kuy LVkWd,Dlpsat vkwiq bafm;k ih,uch fy0 (,u,lbz) ckuæk & dqykz deiysdl] eqecbz ckecs LVkWd,Dlpsat fyfevsm] (ch,lbz) ih- ts- VkWolZ] nyky LVªhV] eqecbz ii) lwphdj.k 'kqyd rfkk vfhkj{kk 'kqyd dk Hkqxrku,u,lbZ rfkk ch,lbz dks okf"kzd lwphdj.k 'kqyd rfkk,u,lmh,y vksj lhmh,l,y dks okf"kzd vfhkj{kk 'kqyd v ru vnk gs A 10-5 ys kcunh dh frffk;k vksj fjeksv bz&oksfvax dh dv vkwiq frffk%,th,e uksfvl esa fn, x;s fooj.k ds vuqlkj 10-6 csad ds 'ks;jksa ds cktkj ewy; (`) vkwadm+s@dk;z fu"iknu* ekg,u,lbz ch,lbz la;qdr mpp U;wu ek=kk mpp U;wu ek=kk ek=kk vçsy& ebz& twu& tqykbz& vxlr& flrecj& vdvwcj& uoecj& fnlacj& tuojh& iqjojh& ekpz& dqy *lzksr &,u,lbz@ch,lbz osclkbv ( / csad ds 'ks;j dk ewy; U;wure ` rfkk vfèkdre ` rfkk,u,lbz vksj ch,lbz esa dkjksckj dh dqy ek=kk djksm+ 'ks;j jgh tcfd ÝyksfVax LVkWd djksm+ 'ks;j jgk A 10-7 csad fuývh dh rqyuk esa csad ds 'ks;j dk fu"iknu xzkiq ds :i esa fueuor n'kkz;k x;k gs %& csad ds 'ks;j dh rqyuk esa csad fuývh dk xzkiq ds :i esa fu"iknu fueu vuqlkj jgk & 10.4 (i) Listing on Stock Exchanges: The shares of the bank are listed on the following Stock Exchanges: Stock Exchange National Stock Exchange of India Ltd. (NSE) Bandra - Kurla Complex, Mumbai Bombay Stock Exchange Ltd. (BSE) P. J. Towers, Dalal Street, Mumbai (ii) Stock Code Date of Initial Listing PNB Payment of Listing Fee and Custodian charges The annual listing fee to NSE & BSE and annual custody charges to NSDL & CDSL have been paid up to date Dates of Book Closure and Cut-off date for remote e-voting: s er details iven in G otice 10.6 Market Price (`)Data / Performance of Bank s shares* Month NSE BSE COMBINED HIGH LOW VOLUME HIGH LOW VOLUME VOLUME Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar TOTAL *Source - NSE/BSE website ( / The shares of the Bank were traded between a low of `93.15 and high of ` total volume traded at NSE & BSE was crore shares 10.7 Performance of Bank s share price in comparison with Bank Nifty. The graphical depiction of performance of Bank s share vis-à-vis Bank Nifty is given below: 63 2 PNB Full AR indd Jul-18 4:27:44 PM

78 10-8 çfr 'ks;j vkadm+k (`) vafdr ewy; (`) 2/- 2/- 2/- 31 ekpz dh lekfir ij,u,lbz (`) vk; (`) (-) ykhkka'k ` 2@& ds çr;sd bfdovh 'kwu; 'kwu; 'kwu; 'ks;j ij ykhkka'k (») 'kwu; 'kwu; 'kwu; cgh ewy; (`) çnùk ykhkka'k ('kq¼ ykhk dk») 'kwu; 'kwu; 'kwu; orzeku foùkh; o"kz ds nksjku csad dh çfrhkwfr;ksa dks fdlh Hkh le; O;kikj ds fy, llisam ugha fd;k x;k A 10-9 'ks;j vurj.k,tsav (,lvh,) chvy iqkbusaf'k;y,am dei;wvj lfozlst (çk-) fy- tks fd lsch esa iathñr vksj 'ks;j varj.k,tsav gsa] csad ds 'ks;j varj.k,tsav ds :i esa ls fu;qdr fd, x, gsaa leiadz fooj.k uhps fn, x, gsa %& chvy iqkbusaf'k;y,am dei;wvj lfozlst (çk-) fy- (;wfuv % ih,uch) ^chvy gkml*] r`rh; ry 99] enuxhj] LFkkuh; 'kkwfiax lsuvj ds ihns ubz fnyyh & nwjhkk"k ua- & 011& @82@83] iqsdl % 011& bz&esy & ewrz :i esa j s x;s 'ks;jksa ds fy, 'ks;j varj.k ç.kkyh (i) ewrz :i esa 'ks;jksa ds 'ks;jèkkjd 'ks;jksa ds vurj.k] 'ks;jksa ds çs"k.k] vius irs esa ifjorzu] VsyhiQksu@eksckby uecj] bz&esy vksj csad vfèkns'k (csad dk uke] irk] krk la[;k],evkbzlhvkj dksm br;kkfn) vksj bz&øsfmv vfèkns'k br;kfn ds lacaèk esa 'ks;j vurj.k,ts.v dks lhèks mdr irs (Øe la esa fn, x,) ij vuqjksèk dj ldrs gsaa blls lhkh lans'kksa rfkk ykhkdkjh fgrksa dh Bhd,oa le; ij çkfir lqfuf'pr gks ldsxha (ii) csad dh 'ks;j varj.k lfefr ds vuqeksnu ds ckn 'ks;j varj.k,tsuv (,lvh,) }kjk fuèkkzfjr le; ds Hkhrj ewrz 'ks;j vurfjr dj fn;s tkrs gsa A 10.8 Per Share Data: (`) Face Value (`) 2/- 2/- 2/- Closing as on 31 st March NSE(`) Earnings (`) (-) Dividend per Equity Share Nil Nil Nil of ` 2/- each Dividend (%) Nil Nil Nil Book Value (`) Dividend payout (% of Net Nil Nil Nil The securities of the Bank have not been suspended for 10.9 Share Transfer Agent (STA) Beetal Financial & Computer Services (P) Ltd., a SEBI registered Registrar and Share Transfer Agent has been appointed Share Transfer Agent of the Bank with effect from Contact details are given below: Beetal Financial & Computer Services (P) Limited (Unit: PNB) Beetal House, 3 rd Floor 99, Madangir, Behind Local Shopping Centre New Delhi Tel. No /82/83, Fax: (i) Share Transfer System for shares held in physical form Shareholders holding shares in physical form may send requests/communications for transfer/ transmission of shares, change of address (with Telephone / Mobile Numbers), address, change in Bank mandate (i.e. Name of Bank, Address, Account No., MICR Code etc.), e-credit mandate etc. directly to STA at the above address (given at S. No. 10.9) for updation of records and to ensure timely receipt of all communications & (ii) The transfer of physical shares is affected by the STA within the stipulated time on approval by Share Transfer Committee of the Bank PNB Full AR indd Jul-18 4:27:45 PM

79 10-11 MhesV :i esa j s x;s 'ks;jksa ds fy, 'ks;j varj.k ç.kkyh (i) csad ds 'ks;jksa dk dkjksckj vfuok;zr% MheSV :i ls vkbz,lvkbz,u dwv vkbz,ubz 160,01022 ds varxzr fd;k tkrk gs A nh us'kuy fld;wfjvht fmikftvjh fy- (,u,lmh,y) rfkk lsuvªy fmikwftvjh lfozlst fyfevsm (lhmh,l,y) fmikwftvjh esa csad ds 'ks;j MheSV :i esa j s x;s gsa A (ii) 'ks;jèkkjd ftuds ikl 'ks;j MheSV #i esa gsa muls vuqjksèk gs fd os vius irs vfkok vksj@;k csad vfèkns'k (csad dk uke] irk] krk la- ekbzdj dksm br;kfn) esa ifjorzu ds lacaèk esa fjdkwmz vimsv djus ds fy, lhèks vius fmikftvjh lg;ksxh dks lwfpr djsa A (,) bysdvªkwfud oksfvax % 'ks;jèkkjdksa ls vuqjksèk gs fd os viuk uohure bzesy vkbzmh vius fmikftvjh lghkkxh ;k,lvh,] tslh Hkh flfkfr gks] ds lkfk iathñr djok ysa rkfd fjeksv bz&oksfvax lqfoèkk ds fy, l{ke gks lds A ih,uch & vnkokñr 'ks;j (mpar) krs % lsch (,yvksmhvkj) fofu;eu 2015 ds vuqlkj vnkokñr 'ks;jksa dk C;kSjk fueufyf r gs%& Ø- lafooj.k 1 o"kz ds çkjehk vfkkzr~ dks cdk;k (` 2@& çr;sd) 2 o"kz ds nksjku 'ks;j varj.k ds fy, vk, 'ks;jèkkjdksa dh la[;k 3 o"kz ds nksjku 'ks;jèkkjdksa dh la[;k ftuds 'ks;j varfjr fd, x, 4 o"kz ds var vfkkzr dks cdk;k (1&3),iQihvks (2005) vkbzihvks (2002) 'ks;j& èkkjdksa dh la[;k 'ks;jksa dh dqy la[;k 'ks;j& èkkjdksa dh la[;k 'ks;jksa dh dqy la[;k dqy 'ks;j& èkkjdksa dh la[;k 'ks;jksa dh dqy la[;k * çekf.kr fd;k tkrk gs fd bu 'ks;jksa ij oksfvax vfèkdkj rc rd Úht jgsxk tc rd dh bu 'ks;jksa dk vlyh Lokeh nkok ugha djrk A Share Transfer System for shares held in Demat form. (i) The Bank s shares are traded in Demat mode under ISIN code INE160A01022 on both NSE and BSE. The National Securities Depository Ltd, (NSDL) and the Central Depository Services Ltd. (CDSL) are the two depositories holding the Bank s share in Demat form. (ii) Shareholders are requested to inform their Depository Participant (DP) directly for updating the records in case of any change in address and/or Bank mandate (Name of Bank, Address, Account No, MICR Code (A) Electronic Voting: Shareholders are requested to register their latest ID with their Depository Participant or STA, as the case may be, for enabling remote e-voting facility PNB-Unclaimed Shares (Suspense) A/c: The details of unclaimed shares as per SEBI (LODR) Regulations, 2015 is as under:- S. No. Particulars 1 Opening at the beginning of the year i.e (` 2/ each) 2 No. of shareholders approached for transfer of shares during the year 3 No. of shareholders to whom shares were transferred during the year 4 Outstanding at the end of the year.e (1-3) FPO (2005) IPO (2002) TOTAL No. of Shareholders No. of Shares No. of Shareholders No. of Shares No. of Shareholders No. of Shares * claims the said shares PNB Full AR indd Jul-18 4:27:45 PM

80 ekpz] 2018 dh flfkfr vuqlkj 'ks;jèkkfjrk rfkk forj.k isvuz i) 'ks;jèkkfjrk isvuz 'ks;jèkkjdksa dh Js.kh» èkkfjr bfdovh 'ks;j Hkkjr ds jk"vªifr deifu;ka E;qpqvy iq.m 8.18?kjsyw 1.30 Hkkjrh; tulkèkkj.k 4.91 Dyh;fjax lnl; 0.08 dqy ii) dh flfkfr vuqlkj 'ks;jèkkjdksa dh la[;k 4]80]078 iii) çr;sd bfdovh 'ks;j dk lkadsfrd ewy; (`) iv) forj.k isvuz% 'ks;jèkkjdksa dh la[;k dqy dh çfr'krrk 'ks;jksa dk bfdovh 'ks;jksa lkadsfrd ewy; dh la[;k (`) jkf'k (`) dqy dh çfr'krrk rd to to to to to to vksj vfèkd dqy% v) dh flfkfr vuqlkj HkkSxksfyd vkèkkj ij 'ks;jèkkjdksa dh flfkfr% bysdvªkwfud ewrz :i esa dqy 'kgj dk uke 'ks;jèkkjd çfr'kr 'ks;j çfr'kr 'ks;jèkkjd çfr'kr 'ks;j çfr'kr 'ks;jèkkjd çfr'kr 'ks;j çfr'kr vgenkckn csaxyksj psuubz fnyyh gsnjkckn dksydùkk eqecbz ,ulhvkj vu; vu; dqy Shareholding and Distribution Pattern as on 31 st March 2018: (i) Shareholding Pattern Shareholders Category %age Equity shares held President of India FIIs/NRIs/OCBs 9.23 Banks/Financial Institutions/ Insurance Companies Mutual Funds 8.18 Domestic Companies/Trusts 1.30 Indian Public/Resident Individuals/ HUF 4.91 Clearing Members 0.08 Total (ii) No. of shareholders as on ,80,078 (iii) Nominal value of each Equity Share (`) 2/- iv) Distribution Pattern: No. of Shareholders % age of Total Shareholding of Nominal Value of (`) No. of Equity Shares Amount (`) %age to Total Upto to to to to to to and above Total: v) Geographical spread of Shareholders as on : ELECTRONIC PHYSICAL TOTAL CITY NAME HOLDER per % SHARES per% HOLDER Per% SHARES PER% Holder Per% Share Per% AHMEDABAD BANGALORE CHENNAI DELHI HYDERABAD KOLKATA MUMBAI NCR OTH OTHER TOTAL PNB Full AR indd Jul-18 4:27:46 PM

81 vi) ds vuqlkj 'ks;jèkkjdksa }kjk ewrz #i esa rfkk MhesV #i esa èkkfjr 'ks;jksa dk fooj.k % Ø- fooj.k 'ks;jèkkjdksa 'ks;jksa dh 'ks;jèkkfjrk la- dh la[;k la[;k dk çfr'kr 1 ewrz #i esa MheSV #i esa i) ftuesa ls],u,lmh,y ii) lhmh,l,y dqy (1$2) foùkh; o"kz ds nksjku] csad us ` 2@& çfr bfdovh 'ks;j ds vafdr ewy; ds ` (` fuxze dher) ds çhfe;e ij 29]76]19]047 bfdovh 'ks;j ;ksx; lalfkkxr IyslesaV (D;wvkbZih) ds ekè;e ls ;ksx; lalfkkxr jhnkjksa (D;wvkbZch) dks fnlecj 2017 esa ` 4999]99]99] dh jkf'k çkir gqbza lkfk gh] csad us ` 2@& çfr bfdovh 'ks;j ds vafdr ewy; ds ` (` fuxze dher) ds çhfe;e ij 33]49]85]922 bfdovh 'ks;j Hkkjr ljdkj dks vfèkeku vkèkkj ij ` 5472]99]99] dh jkf'k çkir gqbza foùkh; o"kz 2017&18 ds nksjku csad us dksbz Hkh thmhvkj@,mhvkj@ okjav vfkok dksbz Hkh ifjorzuh; foys tkjh ugha fd;k gs rfkk dks dksbz thmhvkj@,mhvkj@okjav ;k dksbz ifjorzuh; foys cdk;k ugha gsa deksfmvh ewy; tksf e 'kwu; gsa fons'kh fofue; tksf e o gsftax ls lacafèkr xfrfofèk;ka fueufyf r gs% cksmz us fuos'k ikwfylh dks vkbzvkj,emh] fem vkwfiql }kjk cuk, x, çqmsaf'k;y fn'kkfunzs'k@csad ds fn'kkfunzs'k ds lekukarj vuqeksfnr fd;k gs tks fd fofhkuu lhekvksa dh fiqfdlax }kjk dv ykwl@ykhk lhek,a viukuk (Mhyj@djsalh vkèkkfjr) vksojukbv@iqkwozmz vkwiu flfkfr br;kfn ds lahkkfor Hkfo"; esa gksus okyh gkfu dks ifjhkkf"kr djrk gsa fnu ds nksjku vksiu flfkfr ds lkfk Ms ykbv vksiu flfkfr lhek fiqfdlax }kjk fofue; tksf e crkrk gsa eè;orhz dk;kzy;] vkbzvkj,emh }kjk fofhkuu ifjidork vofèk esa fons'kh eqæk udnh çokg esa varj ds dkj.k mriuu fons'kh fofue; tksf e lhekvksa tsls vkbzth,y],th,y vksj oh,vkj dh lhek fuèkkzfjr o mudh fuxjkuh dh tkrh gsa lhkh epzsav vkèkkfjr ysunsu esa (vk;kr@fu;kzr@vkod çs"k.k@ tkod çs"k.k) varj csad cktkj esa vksvhlh O;qRiUuh (LoSi o iqkwozmz) ds ekè;e ls jf{kr fd, tkrs gsaa,iqlh,uvkj@bzbz,iqlh@vkj,iqlh ds ekè;e ls l`ftr ;w,lmh fufèk LokHkkfod :i ls mlh eqæk esa fufèk;ksa dk vkxeu vksj mlh eqæk esa fufèk;ksa dk cfgxzeu jf{kr gksrk gsa ;w,lmh ds vykok mi;zqdr tek,a eqæk LoSi ra=k ds ekè;e ls ;w,lmh esa ifjofrzr gksrh gsa vksj?kkvs esa yh xbz LoSi ykxr dks i'pkr ykhk esa çnf'kzr fd;k tkrk gsa csad ds ikl,d lqn`< o lqifjhkkf"kr,evkbz,l gs ftlds ekè;e ls nsfud xfrfofèk;ksa ds çr;sd fnu lhkh Lrj ij mpp çcuèku ds le{k j s tkrs gsaa bls eè;orhz dk;kzy; vkbzvkj,emh }kjk cukbz xbz cksmz }kjk vuqeksfnr fuos'k uhfr esa ifjhkkf"kr fd;k x;k gsa vi) Details of shares held by the Shareholders in Physical & Dematerialized form as on S. No. Particulars No. of Shareholders No. of % Shares Shareholding 1. Physical Dematerialized i) of which, NSDL ii) CDSL Total (1+2) During the Financial Year, Bank allotted 29,76,19,047 equity shares of the face value of ` 2/- each at a premium of ` (Issue price ` ) aggregating ` December Further, Bank has allotted 33,49,85,922 equity shares of the face value `2/- each at a premium of ` (Issue price `163.38) aggregating to `5472,99,99, to Government of India on preferential basis Bank has not issued any GDRs/ADRs/Warrants or any and there are no outstanding GDRs/ADRs/Warrants or any convertible instruments as on Commodity Price Risks are Nil. As regards foreign exchange risk and hedging activities: Board approved Investment Policy in line with prudential guidelines/bank guidelines framed by Mid Office, Integrated Risk Management Division (IRMD) is in place which defines potential future losses by fixing various limits such as cut loss/ take profit limits (Dealer wise/currency wise), Overnight/forward open positions etc. Exchange risk associated with intraday open position is also addressed by fixing Daylight Open Position limit. Foreign Exchange risk arising due to mismatch of foreign currency cash flow in different maturity buckets are addressed by limits such as IGL, AGL and VaR fixed and monitored by Mid Office, IRMD. All merchant (Export/Import/Inward remittance/ Outward remittance) based transactions are hedged through OTC derivatives (swap and forward) in Interbank market. USD funds generated through FCNR/EEFC/RFC are place in the same currency. Aforesaid deposits other than USD are converted into USD through currency taking swap cost into account. which daily activities are placed before Top Management at all levels every day. The same has 67 2 PNB Full AR indd Jul-18 4:27:47 PM

82 10-17 bfdovh ekeyksa ds lacaèk esa i=kkpkj dk irk %& deiuh lfpo iatkc us'kuy csad 'ks;j fohkkx] foùk çhkkx çfke ry] iwoz foax] IykWV la-4] lsdvj&10] }kjdk] ubz fnyyh& nwjhkk"k la bzesy% vkwuykbzu f'kdk;r fuokj.k ç.kkyh% 'ks;jèkkjdksa dh ds fuivku gsrq i=kkpkj lfgr le; vofèk de djus ds fy, csad us vkwuykbzu fuokj.k ç.kkyh miycèk djkbz gsa ubz ç.kkyh ds varxzr 'ks;jèkkjd gekjh osclkbzv ij miycèk djk, x, iksvzy ds ekè;e ls Investorinfo > others > OnlineShareholderqueries/requests/grievances ds varxzr viuh ntz dj ldrs gsaa 'ks;jèkkjd ntz djus dh frffk ls ysdj mlds fuivku dh frffk rd f'kdk;r dh flfkfr dks ns ldrs gsaa Ñrs iatkc us'kuy csad Address for Correspondence in respect of equity related issues: The Company Secretary Punjab National Bank Share Department, Finance Division 1 st Floor, East Wing, Plot No.4, Sector-10, Dwarka, New Delhi Tel. No hosd@pnb.co.in Online grievance redressal system: The Bank has made available an online query/grievance/complaint redressal system for reducing the time period involved in correspondence in resolving the shareholders queries/ grievances. Under the new system the shareholder may log in their query/complaint through the portal provided in our website under Investorinfo > others > OnlineShareholderqueries/requests/grievances. The shareholder will be able to view status of the reference from the date of lodging till its resolution. For Punjab National Bank LFkku% ubz fnyyh fnukad% (lquhy esgrk) çcaèk funs'kd,oa eq[; dk;zikyd vfèkdkjh Place: New Delhi Date: (Sunil Mehta) Managing Director & CEO?kks"k.kk lsch (,yvksmhvkj) fofu;eu 2015 ds vuqlwph V (Mh) ds vuqlkj csad us lhkh cksmz lnl;ksa rfkk ofj"b çcaèku oxz ds vfèkdkfj;ksa ds fy, vkpkj lafgrk rs;kj dh gs ftls csad dh osc&lkbv in/model-code-of-conduct.html ij n'kkz;k x;k gsa cksmz ds lhkh lnl;ksa rfkk ofj"b çcaèku us.m 26 (3) ds lkfk vkpkj lafgrk ds vuqikyu dh iqf"v dh gsa Ñrs iatkc us'kuy csad Declaration (As per Schedule V (D) of the SEBI (LODR) Regulations, 2015) The Bank has laid down a Code of Conduct for all the Board Members and Senior Management Personnel of the Bank, which is posted on the website of the Bank i.e. model-code-of-conduct.html compliance to the Code of Conduct in accordance with Clause 26 (3). For Punjab National Bank LFkku% ubz fnyyh fnukad% (lquhy esgrk) çcaèk funs'kd,oa eq[; dk;zikyd vfèkdkjh Place: New Delhi Date: (Sunil Mehta) Managing Director & CEO 68 2 PNB Full AR indd Jul-18 4:27:48 PM

83 foùkh; fooj.k Financial Statement 69 3 PNB Abridged AR indd Jul-18 4:29:52 PM

84 IkatkCk us'kuy CkSad dk 31 EkkpZ] 2018 dk laf{kirk Rkqyu Ik=k ABRIDGED BALANCE SHEET OF PUNJAB NATIONAL BANK AS ON MARCH 31, 2018 Ikwath vksj nsõkrkk,a CAPITAL & LIABILITIES (lhkh jkf'k;ka ` yk[k Eksa) (All amounts in ` lac) 31 ekpz 2018 dks 31 ekpz 2017 dks As on March 31, 2018 As on March 31, 2017 Ikwath Capital çkjf{krk fufèkõkka vksj vfèk'ks"k Reserves & Surplus lkafofèkd çkjf{krk fufèkõkka Statutory Reserves Ikwath çkjf{krk fufèk Capital Reserves 'ksõkj çhfekõkek Share Premium jktlo RkFkk vuõk çkjf{krk fufèkõkka Revenue and other Reserves ykhk o gkfu [kkrks Eksa 'ks"k tekkjkf'kõkka Deposits Ekkax tekkjkf'kõkka Demand Deposits CkpRk CkSad tekkjkf'kõkka Savings Bank Deposits lkofèk tekkjkf'kõkka Term Deposits mèkkj Borrowings HkkjRk Eksa mèkkj Borrowings in India (d) HkkjRkhÕk fj koz CkSad ls (a) from Reserve Bank of India ([k) vuõk CkSadksa ls (b) from other Banks (x) vuõk lalfkkvksa vksj,tsaflõkksa ls (c) from other Institutions and Agencies HkkjRk ls Ckkgj mèkkj Borrowings outside India vuõk nsõkrkk,a,oa çkoèkku Other liabilities and provisions nsõk fcky Bills Payable vurk% dkõkkzyõk lekkõkkstu ('kq¼) mikfprk CÕkkt Interest accrued Ekkud vkflrkõkksa ds fy, çkoèkku Provisions towards standard assets PNB Abridged AR indd Jul-18 4:29:52 PM

85 IkatkCk us'kuy CkSad dk 31 EkkpZ] 2018 dk laf{kirk Rkqyu Ik=k ABRIDGED BALANCE SHEET OF PUNJAB NATIONAL BANK AS ON MARCH 31, 2018 vklfkfxrk dj nsõkrkk ('kq¼) vuõk Others dqy Ikwath vksj nsõkrkk,a vkflrkõkka ASSETS udnh,oa HkkjRkhÕk fj koz CkSad ds Ikkl 'ks"k Cash and balances with Reserve Bank of India CkSadksa ds Ikkl tekk 'ks"k vksj Ekkax RkFkk vyik lwpuk Ikj çkiõk èku Balances with Banks & Money at Call & Short Notice HkkjRk Eksa CkSadksa ds Ikkl 'ks"k Balances with Banks in India HkkjRk Eksa Ekkax RkFkk vyik lwpuk Ikj çkiõk èku HkkjRk ls Ckkgj 'ks"k Balances outside India fuos'k Investments HkkjRk Eksa In India d) ljdkjh çfrkhkwfrkõkka (a) Government Securities [k) vuõk vuqekksfnrk çfrkhkwfrkõkka (b) Other Approved Securities x) 'ksõkj (c) Shares?k) fmcksupj vksj Ckk.M (d) Debentures and Bonds M) vuq"kafxõkka laõkqdr m Ek p) vuõk (f) Others HkkjRk ls Ckkgj Outside India vfxzek Advances HkkjRk Eksa In India d) [kjhns vksj Hkquk, x, fcky (a) Bills purchased and discounted [k) udn mèkkj] vksojmªkýv vksj Ekkax Ikj nsõk ½.k repayable on demand (lhkh jkf'k;ka ` yk[k Eksa) (All amounts in ` lac) 31 ekpz 2018 dks 31 ekpz 2017 dks As on March 31, 2018 As on March 31, PNB Abridged AR indd Jul-18 4:29:52 PM

86 IkatkCk us'kuy CkSad dk 31 EkkpZ] 2018 dk laf{kirk Rkqyu Ik=k ABRIDGED BALANCE SHEET OF PUNJAB NATIONAL BANK AS ON MARCH 31, 2018 x) fekõkknh ½.k HkkjRk ls Ckkgj Outside India vpy vkflrkõkka Fixed Assets vuõk vkflrkõkka Other Assets vark% dkõkkzyõk lekk'kksèku ('kq¼) mikfprk CÕkkt Interest accrued dj dk vfxzek dh ÏksRk Ikj dvksrkh Tax paid in advance / deducted at source vklfkfxrk dj vkflrk ('kq¼) Deferred tax asset (net) nkoksa ds fuikvku gsrkq çkirk xsj CkSa dx vkflrkõkka vuõk Others dqy vkflrkõkka Total Assets vkdflekd nsõkrkk,a Contingent Liabilities CkSad ds fo:¼,sls nkos ftugsa ½.k ds :Ik Eksa ugha Ekkuk xõkk gs Claims against the Bank not acknowledged as debts CkdkÕkk okõknk fofuekõk lafonkvksa ds dkj.k nsõkrkk,a contracts xzkgdksa dh vksj ls nh xõkha xkjafvõkka Guarantees given on behalf of constituents LohÑfRkÕkka] Ik` kadu vksj vuõk nkfõkro Acceptances, endorsements and other obligations vuõk Eknsa ftuds fy, CkSad vkdflekd :Ik ls fteeksnkj gs Other items for which the Bank is contingently liable olwyh ds fy, fcky Bills for collection çkjf{krk fufèkõkksa vksj vfèk'ks"k ds varkxzrk IkquEkwZYÕku çkjf{krk fufèk (lhkh jkf'k;ka ` yk[k Eksa) (All amounts in ` lac) 31 ekpz 2018 dks As on March 31, ekpz 2017 dks As on March 31, ih ds ok".kzs;,l ds tsu ih ds 'kekz P K Varshney S K JAIN P K SHARMA eq[; çckuèkd mi EkgkçCkUèkd EkgkçCkUèkd Chief Manager DY. GENERAL MANAGER GENERAL MANAGER 72 3 PNB Abridged AR indd Jul-18 4:29:53 PM

87 ,y oh çhkkdj L V PRABHAKAR dkõkzikkyd funs'kd EXECUTIVE DIRECTOR lquhy esgrk lquhy esgrk SUNIL MEHTA SUNIL MEHTA çca/ funs'kd,oa eq[; dk;zikyd vf/dkjh vè;{k MANAGING DIRECTOR & CEO CHAIRMAN jfo feùky MkW jch,u fejk egs'k ckcw xqirk RAVI MITAL Dr. RABI N MISHRA MAHESH BABOO GUPTA funs'kd funs'kd funs'kd DIRECTOR DIRECTOR DIRECTOR lqèkhj uk;j lat; oekz SUDHIR NAYAR SANJAY VERMA funs'kd funs'kd DIRECTOR DIRECTOR bzou frffk dks gekjh fjiksvz ds vuqlkj As per our Report of even date d`rs lwjh,am deiuh ÑRks,lih,eth,aM deiuh Ñrs,edsih,l,aM,lksfl,V~l For Suri & Co. For SPMG & Co. For MKPS & Associates lunh ys[kkdkj &,IkQvkj,u ,l lunh ys[kkdkj &,IkQvkj,u lh lunh ys[kkdkj &,iqvkj,u bZ Chartered Accountants - FRN S Chartered Accountants - FRN C Chartered Accountants - FRN E fnukad % 15@05@2018 Date : 15/05/2018 LFkku % ubz fnyyh (ih- os.kqxksiky) (vons'k xqirk) (çnhi dqekj ykb) lköksnkj lköksnkj lköksnkj (P. Venugopal) (Avadesh Gupta) (Pradip Kumar Lath) Partner Partner Partner lnlõk la lnlõk la lnlõk la M No M No M No ÑRks th,l ekfkqj,am deiuh ÑRks,pMh,lth,aM,lksfl,V~l For G S Mathur & Co. For HDSG & Associates lunh ys[kkdkj &,IkQvkj,u ,u lunh ys[kkdkj &,IkQvkj,u ,u Chartered Accountants - FRN N Chartered Accountants - FRN N (jktho dqekj oèkkou) (nychj lg xqykvh) lk>snkj lk>snkj (Rajiv Kumar Wadhawan) (Dalbir Singh Gulati) Partner Partner lnlõk la lnlõk la M No M No PNB Abridged AR indd Jul-18 4:29:53 PM

88 IkatkCk us'kuy CkSad dk 31 EkkpZ] 2018 dks lekkirk o"kz ds fy, laf{kirk ykhk gkfu [kkrkk ABRIDGED PROFIT AND LOSS ACCOUNT OF PUNJAB NATIONAL BANK FOR THE YEAR ENDED MARCH 31, 2018 (lhkh jkf'k;ka ` yk[k Eksa) (All amounts in ` lac) dks lekkirk o"kz dks lekkirk o"kz For the year ended For the year ended March 31, 2018 March 31, 2017 vkõk Income v trk CÕkkt Interest Earned vfxzekksa@fckyksa Ikj On advances/bills fuos'kksa Ikj On Investments HkkjRkhÕk fjtoz CkSad ds Ikkl 'ks"k vksj vuõk vurk% CkSad fufèkõkka On balances with RBI and other inter-bank funds vuõk Others vuõk vkõk Other Income dekh'ku] fofuekõk,oa nykyh Commission, Exchange and Brokerage fuos'kksa dh fckøh Ikj 'kq¼ ykhk HkwfEk] Hkou] vksj vuõk vkflrkõkksa dh fckøh Ikj 'kq¼ ykhk fofuekõk ysunsuksa Ikj 'kq¼ ykhk HkkjRk@fons'k Eksa vuq"kafxõkksa vksj@vfkok laõkqdr m Ekksa ls ykhkka'k brõkkfn }kjk vkõk Income by way of Dividends etc. from subsidiaries fofoèk vkõk Miscellaneous Income dqy vkõk Total Income OÕkÕk Expenditure [kpz fdõkk xõkk CÕkkt Interest Expended tekk jkf'kõkksa Ikj On Deposits HkkjRkhÕk fjtoz CkSad@vURk% CkSad mèkkjksa Ikj On RBI/ Inter - bank borrowings vuõk Others PNB Abridged AR indd Jul-18 4:29:53 PM

89 IkatkCk us'kuy CkSad dk 31 EkkpZ] 2018 dks lekkirk o"kz ds fy, laf{kirk ykhk gkfu [kkrkk ABRIDGED PROFIT AND LOSS ACCOUNT OF PUNJAB NATIONAL BANK FOR THE YEAR ENDED MARCH 31, 2018 Ikfjpkyu OÕkÕk Operating Expenses dekzpkfjõkksa dks HkqxRkku vksj muds fy, çkoèkku Payments to and Provisions for employees fdjkõkk] dj,oa fcktyh Ekqæ.k,oa ys[ku lkekxzh Printing and Stationery fokkiku vksj çpkj Advertisement and Publicity CkSad dh leikfùk Ikj EkwYÕkßkl Depreciation on Bank's property funs'kdksa dh iqhl] HkÙks,oa [kpz Directors' fees, allowances and expenses ys[kkikjh{kdksa dh iqhl,oa [kpz ('kk[kk ys[kk Ikjh{kdksa lfgrk) Auditors' fees and expenses (including branch auditors) fofèk çhkkj Mkd] Rkkj] VsyhiQksu vkfn Postage, Telegrams, Telephones, etc. EkjEEkRk vksj j[kj[kko Repairs and Maintenance CkhEkk Insurance vuõk Others (lhkh jkf'k;ka ` yk[k Eksa) (All amounts in ` lac) dks lekkirk o"kz dks lekkirk o"kz For the year ended For the year ended March 31, 2018 March 31, çkoèkku,oa vkdflekdrkk,a Provisions and contingencies fuos'k Ikj EkwYÕkßkl ds fy, izkoèkku Provisions for depreciation on Investment vutzd vkflrkõkksa ds fy, çkoèkku Provision towards non performing assets Ekkud vkflrkõkksa ds fy, çkoèkku Provision towards standard assets vuõk (vkõk djksa ds vfrkfjdr) Others (excluding income taxes) dqy [kpsz,oa çkoèkku Total expenses and provisions dj IkwoZ ykhk@(gkfu) orkzekku dj Current tax vklfkfxrk dj Deferred tax PNB Abridged AR indd Jul-18 4:29:53 PM

90 IkatkCk us'kuy CkSad dk 31 EkkpZ] 2018 dks lekkirk o"kz ds fy, laf{kirk ykhk gkfu [kkrkk ABRIDGED PROFIT AND LOSS ACCOUNT OF PUNJAB NATIONAL BANK FOR THE YEAR ENDED MARCH 31, 2018 dj Ik'PkkRk vkxs ys tk;k x;k dqy Total (lhkh jkf'k;ka ` yk[k Eksa) (All amounts in ` lac) dks lekkirk o"kz dks lekkirk o"kz For the year ended For the year ended March 31, 2018 March 31, fofuõkkstu Appropriations lkafofèkd çkjf{krk fufèkõkksa dks varkj.k Transfer to Statutory Reserve iwath fufèkõkksa dks varkj.k Transfer to Capital Reserve vuõk çkjf{krk fufèkõkksa dks varkj.k Transfer to Other Reserve vk;dj vfèkfu;e ds vuqlkj fo'ks"k fufèk esa varj.k Transfer to Special reserve as per Income Tax Act ykhkka'k ij dj gsrq izkoèkku ls varfjr Transferred from provision for tax on Dividend/Dividend Rkqyu Ik=k Eksa ys tkõkk xõkk 'ks"k Balance carried forward to balance sheet ih ds ok".kzs;,l ds tsu ih ds 'kekz P K Varshney S K JAIN P K SHARMA eq[; çckuèkd mi EkgkçCkUèkd EkgkçCkUèkd Chief Manager DY. GENERAL MANAGER GENERAL MANAGER,y oh çhkkdj L V PRABHAKAR dkõkzikkyd funs'kd EXECUTIVE DIRECTOR lquhy esgrk lquhy esgrk SUNIL MEHTA SUNIL MEHTA çca/ funs'kd,oa eq[; dk;zikyd vf/dkjh vè;{k MANAGING DIRECTOR & CEO CHAIRMAN jfo feùky MkW jch,u fejk egs'k ckcw xqirk RAVI MITAL Dr. RABI N MISHRA MAHESH BABOO GUPTA funs'kd funs'kd funs'kd DIRECTOR DIRECTOR DIRECTOR 76 3 PNB Abridged AR indd Jul-18 4:29:53 PM

91 lqèkhj uk;j lat; oekz SUDHIR NAYAR SANJAY VERMA funs'kd funs'kd DIRECTOR DIRECTOR bzou frffk dks gekjh fjiksvz ds vuqlkj As per our Report of even date d`rs lwjh,am deiuh ÑRks,lih,eth,aM deiuh Ñrs,edsih,l,aM,lksfl,V~l For Suri & Co. For SPMG & Co. For MKPS & Associates lunh ys[kkdkj &,IkQvkj,u ,l lunh ys[kkdkj &,IkQvkj,u lh lunh ys[kkdkj &,iqvkj,u bZ Chartered Accountants - FRN S Chartered Accountants - FRN C Chartered Accountants - FRN E fnukad % 15@05@2018 Date : 15/05/2018 LFkku % ubz fnyyh (ih- os.kqxksiky) (vons'k xqirk) (çnhi dqekj ykb) lköksnkj lköksnkj lköksnkj (P. Venugopal) (Avadesh Gupta) (Pradip Kumar Lath) Partner Partner Partner lnlõk la lnlõk la lnlõk la M No M No M No ÑRks th,l ekfkqj,am deiuh ÑRks,pMh,lth,aM,lksfl,V~l For G S Mathur & Co. For HDSG & Associates lunh ys[kkdkj &,IkQvkj,u ,u lunh ys[kkdkj &,IkQvkj,u ,u Chartered Accountants - FRN N Chartered Accountants - FRN N (jktho dqekj oèkkou) (nychj lg xqykvh) lk>snkj lk>snkj (Rajiv Kumar Wadhawan) (Dalbir Singh Gulati) Partner Partner lnlõk la lnlõk la M No M No PNB Abridged AR indd Jul-18 4:29:54 PM

92 vuqlwph & 18 (,dy) [kkrksa ls lacafèkr fviif.k;ka ( ) 1- iw th iw th vuqikr (` djksm+ esa) Ø- lafooj.k i. lkeku; bfdovh Vh;j 1 iwath vuqikr (%)* ii. Vh;j 1 iwath vuqikr (%)* iii. Vh;j 2 iwath vuqikr (%)* iv. dqy iwath vuqikr (lhvkj,vkj) (%)* v. csad esa Hkkjr ljdkj dh 'ks;jèkkfjrk dk çfr'kr % 65.01% vi. tqvkbz xbz bfdovh iwath dh jkf'k ** vii. tqvkbz xbz Vh;j&A vfrfjdr iwath dh jkf'k ftlesa xsjlap;h vfèkekuh 'ks;j (ih,ulhih,l)% csfe;knh ½.k fy[kr (ihmhvkbz)% 'kwu; 'kwu; viii. tqvkbz xbz Vh;j 2 iwath dh jkf'k ftlesa% ½.k iawth fy[kr vfèkeku 'ks;j iwath fy[kr% csfe;knh lap;h vfèkeku 'ks;j (ihlhih,l@ çfrns; xsj lap;h vfèkeku 'ks;j (vkj,ulhih,l)@çfrns; lap;h vfèkeku 'ks;j (vkjlhih,l) 'kwu; 'kwu; ykxw ugha 'kwu; 'kwu; ykxw ugha * csly &AAA iwath fofu;eu ds vuqlkj lwpuk 1 (i ls iv) esa nh xbz gs A ** # djksm+ dh jkf'k (` djksm+) bfdovh iwath vksj ` djksm+ (` djksm+) 'ks;j çhfe;e ds :i esa 'kkfey A 2- fuos'k csad ds fuos'k vksj fuos'k ij ewy;âkl ds fy, fd, x, çkoèkku lecuèkh fooj.k fueukuqlkj gs% & (` djksm+ esa) fooj.k (1) fuos'kksa dk ewy; i fuos'kksa dk ldy ewy; d Hkkjr esa [k Hkkjr ls ckgj ii ewy;âkl ds fy, çkoèkku d Hkkjr esa [k Hkkjr ls ckgj iii fuos'kksa dk fuoy ewy; d Hkkjr esa [k Hkkjr ls ckgj (2) fuos'kksa ij ewy;âkl ds fy, èkkfjr çkoèkkuksa esa mrkj&p<+ko i çkjfehkd 'ks"k ii tksm+sa % o"kz ds nksjku fd, x, çkoèkku iii?kvk,a % o"kz ds nksjku fd, x, vfèkd çkoèkku ds fy, cê~vs [kkrs Mkyh x;h@çfrfyf[kr jkf'k ('kq¼) iv bfr'ks"k SCHEDULE 18 (SOLO) NOTES TO ACCOUNTS Capital Capital Ratio (` in Crore) Sl. No. Particulars i. Common equity Tier 1 Capital ratio (%)* ii. Tier 1 Capital ratio (%)* iii. Tier 2 Capital ratio (%)* iv. Total Capital ratio (CRAR) (%)* v. Percentage of the shareholding of the % 65.01% Government of India in the Bank vi. Amount of equity Capital raised ** vii. Amount of Additional Tier 1 Capital raised; of which : Perpetual Non- Cumulative Preference Shares (PNCPS): Perpetual Debt Instruments (PDI): NIL NIL viii. Amount of Tier 2 Capital raised; of which : Debt Capital instrument: Preference Share Capital Instruments: Perpetual Cumulative Preference Shares (PCPS) / Redeemable Non- Cumulative Preference Shares (RNCPS) /Redeemable Cumulative Preference Shares (RCPS) NIL NIL NA NIL NIL NA * Information given in 1 (i to iv) has been given as per Basel III Capital Regulations. ** Figures includes ` crore (32.87 crore) as Equity Capital and ` crore (` crore) as Share Premium. 2. Investments The detail of Investments and the Movement of provision held towards depreciation on investments of the Bank is given below:- (` in Crore) Particulars (1) Value of Investments i Gross value of Investments a In India b Outside India ii Provisions for Depreciation a In India b Outside India iii Net value of Investments a In India b Outside India (2) Movement of provisions held towards depreciation on investments. i Opening balance ii Add: Provisions made during the year iii Less: Write-off/ write-back of excess provisions during the year (Net). iv Closing balance PNB Full AR indd Jul-18 5:38:05 PM

93 3- jsiks ysunsu (vafdr ewy; 'krksz esa) jsiks vksj fjolz jsiks ysunsuksa ds varxzr csph vksj [kjhnh x;h çfrhkwfr;ksa dk fooj.k fueukuqlkj gs% vafdr ewy; dks lekir o"kz ds nksjku U;wure cdk;k dks lekir o"kz ds nksjku vfèkdre cdk;k dks lekir o"kz ds nksjku nsfud vkslr cdk;k (` djksm+ esa) dh flfkfr ds vuqlkj cdk;k d- jsiks ds vurxzr csph xbz çfrhkwfr;ka (i) ljdkjh çfrhkwfr;k (0.00) ( ) (353.67) (0.00) (ii) fuxfer ½.k çfrhkwfr;k (0.00) (0.00) (0.00) (0.00) [k- fjolz jsiks ds vurxzr [kjhnh xbz çfrhkwfr;ka (i) ljdkjh çfrhkwfr;k (0.00) ( ) ( ) ( ) (ii) fuxfer ½.k çfrhkwfr;k (0.00) (0.00) (0.00) (0.00) (dks"bd esa fn, x, vkadm+s finys o"kz ls lacafèkr gsa) 4- xsj&,l,yvkj fuos'k lafohkkx 4-d xsj,l,yvkj fuos'kksa dh fuxzedrkz lajpuk ( rd) (` djksm+ esa) la[;k fuxzedrkz jkf'k futh {ks=kksa esa folrkj fuos'k Js.kh ls uhps dh çfrhkwfr;ksa dh jkf'k fcuk jsfvax dh çfrhkwfr;ksa dh jkf'k xsj lwphc¼ çfrhkwfr;ksa dh jkf'k (1) (2) (3) (4) (5) (6) (7) (i) ih,l;w ( ) (ii),iqvkbz,l ( ) (iii) csad ( ) (iv) futh dkwikszjsv ('kwu;) (27.00) 'kwu; ('kwu;) ( ) (50.00) (v) vuq"kafx;k la;qdr 'kwu; m e ( ) ('kwu;) (vi) vu;* 'kwu; ( ) ('kwu;) (vii) ewy;âkl ds fy, 'kwu; çkoèkku ( ) ('kwu;) tksm ( ) (77.00) ('kwu;) 9.26 ('kwu;) ('kwu;) (NIL) 'kwu; ('kwu;) 'kwu; ('kwu;) 'kwu; ('kwu;) ('kwu;) ( ) ('kwu;) ('kwu;) (39.25) 'kwu; ('kwu;) 'kwu; (0.00) 'kwu; ('kwu;) ( ) ('kwu;) ('kwu;) 'kwu; ('kwu;) (39.25) (321.45) 'kwu; (0.00) 'kwu; ('kwu;) (360.70) * vu; esa vuqlwph & 8 ds vurxzr ljdkjh çfrhkwfr;ksa esa mfyyf[kr fo'ks"k ljdkjh çfrhkwfr;ksa (ewy;âkl ds ckn) dh #i;s djksm+ (#i;s djksm+) dh jkf'k dh fo'ks"k ljdkjh çfrhkwfr;k 'kkfey gsa A dkwye 4] 5] 6 vksj 7 ls Åij ds varxzr n'kkz;h x;h jkf'k ijlij lac¼ ugha gks ldrha 4-[k vutzd xsj&,l,yvkj fuos'k xsj&fu"iknd xsj&,l,yvkj fuos'kksa esa xfr'khyrk fueukuqlkj gs% (` djksm+ esa) fooj.k çkjfehkd 'ks"k o"kz ds nksjku o`f¼ Repo Transactions (in face value terms) The details of securities sold and purchased under repo and reverse repo transactions are as under Face Value Minimum outstanding during the year ended Maximum outstanding during the year ended Daily Average outstanding during the year ended (` in Crore) Outstanding as on A. Securities sold under repo (i) Government Securities (0.00) ( ) (353.67) (0.00) (ii) Corporate Debt Securities (0.00) (0.00) (0.00) (0.00) B. Securities purchased under reverse repo (i) Government Securities (0.00) ( ) ( ) ( ) (ii) Corporate Debt Securities (0.00) (0.00) (0.00) (0.00) (Figures in brackets relate to previous year) 4. Non-SLR Investment Portfolio 4a. Issuer composition of Non SLR investments as on Sr. No. Issuer Amount Extent of Private Placement Extent of Below Investment Grade Securities Extent of Unrated Securities (` in Crore) Extent of Unlisted Securities (1) (2) (3) (4) (5) (6) (7) (i) PSUs ( ) (ii) FIs ( ) (iii) Banks ( ) (iv) Private Corporates (v) Subsidiaries / Joint Ventures ( ) ( ) (vi) Others* ( ) (vii) Provisions held towards depreciation ( ) Total ( ) (NIL) (27.00) NIL (NIL) (50.00) NIL (NIL) NIL (NIL) NIL (NIL) (77.00) (NIL) 9.26 (NIL) (NIL) (NIL) NIL (NIL) NIL (NIL) NIL (NIL) (NIL) ( ) (NIL) (NIL) (39.25) NIL (NIL) NIL (0.00) NIL (NIL) ( ) (NIL) (NIL) NIL (NIL) (39.25) (321.45) NIL (0.00) NIL (NIL) (360.70) *Others include Special Govt. Securities of ` Crore (` crore) (Net of depreciation, if any) shown under Govt. Securities in Schedule 8. Amounts reported under columns 4, 5, 6 and 7 above may not be mutually exclusive. 4b. Non-performing Non-SLR investments The movement in Non-performing Non-SLR Investments is given below:- (` in Crore) Particulars Opening balance Additions during the year PNB Full AR indd Jul-18 5:38:06 PM

94 (` djksm+ esa) fooj.k o"kz ds nksjku deh bfr'ks"k dqy èkkfjr çkoèkku x,pVh,e Js.kh ls fcøh,oa varj.k 01 vçsy 2017 ls 31 ekpz 2018 ds nksjku,pvh,e Js.kh esa@ls çfrhkwfr;ksa dh fcøh vksj varj.kksa dk dqy ewy; dks flfkr,pvh,e Js.kh esa èkkfjr fuos'kksa ds cgh ewy;ksa ls 5% vfèkd c<+ x;k gs (fueu fyf[kr ysu&nsu dks NksM+dj) A mdr of.kzr 5% dh lhek ls fueufyf[kr ckgj jgsaxs & (d) ys[kk o"kz ds vkjehk esa csadksa }kjk LohÑr funs'kd eamy ds vuqeksnu ls,pvh,e Js.kh dks@ls,dckj esa fd;k tkus okyk çfrhkwfr;ksa dk varj.k ([k) iwoz esa?kksf"kr vks,evks uhykeh ds varxzr Hkkjrh; fjtoz csad dks fd;k tkus okyk foø; (x) Hkkjr ljdkj }kjk csadksa ls ljdkjh çfrhkwfr;ksa dh iqu[kzjhn (?k) ys[kk o"kz tsls vçsy 2017 ds vkjehk gksus ij vuqeksfnr f'kfývax ds dk;z ds vfrfjdr vçsy] tqykbz] vdrwcj 2017 vksj tuojh 2018 ds vkjehk esa,pvh,e ds varxzr,l,yvkj çfrhkwfr;ksa ij lhfyax de djus ds iqylo:i,,iq,l@,p,iqvh dk varj.k ;k çfrhkwfr;ksa dh fcøh A Hkkjrh; fjtoz csad ds ekstwnk fn'kkfunsz'kksa ds vuqlkj (ekdszv osy;w ij cqd osy;w dk vkfèkd; ftlds fy, çkoèkku ugha fd;k x;k gs) çdvhdj.k bl çdkj gs % (` djksm+ esa) fooj.k cqd osy;ww ekdszv osy;w ekdszv osy;w ij cqd osy;w dk vkfèkd; 1- ljdkjh çfrhkwfr;ka vu; vuqeksfnr çfrhkwfr;ka 'ks;j fmcsapj o ckam vuq"kafx;ka] la;qdr m e] lg;ksxh o vkjvkjch 6- vu; Hkkjr ds ckgj fuos'k dqy MsfjosfVOt 5-d ok;nk nj C;kt nj vnyk cnyh (LoSi) (` djksm+ esa) fooj.k i vnykcnyh djkjksa dk vkuqekfud ewyèku ii ;fn nwljk i{k djkj ds varxzr vius nkf;roksa dks iwjk ugha djrk rks lahkkfor gkfu iii vnykcnyh esa 'kkfey gksus ij csadksa }kjk 'kwu; 'kwu; visf{kr laikf'kzod çfrhkwfr iv vnykcnyh ds dkj.k ½.k tksf[ke 'kwu; 'kwu; v vnykcnyh cgh dk mfpr ewy;** (` in Crore) Particulars Reductions during the year Closing balance Total provisions held c. Sale and transfers to / from HTM category The total value of sales and transfers of securities to / from HTM category during 1st April 2017 to 31 st March, 2018 has exceeded 5% of the book value of investments held in HTM category as on (Excluding following Transactions). The 5 percent threshold referred to above will exclude (a) the one- time transfer of securities to/ from HTM category with the approval of Board of Directors permitted to be undertaken by banks at the beginning of the accounting year (b) sales to the Reserve Bank of India under preannounced OMO auctions, (c) Repurchase of Government Securities by Government of India from banks, (d) Sale of securities or transfer to AFS / HFT consequent to the reduction of ceiling on SLR securities under HTM at the beginning of April, July, October 2017 and January 2018 in addition to the shifting permitted at the beginning of the accounting year, i.e. April, 2017 Disclosure in terms of extant RBI guidelines (excess of book value over market value for which provision is not made) is as follows: Particulars Book Value Market Value (` in Crore) Excess of Book Value over Market Value 1. Government Securities Other Approved Securities 3. Shares Debenture & Bonds Subsidiaries, Joint Ventures, Associates & RRBs Others Investments outside India Total Derivatives 5a. Forward Rate Agreement/ Interest Rate Swap (` in Crore) Particulars i The notional principal of swap agreements ii Losses which would be incurred if obligations under the agreements iii Collateral required by the bank upon NIL Nil entering into swaps iv Concentration of credit risk arising from NIL Nil the Swaps v The fair value of the swap book PNB Full AR indd Jul-18 5:38:06 PM

95 mijksdr VªsM bavjcsad ds lkfk ` djksm (finys o"kz ` djksm) rfkk foùkh; lalfkku ` djksm ( finys o"kz ` djksm)] orzeku o"kz ds fy, ØsfMV tksf[ke (ØsfMV,Dlikstj) ` 9-77 djksm rfkk finys o"kz ;g ` djksm jgk] C;kt nj LoSi ds fy, Mhy dh xbz A dqy 14 Mhy dh xbz ftlesa ls 2 Mhy csd Vw csd Mhy] 2 Mhy tgk fiqdlm djkj nj ij Hkqxrku fd;k x;k rfkk ÝyksfVax nj ij çkir fd;k x;k vksj 'ks"k 10 Mhy esa ÝyksfVax nj ij Hkqxrku fd;k x;k vksj fiqdlm djkj nj ij çkir fd;k x;ka 5-[k,Dlpsat VªsfMax okys C;kt nj MsfjosfVOt Øe la (i) (ii) (iii) (iv) (` djksm+ esa) fooj.k o"kz vçsy 2017 & ekpz 2018 ds nksjku,dlpsat VªsfMax okys C;kt nj MsfjosfVOt dh vuqekfud ewyèku jkf'k (fy[krokj) d) C;kt nj ok;nk 31 ekpz] 2018 dh flfkfr ds vuqlkj cdk;k,dlpsat VªsfMax okys C;kt nj MsfjosfVOt dh vkuqekfud ewyèku jkf'k (fy[krokj),dlpsat VªsfMax okys C;kt nj MsfjosfVOt dh,slh vkuqekfud ewyèku jkf'k rfkk tks vr;fèkd çhkkoh ugha gs (fy[krokj),dlpsat VªsfMax okys C;kt nj MsfjosfVOt dh vkuqekfud ewyèku jkf'k dk cdk;k cktkj ewy; (ekdz&vw&ekdszv) tks vr;fèkd çhkkoh ugha gs (fy[krokj) 5-x MsfjosfVOt esa tksf[ke,dlikstj ij çdvhdj.k I xq.kkred çdvhdj.k csad vius Lo;a ds rqyu i=k dh enksa dh gsftax ds fy, vksj lkfk&lkfk O;kikj ds mís'; ls Hkh MsfjosfVo mriknksa dk ç;ksx djrk gsa,d ofj"b vfèkdkjh }kjk MsfjosfVo mriknksa ds tksf[ke çcaèku dk fu;a=k.k fd;k tkrk gs] tks ykbu çcaèku ls Lora=k jgrs gq, mpp çcaèku dks fjiksvz djrk gs A O;kikj dh flfkfr nsfud vkèkkj ij cktkj ds fy, fpfàr dh tkrh gsa MsfjosfVo uhfr dk fuekz.k,dhñr tksf[ke çcaèku çhkkx }kjk fd;k tkrk gs] ftlesa ½.k tksf[ke rfkk cktkj tksf[ke 'kkfey gsaa gst ysunsuksa dk ç;ksx rqyu i=k çcaèku ds fy, fd;k tkrk gsa fjiksfvazx vksj fuxjkuh ds fy, lqo;oflfkr ra=k fo eku gsa gsftax dh uhfr vksj mldh fuxjkuh dh çfø;k Hkh fo eku gsaa çfrj{kk vksj xsj çfrj{kk VªsfMax dks fjdkmz djus ds fy, ys[kkadu uhfr fo eku gs ftlesa vk; igpku] çhfe;e vksj fmldkmav lfeefyr gsa cdk;k vuqcuèkksa dk ewy;kadu] çkoèkku] laikf'ozd vksj ½.k tksf[ke de fd, tkrs gsaa 'kwu; 'kwu; 'kwu; 'kwu; 'kwu; 'kwu; The above Trades are Interest Rate Swap Deal done with Interbank for ` Crores (Previous year ` crores) and Financial Institution ` Crores (Previous year ` Crores). Credit Risk (Credit Exposure) for Current Year is ` 9.77 Crore and for previous year it was ` Crore. There are total 14 deals out of which 02 deals are Back to Back Deals, 02 Deals where payment is made at Fixed Contract Rate and received at Floating rate and in remaining 10 deals, payment is made at Floating Rate and received at Fixed Contract Rate. 5b. Exchange Traded Interest Rate Derivatives (` in Crore) Sl. Particulars No. (i) Notional Principal amount of exchange traded interest rate derivatives undertaken during the period April, 2017 to March, 2018 (instrument-wise) a) Interest rate futures (ii) Notional Principal amount of exchange traded interest rate derivatives outstanding as on 31 st March, 2018 (instrument-wise) (iii) Notional Principal amount of exchange traded interest rate derivatives outstanding and not highly effective (instrument-wise) (iv) Mark-to-Market value of exchange traded interest rate derivatives outstanding and not highly effective (instrument-wise) 5c. Disclosure on risk exposure in derivatives I - Qualitative Disclosure The Bank uses derivatives products for hedging its own balance sheet items as well as for trading purposes. The risk management of derivative operation is headed by a senior executive, who reports to top management, independent of the line functions. Trading positions are marked to market on daily basis. The derivative policy is framed by Integrated Risk Management Division, which includes measurement of credit risk and market risk. The hedge transactions are undertaken for balance sheet management. Proper system for reporting and monitoring of risks are in place. Policy for hedging and processes for monitoring the same is in place. Accounting policy for recording hedge and non-hedge transactions are in place, which includes recognition of income, premiums and discounts. Valuation of outstanding contracts, provisioning, collateral and credit risk mitigation are being done. NIL NIL NIL NIL NIL NIL 81 4 PNB Full AR indd Jul-18 5:38:07 PM

96 II - ek=kkred çdvhdj.k Ø- lafooj.k eqæk MsfjosfVOt C;kt nj MsfjosfVOt (` djksm+ esa) eqæk C;kt nj MsfjosfVOt MsfjosfVOt MsfjosfVOt (rkfdzd ewyèku jkf'k) (d) gsftax ds fy, ([k) VªsfMax ds fy, ekdszv Vw ekdszv iksft'ku gsftax d) vkflr ( ) [k) ns;rk (&) VªsfMax d) vkflr ( ) [k) ns;rk (&) ½.k,DLikstj C;kt nj esa 1% ifjorzu dk lehkko; çhkko (100*ihoh 01) d) gsftax MsfjosfVo ij [k) VªsfMax MsfjosfVo ij o"kz ds nksjku ik;s x;s 100* ihoh 01 dk vfèkdre rfkk U;wure d) gsftax ij vfèkdre U;wure [k) VªsfMax ij vfèkdre U;wure vkflr xq.koùkk 6-d vutzd vkflr;k ldy vutzd vkflr;ksa] dqy vutzd vkflr;ksa ds mrkj&p<+ko vksj çkoèkkuksa dk fooj.k fueukuqlkj gs% (` djksm+ esa) fooj.k i) fuoy vfxzeksa dh rqyuk esa fuoy vutzd vkflr;ka % 7.81 % (%) ii) vutzd vkflr;ksa (ldy) esa?kvc<+ çkjfehkd 'ks"k o"kz ds nksjku o`f¼ o"kz ds nksjku deh bfr'ks"k iii) fuoy vutzd vkflr;ksa esa mrkj&p<+ko çkjfehkd 'ks"k o"kz ds nksjku o`f¼ o"kz ds nksjku deh bfr'ks"k iv) vutzd vkflr;ksa ds fy, çkoèkkuksa esa mrkj&p<+ko (ekud vkflr;ksa ls lecfuèkr çkoèkkuksa dks NksMdj) çkjfehkd 'ks"k o"kz ds nksjku fd, x, çkoèkku (ldy) vfrfjdr çkoèkkuksa dks cês [kkrs Mkyuk@iqujkadu bfr'ks"k II - Sl. No. Quantitative Disclosure Particulars Currency Derivatives Interest Rate Derivatives Currency Derivatives (Amt. ` in Crore) Interest Rate Derivatives Derivatives (Notional Principal Amount) (a) For Hedging (b) For trading Marked to Market Position Hedging a) Asset ( ) b) Liability (-) Trading a) Asset ( ) b) Liability (-) Credit Exposure Likely impact of one percentage change in interest rate (100*PV01) (a) On hedging derivatives (b) On trading derivatives 5 Maximum and Minimum of 100*PV01 observed during the period (a) On hedging Maximum Minimum (b) On trading Maximum Minimum Asset Quality 6a Non-Performing Assets The details of movement of Gross Non-performing Assets (NPAs), Net NPAs and provisions are given below:- (` in Crore) Particulars i) Net NPAs to Net Advances (%) % 7.81 % ii) Movement of NPAs (Gross) Opening balance Additions during the year Reductions during the year Closing balance iii) Movement of Net NPAs Opening balance Additions during the year Reductions during the year Closing balance iv) Movement of provision for NPAs (excluding provisions on Standard assets) Opening balance Provisions made during the year (Gross) Write-off/write back of excess provision Closing balance PNB Full AR indd Jul-18 5:38:08 PM

97 6ch- la'kksfèkr fn'kkfunsz'kksa ds vuqlkj ( dks) iqu% lajfpr [kkrksas dk izdvhdj.k 1 Ø- la- (` yk[k esa) iqu% lajpuk dk izdkj lhmhvkj i¼fr ds varxzr,l,ebz ½.k iqu% lajpuk i¼fr ds vu; tksm+ varxzr vkflr oxhzdj.k ekud voekud lafnxèk gkfu tksm+ ekud voekud lafnxèk gkfu tksm+ ekud voekud lafnxèk gkfu tksm+ ekud voekud lafnxèk gkfu tksm+ fooj.k forrh; o"kz 2017&18 ds 1 vizsy dks iqu% lajfpr [kkrs (izkjafhkd vkadm+s) ½f.k;ksa dh la[;k cdk;k jkf'k blds fy, izkoèkku o"kz ds nksjku u, iqu% lajfpr (ekstwnk [kkrksa esa 'ks"k esa vfrfjdr tksm+) ½f.k;ksa dh la[;k cdk;k jkf'k blds fy, izkoèkku forrh; o"kz 2017&18 ds nksjku iqu% lajfpr ekud Js.kh esa muu;u ½f.k;ksa dh la[;k cdk;k jkf'k blds fy, izkoèkku forr o"kz 2017&18 dh lekfir ij iqu% lajfpr vfxze ftu ij mpprj izkoèkku gksuk gs vksj@ vfkok vkxs ls vxys forr o"kz ds vkjahk esa iqu% lajfpr ekud vfxzeksa dks iznf'kzr djuk vko';d ugha gsa forrh; o"kz 2017&18 ds nksjku iqu% lajfpr ckrksa dh voufr ½f.k;ksa dh la[;k cdk;k jkf'k blds fy, izkoèkku ½f.k;ksa dh la[;k cdk;k jkf'k blds fy, izkoèkku forrh; o"kz 2017&18 ds nksjku iqu% lajfpr [kkrksa dk cv~vk@ canh@olwyh@lekfir ½f.k;ksa dh la[;k cdk;k jkf'k blds fy, izkoèkku forrh; o"kz dh dks iqu% lajfpr [kkrs (bfr 'ks"k vkadm+s) ½f.k;ksa dh la[;k cdk;k jkf'k blds fy, izkoèkku lh Mh vkj uksv% dqy lhmhvkj krs 53] çdvhdj.k ds fy, ik=k% 43] çdvhdj.k ds fy, v;ksx;% 10 krs A Ø- la- 2 ds rgr vkadm+s] (cdk;k ls lclvsummz) esa yk #i;s ls krk cdk;k ls vfu;fer gsa Ø- la- 5 ds rgr vkadm+s] yk #i;s ds 3 krs LVSaMMZ ls lclvsummz gks x, gs vksj 4 krs #i;s ds LVSaMMZ ls lafnxèk dsvsxjh esa pys x, gsa,d LVSaMMZ krk #i;s dk cdk;k ds dkj.k lclvsummz gks x;k gs yk #i;s ds cdk;k nks krs lafnxèk Js.kh esa gs A 6 krksa esa yk #i;s ds lafnxèk Js.kh esa Lyhist ds dkj.k vfu;fer fn jgs gsa,d lafnxèk krk yk #i;s ds cdk;k ds lkfk gkfu dh Js.kh esa pyk x;k gs A Ø- la- 5 ds rgr vkadm+s] (çkoèkku) flyist ls #i;s yk ds 3 krs LVSaMMZ ls lclvsummz gks x, gs vksj çkoèkku esa NwV ds dkj.k 4 krs #i;s #i;s ds Lyhist gks x, gs] yk #i;s ds 6 krs lafnxèk Js.kh esa vk x, A 2 krs Lyhist ds dkj.k vfu;ferrk] 1 krk lafnxèk esa lkfey gs 12@6 #i;s ds çkoèkku lh ds fliyvst ds dkj.k mi&lvmh esa #i;s dk çkoèkku tksm+k x;k Fkk] tks lafnxèk ls lafnxèk vksj #i;s ds lh ds slippage ds dkj.k yk MkmViqQy ls gkfu Js.kh ls fiqly x;ka Ø- la- 6 ds rgr vkadm+s] (LVSaMMZ esa cdk;k) yk #i;s] ekstwnk LVSaMMZ krksa esa cdk;k 'kkfey gsa Ø- la- 6 ds rgr vkadm+s] (LVSaMMZ esa çkoèkku) yk #i;s] ekstwnk LVSaMMZ krksa ds çkoèkku esa fjgkbz 'kkfey gs Ø- la- 6 ds rgr vkadm+s] (lc&lvsammz esa çkoèkku) yk #i;s] ekstwnk lc&lvsammz krksa ds çkoèkku esa fjgkbz vksj krs çkoèkku esa deh tks ds ckn lc&lvsammz esa pys x, (slipped) Ø- la- 6 ds rgr vkadm+s] (lafnxèk esa cdk;k) yk #i;s] ekstwnk lafnxèk krksa esa cdk;k esa deh vksj krs ds cdk;k esa deh tks ds ckn lafnxèk esa pys x, Ø- la- 6 ds rgr vkadm+s (lafnxèk esa çkoèkku) yk #i;s] ekstwnk lafnxèk krksa esa çkoèkku dh fjgkbz vksj krs ds çkoèkku esa deh tks ds ckn lafnxèk esa pyh xbz,d vik=k LVSaMMZ krk tsls esllz psuubz usvodz buúk fyfevsm dks esllz thvh,y baúklvªdpj fyfevsm ds lkfk feyk fn;k x;k] ;g,d lafnxèk krk gs 83 4 PNB Full AR indd Jul-18 5:38:09 PM

98 6b Disclosure of Restructured Accounts (As on ) as per revised guidelines (` in Lacs') Sl No Type of Restructuring - Under CDR Mechanism Under SME Debt Restructuring Mechanism Others Total Standard Sub- Standard Doubtful Loss Total Standard Sub- Standard Doubtful Loss Total Standard Sub- Standard Doubtful Loss Total Standard Sub- Standard Doubtful Loss Total Details 1 Restructured Accounts as on April 1 of the FY No. of borrowers Amount outstanding Provision thereon Fresh restructuring during the year (plus addition in o/s in existing a/cs) No. of borrowers Amount outstanding Provision thereon Upgradations to restructured standard category during the FY17-18 No. of borrowers Amount outstanding Provision thereon Restructured standard advances which cease to attract higher provisioning and / or additional risk weight at the end of the FY and hence need not be shown restructured standard advances at the beginning of the next FY No. of borrowers Amount outstanding Provision thereon Downgradations of restructured accounts during the FY No. of borrowers Amount outstanding Provision thereon Write-offs /Closure/recovery/ exit of restructured accounts during the FY17-18 No. of borrowers Amount outstanding Provision thereon Restructured Acounts as on of the FY (closing No. of borrowers Amount outstanding Provision thereon Note: Total CDR A/cs 53. Eligible for Disclosure :43, Not Eligible for disclosure: 10 A/cs Figures under Sl no 2, ( o/s In Sub-Std ) includes ` lacs, increase in outstanding in existing Sub-std accounts. Figures Under Sl. No 5, shows slippage ( O/s) from STD to Substandard of ` lacs in 3 A/cs and plus slippage of ` from Std to Doubtful catagory in 4 a/cs. One a/c with outstanding of ` slipped from Std ineligible to Sub -Std and two A/c with O/s of ` lacs slipped from Std ineligible to Doubtful catagory. It also shows Slippage from Sub -standard to Doubtful category of ` lacs in 6 a/cs. one account slipped from doubtful to loss catagory with O/s of ` lacs. Figures Under Sl. No 5, ( Prov)) shows slippage from STD to Substandard of ` lacs in 3 a/cs and reduction in provision of ` due to slippage four accounts from Std to Doubtful.. It also shows Slippage of prov from Sub -standard to Doubtful category of ` lacs in 6 A/cs. Provision of ` was added to Sub -std due to slippage of one a/c from Std ineligible to Sub Std & Provision of ` was added to doubtful due to slippage of two a/cs from Std ineligible to Doubtful and Prov of ` lacs slipped from Doubful to Loss catagory due to slippage of one A/c. Figures under Sl no 6, ( o/s In Std ) includes ` lacs, reduction in outstanding in existing std accounts. Figures under Sl no 6, ( Prov In Std ) includes ` lacs, reduction/ release in provision in existing std accounts Figures under Sl no 6, ( Prov in Sub- Std) ) includes ` lacs, reduction/ release in provision in existing Sub Std accounts plus increase/decrease in provision of A/cs which slipped to Sub -Std after Figures under Sl no 6, ( o/s In Doubtful ) includes ` lacs, reduction in outstanding in existing doubtful accounts plus increase/decrease in outstanding of A/cs which slipped to Doubtful after Figures under Sl no 6, ( Prov In Doubtful ) includes ` lacs, reduction/ release in provision in existing Doubtful accounts plus increase/decrease in provision of A/cs which slipped to Doubtful after One ineligible Standard account i.e M/s Chennai Network infra ltd got merged with M/s GTL Infrastructure Ltd, a doubtful account 84 4 PNB Full AR indd Jul-18 5:38:10 PM

99 ,e,l,ebz uksv&dkwye la[;k 6 'kkfey gsa % yk #i;s lc&lvsammz vfxzeksa ds cdk;k dh olwyh dh tk jgh gs vksj 4 MkmuxzsM fd, x, krs ds fy, vfrfjdr lqfoèkk gs tks iquxzfbr krs ds :i esa tkjh gsa yk #i;s dh lc&lvsammz laifùk ds çkoèkku esa deh vfrfjdr çkoèkku esa o`f¼ vksj deh dh usfvax] MkmuxzsM fd, x, krs ds Mh,iQoh vksj,iqvkbzvh,y dks iquxzfbr krs ds :i esa tkjh j k x;k gs_ yk :i;s ds fy, lafnxèk laifùk ds cdk;k esa deh dh olwyh dh usfvax vksj ekstwnk lafnxèk krksa ds fy, vfrfjùkq MsfcV A yk #i;s dh lafnxèk ifjlaifùk;ksa ds cdk;k esa deh LVSaMMZ@ lc&lvsammz dks lafnxèk Js.kh esa MkmuxzsM fd, x, 6 krksa ds fy, olwyh dh usfvax vksj vfrfjdr lqfoèkk yk #i;s dh lafnxèk ifjlaifùk;ksa ds vfrfjdr çkoèkku esa o`f¼ vksj deh dh usfvax] 6 MkmuxzsM fd, x, krs ds Mh,iQoh vksj,iqvkbzvh,y dks iquxzfbr krs ds :i esa tkjh j k x;k gs_ 6 ik=k LVSUMMZ vfxzeksa ds cdk;s esa ` dh deh olwyh dh usfvax vksj vfrfjdr MsfcV@lqfoèkk ds dkj.k gsa yk #i;s dh LVSaMMZ laifùk ds çkoèkku esa deh ekstwnk lc&lvsammz krksa ds Mh,iQoh vksj,iqvkbzvh,y esa o`f¼ vksj deh usfvax ds dkj.k gs] dkwye la[;k 2 esa 'kkfey gsa% yk :i;s dh olwyh vksj vfrfjdr lqfoèkk ds usfvax ds dkj.k lc&lvsammz vfxzeksa ds cdk;k esa o`f¼_ yk #i;s dh lc&lvsammz laifùk ds çkoèkku esa o`f¼a ekstwnk lc&lvsammz krksa ds Mh,iQoh vksj,iqvkbzvh,y esa o`f¼ vksj deh usfvax ds dkj.k gsa xsj lhmhvkj 1 Ø- la- 2 ds rgr vkadm+s (vofèk ds nksjku rktk iquxzbu) lc&lvsammz dksye esa] ekstwnk lc&lvsammz krksa esa 1] yk #i;s dh o`f¼ ds dkj.k nh xbz jkf'k cdk;k jkf'k gsa blh rjg] gkfu laifùk krs esa cdk;k jkf'k esa o`f¼ ds dkj.k yk #i;s dh jkf'k gsa 2 Ø- la- 6 ds rgr vkadm+s (iquxzfbr krksa dks cv~vs [kkrs Mkyuk)] vofèk ds nksjku ;ksx; LVSaMMZ krksa esa] cdk;k vksj çkoèkku esa yk #i;s vksj 1] yk #i;s dh deh 'kkfey gsaa lhfj;y uacj 6 (iquxzfbr krksa dks cv~vs [kkrs Mkyuk) ds rgr vkadm+s] lc&lvsammz krksa esa] çkoèkku ds f ykiq larqyu esa deh gs] ekstwnk lc&lvsammz krksa esa 1] yk #i;s 'kkfey gsaa blh çdkj] lafnxèk krksa dh Js.kh esa] cdk;k esa ekstwnk lafnxèk krksa esa yk #i;s (cdk;k) vksj LVSaMMZ Js.kh ls yk rktk pys x, (Mhch) krksa esa deh 'kkfey gsa gkfu krs dh Js.kh esa] yk #i;s 1& krs ds çkoèkku esa deh gsa 3 Ø- la- 5 ds rgr vkadm+s (iquxzfbr [kkrksa dk MkmuxzsMs'ku)] mi ekud dkwye ds 9&[kkrksa esa yk #i;s vksj yk #i;s cdk;k jkf'k dk çkoèkku 'kkfey gs] tks vik=k ekud [kkrksa ls mi&ekud esa Lyhist gsaa blh çdkj] 1&lafnXèk [kkrs esa yk[k #i;s cdk;k 'kkfey gsa tks vik=k ekud [kkrksa ls Mhch Js.kh esa fiqly x;k gsa gkfu Js.kh [kkrksa esa],d [kkrk v;ksx; ekud Js.k ls gkfu Js.kh esa fiqly x;k] ftlesa yk[k #i;s dh cdk;k jkf'k gsa MSME "Note-column No. 6 includes: 1. ` lac decrease in o/s of sub-standard advances is on account of netting of recovery and additional debit/ facility for 4 downgraded account which is continued as restructured account. 2. Decrease in provision of sub-standard assets of ` lac is on account of netting of increase & decrease in additional provision, DFV & FITL of downgraded account which is continued as restructured account; 3. Decrease in o/s of doubtful assets for ` lac is on account of netting of recovery and additional facility/debit for existing doubtful accounts; 4. Decrease in o/s of doubtful assets of ` lac is on account of netting of recovery and additional debit/facility for 6 accounts downgraded from Std / sub-std to doubtful category; 5. Decrease in provision of doubtful assets of ` lac is on account of netting of increase & decrease in additional provision, DFV & FITL of 6 downgraded account which is continued as restructured account; 6. ` lac decrease in o/s of eligible Standard advances is on account of netting of recovery and additional debit/ facility; 7. Decrease in provision of standard assets of ` lac is on account of netting of increase & decrease in DFV & FITL of existing std accounts Column no. 2 includes; 8. ` 3.67 lac increase in o/s of sub-standard advances on account of netting of recovery and additional debit/ facility; 9. Increase in provision of sub-standard assets of ` 8.34 lac on account of netting of increase & decrease in DFV & FITL of existing sub-std accounts NON CDR 1. Figure under Serial No. 2 (Fresh Restructuring during the period), in Sub Standard column, the amount given is on account of increase of ` Lakh in balance outstanding in existing sub standard accounts. Likewise, amount of ` lakh is on account of increase in balance outstanding in Loss Asset account. 2 Figures under Serial No. 6 (write off of restructured accounts), includes decrease of ` lakh and ` lakh in outstanding and provision, in eligible standard accounts, during the period. Figures under Serial No.6 (Write off of restructured accounts), In Sub Standard Accounts, is decrease in balance against Provision, includes ` lakh in existing sub standard accounts. Likewise, in doubtful accounts category, outstanding includes decrease of `63.97 lakh (outstanding) in existing doubtful accounts and ` lakh of fresh slipped (DB) accounts from Standard Category. In loss accounts category, ` Lakh is the decrease in the provision of 1-account. 3 Figures under serial no. 5 (down-gradation of restructured accounts ), in Sub Standard Column, the amount outstanding includes ` lakh and provision includes ` lakh, in 9-accounts, which are slippage from ineligible standard accounts to sub standard. Likewise, in Doubtful Account, outstanding includes ` lakh in outstanding in 1-account, which has slipped from ineligible standard accounts to DB category. In Loss Category Accounts, one account slipped from ineligible standard category to Loss category, with amount outstanding of ` lakh. 6x- (i) dks ruko xzlr vkflr;ksa (,l4,) dh èkkj.kh; lajpuk gsrq çdvhdj.k ;kstuk (os [kkrs tks orzeku esa flfkr vofèk ds varxzr gsa)% (jkf'k ` djksm+ esa) [kkrksa dh la[;kk cdk;k jkf'k çkoèkku tgka,l4, ykxw Hkkx, esa fd;k x;k gs Hkkx ch esa LVSaMMZ ds :i esa oxhzñr ,uih, ds :i esa oxhzñr ;ksx x (ii) j.kuhfrd ½.k iqulazjpuk ;kstuk ij çdvhdj.k ([kkrs tks orzeku esa flfkj vofèk ds varxzr gsa) [kkrksa dh la[;k tgka,lmhvkj baoksd dh xbz gs fjiksfvazx frffk dks cdk;k jkf'k LVSaMMZ ds :i esa oxhzñr,uih, ds :i esa oxhzñr [kkrs tgka ½.k dk LFkku bfdovh us fy;k gs] ds lkfk fjiksfvazx frffk dks cdk;k jkf'k LVSaMMZ ds :i esa oxhzñr,uih, ds :i esa oxhzñr (jkf'k ` djksm+ esa) [kkrs tgka ½.k dk LFkku bfdovh us fy;k gs] ds lkfk fjiksfvazx frffk dks cdk;k jkf'k LVSaMMZ ds,uih, :i esa ds :i esa oxhzñr oxhzñr 'kwu; 'kwu; 'kwu; 'kwu; 'kwu; 'kwu; 'kwu; 6c (i). Disclosures on the Scheme for Sustainable Structuring of Stressed Assets (S4A), as on No. of accounts where S4A has been applied Amount outstanding In Part A In Part B (` in Crore) Provision Held Standard TOTAL c (ii). Disclosures on Strategic Debt Restructuring Scheme ( accounts which are currently under the stand-still period) No. of accounts where SDR has been invoked Amount outstanding as on the reporting date as Standard as NPA Amount outstanding as on the reporting date with respect to accounts where conversion of debt to equity is pending as Standard as NPA (` in Crore) Amount outstanding as on the reporting date with respect to accounts where conversion of debt to equity has been taken place Standard NPA NIL NIL NIL NIL NIL NIL NIL 85 4 PNB Full AR indd Jul-18 5:38:10 PM

100 6x [kkrksa dh la[;k tgka csad us LokfeRo esa ifjorzu djus dk fu.kz; fy;k gs A (iii) cká LokfeRo j.kuhfrd ½.k iqulazjpuk ;kstuk esa ifjorzu ij çdvhdj.k ([kkrs tks orzeku esa flfkj vofèk ds varxzr gsa) fjiksfvazx frffk dks cdk;k jkf'k LVSaMMZ ds :i esa oxhzñr,uih, ds :i esa oxhzñr [kkrs tgka ½.k ls bfdovh 'ks;j ds caèkd bfdovh@ baoksds'ku yafcr gsa] ds lacaèk esa fjiksfvazx frffk dks cdk;k jkf'k LVSaMMZ ds :i esa oxhzñr,uih, ds :i esa oxhzñr [kkrs tgka ½.k ls bfdovh 'ks;j ds caèkd bfdovh@ baoksds'ku dk LFkku fy;k gs] ds lacaèk esa fjiksfvazx frffk dks cdk;k jkf'k LVSaMMZ ds :i esa oxhzñr,uih, ds :i esa oxhzñr (` djksm+ esa) [kkrs tgka LokfeRo esa u, 'ks;jksa ;k çorzdksa ds bfdovh dh fcøh ls ifjorzu gqvk gs] ogka fjiksfvazx frffk dks cdk;k jkf'k LVSaMMZ ds :i esa oxhzñr,uih, ds :i esa oxhzñr 'kwu; 'kwu; 'kwu; 'kwu; 'kwu; 'kwu; 6x vofèk (iv) dks ekstwnk ½.k ls ÝysfDlcy lajpuk ds vkonsu ij çdvhdj.k ÝySfDlcy lajpuk esa fy, x, mèkkjdrkzvksa dh la[;k ÝySfDlcy lajpuk ds fy, yh xbz ½.k dh jkf'k LVSaMMZ ds :i esa oxhzñr,uih, ds :i esa oxhzñr (` djksm+ esa) ÝySfDlcy lajpuk ds fy, yh xbz ½.k dh,dlkikstj Hkkfjr vkslr vofèk ÝysfDlcy ÝysfDlcy lajpuk ykxw lajpuk ykxw djus ls iwoz djus ls ckn finyk foùkh; o"kz orzeku foùkh; o"kz x (v) ykxwdj.k ds varxzr LokfeRo ifj;kstukvksa esa ifjorzu ij çdvhdj.k ([kkrs tks orzeku esa flfkj vofèk ds varxzr gsa) (` djksm+ esa) ifj;kstuk ½.k [kkrksa dh la[;k_ tgka csad us LokafeRo esa ifjorzu dk fu.kz; fy;k gs LVSaMMZ ds :i esa oxhzñr fjiksfvazx frffk dks cdk;k jkf'k LVSaMMZ iqulazjpuk ds :i esa oxhzñr,uih, ds :i esa oxhzñr NIL NIL NIL NIL Provisioning for NPAs in compliance to Risk assessment report (RAR) of RBI for the year are reported as under:- 'kwu; 'kwu; 'kwu; 'kwu; 6x (vi o"kz 2016&17 ds fy, Hkkjrh; fjtoz csad dh tksf[ke ewy;kadu fjiksvz (vkj,vkj) ds vuqikyu esa laifùk oxhzdj.k vksj,uih, ds fy, çkoèkku esa fopyu fueukuqlkj gs% (` djksm+ esa) Ø- fooj.k jkf'k la- 1- csad }kjk lwfpr dh x;h 31 ekpz] 2017 rd ldy,uih, 2- vkjchvkbz }kjk ewy;kadu ds vuqlkj 31 ekpz] 2017 rd ldy ,uih, 3- ldy,uih, esa fopyu (2&1) csad }kjk lwfpr dh x;h 31 ekpz] 2017 rd 'kq¼ ,uih, 5- vkjchvkbz }kjk ewy;kadu ds vuqlkj 31 ekpz] 2017 rd 'kq¼ ,uih, 6- 'kq¼,uih, esa fopyu (5&4) csad }kjk lwfpr 31 ekpz] 2017 rd,uih, gsrq çkoèkku * 6c (iii). Disclosures on Change in ownership outside Strategic Debt Restructuring Scheme ( accounts which are currently under the stand-still period) No. of accounts where banks have decided to effect change in ownership Amount outstanding as on the reporting date as Standard as NPA Amount outstanding as on the reporting date with respect to accounts where conversion of debt to equity/invocation of pledge of equity shares is pending as Standard as NPA Amount outstanding as on the reporting date with respect to accounts where conversion of debt to equity/invocation of pledge of equity shares has taken place as Standard as NPA (` in Crore) Amount outstanding as on the reporting date with respect to accounts where change in ownership is envisaged by issuance of fresh shares or sale of promoters equity as as NPA Standard NIL NIL NIL NIL NIL NIL 6c (iv). Disclosures on application of Flexible Structuring to Existing Loans as on Period Previous Financial Year Current Financial Year No. of borrowers taken up structuring Amount of loans structuring as Standard (` in Crore) Exposure weighted average duration of loans taken up for Before applying as NPA structuring After applying structuring c (v). Disclosures on Change in Ownership of Projects Under Implementation (accounts which are currently under the stand-still period) No. of project loan accounts where banks have decided to effect change in ownership (` in Crore) Amount outstanding as on the reporting date Standard as Standard restructured NPA (` in Crore) Sr. Particulars Amount No. 1. Gross NPAs as on March 31, 2017 as reported by the Bank 2. Gross NPAs as on March 31, 2017 as assessed by RBI 3. Divergence in Gross NPAs (2-1) Net NPAs as on March 31, 2017 as reported by the Bank 5. Net NPAs as on March 31, 2017 as assessed by RBI Divergence in Net NPAs (5-4) Provisions for NPAs as on March 31, 2017 as reported by the Bank * 86 4 PNB Full AR indd Jul-18 5:38:11 PM

101 (` djksm+ esa) Ø- fooj.k jkf'k la- 8- vkjchvkbz }kjk ewy;kadu ds vuqlkj 31 ekpz] 2017 rd,uih, gsrq çkoèkku 9- çkoèkku esa fopyu (8&7) ekpz] 2017 dks lekir o"kz ds fy, dj ds i'pkr lwfpr fd;k x;k 'kq¼ ykhk (ih,vh) ekpz] 2017 dks lekir o"kz ds fy, çkoèkkuksa esa fopyu dh x.kuk ds ckn lek;ksftr (dkyifud) dj i'pkr 'kq¼ ykhk(ih,vh) *31 ekpz 2018 dks lekir o"kz ds fy, csad us vius dkedkth ifj.kkeksa esa mi;qzdr çhkko dks fofèkor ntz fd;k gsa 6-?k vkflr;ksa dh iqu% lajpuk gsrq iqu% lajpuk deiuh dks csph xbz foùkh; vkflr;ksa dk C;kSjk,- fcfø;ksa dk C;kSjk (` djksm+ esa) fooj.k [kkrksa dh la[;k 3 23 vkjlh dks csps x, [kkrksa dk dqy ewy; (çkoèkkuksa dk 'kq¼) 3- dqy çfriqy jkf'k finys o"kksaz (orzeku foùkh; o"kz 2017&18 ds nksjku) esa varfjr fd, x, [kkrksa ds lecuèk esa çkir vfrfjdr çfriqy jkf'k 5- fuoy cgh (3&2) ewy; dh rqyuk esa dqy gkfu ,uchoh ij gkfu (tgk ewy; ds fy, fcøh,uchoh ls de gks) 5-2,uchoh ij ykhk (tgk ewy; ds fy, fcøh,uchoh ls vfèkd gks) ch- çfrhkwfr jlhn esa fuos'kksa dh cqd ewy; dk C;kSjk (` djksm+ esa) fooj.k (i) csad }kjk vamjykbzax ds rksj ij csps x,,uih, ds }kjk lgk;rk (ii) vu; csad@foùkh; lalfkku@xsj csafdax foùkh; deifu;k 'kwu; 'kwu; }kjk vamjykbzax ds rksj ij csps x,,uih, ds }kjk lgk;rk dqy M- vu; csadksa dks [kjhnh csph x;h vutzd foùkh; vkflr;ksa ds C;kSjs d- [kjhnh x;h vutzd foùkh; vkflr;ksa ds C;kSjs (` djksm+ esa) fooj.k (d) o"kz ds nksjku [kjhns x, [kkrksa dh la[;k 'kwu; 'kwu; ([k) dqy cdk;k 'kwu; 'kwu; 2- (d) buesa ls o"kz ( ls ) 'kwu; 'kwu; ds nksjku iqu% lajfpr [kkrksa dh la[;k ([k) dqy cdk;k 'kwu; 'kwu; (` in Crore) Sr. Particulars Amount No. 8. Provisions for NPAs as on March 31, 2017 as assessed by RBI 9. Divergence in Provisioning (8-7) ended March 31, year ended March 31, 2017 after taking into account the divergence in provisioning *The Bank has duly recorded the impact of the above in its working results for the year ended 31 March / Reconstruction Company (SC/RC) for Asset Reconstruction. A. Details of Sales. (` in Crore) Particulars No. of Accounts Aggregate value (net of provisions) of accounts sold to SC/RC 3. Aggregate consideration Additional consideration reali ed in respect of accounts transferred in earlier ) Aggregate gain/loss over net book value(3-2) 5.1 Loss over NBV (where sale is for value below NBV) 5.2 Gain over NBV (where sale is for value above NBV) B. Details of Book Value of Investments in Security Receipts. (` in Crore) Particulars (i) Backed by NPAs sold by the bank as underlying (ii) Backed by NPAs sold by other banks / companies as underlying NIL NIL TOTAL sold from / to other banks. (` in Crore) Particulars (a) No. of accounts purchased during the NIL NIL period (b) Aggregate outstanding NIL NIL 2 (a) Of these, number of accounts NIL NIL restructured during the period i.e to (b) Aggregate outstanding NIL NIL 87 4 PNB Full AR indd Jul-18 5:38:11 PM

102 [k- vutzd foùkh; vkflr;ksa dh fcøh dk C;kSjk (` djksm+ esa) fooj.k o"kz ds nksjku csps x, [kkrksa dh la[;k 3 'kwu; 2- dqy cdk;k 'kwu; 3- dqy çkir çfriqy 'kwu; 6-p- ekud vkflr;ksa ij çkoèkku (#i;s djksm+ esa) fooj.k lap;h 'ks"k (rqyui=k dh vuqlwph 5 esa vu; ns;rk,a vksj çkoèkku ds vurxzr lfeefyr) dkjksckjh vuqikr fooj.k i. dk;zdkjh fufèk;ksa ds çfr'kr ds :i esa 6.26% 6.74 % C;kt vk; ii. dk;zdkjh fufèk;ksa ds çfr'kr ds :i esa xsj C;kt 1.16% 1.28 % vk; iii. dk;z'khy fufèk;ksa ds çfr'kr ds :i esa ifjpkyu 1.34% 2.08 % ykhk iv. vkflr;ksa ij çfriqy -1.60% 0.19 % v. çfr dezpkjh dkjksckj (tek rfkk vfxze)(#i;s djksm+ esa) vi. çfr dezpkjh ykhk (:i;s djksm+ esa) uksv & dk;zdkjh fufèk;k ekfld vkslr ij vkèkkfjr gsa A 8- vkflr & ns;rk çcuèku vkflr;ksa vksj ns;rkvksa dh dqn enksa dk ifjidork Lo:i (` djksm+ esa) ifjidork Lo:i tek jkf'k;ka vfxze fuos'k (ldy) mèkkj fons'kh eqæk vkflr;ka fons'kh eqæk ns;rk,a igyk fnu ( ) ( ) (0.00) (334.30) ( ) (993.36) 2 fnu & 7 fnu ( ) ( ) (0.00) (2.31) ( ) ( ) 8&14 fnu ( ) ( ) (99.99) (0.18) ( ) (543.95) 15&30 fnu ( ) ( ) (746.60) ( ) ( ) ( ) 31 fnu ls eghus ( ) ( ) (879.32) ( ) ( ) ( ) 2 eghus ls vfèkd rfkk 3 eghus rd ( ) ( ) ( ) ( ) ( ) ( ) 3 eghus ls vfèkd rfkk 6 eghus rd ( ) ( ) ( ) ( ) ( ) ( ) 6 eghus ls vfèkd rfkk 1 o"kz rd ( ) ( ) ( ) ( ) ( ) ( ) 1 o"kz ls vfèkd rfkk 3 o"kz rd ( ) ( ) ( ) ( ) ( ) ( ) 3 o"kz ls vfèkd o"kz rd ( ) ( ) ( ) (330.18) ( ) ( ) 5 o"kz ls vfèkd ( ) ( ) ( ) ( ) ( ) ( ) tksm ( ) ( ) ( ) ( ) ( ) ( ) (dks"bdksa esa fn, x, vkadm+s finys o"kz ds gsa)a (` in Crore) Particulars No. of accounts sold during the period 3 NIL 2 Aggregate outstanding NIL 3 Aggregate consideration received NIL 6f. Provisions on Standard Assets (` in Crore) Particulars Cumulative Balance (included under Other Liabilities & Provisions in Schedule 5 to the balance sheet) Business Ratios Particulars i. Interest Income as a percentage to 6.26% 6.74 % Working Funds ii. Non-Interest Income as a percentage to 1.16% 1.28 % Working Funds iii. 1.34% 2.08 % Working Funds iv. Return on Assets -1.60% 0.19 % v. Business (Deposits plus advances) per employee (` in Crores) vi. ` in Crores) Note: Working Funds are based on Monthly Average. 8. Asset Liability Management Maturity Pattern of certain item of Assets and Liabilities Maturity Pattern Deposits Advances Investments Borrowings (gross) Foreign Currency Assets (` in Crore) Foreign Currency Liabilities Day ( ) ( ) (0.00) (334.30) ( ) (993.36) 2 days-7days ( ) ( ) (0.00) (2.31) ( ) ( ) 8-14 days ( ) ( ) (99.99) (0.18) ( ) (543.95) days ( ) ( ) (746.60) ( ) ( ) ( ) 31 days to months ( ) ( ) (879.32) ( ) ( ) ( ) Over 2 to months ( ) ( ) ( ) ( ) ( ) ( ) Over 3 Months to 6 months ( ) ( ) ( ) ( ) ( ) ( ) Over 6 Months to 1 year ( ) ( ) ( ) ( ) ( ) ( ) Over 1 Year to Years ( ) ( ) ( ) ( ) ( ) ( ) Over 3 Years to Years ( ) ( ) ( ) (330.18) ( ) ( ) Over 5 Years ( ) ( ) ( ) ( ) ( ) ( ) Total ( ) ( ) ( ) ( ) ( ) ( ) (Figures in brackets relate to previous year) PNB Full AR indd Jul-18 5:38:12 PM

103 9-,DlikstlZ 9-d LFkkoj laink {ks=k dks,dlikstlz (` djksm+ esa) Js.kh (v) çr;{k,dlikstj i. vkoklh; leifùk caèkd % vkoklh; leifùk] tks ½.kh }kjk vfèkdkj esa yh xbz gs ;k yh tk;sxh ;k fdjk;s ij nh xbz gs] cuèkd }kjk iw.kzr% çfrhkwr ½.k ` 20 yk[k rd ds os;fdrd vkoklh; ½.k ` 20 yk[k ls vfèkd ds os;fdrd vkoklh; ½.k dqy&;ksx ii. okf.kft;d LFkkoj laink & xsj fufèk vkèkkfjr lhekvksa lfgr ;s ½.k okf.kft;d LFkkoj laink ij caèkd ds l`tu }kjk lqjf{kr fd, tk;saxs (buesa dk;kzy; dk Hkou] [kqnjk dkjksckj dk LFkku] cgqmís'kh; okf.kft;d ifjlj] vks ksfxd vfkok xksnke dk LFkku] Hkwfe] ml ij fd;k x;k fodkl vksj fuekz.k vkfn 'kkfey gksaxs A) iwath vkèkkfjr xsj iwath vkèkkfjr dqy&;ksx iii. caèkd leffkzr çfrhkwfr;ksa (,ech,l) vksj vu; çfrhkwr,dlikstj esa fuos'k & (d) ([k) vkoklh; okf.kft;d LFkkoj laink (vk) vçr;{k,dlikstj jk"vªh; vkokl csad (,u,pch) vksj vkokl foùk deiuh (,p,iqlh) gsrq,iqch &,u,iqch ,Dlikstj csad }kjk vkokl deiuh,oa dkwikszjs'ku esa fuos'k fd;k x;k dqy ;ksx LFkkoj laink {ks=k dks dqy ½.k [k iw th cktkj dks,dlikstj (` djksm+ esa) fooj.k bfdovh 'ks;jksa] ifjorzuh; caèki=kksa] ifjorzuh; ½.k i=kksa vksj bfdovh mueq[k E;wpqvy iqamksa ds ;wfuvksa ftudh fufèk dks fuxfer ½.k esa fo'ks"k :i ls fuos'k ugha fd;k tkrka 'ks;jksa (vkbzihvks@ bz,lvksih lfeefyr gsa) ifjorzuh; caèki=kksa] ifjorzuh; ½.k i=kksa vksj bfdovh mueq[k E;wpqvy iqamksa esa fuos'k ds fy, O;f"V;ksa dks 'ks;jksa@ caèk i=kksa@ ½.k i=kksa ;k vu; çfrhkwfr;ksa dh çfrhkwfr ij ;k vçfrhkwr vfxzea 3- fdlh vu; ç;kstu ds fy, vfxze tgka 'ks;jksa ;k ifjorzuh; caèk i=kksa ;k ifjorzuh; ½.k i=kksa ;k bfdovh mueq[k E;wpqvy iqamksa ds ;wfuvksa dks çkfkfed çfrhkwfr ds :i esa j[kk x;k gksa Exposures: 9a. Exposure to Real Estate Sector : (` in Crore) Category (A) Direct Exposure i. Residential Mortgages Lending fully secured by mortgages on residential property that is or will be occupied by the borrower or that is rented Individual housing loans up to ` 20 lakh Individual housing loans above ` 20 lakh ii SUB-TOTAL Commercial Real Estate including NFB Limits Lending secured by mortgages on buildings, retail space, multi-purpose commercial premises, industrial or warehouse space, land acquisition, development and construction etc.) Fund Based Non Fund Based SUB-TOTAL iii. Investments in Mortgaged Backed Securities (MBS) and other securiti ed exposures a. b. - Residential - Commercial Real Estate (B) Indirect Exposure FB & NFB Exposure to National Housing Bank (NHB) & Housing Finance Companies (HFCs) Investments made by the Bank in Housing Companies & Corporations. Sub Total Total Exposure to Real Estate Sector b. Exposure to Capital Market (` in Crore) Particulars Direct investment in equity shares, convertible bonds, convertible debentures and units of equity oriented mutual funds the corpus of which is not exclusively invested in corporate debt. 2. Advances against shares/bonds/ debentures or other securities or on clean basis to individuals for investment in shares (including IPOs/ ESOPs) convertible bonds, convertible debentures, and units of equity oriented mutual funds. 3. Advances for any other purposes where shares or convertible bonds or convertible debentures or units of equity oriented mutual funds are taken as primary security PNB Full AR indd Jul-18 5:38:13 PM

104 (` djksm+ esa) fooj.k fdlh vu; ç;kstu ds fy, vfxze tgka 'ks;jksa ;k ifjorzuh; ckam] ifjorzuh; fmcsapj vksj bfdovh mueq[k E;wpqvy iqamksa ds ;wfuvksa dh leikf'ozd çfrhkwfr rd çfrhkwfr nh xbz gks vfkkzr~ tgk ifjorzuh; ifjorzuh; ½.k bfdovh mueq[k E;wpqvy iqamksa ds ;wfuvksa ls fhkuu çkfkfed çfrhkwfr vfxzeksa dks iwjh rjg doj ugha djrh gsa A LVkWd czksdjksa dks çfrhkwr rfkk vçfrhkwr vfxze vksj LVkWd czksdjksa rfkk ekdszv esdjksa dh vksj ls nh xbz xkjafv;k 6- lalkèkuksa ds c<+us dh lahkkouk esa u;h deifu;ksa dh bfdovh ds çfr çorzdksa ds va'k dks iwjk djus ds fy, 'ks;jksa@ckw.mksa@ ½.k i=kksa ;k vu; çfrhkwfr;ksa dh çfrhkwfr ij ;k fcuk çfrhkwfr ds fuxfer lalfkkvksa dks LohÑr fd;k x;k ½.k 7- lahkkfor bfdovh çokgksa@ fuxzeksa ds çfr deifu;ksa dks iwjd ½.k 8- 'ks;jksa ;k ifjorzuh; caèk i=kksa ;k ifjorzuh; ½.k i=kksa ;k bfdovh mueq[k E;wpqvy iqamksa ds ;wfuvksa ds çkbejh b';w ds lecuèk esa csadksa }kjk gkehnkjh çfrc¼rk,a ekftzu VªsfMax ds fy, LVkWd czksdjksa dks foùk 'kwu; 'kwu; 10- m e iw th fufèk;ksa (iathñr vksj xsj iathñr nksuksa) dks fn, x, lelr ½.k bfdovh ds leku gh ekus tk,axs vksj blfy, iwath cktkj,dlikstj lhek (çr;{k vksj vçr;{k nksuksa) ds vuqikyu ds fy, Lohdkj fd;k tk,xka E;wpqvy iqam dks vfxze 'kwu; 'kwu; 'kwu; 'kwu; 'kwu; 'kwu; iw th cktkj dks dqy,dlikstj x tksf[ke Js.khokj ns'k lecuèkh,dlikstj dks dqy fuoy fufèk,dlikstj ` djksm+ gsa dks csad dh dqy vkflr;ka ` djksm+ gs] ftldk 1% ` djksm+ gs A nks ns'kksa gkaxdkax vksj ;w,bz dh dqy fuoy fufèk,dlikstj dh jkf'k Øe'k% ` djksm+ vksj ` djksm+ gsa tksfd dks csad dh dqy vkflr;ksa ds 1% ls vfèkd gsa ;fn gkaxdkax o ;w,bz ij csad dk oqqy fuoy,dlikst dh oqqy vkflr;ksa ls vfèkd gks tkrk gs rks Hkk-fj- csad fn'kk funsz'kksa ds vuqlkj gkaxdkax ds fy, ` djksm+ vksj ;w,bz ds fy, ` djksm+ dk çkoèkku fd;k x;k gsa Hkkjr fu;kzr ½.k xkjavh fuxe (bzlhthlh) oxhzdj.k ds vuqlkj] gkaxdkax ns'k ux.;k tksf[ke Js.kh vfkkzr,1 vksj ;w,bz de tksf[ke Js.kh vfkkzr,2 esa gsa tksf[ke Js.kh ekpz 2018 dks,dlikstj (pkyw o"kz) ekpz 2018 dks j[kk x;k çkoèkku (pkyw o"kz) ekpz 2017 dks,dlikstj ('kq¼) (xr o"kz) (` djksm esa) ekpz 2017 dks j[kk x;k çkoèkku (xr o"kz) ux.;r de lkeku; ls de (` in Crore) Particulars Advances for any other purposes to the extent secured by the collateral security of shares or convertible bonds or convertible debentures or units of equity oriented mutual funds i.e. where the primary security other than shares/convertible bonds/convertible debentures/units of equity oriented mutual funds does not fully cover the advances. 5. Secured and unsecured advances to stock brokers and guarantees issued on behalf of stock brokers and market makers. 6. Loans sanctioned to corporate against NIL NIL the security of shares/bonds/debentures or other securities or on clean basis for meeting promoter s contribution to the equity of new companies in anticipation of raising resources. 7. Bridge loans to companies against NIL NIL 8. Underwriting commitments taken up NIL NIL by the banks in respect of primary issue of shares or convertible bonds or convertible debentures or units of equity oriented mutual funds. 9. Financing to stock brokers for margin trading NIL NIL 10. All exposures to Venture Capital funds (both registered and unregistered) will be deemed to be on par with equity and hence will be reckoned for compliance with the capital market exposures ceilings (both direct and indirect) 11. Advances to Mutual Funds Total Exposure to Capital Market c. Risk Category wise Country Exposure Total Net Funded Exposure as on is ` Crores. Total assets of the bank as on were ` Crores, 1% of which comes to ` Crore. Total net funded exposure of two countries namely Hongkong and UAE are ` Crore & ` Crore respectively, is more than 1% of the total assets of the Bank as on i.e. ` Crore. In case total net funded exposure of the bank on Hong Kong & UAE happens to be more than 1% of total assets as on , provision of ` Crore for Hongkong and ` Crore for UAE has been made in terms of RBI guidelines. As per Export Credit Guarantee Corporation Risk Category i.e. A2. (` in Crore) Risk Category Exposure (net) as at March 2018 (Current Year) Provision held as at March 2018 (Current Year) Exposure (net) as at March 2017 (Previous Year) Provision held as at March 2017 (Previous Year) Low Moderately Low PNB Full AR indd Jul-18 5:38:13 PM

105 tksf[ke Js.kh ekpz 2018 dks,dlikstj (pkyw o"kz) ekpz 2018 dks j[kk x;k çkoèkku (pkyw o"kz) ekpz 2017 dks,dlikstj ('kq¼) (xr o"kz) (` djksm esa) ekpz 2017 dks j[kk x;k çkoèkku (xr o"kz) lkeku; lkeku; ls mpp mpp vfr mpp dqy ?k ls ds nksjku csad lewg mèkkjdrkz lhek ds fy, Hkkjrh; fjtoz csad }kjk funszf'kr çwmsaf'k;y,dikstj lhek ls vfèkd gksus okys ØsfMV,Dikstj ds lecuèk esa csad dk çdvhdj.k 1&04&2017 ls dh vofèk ds nksjku lewg mèkkjdrkz vksj,dy mèkkjdrkz ds lecuèk esa csad us esllz,pmh,iqlh fyfevsm ds vykok fdlh çqmsaf'k;y,dlikstj dh lhfyax dks ugha c<k;k gs A os;fdrd [kkrs ds lecuèk esa çqmsaf'k;y,dlikstj lhfyax vfkkzr esllz,pmh,iqlh fyfevsm ds lecuèk esa foùkh; o"kz ds nksjku 15% dsfivy jkf'k dk myya?ku fd;k x;ka fooj.k fueukuqlkj gs% mèkkjdrkz dk uke fuos'k vksj MsjhosfVo lfgr,dlikstj esllz,pmh,iqlh fy dsfivy iwath dk 15% 9M- vçfrhkwr vfxze% (jkf'k djksm+ksa esa) fuèkkzfjr lhek dsfivy iwath dk % (` djksm+ esa) fooj.k vçfrhkwr vfxze vfxzeksa dh og dqy jkf'k ftlds fy, vewrz vkflr;ka tsls vfèkdkjksa] vuqkfir;ksa] çkfèkdkjksa vkfn ij ½.k Hkkj dks vçfrhkwr vfxze ds vurxzr vuqlwph 9 esa 'kkfey fd;k x;k gs A 2- vewrz laikf'kzod çfrhkwfr;ksa dk vuqekfur ewy; fjtoz csad }kjk yxk, x, vfkznamksa dk çdvhdj.k % d ls dh vofèk ds nksjku csafdax fofu;eu ds ds lkfk èkkjk 47 mièkkjk, [kam 1 mi[kam lh ds lkfk 46 (4) lecuèkh çkoèkku ds rgr] vfèkfu;e ds fdlh Hkh çkoèkku ds myya?ku ds fy, ;k csafdax fu;eu vfèkfu;e] 1949 dh fdlh Hkh vu; vko';drkvksa ds xsj&vuqikyu ds fy,] mdr vfèkfu;e ds varxzr Hkkjrh; fjtoz csad }kjk fufnz"v vkns'k] fu;e ;k 'krz ds fy, csad ij vkjchvkbz }kjk 'kwu; (3 djksm+) tqekzuk yxk;k x;k gsa (mijksdr vkadm+s çcaèku }kjk çekf.kr gsa)a [k ls dh vofèk ds nksjku,lth,y çfrhkwfr;ksa esa mnky dk fooj.k 'kwu; gs (` 365 djksm+) ys[kk ekudksa }kjk visf{kr vu;- çdvhdj.k 11-,,l&5 iwoz&vofèk vksj ys[kkadu uhfr esa ifjorzu,,l&5 ds vèkhu iwoz vofèk ds O;; ds dksbz egroiw.kz çdvhdj.k visf{kr ugha gsa A Risk Category Exposure (net) as at March 2018 (Current Year) Provision held as at March 2018 (Current Year) Exposure (net) as at March 2017 (Previous Year) (` in Crore) Provision held as at March 2017 (Previous Year) Moderate Moderately High High Very high Total d. Bank s Disclosure in respect of Credit Exposures where the same had exceeded the Prudential Exposure limits prescribed by RBI for Individual/Group Borrowers during to The Bank has not exceeded prudential exposure ceilings in respect of any Group Accounts and Individual Borrowers during the period to except M/S HDFC Ltd. The prudential exposure ceiling in respect of individual Accounts, i.e. 15% of Capital Funds has been breached during the FY in respect of M/S HDFC Ltd. The details are as under:- Name of the Borrower M/S HDFC Ltd Exposure Including Investment & Derivative 9e. Unsecured Advances: Prescribed Ceiling % of Capital Fund (` in Crore) % of Capital Fund (` in Crore) Particulars Unsecured Advance Total amount of advances for which intangible securities such as charge over the rights, licenses, authority etc. has been included in Sch.9 under Unsecured Advances Estimated value of intangible collaterals Disclosure of penalties imposed by the RBI: A. During the period to NIL (` 3.00 Crore) penalty has been imposed by RBI on the bank under the provision of Section 47 sub-section A clause 1 sub clause c read with 46(4) of the Banking Regulation Act, for contraventions of any of the provisions of the Act or noncompliance with any other requirements of the banking B. Particulars of Bouncing of SGL securities during the period to is NIL (` Crore) Other Disclosures required by Accounting Standards 11. AS -5 Prior Period and Change in Accounting Policy There were no material prior period income/expenditure items requiring disclosure under AS PNB Full AR indd Jul-18 5:38:14 PM

106 12-,,l&10 leifùk;ka] IykaV vksj midj.k ekpz 2018 ds var rd vkflr;ksa ds çr;sd oxz ds fy, fd, x, dqy ewy;âkl dk C;kSjk (` djksm+ esa) vkflr Js.kh ifjlj vu; vpy vkflr;k iv~vs okyh vkflr;k dei;wvj lkwývos;j tksm ys[kk ekud& 9 jktlo eku;rk vk; dh dqn enksa dh eku;rk ys[kk uhfr la[;k 3 (5) ds vuqlkj olwyh vkèkkj ij dh tkrh gs A cgjgky] mdr vk; ux.; gs A 14-,,l 11 % fons'kh fofue; njksa esa ifjorzu fons'kh eqæk ifjorzu çkjf{kr esa mrkj&p<+ko (` djksm+ esa) fooj.k jkf'k (2017&18) jkf'k (2016&17) çkjafhkd 'ks"k ls dh vofèk ds nksjku tek ls ds nksjku fudklh bfr'ks"k ,,l 15 & dezpkjh ykhk % ys[kk ekud & 15 (la'kksfèkr) ds vuqlkj çdvhdj.k ;kstuk dk çdkj% isa'ku (jkf'k ` djksm+ esa) I. çèkku chekafdd eku;rk (Hkkfjr vkslr ds :i esa O;Dr fd;k x;k) cv~vk nj 7.89% 8.05% ;kstuk vkflr;ksa ds çfriqy dh lahkkfor nj 2.80% 2.80% osru esa o`f¼ dh nj 6.50% 6.50% âkl nj 1.00% 1.00% ;kstuk laifùk ij okilh dh visf{kr nj 8.61% 8.61% II. nkf;roksa ds orzeku ewy; esa ifjorzu &vksifuax vksj Dyksftax 'ks"kksa dk feyku vofèk dh 'kq:vkr esa nkf;roksa dk orzeku ewy; C;kt ykxr pkyw lsok ykxr iwoz lsok ykxr& veku; iwoz lsok ykxr& eku; iwoz lsok ykxr& xsj ifj'kksfèkr Hkqxrku fd, tk pqds ykhk nkf;ro ij oklrfod (ykhk) (larqyu vkadm+k) vofèk ds var esa ihohvks AS- 10 Properties, Plant and Equipment. Break-up of total depreciation for the year ended March, 2018 for each class of assets (` in Crore) Class of assets Premises Leased assets Computer software Total AS- 9 Revenue Recognition: ertain items o income are reco ni ed on reali ation asis as er ccountin olicy o ( ) o ever the said income is not considered to e material 14. AS 11- Changes in foreign exchange rates: Movement of foreign currency translation reserve (` in Crore) Particulars Amount ( ) Amount ( ) Opening balance Credited during the year to Withdrawn during the year to Closing Balance DISCLOSURE IN ACCORDANCE WITH AS TYPE OF PLAN: PENSION 15 R Amounts are in Crore of Rupees I. PRINCIPAL ACTUARIAL ASSUMPTIONS Expressed as weighted averages Discount Rate 7.89% 8.05% Steady State Basic Pay escalation rate 2.80% 2.80% Dearness Relief Escalation Rate 6.50% 6.50% Attrition rate 1.00% 1.00% Expected rate of return on Plan Assets 8.61% 8.61% II. CHANGES IN THE PRESENT VALUE OF THE OBLIGATION (PVO) - RECONCILIATION OF OPENING AND CLOSING BALANCES: PVO as at the beginning of the period Interest Cost Current service cost Past service cost -Unrecognised Past service cost - Recognised Past service cost -Not amorti able Actuarial loss/(gain) on obligation (balancing PVO as at the end of the period PNB Full AR indd Jul-18 5:38:14 PM

107 (jkf'k ` djksm+ esa) III. ;kstuk vkflr;ksa ds mfpr ewy; esa ifjorzu&vksifuax vksj Dyksftax 'ks"kksa dk feyku vofèk dh 'kq:vkr esa ;kstuk vkflr;ksa dk mfpr ewy; Iyku vkflr;ksa ij vuqekfur çfriqy va'knku Hkqxrku fd, x, ykhk ;kstuk vkflr;ksa ij lahkkfor çfriqy vofèk ds var esa ;kstuk vkflr;ksa dk mfpr ewy; IV. ;kstuk vkflr;ksa ij oklrfod çfriqy ;kstuk vkflr;ksa ij lahkkfor çfriqy ;kstuk vkflr;ksa ij chekafdd ykhk (gkfu) laosnu'khy çfrhkwfr;ksa ij C;kt nj vksj ,iQMhvkj ij vftzr C;kt lfgr voklrfod iwathxr iwath (gkfu) lfgr ;kstuk vkflr;ksa ij oklrfod çfriqy v. eku; chekafdd vofèk ds fy, chekafdd ykhk@(gkfu) & nkf;ro vofèk ds fy, chekafdd ykhk@(gkfu) & ;kstuk vkflr;ka vofèk ds fy, dqy chekafdd ykhk@(gkfu) vofèk esa eku; chekafdd ykhk@(gkfu) o"kz ds var esa veku; chekafdd 0 0 (gkfu)@ykhk VI. rqyui=k esa eku; jkf'k vksj lecafèkr fo'ys"k.k% nkf;roksa dk orzeku ewy; ;kstuk vkflr;ksa dk mfpr ewy; vurj veku; Vªkft'uy ns;rk;sa 0 0 veku; xr lsok ykxr & fufgr ykhk & 0 0 rqyui=k esa eku;n ns;rk,a isjk 55 ds vurxzr udkjkred fuèkkzfjr jkf'k Hkkoh va'knkuksa esa dvksrh vksj miycèk Hkkoh dvksrh dk orzeku ewy; isjk 59 ds vurxzr lhek vuqlkj eku; vkflr VII. ykhk o gkfu [kkrs esa eku; O;; pkyw lsok ykxr C;kt ykxr ;kstuk vkflr;ksa ij lahkkfor çfriqy o"kz ds nksjku eku;a 'kq¼ chekafdr vfkok gkfu o"kz ds nksjku eku;a Vªkaft'kuy ns;rk,a 0 0 xr lsok ykxr& xsj ifj'kksfèkr 0 0 xr lsok ykxr& eku; 0 0 isjk 59(ch) esa lhek dk çhkko 0 0 çkwfiqv,am yksl LVsVesaV esa eku; O;; Amounts are in Crore of Rupees III. CHANGES IN THE FAIR VALUE OF PLAN ASSETS - RECONCILIATION OF OPENING AND CLOSING BALANCES: FAIR VALUE OF PLAN ASSETS AS AT THE BEGINNING OF THE PERIOD Expected return on plan assets Contributions Actuarial gain/(loss) on plan assets balancing Fair value of plan assets as at the end of the period IV. ACTUAL RETURN ON PLAN ASSETS Expected return on plan assets Actuarial gain (loss) on plan assets Actual return on plan assets including unrealised capital gains /capital (losses) on the interest rate sensitive securities held in the fund and interest accrued on FDRs V. ACTUARIAL GAIN / LOSS RECOGNI ED Actuarial gain / (loss) for the period Obligation Actuarial gain / (loss) for the period- Plan Assets Total (gain) / loss for the period Actuarial (gain) / loss recogni ed in the period Unrecogni ed actuarial (gain) / loss at the end 0 0 of the year VI. AMOUNTS RECOGNISED IN THE BALANCE SHEET AND RELATED ANALYSIS Present value of the obligation Fair value of plan assets Difference Unrecognised transitional liabilty 0 0 Unrecognised past service cost - vested 0 0 Liability Recognised in the Balance Sheet Negative Amount determined under paragraph 55 Present value of available refunds and reductions in future contributions Resulting asset as per paragaraph 59(b) VII. EXPENSES RECOGNISED IN THE STATEMENT OF PROFIT AND LOSS: Current service cost Interest Cost Expected return on plan assets Net actuarial (gain)/loss recognised in the year Transitional Liability recognised in the year 0 0 Past service cost - not amorti able 0 0 Past service cost - recognised 0 0 Effect of the Limit in paragraph 59(b) 0 0 Expenses recogni ed in the statement of PNB Full AR indd Jul-18 5:38:15 PM

108 (jkf'k ` djksm+ esa) VIII. rqyui=k esa eku; gksus okyh 'kq¼ ns;rk esa mrkj&p<+ko çkjfehkd 'kq¼ ns;rk O;; mijksdrkuqlkj lanùk va'knku vafre 'kq¼ ns;rk IX. orzeku vofèk ds fy, jkf'k nkf;roksa dk orzeku ewy; ;kstuk vkflr;ka veku;o xr lsok ykxr ls iwoz vfèk'ks"k@(?kkvk) ;kstuk ns;rkvksa esa vuqhkkfod lek;kstu & (gkfu)@ykhk ;kstuk vkflr;ksa esa vuqhkkfod lek;kstu & (gkfu)@ykhk X. ;kstuk vkflr;ksa dh çeq[k Jsf.k;k (dqy ;kstuk vkflr;ksa dk çfr'kr) Hkkjr ljdkj dh çfrhkwfr;k 8.66% 8.85% jkt; ljdkj dh çfrhkwfr;k 30.68% 31.90% mpp fdle ds dkwikszjsv ckw.m 10.58% 13.82% lwphc¼ deifu;ksa ds bfdovh 'ks;j 0.00% 0.00% laifùk 0.00% 0.00% fo'ks"k tek ;kstuk,a 0.00% 0.00% fuxzedrkz }kjk pykbz xbz fufèk;k 37.62% 32.68% vu; csad tekjkf'k;ka vksj tek çek.ki=kk (lhmh) 12.46% 13.00% tksm % % XI. vkxkeh o"kz ds nksjku,avjçkbzt ds va'knku dk Js"Bre vuqeku ;kstuk dk çdkj% minku I. çèkku chekafdd eku;rk (Hkkfjr vkslr ds :i esa O;Dr fd;k x;k) cêk nj 7.97% 7.37% osru esa o`f¼ dh nj 6.00% 6.00% âkl nj 1.00% 1.00% ;kstuk laifùk ij okilh dh visf{kr nj 8.61% 8.61% II. nkf;roksa ds orzeku ewy; esa ifjorzu & vksifuax vksj Dyksftax 'ks"kksa dk feyku vofèk dh 'kq:vkr esa nkf;roksa dk orzeku ewy; C;kt ykxr pkyw lsok ykxr iwoz lsok ykxr lanùk ykhk nkf;ro ij oklrfod (ykhk) (larqyu vkadm+k) vofèk ds var esa ihohvks III. ;kstuk vkflr;ksa ds mfpr ewy; esa ifjorzu&vksifuax vksj Dyksftax 'ks"kksa dk feyku vofèk dh 'kq:vkr esa ;kstuk vkflr;ksa dk mfpr ewy; ;kstuk vkflr;ksa ij lahkkfor çfriqy va'knku lanùk ykhk Amounts are in Crore of Rupees VIII. MOVEMENTS IN THE LIABILITY RECOGNI ED IN THE BALANCE SHEET Opening net liability Expense as above Contribution paid Closing net liability IX. AMOUNT FOR THE CURRENT PERIOD Present Value of obligation Plan Assets service cost Experience adjustments on plan liabilities (loss)/gain Experience adjustments on plan assets (loss)/gain X. MAJOR CATEGORIES OF PLAN ASSETS (BOOK VALUE PROPORTIONS) Government of India Securities 8.66% 8.85% State Government Securities 30.68% 31.90% High Quality Corporate Bonds 10.58% 13.82% Equity shares of listed companies 0.00% 0.00% Property 0.00% 0.00% Special Deposit Scheme 0.00% 0.00% Funds managed by Insurer 37.62% 32.68% Others -Including Bank Deposits and FDRs 12.46% 13.00% Total % % XI. ENTERPRISE S BEST ESTIMATE OF CONTRIBUTION DURING NEXT YEAR TYPE OF PLAN: GRATUITY I. PRINCIPAL ACTUARIAL ASSUMPTIONS Expressed as weighted averages Discount Rate 7.97% 7.37% Salary escalation rate 6.00% 6.00% Attrition rate 1.00% 1.00% Expected rate of return on Plan Assets 8.61% 8.61% II. CHANGES IN THE PRESENT VALUE OF THE OBLIGATION (PVO) - RECONCILIATION OF OPENING AND CLOSING BALANCES: PVO as at the beginning of the period Interest Cost Current service cost Past service cost Actuarial loss/(gain) on obligation (balancing PVO as at the end of the period III. CHANGES IN THE FAIR VALUE OF PLAN ASSETS - RECONCILIATION OF OPENING AND CLOSING BALANCES: Fair value of plan assets as at the beginning of the period Expected return on plan assets Contributions PNB Full AR indd Jul-18 5:38:15 PM

109 nkf;ro ij oklrfod (ykhk) (larqyu vkadm+k) vofèk ds var esa ;kstuk vkflr;ksa dk mfpr ewy; IV- ;kstuk vkflr;ksa ij oklrfod çfriqy ;kstuk vkflr;ksa ij lahkkfor çfriqy ;kstuk vkflr;ksa ij chekafdd ykhk (gkfu) laosnu'khy çfrhkwfr;ksa ij C;kt nj vksj,iqmhvkj ij vftzr C;kt lfgr voklrfod iwathxr iwath (gkfu) lfgr ;kstuk vkflr;ksa ij oklrfod çfriqy v. eku; chekafdd vofèk ds fy, chekafdd ykhk@(gkfu) & nkf;ro vofèk ds fy, chekafdd ykhk@(gkfu) & ;kstuk vkflr;ka vofèk ds fy, dqy chekafdd ykhk@(gkfu) vofèk esa eku; chekafdd ykhk@(gkfu) o"kz ds var esa veku; chekafdd 0 0 (gkfu)@ykhk VI. rqyui=k esa eku; jkf'k vksj lecafèkr fo'ys"k.k % nkf;roksa dk orzeku ewy; ;kstuk vkflr;ksa dk mfpr ewy; vurj veku; Vªkft'uy ns;rk;sa 0 0 veku; xr lsok ykxr&fufgr ykhk&vkxs ys tk;k x;k 0 0 rqyui=k esa eku;'k ns;rk,a isjk 55 ds vurxzr ukdkjkred fuèkkzfjr jkf'k Hkkoh va'knkuksa esa dvksrh vksj miycèk Hkkoh dvksrh dk orzeku ewy; isjk 59 ds vurxzr ifj.kkeh vkflr VII. ykhk o gkfu [kkrs esa eku; O;; pkyw lsok ykxr C;kt ykxr ;kstuk vkflr;ksa ij lahkkfor çfriqy o"kz ds nksjku eku; 'kq¼ vfkok gkfu o"kz ds nksjku eku; Vªkaft'kuy ns;rk,a 0 0 xr lsok ykxr& eku; isjk 59 esa lhek dk çhkko 0 0 çkwfiqv,am yksl LVsVesaV esa eku; O;; VIII. rqyui=k esa eku; gksus okyh 'kq¼ ns;rk esa mrkj&p<+ko çkjfehkd 'kq¼ ns;rk mi;zqdr ds vuqlkj O;; lanùk va'knku vafre 'kq¼ ns;rk IX. orzeku vofèk ds fy, jkf'k nkf;roksa dk orzeku ewy; ;kstuk vkflr;k vfèk'ks"k (?kkvk) ;kstuk ns;rkvksa esa vuqhkkfod lek;kstu & (gkfu)@ykhk ;kstuk vkflr;ksa esa vuqhkkfod lek;kstu & (gkfu)@ykhk Actuarial gain/(loss) on plan assets Fair value of plan assets as at the end of the period IV. ACTUAL RETURN ON PLAN ASSETS Expected return on plan assets Actuarial gain (loss) on plan assets Actual return on plan assets including unrealised capital gains /(losses) on the interest rate sensitive securities held in the fund and interest accrued on FDRs V. ACTUARIAL GAIN / LOSS RECOGNI ED Actuarial gain / (loss) for the period Obligation Actuarial gain / (loss) for the period- Plan Assets Total (gain) / loss for the period Actuarial (gain) / loss recogni ed in the period Unrecogni ed actuarial (gain) / loss at the end 0 0 of the year VI. AMOUNTS RECOGNISED IN THE BALANCE SHEET AND RELATED ANALYSES Present value of the obligation Fair value of plan assets Difference Unrecognised transitional liabilty 0 0 Unrecognised past service cost 0 0 Liability Recognised in the Balance Sheet Negative Amount determined under paragraph 55 Present value of available refunds and reductions in future contributions Resulting asset as per paragraph 59(b) VII. EXPENSES RECOGNISED IN THE STATEMENT OF PROFIT AND LOSS: Current service cost Interest Cost Expected return on plan assets Net actuarial (gain)/loss recognised in the year Transitional Liability recognised in the year 0 0 Past service cost-recognised Effect of the limit under paragraph 59(b) 0 0 Expenses recogni ed in the statement of VIII. MOVEMENTS IN THE LIABILITY RECOGNI ED IN THE BALANCE SHEET Opening net liability Expense as above Contribution paid Closing net liability IX. AMOUNT FOR THE CURRENT PERIOD Present Value of obligation Plan Assets Experience adjustments on plan liabilities (loss)/gain Experience adjustments on plan assets -(loss)/gain PNB Full AR indd Jul-18 5:38:16 PM

110 X. ;kstuk vkflr;ksa dh çeq[k Jsf.k;k (dqy ;kstuk vkflr;ksa dk çfr'kr) Hkkjr ljdkj dh çfrhkwfr;k 14.05% 13.54% jkt; ljdkj dh çfrhkwfr;k 32.50% 32.13% mpp fdle ds dkwikszjsv ckw.m 8.25% 14.05% lwphc¼ deifu;ksa ds bfdovh 'ks;j 0.00% 0.00% laifùk 0.00% 0.00% fo'ks"k tek ;kstuk,a 0.00% 0.00% fuxzedrkz }kjk pykbz xbz fufèk;k 30.05% 14.86% vu; csad tekjkf'k;ka vksj tek çek.ki=k (lhmh) 15.15% 25.42% tksm % % XI. vkxkeh o"kz ds nksjku,avjçkbzt ds va'knku dk Js"Bre vuqeku ;kstuk dk çdkj% fo'ks"kkfèkdkj NqfV~V;ksa dk udnhdj.k I. çèkku chekafdd eku;rk (Hkkfjr vkslr ds :i esa O;Dr fd;k x;k) cv~vk nj 7.97% 7.37% osru esa o`f¼ dh nj 6.00% 6.00% âkl nj 1.00% 1.00% ;kstuk laifùk ij okilh dh visf{kr nj 0.00% 0.00% II. nkf;roksa ds orzeku ewy; esa ifjorzu & vksifuax vksj Dyksftax 'ks"kksa dk feyku vofèk dh 'kq:vkr esa ihohvks C;kt ykxr pkyw lsok ykxr iwoz lsok ykxr & (xsj fufgr ykhk) 0 0 iwoz lsok ykxr & (fufgr ykhk) 0 0 lanùk ykhk nkf;ro ij oklrfod (ykhk) (larqyu vkadm+k) vofèk ds var esa ihohvks III. ;kstuk vkflr;ksa ds mfpr ewy; esa ifjorzu&vksifuax vksj Dyksftax 'ks"kksa dk feyku vofèk dh 'kq:vkr esa ;kstuk vkflr;ksa dk 0 0 mfpr ewy; ;kstuk vkflr;ksa ij lahkkfor çfriqy 0 0 va'knku lanùk ykhk nkf;ro ij oklrfod (ykhk) 0 0 (larqyu vkadm+k) vofèk ds var esa ;kstuk vkflr;ksa dk 0 0 mfpr ewy; IV- ;kstuk vkflr;ksa ij oklrfod çfriqy ;kstuk vkflr;ksa ij lahkkfor çfriqy 0 0 ;kstuk vkflr;ksa ij chekafdd ykhk (gkfu) 0 0 ;kstuk vkflr;ksa ij oklrfod çfriqy 0 0 v. eku; chekafdd vofèk ds fy, chekafdd ykhk@(gkfu) & nkf;ro vofèk ds fy, chekafdd ykhk@(gkfu) & ;kstuk 0 0 vkflr;ka vofèk ds fy, dqy chekafdd ykhk@(gkfu) vofèk esa eku; chekafdd ykhk@(gkfu) o"kz ds var esa veku; chekafdd (gkfu)@ykhk 0 0 X. MAJOR CATEGORIES OF PLAN ASSETS (BOOK VALUE PROPORTIONS) Government of India Securities 14.05% 13.54% State Government Securities 32.50% 32.13% High Quality Corporate Bonds 8.25% 14.05% Equity shares of listed companies 0.00% 0.00% Property 0.00% 0.00% Special Deposit Scheme 0.00% 0.00% Funds managed by Insurer 30.05% 14.86% Others including bank deposits and CDs 15.15% 25.42% Total % % XI. ENTERPRISE S BEST ESTIMATE OF CONTRIBUTION DURING NEXT YEAR TYPE OF PLAN: PRIVILEGE LEAVE ENCASHMENT I. PRINCIPAL ACTUARIAL ASSUMPTIONS Expressed as weighted averages Discount Rate 7.97% 7.37% Salary escalation rate 6.00% 6.00% Attrition rate 1.00% 1.00% Expected rate of return on Plan Assets 0.00% 0.00% II. CHANGES IN THE PRESENT VALUE OF THE OBLIGATION (PVO) - RECONCILIATION OF OPENING AND CLOSING BALANCES: PVO as at the beginning of the period Interest Cost Current service cost Actuarial loss/(gain) on obligation (balancing PVO as at the end of the period III. CHANGES IN THE FAIR VALUE OF PLAN ASSETS - RECONCILIATION OF OPENING AND CLOSING BALANCES: Fair value of plan assets as at the beginning 0 0 of the period Expected return on plan assets 0 0 Contributions Actuarial gain/(loss) on plan assets balancing 0 0 Fair value of plan assets as at the end of the 0 0 period IV. ACTUAL RETURN ON PLAN ASSETS Expected return on plan assets 0 0 Actuarial gain (loss) on plan assets 0 0 Actual return on plan assets 0 0 V. ACTUARIAL GAIN / LOSS RECOGNI ED Actuarial gain / (loss) for the period Obligation Actuarial gain / (loss) for the period- Plan 0 0 Assets Total (gain) / loss for the period Actuarial (gain) / loss recogni ed in the period Unrecogni ed actuarial (gain) / loss at the end of the year PNB Full AR indd Jul-18 5:38:17 PM

111 VI. rqyui=k esa eku; jkf'k vksj lecafèkr fo'ys"k.k % nkf;roksa dk orzeku ewy; ;kstuk vkflr;ksa dk mfpr ewy; 0 0 vurj veku; Vªkaft'uy ns;rk;sa 0 0 veku; xr lsok ykxr & xsj 0 0 fufgr ykhk rqyui=k esa eku; ns;rk,a VII. ykhk o gkfu [kkrs esa eku; O;; pkyw lsok ykxr C;kt ykxr ;kstuk vkflr;ksa ij lahkkfor çfriqy 0 0 o"kz ds nksjku eku;a 'kq¼ chekafdr vfkok gkfu o"kz ds nksjku eku;a Vªkaft'kuy ns;rk,a 0 0 xr lsok ykxr& xsj fufgr ykhk 0 0 xr lsok ykxr& fufgr ykhk 0 0 çkwfiqv,am yksl LVsVesaV esa eku; O;; VIII. rqyui=k esa eku; gksus okyh 'kq¼ ns;rk esa mrkj&p<+ko çkjfehkd 'kq¼ ns;rk mi;zqdr ds vuqlkj O;; lanùk va'knku vafre 'kq¼ ns;rk IX. orzeku vofèk ds fy, jkf'k nkf;roksa dk orzeku ewy; ;kstuk vkflr;k 0 0 vfèk'ks"k@(?kkvk) ;kstuk ns;rkvksa esa vuqhkkfod lek;kstu & (gkfu)@ykhk ;kstuk vkflr;ksa esa vuqhkkfod lek;kstu & (gkfu)@ykhk 0 0 X. ;kstuk vkflr;ksa dh çeq[k Jsf.k;k (dqy ;kstuk vkflr;ksa dk çfr'kr) Hkkjr ljdkj dh çfrhkwfr;k 0.00% 0.00% jkt; ljdkj dh çfrhkwfr;k 0.00% 0.00% mpp fdle ds dkwikszjsv ckw.m 0.00% 0.00% lwphc¼ deifu;ksa ds bfdovh 'ks;j 0.00% 0.00% laifùk 0.00% 0.00% fo'ks"k tek ;kstuk,a 0.00% 0.00% fuxzedrkz }kjk pykbz xbz fufèk;k 0.00% 0.00% vu; 0.00% 0.00% tksm+ 0.00% 0.00% XI. vkxkeh o"kz ds nksjku,avjçkbzt ds va'knku dk Js"Bre vuqeku 0 0 VI. AMOUNTS RECOGNISED IN THE BALANCE SHEET AND RELATED ANALYSES Present value of the obligation Fair value of plan assets 0 0 Difference Unrecognised transitional liabilty 0 0 Unrecognised past service cost - non vested 0 0 Liability recogni ed in the balance sheet VII. EXPENSES RECOGNISED IN THE STATEMENT OF PROFIT AND LOSS: Current service cost Interest Cost Expected return on plan assets 0 0 Net actuarial (gain)/loss recognised in the year Transitional Liability recognised in the year Expenses recogni ed in the statement of VIII. MOVEMENTS IN THE LIABILITY RECOGNI ED IN THE BALANCE SHEET Opening net liability Expense as above Contribution paid Closing net liability IX. AMOUNT FOR THE CURRENT PERIOD Present Value of obligation Plan Assets Experience adjustments on plan liabilities -(loss)/gain Experience adjustments on plan assets -(loss)/gain 0 0 X. MAJOR CATEGORIES OF PLAN ASSETS (AS PERCENTAGE OF TOTAL PLAN ASSETS) Government of India Securities 0.00% 0.00% State Government Securities 0.00% 0.00% High Quality Corporate Bonds 0.00% 0.00% Equity shares of listed companies 0.00% 0.00% Property 0.00% 0.00% Special Deposit Scheme 0.00% 0.00% Funds managed by Insurer 0.00% 0.00% Others (to specify) 0.00% 0.00% Total 0.00% 0.00% XI. ENTERPRISE S BEST ESTIMATE OF CONTRIBUTION DURING NEXT YEAR PNB Full AR indd Jul-18 5:38:17 PM

112 rkfydk XII - vu; nh?kkzofèk dezpkjh ykhk (xsj fufèkd) fooj.k nkf;ro dk orzeku ewy; laøe.k'khy ns;rk dk çkjfehkd 'ks"k o"kz ds nksjku eku; laøe.k'khy ns;rk laøe.k'khy ns;rk dk bfr'ks"k rqyui=k esa eku; ns;rk vkdfled NqV~Vh lfgr chekjh dh NqV~Vh,y,iQlh (jkf'k ` djksm+ esa) flyoj tqcyh ykhk csad dh cksmz }kjk vuqeksfnr,,l 15 ikwfylh ds vkèkkj ij] ds fy, chekafdd ewy;kadu fjiksvz esa O;kid èkkj.kk,a viukbz xbz gsaa d cv~vk nj la'kksfèkr ys[kk ekud la[;k 15 ds isjk 78 ds vuqlkj nkf;roksa dh vuqekfur 'krksaz ds vuq#i ljdkjh caèk i=kksa (,iqchvkbz,y }kjk çdkf'kr) ij ( ] vksj Vªstjh ifjpkyu ds fy, vodk'k) dks cktkj çkfir;ksa ds vuqlkj cv~vk nj fuèkkzfjr dh x;h gs A [k osruo`f¼ nj (,lbzvkj) vkbzch, }kjk çnku fd, x, O;kid ekxzn'kzu ds vkèkkj ij] csad ds fy,,lbzvkj 6% fuèkkzfjr fd;k x;k gs (yxhkx 6% dh dqy osru o`f¼ ds lkfk 2-8% dh ewy osru o`f¼ vksj yxhkx 6-5% dh Mh, o`f¼a) x âkl nj finys vuqhko vksj LoSfPNd vkgj.k ls lacafèkr Hkfo"; ds vuqhko ds lanhkz esa âkl nj 1% fuèkkzfjr dh xbz gsa?k vlolfkrk MsVk ço`fùk ds vkèkkj ij] ;g ekuk x;k gs fd vkxs ys tkbz vodk'k@;wlh,y x;h vlolfkrk NqV~Vh vksj ;wlh,y dk 95% csad ls vyx gksrs le; lekir gks tk,xha ;kstuk vkflr;ksa ij çfriqy dh lahkkfor nj ;g lahkkfor gs fd isa'ku vksj minku fufèk ls lacafèkr ;kstuk laifùk;ksa ij okilh oklrfod fjvuz vksj iqam esa C;kt nj laosnu'khy çfrhkwfr;ksa ij oklrfod okilh vksj voklrfod ykhk ds vkèkkj ij 8-61% çfr o"kz gksxha ekpz] 2018 dks lekir o"kz gsrq [kamokj lwpuk Hkkx d % dkjksckj [kam Ø- lafooj.k lekir o"kz (vkwfmfvm) (jkf'k ` djksm+ esa) lekir o"kz (vkwfmfvm) i. [kamokj jktlo d) Vªstjh [k) dkwikszjsv@ gksylsy csafdax x) fjvsy csafdax ?k) vu; csafdax ifjpkyu tksm ii. [kamokj ifj.kke d) Vªstjh [k) dkwikszjsv@ gksylsy csafdax TABLE XII OTHER LONG TERM EMPLOYEE BENEFITS (UNFUNDED) Description Present value of obligation Opening balance of transitional liability Transitional liability recogni ed during the year Closing balance of the transitional liability Liability recogni ed in the balance sheet Sick leave & Un-availed casual leave Leave fare concession Amounts are in crore of Rupees Following broad assumptions have been taken in the Actuarial Valuation reports for , based on the Board approved AS 15 policy of the bank a. Discount Rate b. Salary Escalation Rate (SER) c. Attrition Rate d. Sick Leave / UCL e. Expected ROR. Discount Rate has been determined by reference to market yields on ( , & being holiday for Treasury operations) on Government bonds (published by FBIL) of term consistent with estimated term of the obligations as per para 78 of AS-15 R Based on the broad guidance provided by IBA, SER for the bank has been taken at 6% (Basic Pay increase of 2.8% and DA increase of 6.5% approx with overall salary escalation of 6 % approx.) Attrition rate is assumed at 1% taken with reference to past experience and expected future experience related to voluntary withdrawals. Based on data trend, it has been assumed that 95% of the carried forward sick leave and unveiled casual leave will lapse at the time of separation. It is assumed that return on the plan assets pertaining to the pension and gratuity fund will be 8.61% pa on basis of actual return and unreali ed gains on the interest rate sensitive securities held in the fund. 16. Segment reporting for the period ended 31st March 2018 (` in Crore) PART A: BUSINESS SEGMENTS SI. No. Particulars YEAR ENDED (Audited) YEAR ENDED (Audited) i. Segment Revenue a) Treasury b) Corporate/Wholesale Banking c) Retail Banking d) Other Banking Operations Total ii. Segment Results a) Treasury b) Corporate/Wholesale Banking PNB Full AR indd Jul-18 5:38:18 PM

113 Hkkx d % dkjksckj [kam Ø- lafooj.k lekir o"kz (vkwfmfvm) (jkf'k ` djksm+ esa) lekir o"kz (vkwfmfvm) x) fjvsy csafdax ?k) vu; csafdax ifjpkyu tksm iii. xsj vkcafvr O;; iv. ifjpkyu ykhk v. dj gsrq çkoèkku vi. vlkèkkj.k ensa vii. 'kq¼ ykhk vu; lwpuk viii. [kamokj vkflr;k d) Vªstjh [k) dkwikszjsv@ gksylsy csafdax x) fjvsy csafdax ?k) vu; csafdax ifjpkyu mi tksm M) xsj vkcafvr vkflr;k dqy vkflr;k ix. [kamokj ns;rk,a d) Vªstjh [k) dkwikszjsv@ gksylsy csafdax x) fjvsy csafdax ?k) vu; csafdax ifjpkyu mi tksm M) xsj vkcafvr ns;rk,a dqy ns;rk,a Hkkx [k % HkkSxksfyd [kam Ø- lafooj.k lekir o"kz (vkwfmfvm) lekir o"kz (vkwfmfvm) 1- jktlo d-?kjsyw [k- varjkz"vªh; dqy vkflr;ka d-?kjsyw [k- varjkz"vªh; dqy uksv 1- [kamokj ns;rkvksa dks mudh lec¼ [kamokj vkflr;ksa ds vuqikr esa vkcafvr fd;k x;k gs A 2- finyh vofèk ds vkadm+ksa dh vko';drkuqlkj iqu% lewgu@iquozxhzdj.k fd;k x;k gs rkfd mugsa rqyuh; cuk;k tk lds A PART A: BUSINESS SEGMENTS SI. Particulars No. YEAR ENDED (Audited) (` in Crore) YEAR ENDED (Audited) c) Retail Banking d) Other Banking Operations Total iii. Unallocated Expenses iv v. Provision for Tax vi. Extraordinary Items vii Other Information: viii. Segment Assets a) Treasury b) Corporate/Wholesale Banking c) Retail Banking d) Other Banking Operations Sub Total e) Unallocated Assets Total Assets ix. Segment Liabilities a) Treasury b) Corporate/Wholesale Banking c) Retail Banking d) Other Banking Operations Sub Total e) Unallocated Liabilities Total Liabilities Part B Sl. No GEOGRAPHICAL SEGMENTS Particulars YEAR ENDED (Audited) YEAR ENDED (Audited) 1. Revenue a) Domestic b) International Total Assets a) Domestic b) International Total Note: 1. Segment Liabilities are distributed in the ratio of their respective Segment Assets. 2. Figures of the previous period have been re-grouped /re PNB Full AR indd Jul-18 5:38:19 PM

114 17 Hkkjrh; lunh ys[kkdkj lalfkku }kjk tkjh la'kksfèkr ys[kk ekud & 18 ds vuqlkj çdvhdj.k lacafèkr ikfvz;ksa ds uke rfkk csad ds lkfk muds lacaèk eq[; çcaèku dkfezd % i) Jherh m"kk vuarlqczã.;u] çcaèk funs'kd,oa dk;zikyd vfèkdkjh rd dk;zjr ii) Jh lquhy esgrk] çcaèk funs'kd,oa dk;zikyd vfèkdkjh ls çhkko esa iii) Jh ds oh czãth jko] dk;zikyd funs'kd iv) MkW- jke,l laxkiwjs] dk;zikyd funs'kd] rd dk;zjr v) Jh latho 'kj.k] dk;zikyd funs'kd vi) Jh,y-oh-çHkkdj] dk;zikyd funs'kd] fnukad ls dk;zjr vuq"kafx;ka % i) ih,uch fxyv~l fyfevsm ii) iatkc us'kuy csad (bavjus'kuy) fyfevsm] ;w-dsiii) ih,uch buoslvesav lfozlst fyfevsm+ iv) Mªd ih,uch csad fyfevsm HkwVku v) ih,uch ba';ksjsal czksfdax çk-fy-* *daiuh dks can djus ds dne mbk;s tk jgs gsa] D;ksafd daiuh }kjk dks ykblsal ljsamj dj fn;k x;k gsa lg;ksxh lalfkk,a i) fçafliy ih,uch vlsv esustesav deiuh çk-fyii) fçafliy VªLVh deiuh çk-fyiii) ih,uch esvykbziq bafm;k,a';ksjsal da- fyiv) ih,uch gkåflax iqkbusal fyfevsm v) ts,llh (VsaxMh csad) dtkfdlrku vi) eè; fcgkj xzkeh.k csad] ivuk vii) loz gfj;k.kk xzkeh.k csad] jksgrd viii) fgekpy çns'k xzkeh.k csad] e.mh ix) iatkc xzkeh.k csad] diwjfkyk x) loz ;wih xzkeh.k csad] esjb la;qdr m e i),ojslv csad fy-] dkbekamw] usiky 17. Disclosure of Related Parties as per AS 18 issued by ICAI Names of the related parties and their relationship with the Bank: Key Management Personnel: i) Mrs. Usha Ananthasubramanian, Managing Director & CEO, Remained upto ii) Shri Sunil Mehta, Managing Director & CEO, w.e.f iii) Shri K.V. Brahmaji Rao, Executive Director iv) Dr. Ram S. Sangapure, Executive Director, Remained upto v) Shri Sanjiv Sharan, Executive Director. vi) Shri L. V. Prabhakar, Executive Director, w.e.f Subsidiaries: i) PNB Gilts Ltd. ii) Punjab National Bank (International) Ltd., UK. iii) PNB Investment Services Ltd. iv) Druk PNB Bank Ltd, Bhutan. v) PNB Insurance Broking Pvt Ltd*. *Steps are being taken for winding up of the company as the license has already been surrendered on Associates: i) Principal PNB Asset Management Company Pvt. Ltd. ii) Principal Trustee Company Private Limited. iii) PNB Metlife India Insurance Company Ltd. iv) PNB Housing Finance Ltd. v) JSC (Tengri Bank) Almaty, Ka akhstan. vi) Madhya Bihar Gramin Bank, Patna. vii) Sarva Haryana Gramin Bank, Rohtak. viii) Himachal Pradesh Gramin Bank, Mandi. ix) Punjab Gramin Bank, Kapurthala. x) Sarva UP Gramin Bank, Meerut. Joint Venture: i) Everest Bank Limited, Kathmandu, Nepal PNB Full AR indd Jul-18 5:38:19 PM

115 lacafèkr ikfvz;ksa ds lkfk ysu nsu* IkkVhZ Ekwy** (LokfEkRo vfkok fuõka=k.k ds vuqlkj) 2017&18 vfèkdrkek CkdkÕkk jkf'k vuq"kafxõkka ** 2017&18 vfèkdrkek CkdkÕkk jkf'k m Ek 2017&18 vfèkdrkek CkdkÕkk jkf'k Ekq[Õk çckaèku dk Ekd 2017&18 vfèkdrkek CkdkÕkk jkf'k Ekq[Õk çckaèku dk Ekd ds fj'rksnkj 2017&18 vfèkdrkek CkdkÕkk jkf'k 2017&18 (` yk[k esa) dqy vfèkdrkek CkdkÕkk jkf'k IkkfjJfEkd Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha (115.42) Ykkxw ugha Ykkxw ugha Ykkxw ugha (115.42) Ykkxw ugha mèkkj Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha tekkjkf'kõkk Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha ( ) (43.11) (154.23) (0.42) (0.42) ( ) (154.65) tekkjkf'kõkksa Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha dk fuõkkstu Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha vfxzek Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha (116.41) (117.21) (116.41) (117.21) 'ksõkj Ikw th Eksa fuos'k Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha ( ) ( ) ½.k i=kksa Eksa fuos'k Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha xsj fufèkd çfrkck¼rkk,a Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha yh xõkh yh ,pikh OÕkoLFkk nh xõkh yh OÕkoLFkk vpy vkflrkõkksa dh [kjhn vpy vkflrkõkksa dh fckøh yh xõkh yh ,pikh OÕkoLFkk lanùk CÕkkt Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha ( ) ( ) çkirk CÕkkt Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha lsok,a çkirk djuk Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha lsok,a çnku djuk Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha çckuèku lafonk,a Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha çkirk ykhkka'k Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha Ykkxw ugha CkSad çhkkj çkirk dekh'ku (dks"bdksa esa fn, x, vkadm+s finys o"kz ds gsa) ** vuq"kafx;ksa vksj dqn lg;ksxh lalfkkvksa ds lkfk gq, ysunsu dk çdvhdj.k ys[kk ekud & 18 lecfuèkr ikvhz çdvhdj.k ds isjk 9 ds eísutj ugha fd;k x;k gs tks jkt; }kjk fu;af=kr m eksa dks mudh,slh vu; lecfuèkr ikfvz;ksa ls ysunsu esa ls fdlh ls lecfuèkr lwpuk nsus ls NwV nsrk gs tks jkt; }kjk fu;af=kr gksa A PNB Full AR indd Jul-18 5:38:20 PM

116 Transactions with Related Parties (` in Lacs) Items/ Related Party Parent** (as per ownership or control) Subsidiaries** Associates/ Joint ventures Key Management Personnel Relatives of Key Management Personnel Total Maximum amount outstanding Maximum amount outstanding Maximum amount outstanding Maximum amount outstanding Maximum amount outstanding Maximum amount outstanding Remuneration N.A N.A N.A N.A NA NA NA NA N.A N.A N.A N.A (115.42) NA NA NA (115.42) NA Borrowings N.A N.A N.A N.A Deposits N.A N.A N.A N.A N.A N.A N.A N.A ( ) (43.11) (154.23) (0.42) (0.42) ( ) (154.65) Placement of N.A N.A N.A N.A Deposits N.A N.A N.A N.A Advances N.A N.A N.A N.A N.A N.A N.A N.A 0 (116.41) (117.21) 0 0 (116.41) (117.21) Investments in share N.A N.A N.A N.A capital N.A N.A N.A N.A ( ) ( ) Investments in N.A N.A N.A N.A debentures N.A N.A N.A N.A Non funded N.A N.A N.A N.A Commitments Leasing/ HP arrangements availed Leasing/ HP arrangements provided assets Sale of Fixed Assets Leasing/ HP arrangements availed Interest paid N.A N.A N.A N.A N.A N.A N.A N.A ( ) ( ) Interest received N.A N.A N.A N.A N.A N.A N.A N.A Receiving of N.A N.A N.A N.A Services N.A N.A N.A N.A Rendering of N.A N.A N.A N.A Services N.A N.A N.A N.A Management N.A N.A N.A N.A contracts N.A N.A N.A N.A Dividend received N.A N.A N.A N.A N.A N.A N.A N.A Bank Charges Commission Received (Figures in brackets relate to previous year) **The transactions with the subsidiaries and certain associates have not been disclosed in view of para-9 of AS-18 Related Party Disclosure, which exempts state controlled enterprises from making any disclosures pertaining to their transactions with other related parties, which are also state controlled PNB Full AR indd Jul-18 5:38:21 PM

117 18- ys[kk ekud 20 & çfr 'ks;j vtzu (bzih,l) Ø- lafooj.k d) ruqñr*(#i;s esa) (xsj okf"kzdñr) [k) dj ds i'pkr x.kd ds :i esa mi;ksx dh xbz jkf'k ij ykhk@gkfu (` gtkj esa) x) 'ks;jksa dk vafdr ewy; ` 2-00 çfr ` 2-00 çfr?k) ewy;oxz ds :i esa mi;ksx fd, x, bfdovh 'ks;jksa dh Hkkfjr vkslr la[;k 19- ys[kk ekud 22& vk; ij djksa ds lacaèk esa ys[kkadu csad us ys[kk uhfr la[;k 10 ds vuqlkj vklfkfxr dj vkflr;ksa rfkk ns;rkvksa dh igpku dh gs ftlds çeq[k?kvd fueufyf[kr gsa % (jkf'k djksm+ ` esa) fooj.k dh flfkfr dh flfkfr vklfkfxr dj vkflr;k NqV~Vh udnhdj.k ds fy, çkoèkku isa'ku o minku ds fy, çkoèkku èkkjk 43ch ds varxzr lkafofèkd ns;rk v'kksè; vksj lafnxèk ½.k ds fy, çkoèkku dj ;ksx; uqdlku (vkxs ys tk;k x;k) tksm vklfkfxr dj ns;rk,a vpy vkflr;ksa ij ewy;âkl vk;dj vfèkfu;e] 1961 dh èkkjk 36(1) (viii) ds varxzr dvksrh xsj mèkkj èkks[kkèkm+h (ih@,y esa MsfcV ugha fd;k x;k ysfdu vkbzvhvkj esa nkok fd;k x;k) tksm vklfkfxr dj vkflr;k ('kq¼) o"kz 2017&18 ds fy, #i;s ` djksm+ (` djksm+) dh vklfkfxr dj vkflr;k ykhk o gkfu [kkrs esa tek dh xbz gsaa 20- ys[kk ekud 23& lesfdr foùkh; fooj.kksa esa,lksfl,vksa esa fuos'kksa ds fy, ys[kkadu pw fd csad dh viuh lg;ksxh lalfkkvksa esa Hkkxhnkjh çñfr dk fuos'k gs vksj csad dks mudh xfrfofèk;ksa ij egroiw.kz çhkko Mkyus dk vfèkdkj gs] vr% csad dh lesfdr foùkh; foojf.k;ksa esa,sls fuos'kksa dks eku;rk nh xbz gsa 21- ys[kk ekud 24& ifjpkyu vo#¼ gksuk fnukad ls dh vofèk ds nksjku csad us viuh fdlh Hkh 'kk[kk dk ifjpkyu vo#¼ ugha fd;k gs ftlds ifj.kkelo:i ns;rkvksa dh 'ksfmax vksj vkflr;ksa dk Hkqxrku rfkk,slk dksbz fu.kz; ugha fy;k x;k ftlls ifjpkyu esa dksbz Hkh çhkko im+k gksa 22- ys[kk ekud 28& vkflr;ksa dh vilkeku;rk csad dh vkflr;ksa esa i;kzir fgllk foùkh; vkflr;ksa dk gs ftuij ys[kk ekud 28 vkflr;ksa dh vilkeku;rk ykxw ugha gsa csad dh jk; esa bu vflr;ksa (ftu ij ekud ykxw gksrk gs) dh mdr ekud dh 'krz 18. AS 20 - Earnings Per Share Sl. Particulars No. A EPS - Basic / Diluted (in `) (Non Annuali ed) B (Loss) after tax (` in 000) C Nominal value of share ` 2.00 each ` 2.00 each D Weighted average number of equity shares used as the denominator 19. AS 22- Accounting for taxes on Income The Bank has recogni ed deferred tax assets and liability as per accounting policy no. 10. Major components of which are set out below: (` in Crores) Particulars As on As on Deferred Tax Assets Provision for Leave encashment Provision for Pension & Gratuity Statutory Liability u/s 43B Provision for bad & doubtful debts Taxable loss (carried forward) Total Deferred Tax Liabilities Deduction u/s 36(1)(viii) of Income Tax Act Non Borrowal Fraud (not debited in P/L but claimed in ITR) Total Deferred Tax Assets (Net) The deferred tax assets ` crore for FY (` 20. AS 23- Accounting for Investments in Associates in Since Investments of the bank in its Associates are participative in nature and the Bank having the power Investments are recogni ed in the Consolidated Financial Statements of the Bank. 21. AS 24 - Discontinuing Operations During the period from to , the bank has not discontinued operations of any of its branches, which resulted in shedding of liability and reali ation of the assets and no decision has been will have the above effect. 22. AS 28 Impairment of Assets A substantial portion of the bank s assets comprises Impairment of Assets is Not Applicable. In the opinion of the bank, there is no impairment of its assets (to which the PNB Full AR indd Jul-18 5:38:21 PM

118 ds vèkhu visf{kr igpku ds fy, dks fdlh egroiw.kz lhek rd vilkeku;rk ugha gsa 23 ys[kk ekud 29& çkoèkku] vkdfled ns;rk,a vksj vkdfled vkflr;k i) ns;rkvksa ds fy, çkoèkkuksa esa mrkj&p<+ko* (` djksm+ esa ) fooj.k osru cdk;k dkuwuh ekeys@ vkdfledrk,a 1 vçsy] 2017 dks 'ks"k (8.34) (19.89) vof/ ds nksjku miycèk djk, x, (0.00) (5.52) vofèk ds nksjku ç;qdr jkf'k;ka (1.24) (0.00) vofèk ds nksjku fjolz (0.00) (1.05) 31ekpZ 2018 dks 'ks"k (7.10) (24.36) vfu'p; dk le; oklrfod Hkqxrku ij lsvyesav@ følvsykbts'ku ij vkmvýyks oklrfod Hkqxrku ij lsvyesav@ følvsykbts'ku ij vkmvýyks * vu; ds fy, çkoèkku dks NksM+dj (finys o"kz ls lecafèkr jkf'k dks"bd esa gs) ii) vkdfled ns;rkvksa ij vuqlwph & 12 ns[ksa Øe la[;k(i)] (II)] (III)] (IV)] (V) o (VI) dh,slh ns;rk,a le>ksrksa ds fu"d"kksaz] vihyksa dh fuivku] ekaxh tk jgh jkf'k] lafonkxr nkf;roksa dh 'krksaz] lec¼ ikfvz;ksa }kjk dh x;h ek xksa ij Øe'k% vkfjr gsa A,sls ekeyksa esa dksbz çfriwfrz çr;kf'kr ugha gs A 24- ykhk o gkfu [kkrs esa O;; 'kh"kz ds vurxzr n'kkz;s x;s çkoèkku o vkdfledrk,a dk fooj.k fueufyf[kr gs % (` djksm+ esa) fooj.k fuos'kksa ij ewy;âkl gsrq çkoèkku ('kq¼) vutzd vkflr;ksa ds fy, çkoèkku ('kq¼) ekud vkflr;ksa ds fy, çkoèkku vk;dj ds fy, çkoèkku (,iqchvh vksj èkudj lfgr) vu; çkoèkku vksj vkdfledrk,a% fooj.k ekud iqu% lajfpr@vu;@msfjosfvo ,llh@ vkjlh dh fcøh cv~vs [kkrk o vu; vkjfly dh fcøh iqu% lajfpr lhmhvkj&,iqvkbzvh,y tksm standard applies) to any material extent as at requiring recognition in terms of the said standard. 23. AS-29 Provisions, Contingent Liabilities and Contingent Assets i) Movement of provisions for liabilities* (` in Crore) Particulars Salary arrears Legal cases/ contingencies Balance as at 1 st April (8.34) (19.89) Provided during the period (0.00) (5.52) Amounts used during the period (1.24) (0.00) Reversed during the period (0.00) (1.05) Balance as at (7.10) (24.36) *Excluding provisions for others Figures in brackets relate to previous year. ii) On actual Payment (On actual Payment) settlement / crystalli ation settlement / crystalli ation) Refer Schedule-12 on contingent liabilities Such liabilities at S.No.(I), (II), (III), (IV), (V) & (VI) are dependent upon the outcome of Court / arbitration / out of court settlement, disposal of appeals, the amount being called up, terms of contractual obligations, devolvement and raising of demand by concerned parties, respectively. 24. Break up of Provisions and Contingencies shown is as follows: (` in Crore) Particulars Provisions for depreciation on investment (net) Provision towards NPAs (net) Provision towards Standard Assets Provision made towards Income Tax Other Provision and Contingencies: Detail: Standard Restructured Sale to SC/RC Written off & others Sale to Arcil Restructured CDR-FITL Total PNB Full AR indd Jul-18 5:38:21 PM

119 25- ÝyksfVax çkoèkkuksa dk fooj.k fueufyf[kr gs % (` djksm+ esa) fooj.k çkjfehkd 'ks"k o"kz ds nksjku fd, x, ÝyksfVax çkoèkkuksa 'kwu; 'kwu; dh jkf'k o"kz ds nksjku vkgj.k }kjk dh xbz deh Mªk MkÅu dh 'kwu; 'kwu; jkf'k vksj mís'; bfr'ks"k çkjf{kr fufèk ls jkf'k fudkyuk% (` djksm+ esa) Ø- çkjf{kr fufèk la- 1- vu; çkjf{kr (CykWDM [kkrk) fudkyh xbz jkf'k 'kwu; ('kwu;) 2- iquewzy;u çkjf{kr (58.49) mís'; ekpz 2018 ( ls ) dh lekir vofèk ds nksjku var% 'kk[kk ØsfMV]CykWDM vksj tujy ystj esa dh xbz VªkaliQMZ çfof"v;ka ds fo#¼ dksbz nkok çkir ugh gqvk gsa laifùk ds iquewzy;u okys Hkkx ij ewy;âkl 27-,Vh,e ls lacafèkr xzkgdks dh f'kdk;rksa lfgr csafdax yksdiky ds vfèkfu.kz;ksa dks fø;kfuor u djus ds lacaèk esa çdvhdj.k% d- xzkgd f'kdk;rsa fooj.k (d) o"kz ds vkjehk esa yfecr f'kdk;rksa dh la[;k ([k) o"kz ds nksjku çkir f'kdk;rksa dh la[;k (x) o"kz ds nksjku fuivkbz xbz f'kdk;rksa dh la[;k (?k) o"kz ds var esa yfecr f'kdk;rksa dh la[;k [k- csafdax yksdiky }kjk fn, x, vfèkfu.kz; fooj.k (d) o"kz ds vkjehk esa ykxw u fd, x, vfèkfu.kz;ksa NIL** 0 dh la[;k ([k) o"kz ds nksjku csafdax yksdiky }kjk ikfjr 3 2 vfèkfu.kz;ksa dh la[;k (x) o"kz ds nksjku ykxw fd, x, vfèkfu.kz;ksa dh la[;k 1 0 (?k) o"kz ds var esa ykxw u fd, x, vfèkfu.kz;ksa dh la[;k 2* 2 ** rd 2 ekeys cdk;k Fks ftuds fy, vihy dh x;h Fkh vksj mudks dk;e j[kk x;k gsa * vkjchvkbz esa nksuksa ekeys yafcr gsaa csad dsaæhñr fu;a=k.k ykxw djus dh çfø;k esa gs rkfd fjiksfvazx ds fy,% f'kdk;rksa dk MkVk vksj vokmz Lor tujsv gks ldsaa 28- csad us ;wukbvsm fdaxme esa çwmsaf'k;y jsx;qys'ku vfkksfjvh (ihvkj,) dks ;w-ds- flfkr viuh vuq"kaxh iatkc us'kuy csad (bavjus'kuy) fyfevsm ds lacaèk esa,d pqdksrh vk'oklu i=k tkjh fd;k gs ftlesa bl ckr dk vk'oklu fn;k x;k Fkk fd ;fn iatkc us'kuy csad 25. Break-up of Floating Provisions is as follows: (` in Crore) Particulars Opening balance NIL NIL the year Purpose and amount of draw down made NIL NIL during the year Closing balance Draw Down from Reserves: (` in crore) Sr. Reserves No. 1 Other Reserves (Blocked Account) 2 Revaluation reserves Amount drawn NIL (NIL) (58.49) Purpose No claim has been received during the period ended March 2018 ( to ) against Inter Branch Credit entries, Blocked and transferred to General Reserve. Depreciation on revalued portion of property. 27. Disclosure of complaints and unimplemented awards of Banking Ombudsman including customer complaints pertaining to ATM. a. Customer Complaints Particulars (a) No. of complaints pending at the beginning of the year (b) No. of complaints received during the year (c) No. of complaints redressed during the year (d) No. of complaints pending at the end of year b. Awards passed by the Banking Ombudsman Particulars (a) No. of unimplemented Awards at the NIL** 0 beginning of the year (b) No. of Awards passed by the Banking 3 2 Ombudsman during the year (c) No. of Awards implemented during the 1 0 year (d) No. of unimplemented Awards at the end of year 2* 2 ** 02 cases were pending as on for which the appeal was made and the same was upheld. *Appeal pending with RBI in both the cases. The Bank is in the process of implementing centrali ed controls to ensure that data of complaints and awards is generated automatically for reporting. 28. The Bank has issued a Letter of Comfort to Prudential Regulation Authority (PRA), the regulator in United Kingdom, committing that the bank shall provide PNB Full AR indd Jul-18 5:38:22 PM

120 (bavjus'kuy) fyfevsm] ;wds viuh foùkh; çfrc¼rk,a iwjh u dj ik, rks csad mls foùkh; lgk;rk çnku djsxk A mdr ds vfrfjdr csad }kjk dksbz vk'oklu i=k tkjh ugha fd;k x;k gs vr% vk'oklu i=k ds varxzr dksbz foùkh; çfrc¼rk ugha gsa ;wds ds jsxwysvj] çwmsaf'k;y jsxwysvjh vfkkwfjvh (ihvkj,) us fnukad ds i=k ds vuqlkj csad dks ^okwp fylv* ds varxzr j[kk gsa ijurq dksbz fo'ks"k ikcanh ;k isuyvh ugha gs A ih,uch us 2 twu] 2017 dks U;wure fu;ked iwath vko';drkvksa dks iwjk djus esa mdr dh lgk;rk ds fy, ;w,lmkwyj 20 fefy;u dh ubz iwath nh gsa 29- csad }kjk çkjehk fd, x, csad chek dkjksckj ds lecuèk esa çdvhdj.k (` djksm+ esa) fooj.k o"kz ds nksjku csad }kjk fd, x,s E;qpqvy iqam dkjksckj lfgr csad,';ksjsal dkjksckj ds lecuèk esa 'kqyd@ ikfjjfed ds :i esa çkir jkf'k dk fooj.k (i) thou chek dkjksckj (ii) xsj thou chek dkjksckj (iii) E;qpqvy iqam dkjksckj tksm I. tek jkf'k;ksa] vfxzeksa] ½.k tksf[keksa vksj vutzd vkflr;ksa dk dsuæhdj.k % (d) tek jkf'k;ksa dk dsuæhdj.k (` djksm+ esa) fooj.k lcls cm+s tekdùkkzvksa dh dqy tek jkf'k csad dh dqy tek jkf'k dh rqyuk esa 20 lcls cm+s 4.91% 3.29 % tekdrkzvksa dh tek jkf'k dk çfr'kr ([k) vfxzeksa dk dsuæhdj.k (` djksm+ esa) fooj.k lcls cm+s ½f.k;ksa@xzkgdksa ds dqy vfxze csad ds ½f.k;ksa ds dqy vfxzeksa dh rqyuk esa 20 lcls cm+s ½f.k;ksa ds vfxzeksa dk çfr'kr 19.73% % (x),dlikstj dk dsuæhdj.k (` djksm+ esa) fooj.k lcls cm+s ½f.k;ksa dks fn;k x;k dqy,dlikstj csad ds dqy ½.k dh rqyuk esa 20 lcls cm+s ½f.k;ksa@ xzkgdksa dks çnùk,dlikstj 17.56% %?k) vutzd vkflr;ksa dk dsuæhdj.k (` djksm+ esa) fooj.k VkWi 4,uih, [kkrksa esa dqy ½.k M) çkoèkkuhdj.k dojst vuqikr fooj.k çkoèkkuhdj.k dojst vuqikr 58.42% 58.57% commitments as and when they fall due. Apart from the above, the Bank has not issued any Letter of Comfort and therefore there are no cumulative Financial obligations under Letter of Comfort. The Prudential Regulatory Authority (PRA), regulator of UK, has vide its letter dated put the Bank penalties. PNB infused fresh capital of USD 20 million on 2 nd June 2017 to help it to meet the minimum regulatory capital requirements. 29. Disclosure in respect of Insurance Business undertaken by the bank: (` in Crore) Particulars Details of fees/brokerage/remuneration earned in respect of Insurance, Broking, Agency and Business including Mutual Fund Business undertaken by the bank during the year. (i) Life Insurance Business: (ii) Non-life Insurance Business: (iii) Mutual Fund Business TOTAL I. Concentration of Deposits, Advances, Exposures and NPAs: (a) Concentration of Deposits: (` in Crore) Particulars Total Deposits of twenty largest depositors Percentage of Deposits of twenty largest depositors to Total Deposits of the bank 4.91% 3.29 % (b) Concentration of Advances: (` in Crore) Particulars Total Advances of twenty largest borrowers Percentage of Advances of twenty largest borrowers to Total Advances of the bank 19.73% % (c) Concentration of Exposures: (` in Crore) Particulars Total Exposures of twenty largest borrowers/ customers Percentage of Exposures to twenty largest borrowers/customers to Total Exposures of the bank on borrowers/customers 17.56% % (d) Concentration of NPAs: (` in Crore) Particulars Total Exposure to top four NPA accounts (e) Provisioning Coverage Ratio: Particulars Provisioning Coverage Ratio 58.42% 58.57% PNB Full AR indd Jul-18 5:38:22 PM

121 II. Ø- la- {ks=k&okj vfxze% {ks=k rd rd dqy cdk;k vfxzesa ldy bu {ks=kksa,uih, esa dqy vfxzeksa esa ls ldy,uih, dk çfr'kr dqy cdk;k vfxzesa (` djksm+ esa) ldy bu {ks=kksa,uih, ds dqy vfxzeksa esa ls ldy,uih, dk çfr'kr,- çkfkfed {ks=k 1 Ñf"k,oa lgk;d xfrfofèk;k çkfkfed {ks=k ds ½.kksa ds fy, ik=k vks ksfxd {ks=kksa dks vxzhesa lsok,a O;fDrxr ½.k mi&tksm+ (v) ch- xsj çkfkfed {ks=k 1 Ñf"k,oa lgk;d xfrfofèk;k bamlvªh lsok,a O;fDrxr ½.k mi&tksm+ (v) dqy tksm+ (v+vk) III. vutzd vkflr;ksa esa mrkj&p<+ko% (` djksm+ esa) fooj.k ldy vutzd vkflr;ksa dk çkjfehkd vfèk'ks"k o"kz ds nksjku o`f¼ (u,,uih,) mi tksm+ (,) deh % (i) vixzsms'ku (ii) olwyh (vixzsm fd, x, [kkrksa ls dh xbz olwyh dks NksM+dj) (iii) rduhdh@çwmsav jkbzv&vkwiq (iv) mdr (iii) dks NksM+dj fd;k x;k jkbzv&vkwiq mi tksm+ (ch) ldy vutzd vkflr;ka (,&ch) rduhdh jkbzv&vkwiq rfkk blesa dh xbz olwfy;ksa dk fooj.k % (` djksm+ esa) fooj.k rduhdh@çwmsavjkbzv vkwiq [kkrksa dk çkjfehkd 'ks"k ;ksx% o"kz ds nksjku rduhdh@ çwmsav jkbzv mi tksm+ (,) deh% o"kz ds nksjku iwoz rduhdh@ çwmsav jkbzv (ch) ls dh xbz olwyh vafre 'ks"k (,&ch) II. Sector-wise advances: Sl. Sector As on As on No. Outstanding Total Advances Gross NPAs Percentage of Gross NPAs to Total Advances in that sector Outstanding Total Advances Gross NPAs (` in Crore) Percentage of Gross NPAs to Total Advances in that sector A Priority Sector 1. Agriculture and allied activities Advances to industries sector eligible as priority sector lending Services Personal loans Sub-total (A) B Non Priority Sector 1. Agriculture and allied activities Industry Services Personal loans Sub-total (B) Total (A+B) III. Movement of NPAs: (` in Crores) Particulars Gross NPAs Opening balance Additions (Fresh NPAs) during the year Sub-total (A) Less: (i) Up gradations (ii) Recoveries (excluding recoveries made from upgraded accounts) (iii) Technical /Prudent Write-offs (iv) Write-offs other than those under (iii) above Sub-total (B) Gross NPAs Closing balance (A-B) Detail of Technical write-offs and the recoveries made there on: (` in Crores) Particulars Opening balance of Technical / Prudential written-off accounts Add : Technical / Prudential write-offs during the year Sub-total (A) Less : Recoveries made from previously technical / prudential written-off accounts during the year (B) Closing balance (A-B) PNB Full AR indd Jul-18 1: :58 PM

122 IV. fons'k flfkr vkflr;k ],uih, vksj jktlo% IV. Overseas Assets, NPAs and Revenue: (` djksm+ esa) fooj.k dqy vkflr;k dqy,uih, (ldy) dqy jktlo V rd csad }kjk çk;ksftr vkwiq&'khv csysal 'khv,lihoh (ftudk ys[kkadu ekun.mksa ds vuqlkj lesdu visf{kr gs) bl çdkj gs%?kjsyw çk;ksftr fo'ks"k ç;kstu ds uke fons'kh 'kwu; 'kwu; 31- ØsfMV dkmz vksj MsfcVdkMZ ds fjokwmz ikwbav~l i) tc dhkh ih,uch Xykscy ØsfMV vksj MsfcVdkMZ èkkjd vius ØsfMV dkmz vksj MsfcV dkmz dk mi;ksx djds [kjhnnkjh djrs gsa rks mugsa fjokwmz ds vad çnku fd;k tkrk gs A ;s vad mugsa O;kikfjd lalfkku ij ØsfMV vksj MsfcV dkmz dk mi;ksx djrs le; tkjh fd, tkrs gsaa dkmzèkkjd bu,df=kr vadksa dks fjmhe dj ldrk gs A fjokwmz vadksa ds dkj.k ns; jkf'k dks ykhk o gkfu [kkrs esa çhkkfjr fd;k tkrk gs vksj nsfud vkèkkj ij fofhkuu çkoèkku [kkrs esa ØsfMV fd;k tkrk gs D;ksafd ;g jkf'k ifjek.k ;ksx; gksrh gs A cdk;k fjokwmz vadksa (ØsfMV dkmz) rfkk muds lacaèk esa fd, x, çkoèkku dh flfkfr fueufyf[kr gs% fooj.k rd rd cdk;k 'ks"k fjokwmz vad bu vadksa ds fy, fd;k x;k çkoèkku (` djksm+ esa)* *ØsfMV dkmz ds lacaèk esa fjokwmz ikwbav~l ds çfr 1 ikwbav ds fy, ` 0-50 dk çkoèkku fd;k x;k gsa fjmsei'ku ds finys pyu ds vkèkkj ij] finys o"kz ds vuqekfur vkèkkj ij lafpr fjokwmz ikwbav~l ds 25% dk çkoèkku fd;k x;k gsa (` in Crores) Particulars Total Assets Total NPAs (Gross) Total Revenue V. Off-balance sheet SPVs sponsored by the Bank (which are required to be consolidated as per accounting norms) as on are as under: Domestic NIL Name of the SPV sponsored Overseas 31. Reward Points of Credit Card & Debit Card i) PNB Global Credit & Debit Cardholders are rewarded as and when they make purchases through usage of Credit & Debit Card. Reward Points are generated at the time of usage of Credit & Debit Card by Cardholder at merchant Establishment. Card holder can redeem the accumulated reward points. The amount payable and Loss account and credited to Sundry Provision Account on daily basis. NIL Position of outstanding reward points and provision regarding Credit Cards is as under: Particulars As on As on Balance Reward Points outstanding Provision held for these points (` in crore)* *The provision held against Rewards points in respect of Credit Cards has been worked out at ` 0.50 for 1 point. Based on past trend of redemption, provision has been 25% of accumulated Reward points on estimated basis as in the previous year. ii) ykw;yvh fjokwmz ikwbav~l & MsfcV dkmz ls lacafèkr cdk;k fjokwmz ikwbav~l vksj mu ij çkoèkku dh flfkfr bl çdkj gs ii) Position of outstanding reward points and provision thereon regarding Loyalty Reward Points- Debit Cards is as under: fooj.k rd rd cdk;k 'ks"k ykw;yvh fjokwmz ikwbav fjokwmz ikwbavl ds fy, fd;k x;k çkoèkku (` djksm+ esa)* * ykw;yvh fjokmz ikwbav~l esa 1 ikwbav~l ds fy, ` 0-25 dk çkoèkku j[kk x;k gs ftls finys o"kz dh rjg vuqekfur vkèkkj ij 15% ewy;kafdr fd;k x;k gs A Particulars As on As on Balance of loyalty reward points Provision held against reward points (` in crore)* *The provision held against Loyalty Reward points has been worked at `.0.25 for 1 point, which has further been valued at 15% on estimated basis as in the previous year PNB Full AR indd Jul-18 5:38:24 PM

123 32- çfrhkwfrdj.k ls lacfuèkr çdvhdj.k çfrhkwfr vkflr;ksa dh cdk;k jkf'k% Ø- lafooj.k djksm+ esa 1 çfrhkwfrdj.k ysu&nsuksa ds fy, csad }kjk çk;ksftr,lihoh dh la[;k 'kwu; 2 csad }kjk ç;ksftr,lihoh dh cfg;ksa ds vuqlkj çfrhkwr vkflr;ksa 'kwu; dh dqy jkf'k 3 rqyu i=k dh frffk dks,evkjvkj dh vuqikyuk esa csad }kjk jksds 'kwu; x, ½.kksa dh dqy jkf'k d)- vkwiq&csysal 'khv,dlikstj vkjafhkd deh vu; [k)- vkwiq&csysal 'khv,dlikstj vkjafhkd deh vu; 4,evkjvkj ds vykok çfrhkwfrdj.k ysu&nsuksa ds fy,,dlikstj jkf'k 'kwu; d)- vkwiq&csysal 'khv,dlikstj i) futh çfrhkwfrdj.k dk,dlikstj vkjafhkd deh vu; ii) futh çfrhkwfrdj.k dk,dlikstj vkjafhkd deh vu; [k)- vkwiq&csysal 'khv,dlikstj 'kwu; i) futh çfrhkwfrdj.k dk,dlikstj vkjafhkd deh vu; ii) futh çfrhkwfrdj.k dk,dlikstj vkjafhkd deh vu; 33- ØsfMV fmiqkyv LoSi pw fd csad lhmh,l lafonkvksa ds ewy; fuèkkzj.k gsrq dksbz LokfeRo ewy;u ekwmy dk mi;ksx ugha djrk vksj ;g dkmavj lafonk (vksvhlh) ij gs] vr% ewy; dk fuèkkzj.k xfreku cktkj }kjk gksrk gs A vr% orzeku Hkkjrh; fjtoz csad dh 'krkzuqlkj dksbz çdvhdj.k ugha fd;k tkuk gsa 34- tekdrkz f'k{kk,oa tkx:drk fufèk (MhbZ,,iQ) dks varj.k % vkjchvkbz ds ifji=k MhchvksMh-la0-MhbZ,,iQ lsy chlh 114@ @2013&14] fnukad ds vuqikyu esa csad us MhbZ,,iQ ;kstuk] 2014 ds varxzr fueu jkf'k vkjchvkbz dks varfjr dh xbz gsa (jkf'k ` djksm+ esa) fooj.k dks dks MhbZ,,iQ dks varfjr jkf'k dk çkjfehkd 'ks"k tksm+% vofèk ds nksjku MhbZ,,iQ dks varfjr dh xbz jkf'k deh% Dyse ds fo#¼ MhbZ,,iQ }kjk jkf'k dh çfriwfrz * dks MhbZ,,iQ dks varfjr dh xbz jkf'k dk vafre 'ks"k *foùkh; fooj.kh dh vuqlwph 12 ds varxzr vkdfled ns;rkvksa&vu; ds rksj ij çnf'kzr gqvk gsa 32. Disclosures relating to Securitization OUTSTANDING AMOUNT OF SECURITISED ASSETS: SI. Particulars No 1. No of SPVs sponsored by the bank for securiti ation transactions* 2. Total amount of securiti ed assets as per books of the SPVs sponsored by the bank 3. Total amount of exposures retained by the bank to comply with MRR as on the date of balance sheet a) Off-balance sheet exposures First loss Others b) On-balance sheet exposures First loss Others 4 Amount of exposures to securiti ation transactions other than MRR a) Off-balance sheet exposures i) Exposure to own securiti ations First loss Others ii) Exposure to third party securiti ations First loss Others No./` in crore b) On-balance sheet exposures NIL i) Exposure to own securiti ations First loss Others ii) Exposure to third party securiti ations First loss Others 33. Credit Default Swaps Since the Bank is not using any proprietary pricing model for pricing CDS contracts, and it is over the counter contract (OTC), the price is determined by the market dynamics. As such no disclosure is to be made in terms of extant RBI guidelines. 34. Transfers to Depositor Education and Awareness Fund (DEAF): In compliance to RBI Circular No. DBOD.NO. DEAF. CELL. BC.114/ / dated , the Bank has transferred the following amount to RBI, as per Depositor Education and Awareness Scheme, (` in Crore) Particulars As on As on Opening balance of amounts transferred to DEAF Add : Amounts transferred to DEAF during the period Less : Amounts reimbursed by DEAF towards claims Closing balance of amounts transferred to DEAF as at * NIL NIL NIL NIL PNB Full AR indd Jul-18 5:38:24 PM

124 35- vjf{kr fons'kh djsalh,dlikstj (;w,iqlhbz) csad us ØsfMV esa yxh djsalh dks fu;af=kr djus gsrq,d uhfr cukbz gs rfkk bls csad dh orzeku ØsfMV çcuèku,oa tksf[ke uhfr esa fueukuqlkj 'kkfey fd;k x;k gs% vjf{kr fons'kh djsalh,dlikstj esa iwath,oa çkoèkku vko';drkvksa ds lecuèk esa vkjchvkbz us fn'kkfunsz'k fn, gsa fd frekgh ds var esa okf"kzd (bzchvkbzmh) ds lkfk csad djsalh ds vuqlkj mèkkjdrkzvksa ds [kkrksa esa vkjf{kr fons'kh djsalh,dlikstj ij fu;a=k.k j[ksxka [kkrksa esa 0 ls 80 chih,l dh Js.kh rd ds baøhesavy çkoèkku] tks fd dqy ØsfMV,DLikstj,oa iwath dh vko';drk] LVS.MMZ vkflr çkoèkku,oa iwath dh vko';drk vksj lehkor% mlls gksus okyh gkfu ds fy, mèkkjdrkz dks vius [kkrksa esa ogu djuk gksxk A bl rjg ds [kkrksa esa çkoèkku dh vko';drkuqlkj,dlikstlz ds fy, csad,d vyx pktz cuk,xk] ftldh ykxr mèkkjdrkz }kjk ogu dh tk,xh A csad dh foùkh; fooj.kh esa,d leqfpr,dlikstj cuk;k tk,xka (jkf'k ` djksm+ esa) fooj.k dks dks baøhesavy çkoèkku baøhesavy dsfivy bavªk xzqi,dlikstj (jkf'k ` djksm+ esa) fooj.k dks dks d bavªk xzqi,dikstj dh dqy jkf'k [k 'kh"kz 20 bavªk xzqi,dlikstj*dh dqy jkf'k ( ,aVhVh) x mèkkjdrkzvksa@xzkgdksa ij csad ds dqy,dlikstj esa 0.53% 0.47 % ls bavªk xzqi,dlikstj dk çfr'kr ( rd)?k bavªk xzqi,dikstj ij fyfev dk myya?ku dk O;kSjk,oa jsxqysvjh,d'ku] ;fn dksbz gks 'kwu; 'kwu; * 1 ih,uch gkmflax iqkbusal fyfevsm 2- ih,uch fxyv~l fyfevsm 3- fçafliy ih,uch laifùk çcaèku daiuh çk- fyfevsm 4- ih,uchvkbz,y fyfevsm 5- Mªd ih,uch csad fyfevsm 37- pyfufèk dojst vuqikr pyfufèk dojst vuqikr ij xq.kkred çdvhdj.k csad us 1 tuojh] 2015 ls pyfufèk dojst vuqikr ij vkjchvkbz ds fn'kkfunsz'kksa dks fø;kao;u fd;k gsa,ylhvkj dk mís'; ;g lqfuf'pr djuk gs fd csad ds ikl i;kzir ek=kk esa mpp xq.koùkk iw.kz pyfufèk vkflr;ka jgs ftlls fd pyfufèk LVªsl flukfj;ks ds varxzr 30 dsys.mj fnuksa ds fy, pyfufèk vko';drk dks iw.kz djus ds fy, bls fcuk mlds ewy; dks gkfu igqpkars gq, vklkuh ls udnh esa ifjofrzr fd;k tk ldsa,ylhvkj ds nks?kvd gs% i. mpp xq.koùkk iw.kz pyfufèk (,pd;w,y,) vkflr;ksa ds LVkWd dk ewy; & n U;wejsVj A ii. dqy 'kq¼ udnh çokg % 30 dsys.mj fnuksa ds fy, LVªsl flukfj;ks esa dqy vuqekfur udnh vkwmvýyks ekbzul dqy vuqekfur udnh buýyks & n fmuksfeusvj A 35. Unhedged Foreign Currency Exposure (UFCE): The Bank has framed a policy to manage currency induced credit risk and has been incorporated in current bank s Credit Management & Risk Policy as follows: In terms of RBI guidelines Bank monitors the currency wise Un-hedged Foreign Currency Exposure in the books of borrowers at quarter ends along-with the Annuali ed Earnings before Interest & Depreciation (EBID). The incremental provision (ranging from 0 to 80 bps on total credit exposure, over and above the standard asset provisioning) and capital requirement will depend on likely may face due to their un-hedged forex exposure in their books. Bank maintains separate charge and provisioning requirement on account of such exposures which may impact the cost to the borrowers. Appropriate disclosures (` in Crore) Particulars Incremental Provision Incremental capital held Intra-Group Exposures (` in Crore) Particulars a) Total amount of intra-group exposures b) Total amount of top-20 intra group exposures.*(5 entities) c) Percentage of intra-group exposures to total exposure of the Bank on borrower/ customers (As on ). 0.53% 0.47 % d) Details of breach of limits on intra-group exposures and regulatory action, if any. *1. PNB Housing Finance Ltd. 2. PNB Gilts Ltd. 3. Principal PNB Asset Management Co. Pvt. Ltd. 4. PNBIL LTD. 5. DRUK PNB BANK LTD 37. Liquidity Coverage Ratio (LCR) QUALITATIVE DISCLOSURE ON LIQUIDITY COVERAGE RATIO The bank has implemented RBI guidelines on Liquidity Coverage Ratio (LCR) from 1 st January The LCR standard aims to ensure that a bank maintains an adequate level of unencumbered High Quality Liquid Assets (HQLAs) that can be readily converted into cash at little/no loss of value to meet its liquidity needs for a 30 calendar day time hori on under a liquidity stress scenario. LCR has two components: i. The value of the stock of High Quality Liquid Assets (HQLA) he umerator. scenario, for the subsequent 30 calendar days - he denominator NIL NIL PNB Full AR indd Jul-18 5:38:24 PM

125 ,ylhvkj dh ifjhkk"kk % mpp xq.koùkkiw.kz pyfufèk vkflr;ksa (,pd;w,y,) dk LVkd_ 100% vxys 30 dsys.mj fnuksa ls vfèkd dqy 'kq¼ udnh cká çokg uhps fn, U;wure vko';d Lrj dh VkbZe ykbzu ds lkfk csad ij,ylhvkj dh vko';drk,d ckè;rk cu xbz gs% 1 tu] 1 tu] 1 tu] 1 tu] 1 tu] U;wure,ylhvkj 60% 70% 80% 90% 100% prqfkz frekgh foùkh; o"kz 2017&18 ds fy,] 90% fofu;ked vis{kkvksa ds vuqlkj,ylhvkj ds çfr lesfdr Lrj ij nsfud vkslr,ylhvkj % (nsfud vksctosz'ku ds lkèkkj.k vkslr ij vkèkkfjr) jgka csad ds,ylhvkj dk eq[;?kvd i;kzir mpp xq.koùkk iw.kz pyfufèk vkflr;ka gsa (,pd;w,y,) ftlls gj le; csad dh pyfufèk vko';drkvksa dks iwjk fd;k tk lds rfkk [kqnjk,oa NksVs dkjksckjh xzkgdksa dks cqfu;knh iqafmax dh tk lds A csad ds dqy tek iksvziqksfy;ks dk ykhk 69-01% va'knku [kqnjk rfkk NksVs dkjksckj dk gs ftlls 5@10% dk yks ju vkiq iqsdvj vkdf"kzr gksrk gsa mpp xq.koùkk iw.kz py vkflr (,pd;w,y,) dh lajpuk Lrj 1 o Lrj 2 vkflr;ka,pd;w,y, esa lekfo"v gsaa Lrj 2 vkflr;ka mudh dher vflfkjrk dks ns[krs gq, Lrj 2,,oa Lrj 2ch esa fohkkftr dh x;h gsaa Lrj 1 & vkflr;ka os vkflr;ka gsa tks mppçokgh gsaa 31 ekpz] 2018 dks lekir frekgh ds fy, Lrj 1 vkflr;ksa esa ds'k bu gsam] lhvkjvkj dk vfèkd gksuk],l,yvkj ls vfèkd ljdkjh çfrhkwfr;k ],e,l,iq o,iq,,y,ylhvkj ds vfrfjdr lkojsu çfrhkwfr;k ftudk ewy; djksm gs A (nsfud vksctosz'ku ds lkèkkj.k vkslr ij vkèkkfjr) Lrj 2, o 2ch os vkflr;ka gsa tks U;w~u çokgh gsa vksj mudh Hkkj jkf'k ` djksm+ (nsfud vksctosz'ku ds lkèkkj.k vkslr ij vkèkkfjr) ij vk x;h gs dks lekir frekgh ds nksjku nsfud vksctosz'ku vkslr,pd;w,y, dk czsd vi fueukuqlkj fn;k x;k gsa a mpp xq.kork rjy leifùk (,pd;w,y,),pd;w,y, dks ;ksxnku vkslru % Lrj 1 vkflr;ka ds'k bu gs.m 1.39% vfrfjdr lhvkjvkj 'ks"k 1.50% U;wure,l,yvkj vko';drkvksa ds vfrfjdr ljdkjh çfrhkwfr;k 26.37% vfuok;z,l,yvkj vko';drkvksa ds varxzr ljdkjh çfrhkwfr;k 11.14%,e,l,Q ds varxzr vkjchvkbz }kjk o`f¼ dh vuqefr (orzeku esa,umhvh,y dk 2 çfr'kr dh o`f¼ ) csly II ekudhñr,çksp ds varxzr 0% tksf[ke Hkkj okyh 1.85% fons'kh Lok;rksa }kjk tkjh ;k xkjavh nh xbz cktkjh çfrhkwfr;k pyfufèk dojst vuqikr ds fy, miycèk pyfufèk dks lqfoèkk & 50.13%,iQ,,y,ylhvkj (orzeku es,ymhvh,y dk 9 çfr'kr dh o`f¼) dqy Lrj 1 vkflr;k 92.38% dqy Lrj 2, vkflr;k 7.13% dqy Lrj 2ch vkflr;k 0.49%,pD;w,y, dk dqy LVkd % Stock of high quality liquid assets (HQLAs) The LCR requirement has become binding on the banks with the following minimum required level as per the timeline given below: Jan 1, 2015 Jan 1, 2016 Jan 1, 2017 Jan 1, 2018 Jan 1, 2019 Minimum LCR 60% 70% 80% 90% 100% For Q4 FY , the daily average LCR was % (based on simple average of daily observations) at consolidated level, as against the regulatory requirement of 90%. The main drivers of LCR of the bank are High Quality Liquid Assets (HQLAs) to meet liquidity needs of the bank at all times and basic funding from retail and small business customers. The retail and small business customers contribute about 69.01% of total deposit portfolio of the bank which attracts low run-off factor of 5/10%. Composition of High Quality Liquid Assets (HQLA) HQLAs comprises Level 1 and Level 2 assets. Level 2 assets are further divided into Level 2A and Level 2B assets, keeping in view their marketability. Level - 1 asset are those assets which are highly liquid. For quarter ended March 31, 2018, the Level-1 asset of the bank includes Cash in Hand, Excess CRR, Government Securities in excess of minimum SLR, Marketable securities issued or guaranteed by foreign sovereign, MSF and FALLCR totalling to ` cr (based on simple average of daily observations). Level - 2A & 2B assets are those assets which are less liquid and their weighted amount comes to ` cr (based on simple average of daily observations). Break-up of daily observation Average HQLA during quarter ended March 31, 2018 is given here under: High Quality Liquid Assets (HQLAs) Average % age contribution to HQLA Level 1 Assets Cash in hand 1.39% Excess CRR balance 1.50% Government Securities in excess of minimum SLR 26.37% requirement Government securities within the mandatory SLR 11.14% requirement, to the extent allowed by RBI under MSF (presently to the extent of 2 per cent of NDTL) Marketable securities issued or guaranteed by foreign sovereigns having 0% risk-weight under Basel II Standardi ed Approach 1.85% Facility to avail Liquidity for Liquidity Coverage Ratio 50.13% FALLCR (presently to the extent of 9 per cent of NDTL) Total Level 1 Assets 92.38% Total Level 2A Assets 7.13% Total Level 2B Assets 0.49% Total Stock of HQLAs % PNB Full AR indd Jul-18 5:38:25 PM

126 fuèkh;u lzksrksa dk ladsuæ.k bl esfvªd esa mu fufèk;ksa ds lzksrksa ftudk vkgj.k pyfufèk tksf[keksa ds vèkhu gs] 'kkfey gsa bldk mís'; çr;sd egroiw.kz çfri{k vksj çr;sd egroiw.kz ls visf{kr blds fuèkh;u dh fuxjkuh }kjk csad ds fuèkh;u ladsuæ.k dks O;Dr djuk gs] Hkkjrh; csad ds fn'kkfunsz'kksa ds vuqlkj egroiw.kz dks,dy çfri{k ;k csad ds dqy nkf;ro dk 1% ls vfèkd nkf;ro okys çfri{kh ls tqms ;k lec¼ lewg ds #i esa ifjhkkf"kr fd;k x;k gsa 31 ekpz] 2018 dks cms tekdrkzvksa }kjk ekscykbt dqy tek,a csad dh dqy ns;rkvksa dk 1-42% (31 ekpz] 2017% 'kwu;) FkhA 31 ekpz] 2018 dks 'kh"kz 20 tekdrkzvksa dk ;ksxnku 4-48% ek=k gsa egroiw.kz esa] cpr fufèk] djsav fmikftv] tek dk çek.ki=k vksj varj csad tek foùkiks"k.k tks fd folr`r #i ls iqsyk gqvk gs csad ds fy, ladsuæ.k tksf[ke dks l`ftr ugha dj ldrka MsfjosfVo,DLikstj csad ds ikl MsfjosfVOt esa de,dlikstj gs] tks fd pyfufèk rjyrk ij dksbz egroiw.kz çhkko ugha Mkyrk gsa djsalh dk feyku uk gksuk Hkkjrh; fjtoz csad ds fn'kkfunsz'kksa ds vuqlkj] eqæk egroiw.kz ekuh tkrh gs ;fn ml eqæk dh dqyns;rk csad dh dqyns;rk dk 5% ;k blls vfèkd gs A gekjs ekeys esa] bl ekud ij dsoy USD (csad dh dqy ns;rkvksa dk 9-09%) vkrh gs ftldk,ylhvkj gksfjtu esa dqy ckáçokg ij çhkko çcafèkr fd;k tk ldrk gs D;ksafd csad ds rqyu i=k ds vkdkj dks ns[krs gq, bldk çhkko cgqr gh de gsa pyfufèk çcuèku ds dsuæh;dj.k dh fmxzh vksj lewg dh bdkbz;ksa ds chp laokn lewg bdkbz;k pyfufèk çcuèku Lo;a djrh gsa rfkkfi] csad us lewg&folr`r vkdfled foùkiks"k.k Iyku fn;k gsa ftlls ruko ds le; lewg ds #i pyfufèk vis{kkvksa dh iwfrz dh tk lds A Concentration of Funding Sources This metric includes those sources of funding; whose withdrawal could trigger liquidity risks. It aims to address the funding concentration of bank by monitoring its funding as a single counterparty/instrument/product or group aggregate for more than 1% of the bank s total liabilities. was 1.42% (March 31, 2017: Nil) of total liabilities of the Bank as at March 31, Top 20 depositors of the bank constitute 4.48% of bank s total liabilities as at March 31, Fund, Current deposit, Core Term Deposit, and Inter-bank term deposit, the funding from which are widely spread and cannot create concentration risk for the bank. Derivative exposure The bank has low exposure in derivatives having negligible impact on its liquidity position. Currency Mismatch As per RBI guidelines, a currency is considered as that currency amount to 5 per cent or more of the bank s total liabilities. In our case, only USD (9.09% of bank s total liabilities) falls in this criteria whose impact on total impact is minuscule considering the si e of balance sheet of the bank. Degree of centralization of liquidity management and interaction between group s units The group entities are managing liquidity on their own. However, the bank has put in place a groupwide contingency funding plan to take care of liquidity requirement of the group as a whole in the stress period PNB Full AR indd Jul-18 5:38:25 PM

127 rjyrk dojst vuqikr ij ek=kkred çdvhdj.k (lesfdr vkèkkj ij) (` djksm+ esa) nsfud tkap dh lkèkkj.k vkslr ds vkèkkj ij mpp xq.koùkk rjy laifùk 1 dqy mpp xq.koùkk rjy laifùk (,pd;w,y,) ds'k vkmvýyks 2 NksVs O;olk; ds xzkgdksa ls [kqnjk tek vksj tek ftuesa ls ekpz 18 dks lekir frekgh dqy vfuèkkzfjr ewy; (vkslr) dqy fuèkkzfjr ewy; (vkslr) fnlecj 17 dks lekir frekgh dqy vfuèkkzfjr ewy; (vkslr) dqy fuèkkzfjr ewy; (vkslr) flrecj 17 dks lekir frekgh dqy vfuèkkzfjr ewy; (vkslr) dqy fuèkkzfjr ewy; (vkslr) twu 17 dks lekir frekgh dqy vfuèkkzfjr ewy; (vkslr) dqy fuèkkzfjr ewy; (vkslr) ekpz 17 dks lekir frekgh dqy vfuèkkzfjr ewy; (vkslr) 62 MkVk IokbaV 63 MkVk IokbaV 65 MkVk IokbaV 64 MkVk IokbaV 63 MkVk IokbaV dqy fuèkkzfjr ewy; (vkslr) (i) flfkj tek (ii) de flfkj tek vlqjf{kr Fkksd èku] ftuesa ls% (i) vkijs'kuy tek (lhkh çfri{kksa) (ii) xsj ifjpkyu tek (lhkh çfri{kksa) (iii) vlqjf{kr ½.k lqjf{kr Fkksd foùk iks"k.k vfrfjdr vko';drkvksa] ftuesa ls (i) (ii) O;qRiUu tksf[ke vksj vu; tekur ds vko';drkvksa ls lacaf/kr cfgokzg ½.k mriknksa ij èku dh gkfu ls lacafèkr cfgokzg (iii) ØsfMV vksj rjyrk dh lqfoèkk;sa vu; lafonkred nkf;roksa ds foùk iks"k.k vu; vkdfled foùk iks"k.k ds nkf;ro dqy ds'k vkmvýyks udnh çokg 10 lqjf{kr ½.k (tsls jsiks fjolz) iwjh rjg ls çn'kzu dj tksf[ke ls varokzg vu; udnh çokg dqy,pd;w,y, dqy usv udn cfgokzg pyfuf/ dojst vuqikr (%) PNB Full AR indd Jul-18 5:38:26 PM

128 QUANTITATIVE DISCLOSURE ON LIQUIDITY COVERAGE RATIO (ON CONSOLIDATED BASIS) (` in Crore) Quarter ended Mar'18 Quarter ended Dec'17 Quarter ended Sep'17 Quarter ended June'17 Quarter ended Mar'17 Total Unweighted Value (average)* Total Weighted Value (average) Total Unweighted Value (average) Total Weighted Value (average) Total Unweighted Value (average) Total Weighted Value (average) Total Unweighted Value (average) Total Weighted Value (average) Total Unweighted Value (average) Total Weighted Value (average) Based on the simple average of daily observations 62 Data Points 63 Data Points 65 data Points 64 Data Points 63 Data Points High Quality Liquid Assets 1 Total High Quality Liquid Assets (HQLA) Retail deposits and deposits from small business customers of which : (i) Stable deposits (ii) Less stable deposits Unsecured wholesale funding, of which: (i) (ii) Operational deposits (all counterparties) Non-operational deposits (all counterparties) (iii) Unsecured debt Secured wholesale funding Additional requirements, of which (i) (ii) exposures and other collateral requirements debt products (iii) Credit and liquidity facilities Other contractual funding obligations Other contingent funding obligations exposures TOTAL HQLA Liquidity Coverage Ratio (%) PNB Full AR indd Jul-18 5:38:26 PM

129 38- vu; fviif.k;ka,- vkjchvkbz ds fn'kkfunsz'kkuqlkj] csad us ikap o"kz ls vfèkd dh var% 'kk[kk çfof"v;ksa dh jkf'k dks vo#¼ [kkrs esa varfjr djus dk dk;z fd;k gsa rnuqlkj] ` djksm+ dh jkf'k (lek;kstu ds ckn dh fuoy jkf'k) dks vuqlwph 5 esa vu; ns;rk,a & vu; 'kh"kzd ds vurxzr vyx ls 'kkfey fd;k x;k gsa varj 'kk[kk ½.k çfof"v] vo#¼ vksj lkeku; fjtoz dks varfjr ds fo#¼ ekpz 2018 esa lekir vofèk ( ls rd) ds nksjku dksbz nkok çkir ugha gqvk gsa ch- ifjlj lfgr%& I. ` 2-60 djksm+ ('kq¼ ewy;gkl) ykxr ` 8-05 djksm+ dh jkf'k dh vkb laifùk;k ftudh fuoy iquewzy;kafdr jkf'k ` djksm+ gsa (ewy;gkl ds ckn ekpz 18 rd)] LoRo foys[k ds iathdj.k dh çrh{kk dj jgh gsa II. ` djksm+ dk iwathxr dk;z pkyw gsa III. yhtgksym laifùk gsrq fnyyh fodkl çkfèkdj.k ds ikl tek fd;k x;k ` 5-29 djksm+ dk ifjorzu 'kqyd iwathñr gs] MhMh, esa fu"iknu gsrq iw.kz LokfeRo foys[k ÚhgksYM MhM yafcr gsa IV. laifùk gsrq gqmk dks Hkqxrku fd;k x;k ` 1-95 djksm+ dk folrkj 'kqyd] ikfylh ds vuqlkj iwathñr gs Hkw[kaM ij fuekz.k 'kq: gksuk vhkh ckdh gsa lh laifùk] la;a=k vksj midj.k ij ys[kkadu ekud & 10 (la'kksfèkr 2016) 1 vçsy 2017 ls ykxw gs] LFkkbZ laifùk;ksa ds iquewzy;kafdr Hkkx ij bl o"kz ds ewy;gkl ` djksm+ dks] bl o"kz ds nksjku ykhk,oa gkfu [kkrs esa tek djus ds LFkku ij iquewzy;kadu fjtoz ls jktlo fjtoz esa varfjr fd;k x;k gsa Mh fofhkuu ewy;kadu o"kksaz ds fy, dj ekaxksa esa csad }kjk fohkkx@hkqxrku }kjk lek;ksftr fookfnr jkf'k lfgr vu; vkflr;ksa ds rgr çnf'kzr gksus ds lzksr ij dvksrh fd, x, x, vfxze@dj esa dj Hkqxrku 'kkfey gsa ` djksm+ (finys o"kz ` djksm+) dh fookfnr vk;dj ekax ds lacaèk esa dksbz çkoèkku vko';d ugha le>k x;k gs D;ksafd csad dh jk;] bu eqnnksa ij fo'ks"kk dh jk; vksj@ vfkok csad dh vihyksa ij gq, fu.kz; ds vuqlefkzu ds vuqlkj fd, x, ifjoèkzu@ vlohñfr;ka èkkj.kh; ugha gsa bz 1- csad us foùkh; o"kz 2017&18 ds nksjku lsch fofu;e 2009] ds çkoèkku (iwath vksj çdvhdj.k dh vko';drkvksa dk ekeyk) ds vuqlkj] dqy ` 5000 djksm+ ds ` çfr 'ks;j ds çhfe;e ij] ` 2-00 çfr 'ks;j ds vafdr ewy; okys 29]76]19]047 bfdovh 'ks;j tkjh fd, gsaa,iq th 2- csad us foùkh; o"kz 2017&18 ds nksjku lsch (vkbzlhmhvkj) fofu;e] 2009] le; ij ;Fkkla'kksfèkr] ds vè;k; VII ds lanhkz esa cksmz }kjk fuèkkzfjr ` çfr 'ks;j ds çhfe;e ij Hkkjr ljdkj dks ` 2-00 çfr 'ks;j ds bfdovh 'ks;j vkoafvr fd, gsaa bl [kkrs esa csad }kjk çkir dqy jkf'k ` djksm+ gs ftlesa bfdovh iwath ds :i esa ` djksm+ vksj çhfe;e ds :i esa ` djksm+ 'kkfey gsaa foùkh; o"kz 2017&2018 ds nksjku dh xbz [kjhn gsrq lw{e] y?kq vksj eè;e m e fodkl vfèkfu;e] 2006 esa fn, x, fn'kkfunsz'kksa dk ikyu fd;k x;k gs vksj vfèkfu;e ds vuqlkj le; ij foøsrkvksa dks Hkqxrku fd;k x;k gsa pwafd Hkqxrku esa dksbz nsjh ugha gqbz Fkh] blfy, foùkh; o"kz 2017&18 esa dksbz nam C;kt ugha yxk;k x;k gsa iwath vko';drk dks iwjk djus gsrq ik=k ½.k midj.kksa ds vfrfjdr csad }kjk tkjh çfrhkwfr jfgr] czkam ds fy, fofu;e 52(4) ds çkoèkkuksa ds lanhkz esa] lsch (lwphc¼ nkf;ro vksj çdvhdj.k vko';drk,a) fofu;eu] 2015 ds varxzr tkudkjha 38. Other Notes a. As per RBI guidelines, the Bank has worked out the amount of inter Branch Credit entries outstanding for more than Five years to be transferred to Blocked Account. Accordingly, a sum of ` crores (net of adjustments since carried out) has been included under Other Liabilities-others in Schedule-5. No claim has been received during the period ended March 2018 ( to ) against Inter Branch Credit entries, Blocked and transferred to General Reserve. b. Premises includes:- I. Eight properties amounting to ` 2.60 crore (Net of Depreciation) Cost ` 8.05 crore having net Revalued amount of ` crore (after Depreciation upto March 18) are awaiting registration of title deeds. II. Capital work in progress of ` crore. III. A conversion fee of ` 5.29 crore deposited with Delhi Development Authority for a leasehold property is capitali ed, free hold deed is pending for execution at DDA. IV. An extension fee of ` 1.95 Crore paid to HUDA for a property is capitali ed as per policy, construction on the plot is yet to be started. c. Pursuant to the Accounting Standard 10 (Revised 2016) on Property, Plant & Equipment, applicable from 1 st April 2017, depreciation of ` Crores for the year on revalued portion of Fixed Assets has been transferred during the year from the Revaluation Reserve to Revenue Reserve instead of Crediting to d. Tax Paid in advance/tax deducted at source appearing under Other Assets includes disputed amount adjusted by the department/paid by the Bank in respect tax demands for various assessment years. No provision is considered necessary in respect of disputed Income Tax demands of ` Crore (previous year ` Crore) as in the bank s view, duly supported by expert opinion and/or decision in bank s own appeals on same issues, additions / disallowances made are not sustainable. e. 1. During the Financial year the Bank has issued 29,76,19,047 equity shares having Face Value of ` 2.00 each for cash, in accordance with the provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 at a Premium of ` per share aggregating ` 5000 crore. 2. During the Financial Year the bank has allotted equity shares of ` 2.00 each to Government of India at a premium of ` per share as determined by the Board in terms of the Chapter VII of the SEBI (ICDR) Regulations, 2009, as amended from time to time on preferential basis. The total amount received by the bank on this account is ` crores which includes ` crores as equity capital and ` crores as premium. f. The guidelines given in Micro, Small and Medium Enterprises Development Act 2006 have been complied with for purchases made during the Financial Year and payments have been made to the Vendors in time as per Act. Since there had been no delay in payment, so no penal interest has been paid in FY g. Information under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in terms of the provisions of Regulation 52(4) for unsecured bonds issued by bank excluding Debt instruments eligible for meeting capital requirement. 115 PNB Full AR indd Jul-18 1: 9: 9 PM

130 Ø- laih,uch ckam~l lhjht 1 nh?kkzofèk ck.m vkbz,ubz (mèkkj lhfjt I 160A (8-23%) nh?kkzofèk ck.m (mèkkj lhfjt II (8.35 %) vkbz,ubz 160A C;kt mdr jsfvax jsfvax Hkqxrku Hkqxrku vkbzlhvkj, lh,vkjbz dh frffk fd;k x;k ;k ugha vkbz,l vkbz,u la jsfvax bafm;k jsfvax jsfvax føfly Hkqxrku ykxw ugha AAA@*** AAA@@***** *** dh jsfvax ds vuqlkj jsfvax vkmvyqd dks flfkj ls udkjkred ds varxzr fuxjkuh esa ifjofrzr dj fn;k x;k gsa **** dh jsfvax ds vuqlkj jsfvax vkmvyqd dks flfkj ls udkjkred ds varxzr fuxjkuh esa ifjofrzr dj fn;k x;k gsa Hkqxrku ykxw ugha AAA@@***** * dh jsfvax ds vuqlkj jsfvax vkmvyqd dks flfkj ls fuxjkuh esa ifjofrzr dj fn;k x;k gsa ** dh jsfvax ds vuqlkj jsfvax vkmvyqd dks flfkj ls fuxjkuh esa ifjofrzr dj fn;k x;k fuxjkuh jsfvax ds varxzr udkjkred (fuxjkuh jsfvax ds varxzr fodklkred vk'k;),p vkjchvkbz i=k la- Mhchvkj-u-chih-13018@ @2015&16 fnukad vksj chihlh-7201@ @2017&18 fnukad dh vuqikyuk esa] csad us iatkc jkt; ljdkj }kjk fy, x, iquxzfbr [kk ½.k vfxze ds lacaèk esa] fnukad rd ` djksm+ ds ekstwnk cdk;k ds 5% vfkkzr ` djksm+ dk çkoèkku fd;k gsa vkbz vkjchvkbz ifji=k la- vkjchvkbz@2015&16@376 Mhchvkj-u-chihchlh-92@ @2015&16 fnukad ds vuqlkj çkoèkkuhdj.k ekudksa esa la'kksèku ds dkj.k èkks[kkèkm+h [kkrksa ls lacafèkr çkoèkku% (` djksm+ esa) Js.kh foùkh; o"kz 2017&18 ds nksjku çfrosfnr èkks[kkèkm+h foùkh; o"kz 2017&18 ds nksjku çfrosfnr foùkh; o"kz 2017&18 ds nksjku xsj& ifj'kksfèkr çkoèkku ds ekeyksa dh èkks[kkèkm+h esa çkoèkku dh la[;k 'kkfey jkf'k ek=kk mèkkjh xsj&mèkkjh èkks[kkèkm+h dqy Sl. PNB BONDS ISIN No. SERIES NO. 1 Long Term Bonds (Borrowing) series I (8.23 %) INE 160A Long Term Bonds (Borrowing) series II (8.35 %) INE 160A DATE OF PAYMENT OF INTEREST Whether the same has been paid or not Rating ICRA Rating CARE Rating India Rating Rating CRISIL Remark Paid NA AAA@*** AAA@@***** ***Rating outlook has been changed from stable to under watch negative as per rating dated **** Rating outlook has been changed from stable to under watch negative as per rating dated Paid NA AAA@@***** *Rating outlook has been changed from stable to under watch as per rating dated **Rating outlook has been changed from stable to under watch as per rating dated Under rating watch with negative (Under rating watch with Developing Implications) h. In compliance of RBI letter no. DBR.NO.BP.13018/ / dated and BPC.7201/ / dated , Bank has made a provision of ` crore being 5% of the existing outstanding of ` crore as on in respect of restructured Food Credit advance availed by State Government of Punjab. i. Provisioning pertaining to fraud accounts due to amendment in provisioning norms as per RBI Circular no. RBI/ /376 DBR. No.BP.BC.92/ / dated : (` in Crores) Category No. of Fraud cases reported during the FY Amount involved in fraud reported during the FY Quantum of provision during the FY Unamortized provisions Borrowal Non-Borrowal Frauds Total PNB Full AR indd Jul-18 5:38:27 PM

131 ts 31 ekpz 2018 dks lekir frekgh ds nksjku] gekjh czsmh gkml] eqacbz 'kk[kk esa,d èkks[kkèkm+h dk irk pyk ftlesa tsel,am ToSyjh lsdvj ds varxzr dqn [kkrs 'kkfey Fks] tgka bu lalfkkvksa vksj csad ds dqn dezpkfj;ksa ds chp Li"V lgefr ds ekè;e ls] dqn ysvj vkwiq vamjvsfdax ysvj vkwiq ØsfMV (,iq,ylh) dks csad dh floýv ç.kkyh ds nq#i;ksx ds ekè;e ls Hkkjrh; csadksa dh dqn fons'kh 'kk[kkvksa dks diviwozd vksj vufèkñr rjhds ls tkjh fd;k x;k ] ftls lhch,l ds lkfk,dhñr ugha fd;k x;k FkkA fofhkuu dsaæh; tkap,tsafl;ksa }kjk èkks[kkèkm+h dh tkap py jgh gsa,yvks;w@,iq,ylh ds dkj.k ns;rk,a tks fd rd ` djksm+ gks xbz gsa] dk Hkqxrku csad }kjk lacafèkr csadksa ds opui=k ij fd;k x;k gs] ftlds vuqlkj ;fn os l{ke {ks=kkfèkdkj ds U;k;ky; ;k Hkkjrh; fofèk ds varxzr fdlh tkap,tsalh feyrs gsa] ftugsa lacafèkr csadksa ds ekstwnk ;k HkwriwoZ dezpkfj;ksa }kjk dffkr èkks[kkèkm+h dh tkudkjh esa ;k dffkr èkks[kkèkm+h dh feyhhkxr ls tkjh fd;k x;k gs] rks os csad dks bl jkf'k dh çfriwfrz djsaxsaa blds vfrfjdr],d nwjn'khz mik; ds :i esa] csad us,yvks;w@,iq,ylh ds lacaèk esa] cfg;ksa esa ns;rk,a l`ftr dh gs] ftudh jkf'k ds ckn ` djksm+ gks xbz gsa dh ns; frffk;ksa ij lacafèkr csadksa dks Hkqxrku djsxka mi;qzdr lalfkkvksa dks vu; ½.k lqfoèkkvksa ds varxzr cdk;k jkf'k 'kkfey djus ds ckn] vc 'kkfey jkf'k ` djksm+ gks xbz gsa Hkkjrh; fjtoz csad us vius i=k la- 8720@ @2017&18 fnukad ds ekè;e ls vu; fjtoz dks MsfcV fd, fcuk 25% dh nj ls bl èkks[kkèkm+h ds fo#¼ çkoèkku djus dh vuqefr nh gs vksj vkxkeh foùkh; o"kz dh igyh rhu frekfg;ksa ds nksjku 'ks"k jkf'k çnku djus dh vuqefr nh gsa rfkkfi] csad us vko';d nj ls vfèkd vfkkzr 50% dh nj ls ` djksm+ ds çkoèkku fd, gsa rfkk vkjchvkbz dh O;oLFkk ds vuqlkj vkxkeh foùkh; o"kz esa ` djksm+ jkf'k ds 'ks"k çkoèkku fd, tk,axsaa ds vkbz,umh,,l ds dk;kzuo;u gsrq dk;zuhfr vuqlqfpr okf.kft;d csadksa ({ks=kh; xzkeh.k csadksa ds vfrfjdr)] chekdrkz@chek daifu;ksa vksj xsj&csafdax foùkh; daifu;ksa gsrq vkbz,umh,,l] dsaæh; dkwikszjsv ekeyksa ds ea=kky; (,evkslh) }kjk çsl fokfir fnukad 18 tuojh 2018 ds ekè;e ls tkjh fd, x,a vkbz,umh,,l,elh, dh çsl fokfir ds vuqlkj] foùkh; o"kz 2018&19 ls csad ij ykxw FkkA bl lacaèk esa] Hkkjrh; fjtoz csad (vkjchvkbz) us foùkh; o"kz 2018&19 ls vkbz,umh,,l ds dk;kzuo;u gsrq vfèklwpuk @ &16) fnukad 11 iqjojh 2016 tkjh dh Fkh] ijarq çsl fokfir 2642) ds ekè;e ls] vkjchvkbz us foùkh; o"kz 2019 &20 ls vkbz,umh,,l (Hkkjrh; ys[kkadu ekud) ds dk;kzuo;u dks LFkfxr dj fn;k gsa csad us foùkh; o"kz 2016&17 ls vkbz,umh,,l (Hkkjrh; ys[kkadu ekud) ds dk;kzuo;u dh çfø;k 'kq: dh gsa dk;kzuo;u dh çxfr dh fuxjkuh gsrq dk;zdkjh funs'kd dh vè;{krk okyh,d lapkyu lfefr ftles csad ds fofhkuu dk;kzred {ks=kksa ds egkçcaèkd Hkh 'kkfey gs] dk xbu fd;k x;k gsa csad ds ikl dk;kzuo;u ds fy,,d ;kstukc¼ j.kuhfr gs vksj bl dk;z esa dkiqh çxfr gqbz gsa pkyw ys[kkadu <kaps vksj vkbz,umh,,l ds chp vlekurkvksa dh igpku djus ds fy, csad us funkudkjh vè;;u iwjk fd;k gsa bl funkudkjh vè;;u ds vkèkkj ij csad us çhkko dk ifjek.k fuèkkzfjr fd;k gs vksj flracj 2016 dks lekir gqbz Nekgh ds fy, çks&iqkwekz foùkh; fooj.k nk;j fd;k gs rfkk twu 2017 esa lekir frekgh esa Hkkjrh; fjtoz csad dks nk;j fd;k FkkA csad vc dksj csafdax ç.kkyh esa vko';d ifjorzuksa dk vkdyu dj jgk gs vksj igys ls gh visf{kr ½.k gkfu ekwmy rs;kj djus dh 'kq#vkr dj pqdk gsa,d ckj pkyw ys[kkadu :ijs[kk ds varxzr okf"kzd foùkh; fooj.k dks vafre :i fn, tkus ds ckn] csad vkbz,umh,l Vªkaft'ku ds fy, vksifuax csysal 'khv dks rs;kj djus dh 'kq#vkr djsxk A,y csad dh çkfkfedrk {ks=k ½.k çek.k i=k ds varxzr djksm+ #i;s dh bdkb;ka csph gsa vksj buesa ls 4315 djksm+ (17260 bdkb;ka) ih,llh,y&y?kq,oa lhekar fdlku Js.kh esa Fkha vksj djksm+ (16098 bdkb;ka) ih,llh,y&tujy ih,l dh Js.kh esa gsa csad us bl fcøh ds ekè;e ls ` djksm+ dh vk; vftzr dh gsa J. During the quarter ended 31 st March 2018, a fraud was detected at our Brady House, Mumbai branch involving certain accounts under Gems & Jewellery Sector where through apparent connivance between these entities and few employees of the Bank, some Letters of Undertaking (LOUs)/Foreign Letter of Credit (FLCs) were issued fraudulently and in unauthorised manner to certain overseas branches of Indian Banks through the misuse of SWIFT system of the Bank which was then not integrated with CBS. The fraud is under investigation by various central investigating agencies. The liabilities on account of LOUs/ FLCs which became due upto amounting to ` crore have been paid by the Bank on the undertaking of concerned banks that they will reimburse the amount to the Bank if the court of competent jurisdiction or to have been issued pursuant to the knowledge of the alleged fraud or collusion in the alleged fraud by any existing or past measure, Bank has created liability in the books in respect of LOUs/FLCs which are becoming due after amounting to ` crores. Bank will make payments to the concerned banks on the due dates of LOUs/FLCs. After including outstanding amounts under other credit facilities to the above entities, the amount involved now works out to ` crore. RBI vide their letter no. 8720/ / dtd has permitted the Bank to make provisions against this without debiting Other Reserves and provide remaining year. However, Bank has made higher than required amounting to ` crore and remaining provision of ` of RBI s dispensation. k. The Strategy for IND AS Implementation IND AS roadmap for scheduled commercial banks (excluding regional rural banks), insurers/insurance companies and non- Ministry of Corporate Affairs (MCA) through press release dated 18 January IND AS was applicable to the Bank in 19. In pursuance to this Reserve Bank of India (RBI) had issued 16) dated 11 February 2016 for implementation of IND AS from dated 5 April 2018, RBI has deferred implementation of IND AS of IND AS (Indian Accounting Standards) implementation from A steering committee headed by the Executive Director and comprising of General Managers from various cross functional areas of the Bank to monitor the progress of the implementation is formed. The Bank has a well-planned strategy for its implementation and has made substantial progress in this exercise. The Bank has completed a diagnostic study to identify the differences between the current accounting framework and IND AS. Based on this 2016 and quarter ended June 2017 with the Reserve Bank of India. Bank is now assessing the changes, wherever required in the core banking system and has already initiated formulation of Expected prepare the Opening Balance Sheet as at for the IND AS transition. l. amounting to the tune of ` Crore and out of which ` 4315 Crore (17260 units) was in the category of PSCL-Small & Marginal Farmer category and ` Crore (16098 units) is in the category of PSCL-General PS. Bank has earned an income amounting to ` Crore through this sale PNB Full AR indd Jul-18 5:38:27 PM

132 ,e vkjchvkbz us vius ifji=k Mhchvkj la 2017&18 fnukad 2 vçsy] 2018 ds ekè;e ls csadksa dks 31 fnlacj] 2017 vksj 31 ekpz] 2018 dks lekir frekfg;ksa ds fy,,,iq,l vksj,p,iqvh fuos'k ij cktkj gkfu ds fu'kku dks fpfugr djus ds fodyi dh vuqefr nh gs] tks fd leku :i ls frekgh ds lkfk 'kq: gksus okys pkj frekfg;ksa esa tks uqdlku gqvk gsa rnuqlkj] csad us 31 fnlacj] 2017 vksj 31 ekpz] 2018 dks lekir frekfg;ksa ls lacafèkr ` djksm+ #i;s ds ewy;ákl dks çhkkfjr fd;k gs vksj vkxkeh foùkh; o"kz dh vuqorhz frekfg;ksa esa ` djksm+ dh,evh,e gkfu dks çlkfjr fd;k gsa,u foùkh; o"kz 2017&18 ds nksjku] csad us vius lg;ksxh çfr"bku ih,uch gkmflax iqkbusal fyfevsm esa ` djksm+ ds ykhk lfgr ` djksm+ ds 'ks;j csps gsaa vks fnokfy;kiu çfø;k 'kq: djus ds fy, Hkkjrh; fjtoz csad ds fn'kkfunsz'kksa ds vuqlkj & fnokyk vksj v'kksèku dksm (vkbzchlh) ds çkoèkkuksa ds varxzr doj fd, x, 09 mèkkj [kkrksa ds lacaèk dks i=k la[;k Mhchvkj-No-BO195199@ @2016&17 fnukad 23 twu] 2017 ds ekè;e ls csad dks vfrfjdr çkoèkku djus FksA blh çdkj] vkjchvkbz ds fn'kkfunsz'kkuqlkj] fnokyk vksj v'kksèku dksm (vkbzchlh) dh çfø;k ds varxzr doj 20 mèkkj [kkrksa ds lacaèk esa] i=k la[;k Mhvkj,u-chih 2017&18 fnukad 28 vxlr] 2017 ds ekè;e ls] csad dks vfrfjdr çkoèkku djuk vko';d FkkA blds vykok] fnokyk vksj v'kksèku dksm (vkbzchlh) ds çkoèkkuksa ds varxzr doj dh xbz igyh vksj nwljh lwph esa 'kkfey çkoèkkuksa dks çlkfjr djus ds lacaèk esa] 2 vçsy] 2018 ds vkjchvkbz laçs"k.k Mhchvkj-chih-8756@21-04@2017&18 ds vuqlkj] csad us miycèk forj.k ds fodyi dk ykhk mbk;k ftlds ifj.kkelo:i,sls [kkrksa esa ` djksm+ dk çkoèkku de dj fn;k x;k gsa ih Hkkjrh; fjtoz csad us vius laçs"k.k Mhchvkj,u-chih-chlh &18 fnukad 27 vçsy] 2018 ds ekè;e ls csadksa dks 31 ekpz] 2018 dks lekir frekgh ds lkfk 'kq: gksus okys pkj frekfg;ksa esa xzsp;qbvh vfèkfu;e 1972 ds Hkqxrku ds rgr ls xzsp;qbvh lhek ` yk[k ls ` yk[k c<+kus ds dkj.k vfrfjdr ns;rk çlkfjr djus dk fodyi fn;k gsa csad us bl fodyi dk mi;ksx fd;k gs vksj 31 ekpz] 2018 dh frekgh ds nksjku djksm+ dk çhkkj yxk;k gs vksj vkxkeh foùkh; o"kz ds ckn dh rhu frekgh esa ` djksm+ :i;s foyafcr dj fn;k gsa D;w vkjchvkbz vius ifji=k Mhchvkj la chih-chlh-101@ @2017&18 fnukad 12 iqjojh] 2018 ds ekè;e ls nckoxzlr vkflr;ksa ds lekèkku ds fy,] tks,lmhvkj ds ekstwnk fn'kkfunsz'kksa dk vfèkøe.k djrh gs],lmhvkj ds ckgj LokfeRo esa ifjorzu (dk;kzuo;u ds rgr ifj;kstukvksa dks NksM+dj) vksj,l 4, rrdky çhkko ls,d la'kksfèkr :ijs[kk tkjh dha la'kksfèkr :ijs[kk ds varxzr] mu [kkrksa ds ykhk tgka bu ;kstukvksa esa ls dksbz Hkh ykxw dh xbz Fkh ysfdu vhkh rd iwjh rjg dk;kzfuor ugha fd;k x;k Fkk] rnuqlkj bu [kkrksa dks vk; eku;rk vksj vkflr oxhzdj.k ij ekstwnk vkjchvkbz ekunamksa ds vuqlkj oxhzñr fd;k x;k gsa tgka Hkh vko';d gks] finys o"kz ds vkadm+ksa dks iqu%lewfgr@ iqu%o;oflfkr@ iqu%oxhzñr fd;k x;k gsaa 2- dks"bd esa tgka Hkh vkadmsa fn, x, gsa] finys o"kz ls lacafèkr gsaa m. RBI vide its Circular DBR. No. BP.BC.101/ / dated April 2, 2018 has permitted banks an option to spread mark to market loss on AFS & HFT investment for quarters ended December 31, 2017 and March 31, 2018, equally over the four quarters commencing with the quarter in which the loss is incurred. Accordingly, the Bank has charged depreciation of ` Crores related to quarters ended December 31, 2017 and March 31, 2018 and spread MTM losses to tune of ` Crore to the n. During the Financial year , Bank has sold shares in its Associate concern PNB Housing Finance Ltd amounting to ` ` crore. o. As per RBI directions for initiating Insolvency Process Provisioning Norms vide letter No. DBR.No.BO.15199/ / dated June 23, 2017 in respect of 09 borrowal accounts covered under the provisions of Insolvency and bankruptcy Code (IBC), the Bank was required to make additional provision. Similarly, as per RBI direction vide letter No. DR.No.BP.1906/ / dated August 28, 2017 in respect of 20 borrowal accounts covered under the process of Insolvency and Bankruptcy Code (IBC), the Bank was required to make additional provision. Further, as per RBI communication DBR.BP.8756/21.04/ dated April 2, 2018 with respect to spreading the provisions covered in 1 st and 2 nd list covered under the provisions of Insolvency & Bankruptcy Code (IBC), the Bank has availed the option of dispensation available and as a result the provision of ` Crore has been reduced in such accounts. p. RBI vide its communication DBR.No.BP.BC.9730/ / dated April 27, 2018 has given the option to Banks to spread additional liability on account of enhancement in gratuity limits from ` lakhs to ` lakhs from under the Payment of Gratuity Act 1972, over four quarters beginning with the quarter ended March 31, The bank has exercised the option and has charged ` crores during the quarter March 31, 2018 and deferred ` crores to subsequent three quarter of the ensuing q. RBI vide its Circular DBR.No. BP.BC.101/ / dated February 12, 2018, issued a revised framework for resolution of stressed assets, which supersedes the existing guidelines of SDR, change in ownership outside SDR (except projects under implementation) and S4A with immediate effect. any of these schemes had been invoked but not yet fully implemented were revoked and accordingly these accounts Figures of the previous year have been regrouped / 2. Figures in the bracket wherever given relates to previous year PNB Full AR indd Jul-18 5:38:28 PM

133 31 ekpz 2018 dks lekir o"kz ds rqyui=k ds lkfk layxu udnh izokg fooj.k&i=k CASH FLOW STATEMENT ANNEXED TO THE BALANCE SHEET FOR THE YEAR ENDED 31st MARCH 2018 (` 000) fooj.k Particulars v- A. (i) (ii) (iii) Ikfjpkyu dkõkzdykikksa ls udnh çokg Cash Flow from Operating Activities dj ds Ik'PkkRk~ 'kq¼ ykhk tksfm+, % dj ds fy, çkoèkku (vklfkfxrk dj dk 'kq¼) Add Provision for Tax (net of deferred tax) dj ls IkwoZ ykhk fueufyf[krk ds fy, lekkõkkstu% Adjustment for : vpy vkflrkõkksa Ikj EkwYÕkßkl Depreciation on Fixed Assets?kVkb, % IkquEkwZYÕkkadu çkjf{krk fufèk ls vkgfjrk jkf'k Less : Amount drawn from Revaluation Reserve vutzd vkflrkõkksa ds fy, çkoèkku Provisions for non performing assets?kvkbz, % vu; izkjf{kr fuf/ ls vkgfjr jkf'k Less : Amount drawn from Other Reserve Ekkud vkflrkõkksa Ikj çkoèkku Provision on Standard Assets fuos'kksa ('kq¼ ) Ikj EkwYÕkßkl@ (fuekkszpu)] CkV~Vk [kkrkk] çkoèkku Depreciation/ (Release), Write off, Provision on Investments (net) vuõk çkoèkku ('kq¼) Other Provisions (net) vuõk ls ykhkka'k (fuos'k dkõkzdykik) Dividend from Subsidiary / Others (Investing Activity) CkkW.Mksa ls CÕkkt (foùkhõk dkõkzdykik) Interest on Bonds (Financing Activity) vpy vkflrkõkksa dh fckøh ls ykhk@ gkfu ('kq¼) Ikfjpkyu vkflrkõkks a o nsõkrkkvks a Eks a IkfjoRkZuks a ls IkwoZ Ikfjpkyu ykhk Ikfjpkyu vkflrkõkksa o nsõkrkkvksa Eksa 'kq¼ IkfjoRkZu ds fy, lekkõkkstu Adjustment for net change in Operating Assets and Liabilities fuos'kksa Eksa (o`f¼) Decrease / (Increase) in Investments vfxzekksa Eksa (o`f¼) Decrease / (Increase) in Advances vuõk vkflrkõkksa Eksa (o`f¼ ) Decrease / (Increase) in Other Assets tekkjkf'kõkksa Eksa (dekh) Increase / (Decrease) in Deposits mèkkjksa Eksa (dekh ) Increase / (Decrease) in Borrowings vuõk nsõkrkkvksa o çkoèkkuksa Eksa (dekh ) Increase / (Decrease) in Other Liabilities & Provisions Ikfjpkyuksa ls mrikâ udnh Cash generated from Operations (122,828,203) 13,248,018 (72,922,570) 6,867,419 (i) (195,750,773) 20,115,437 5,761,673 4,835,308 - (584,941) 244,527, ,373,804 - (8,336,600) (21,481,783) (12,417,836) 20,271,464 4,866,488 55,397,956 6,329,786 (783,929) (372,429) 18,071,046 16,235,113 (25,934) (53,758) (ii) 321,737, ,874,936 (i+ii) 125,987, ,990,373 (148,909,395) (293,661,958) (378,606,459) (207,047,300) (67,598,088) (24,268,829) 205,221, ,528, ,974,126 (192,421,080) 78,574,121 3,730,566 (iii) (98,343,940) (27,139,719) (i+ii+iii) 27,643, ,850, PNB Full AR indd Jul-18 5:38:28 PM

134 31 ekpz 2018 dks lekir o"kz ds rqyui=k ds lkfk layxu udnh izokg fooj.k&i=k CASH FLOW STATEMENT ANNEXED TO THE BALANCE SHEET FOR THE YEAR ENDED 31st MARCH 2018 (` 000) vk- B. b- C. bz- D fviikf.kõkk % çnùk dj (okiklh dk 'kq¼) Tax Paid (net of refund ) Ikfjpkyu dkõkzdykikksa ls 'kq¼ udnh Net Cash used in Operating Activities fuos'k dkõkzdykikksa ls udnh çokg (iz;qdr) vpy vkflrkõkksa dh [kjhn (fckøh dk 'kq¼) Purchase of Fixed Assets (net of Sales) vuq"kafxõkksa@ laõkqdr m Ekksa@ {ks-xzk- CkSadksa ls çkirk ykhkka'k Dividend recd from Subsidiaries / JV / RRBs vuq"kafxõkksa@ laõkqdr m Ekksa@ {ks-xzk- CkSadksa Eksa fuos'k Investment in Subsidaries / JV / RRBs fuos'k dkõkzdykikksa Eksa çõkqdr 'kq¼ udnh Net Cash used in investing Activities foùkhõku dkõkzdykikksa ls udnh çokg (iz;qdr) 'ksõkj Ikw th tkjh djuk (çhfekõkek lfgrk) Issue of Share Capital (incl. Premium) tkjh CkkW.Mksa dk (ekspu) (VhÕkj&A o VhÕkj&AA) Issued(Redemption) of Bonds (Tier I & Tier II) CkkW.Mksa Ikj çnùk CÕkkt (VhÕkj&A o VhÕkj&AA) Interest paid on Bonds (Tier I & Tier II) ykhkka'k dk HkqxRkku (ykhkka'k Ikj dj lfgrk) Payments of Dividends ( incl.tax on Dividend) foùkhõku dkõkzdykikksa ls 'kq¼ udnh Net Cash from Financing Activities udnh RkFkk udnh RkqYÕkksa Eksa 'kq¼ IkfjoRkZu Net Change in Cash and Cash Equivalents o"kz ds vkjehk Eksa udnh RkFkk udnh RkqYÕk Cash and Cash Equivalents at the beginning of the year udnh vksj HkkjRkhÕk fj koz CkSad ds Ikkl 'ks"k Cash and Balances with Reserve Bank of India CkSadksa ds Ikkl 'ks"k vksj Ekk x o vyik lwpuk Ikj çkiõk èku Balances with Banks & Money at Call & Short Notice o"kz ds vark Eksa udnh RkFkk udnh RkqYÕk Cash and Cash Equivalents at the end of the year udnh vksj HkkjRkhÕk fj koz CkSad ds Ikkl 'ks"k Cash and Balances with Reserve Bank of India CkSadksa ds Ikkl 'ks"k vksj Ekk x o vyik lwpuk Ikj çkiõk èku Balances with Banks & Money at Call & Short Notice (v) (A) (vk) (B) (b) (C) (v$vk$b) (A+B+C) (17,526,209) (13,880,126) 10,116, ,970,528 (6,496,527) (5,644,275) 783, ,429 (7,167,490) 0 (12,880,088) (5,271,846) 104,237,786 21,120,001 (12,100,000) 2,502,000 (18,071,046) (16,235,113) ,066,740 7,386,888 71,303, ,085, ,099, ,790, ,216, ,316, ,440, ,230, ,890, ,099, ,729, ,620, ,216, ,316,470 71,303, ,085,570 1 çnùk çrõk{k djksa (okiklh dk 'kq¼) dks Ikfjpkyu dkõkzdykikksa ls m Rk Ekkuk xõkk gs RkFkk bugsa fuos'k RkFkk foùkhõku dkõkzdykikksa ds EkèÕk fohkdr ugha fdõkk xõkk gs A 2 dks"bd Eksa fn, x, lhkh vkadm+s ^udnh Ckká izokg* n'kkzrks gsa A Notes :- 1 Direct taxes paid (net of refund) are treated as arising from operating activities and are not bifurcated between investing and PNB Full AR indd Jul-18 5:38:29 PM

135 ih ds ok".kzs;,l ds tsu ih ds 'kekz P K Varshney S K JAIN P K SHARMA eq[; çckuèkd mi EkgkçCkUèkd EkgkçCkUèkd Chief Manager DY. GENERAL MANAGER GENERAL MANAGER,y oh çhkkdj L V PRABHAKAR dkõkzikkyd funs'kd EXECUTIVE DIRECTOR lquhy esgrk lquhy esgrk SUNIL MEHTA SUNIL MEHTA çca/ funs'kd,oa eq[; dk;zikyd vf/dkjh vè;{k MANAGING DIRECTOR & CEO CHAIRMAN jfo feùky MkW jch,u fejk egs'k ckcw xqirk RAVI MITAL Dr. RABI N MISHRA MAHESH BABOO GUPTA funs'kd funs'kd funs'kd DIRECTOR DIRECTOR DIRECTOR lqèkhj uk;j lat; oekz SUDHIR NAYAR SANJAY VERMA funs'kd funs'kd DIRECTOR DIRECTOR bzou frffk dks gekjh fjiksvz ds vuqlkj As per our Report of even date d`rs lwjh,am deiuh ÑRks,lih,eth,aM deiuh Ñrs,edsih,l,aM,lksfl,V~l For Suri & Co. For SPMG & Co. For MKPS & Associates lunh ys[kkdkj &,IkQvkj,u ,l lunh ys[kkdkj &,IkQvkj,u lh lunh ys[kkdkj &,iqvkj,u bZ Chartered Accountants - FRN S Chartered Accountants - FRN C Chartered Accountants - FRN E fnukad % 15@05@2018 Date : 15/05/2018 LFkku % ubz fnyyh Place : New Delhi (ih- os.kqxksiky) (vons'k xqirk) (çnhi dqekj ykb) lköksnkj lköksnkj lköksnkj (P. Venugopal) (Avadesh Gupta) (Pradip Kumar Lath) Partner Partner Partner lnlõk la lnlõk la lnlõk la M No M No M No ÑRks th,l ekfkqj,am deiuh ÑRks,pMh,lth,aM,lksfl,V~l For G S Mathur & Co. For HDSG & Associates lunh ys[kkdkj &,IkQvkj,u ,u lunh ys[kkdkj &,IkQvkj,u ,u Chartered Accountants - FRN N Chartered Accountants - FRN N (jktho dqekj oèkkou) (nychj lg xqykvh) lk>snkj lk>snkj (Rajiv Kumar Wadhawan) (Dalbir Singh Gulati) Partner Partner lnlõk la lnlõk la M No M No PNB Full AR indd Jul-18 5:38:29 PM

136 Lora=k ys[kkijh{kdksa dh fjiksvz iatkc us'kuy csad ds lnl;ksa ds fy, foùkh; foojf.k;ksa ij fjiksvz 1- geus iatkc us'kuy csad (^csad*) dh 31 ekpz] 2018 dh layxu foùkh; foojf.k;ksa dh ys[kk ijh{kk dh gs ftlesa 31 ekpz] 2018 ds rqyu i=k vksj ykhk o gkfu [kkrs rfkk rrlacaèkh lekfir o"kz ds udnh çokg fooj.k rfkk egroiw.kz ys[kkadu uhfr;ksa dk lkj,oa vu; foospukred lwpuk lfeefyr gs A bu foùkh; foojf.k;ksa esa gekjs }kjk ys[kk ijhf{kr 21 'kk[kkvksa] Vªstjh fohkkx vksj 35 vu;a dk;kzy;ksa] (1 vkwiq'kksj csafdax ;wfuv lfgr)] 3587 'kk[kkvksa dh lkafofèkd ys[kk ijh{kdksa }kjk rfkk lecfuèkr ns'kksa esa LFkkuh; ys[kk ijh{kdksa }kjk 3 fons'kh 'kk[kkvksa dh ys[kk ijhf{kr foojf.k;ksa 'kkfey gsa gekjs }kjk vkwfmv dh xbz vksj vu; ys[kk ijh{kdksa }kjk vkwfmv dh xbz 'kk[kkvksa dk p;u csad }kjk ys[kk ijh{kk ds fy, Hkkjrh; fjtoz csad }kjk tkjh ekxzfunsz'kksa ds vuqlkj fd;k gsa rqyu i=k esa rfkk ykhk o gkfu fooj.kh [kkrs esa 3378 'kk[kkvksa vksj 116 csad ds vu; dk;kzy; dh fjvuz Hkh lfeefyr gsa tks vkwfmv ds fo"k;kèkhu ugha Fkh A bu xsj ys[kk ijhf{kr 'kk[kkvksa vksj dk;kzy;ksa ds [kkrksa ds vfxzeksa esa 6-14 çfr'kr] tekjkf'k;ksa esa çfr'kr] C;kat vk; esa 7-78 çfr'kr rfkk C;kt O;; esa çfr'kr va'k gsa foùkh; fooj.kksa ds fy, çcaèku dk nkf;ro 2- csaddkjh fofu;eu vfèkfu;e 1949 (vfèkfu;e) ds çkoèkkuksa ds vuqlkj bu foùkh; fooj.kksa dks rs;kj djus vksj vkbzlh,vkbz }kjk tkjh,dkmafvax ekudksa esa m¼fjr eku;rk o ekiu ds fl¼karksa dks Hkkjr esa lkeku;r% Lohdkj fd;k tkrk gsa vc rd ;g ekud le; le; ij csadksa vksj Hkkjrh; fjtoz csad ij ykxw gksrs gsa bl mùkjnkf;ro esa i;kzir vkarfjd foùkh; fu;a=k.kksa dk fmtkbu] j[kj[kko vksj ykxw djus ds fy, dk i;kzir j[kj[kko Hkh 'kkfey gs rfkk ;g xyr fooj.kksa ls eqdr gs pkgs os èkks[kkèkmh ;k =kqfv ds dkj.k gksa ys[kkijh{kdksa dk nkf;ro 3- gekjk nkf;ro bu fooj.k i=kksa ij gekjs }kjk dh xbz ys[kk ijh{kk ds vkèkkj ij er çdv djus rd gs A geus bulvhv;wv vkwiq pkvzm,dkmavsuv~l~ vkwiq bafm;k }kjk tkjh ys[kk ijh{kk ij tkjh ekudksa ds vuqlkj ys[kkijh{kk dh gs A ;s ekud vis{kk djrs gsa fd ge usfrd vko';drkvksa dk vuqikyu djsa vksj ge ys[kk ijh{kk dh vk;kstuk rfkk mldk fu"iknu bl çdkj djsa fd gesa foùkhs; fooj.ki=kksa ds lacaèk esa,slk leqfpr vk'oklu fey tk, fd muesa dksbz =kqfv ugha gs A 4-,d ys[kk ijh{kk esa dk;zfu"iknu çfø;k,sa layxu gsa ftuls foùkh; fooj.k i=kksa esa mfyyf[kr jkf'k;ksa vksj çdvhdj.k ds ckjs esa lk{; çkfir fd;s tkus gsa A p;fur lafofèkd ys[kk ijh{kd ds iqslys ij vkèkkfjr gksrh gs ftuesa foùkhk; fooj.k i=kksa ds xyr dfku] pkgs os èkks[kkèkm+h ds dkj.k gs ;k =kqfv ds tksf[keksa dk fuèkkzj.k lfeefyr gsa mu tksf[ke fuèkkzj.kksa dks cukus ds fy, mi;qdr ifjflfkfr;ksa ds vuqlkj ys[kkijh{kk lafofèk;ksa dk fmtkbu djus ds fy, ys[kk ijh{kd foùkfh; fooj.k i=kksa tks lr; vksj fu"i{k flfkfr n'kkzrs gsa] dh mfpr çlrqrhdj.k rfkk csad dh rs;kjh ls lacaèk vkurfjd fu;a=k.k ij fopkj djrk gs] u fd bl ç;kstu lalfkku ds vkarfjd fu;a=k.k dh INDEPENDENT AUDITORS REPORT To the Members of Punjab National Bank Report on the Financial Statements statements of Punjab National Bank (the Bank ) as at March 31, 2018, which comprise the Balance Sheet as at Flow statement for the year then ended, and a summary the returns of 21 branches, Treasury Division and 35 other Branch Auditors (including 1 off-shore banking unit and 3 foreign branches audited by local auditors in respective countries). The branches audited by us and those audited by other auditors have been selected by the Bank in accordance with the guidelines issued to the Bank by the Reserve Bank of India. Also incorporated in the Balance not been subjected to audit. These unaudited branches deposits, 7.78% of interest income and 26.20% of interest expenses. Management s Responsibility for the Standalone Financial Statements 2. Management is responsible for the preparation of these Regulation Act, 1949, accounting principles generally accepted in India along with recognition and measurement principles laid down in the Accounting Standards issued by the Institute of Chartered Accountants of India so far as they are applicable to the Bank and Reserve Bank of India guidelines from time to time. This responsibility includes the design, implementation and maintenance of statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility 3. Our responsibility is to express an opinion on these audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable from material misstatement. 4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the on the auditors judgment, including the assessment statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Bank s preparation and fair presentation procedures that are appropriate in the circumstances, PNB Full AR indd Jul-18 5:38:29 PM

137 çhkko'khyrk ij jk; nsuk gsa pkgs csad dh foùkh; fjiksfvazx vksj,sls fu;a=k.kksa ds çhkkoh lapkyu ij i;kzir vkarfjd fu;a=k.k gks A ys[kk ijh{kk esa ç;qdr ys[kk uhfr;ksa dh mi;qdrrk dk ewy;kadu çcaèku }kjk fd;s x;s ys[kk vuqekuksa dh rkfdzdrk] lkfk gh foùkh; fooj.ki=kksa dk ldy çlrqrhdj.k dk ewy;kadu Hkh lfeefyr gs A 5- gesa fo'okl gs fd ys[kk ijh{kk lk{;] tks gesa çkir gq, gsa] gekjs vfhker dks vkèkkj çnku djus ds fy; i;kzir vksj mi;qdr gs A vfhker 6- gekjh leefr esa] csad dh ys[kk cfg;ksa esa ;Fkk çnf'kzr rfkk lokszùke tkudkjh vksj gesa fn;s x;s Li"Vhsdj.k ds vuqlkj % (i) rqyui=k vksj mlds lkfk ifbr fviif.k;ka,d iw.kz rfkk mfpr rqyui=k gs ftlesa lhkh vko';d fooj.k fn;s x;s gsa vksj ;g Hkkjr esa lkeku;r% LohÑr ys[kkadu fl¼kurksa ds vuq:i bl rjg ls rs;kj fd;k x;k gs fd blesa csad dk;ksaz dh 31 ekpz] 2018 dh lgh vksj mfpr flfkfr çnf'kzr gksrh gs ; (ii) ykhk o gkfu [kkrk rfkk mlds lkfk ifbr fviif.k;ka] Hkkjr esa lkeku;r;k LohÑr ys[kkadu fl¼kurksa ds vuq:i o"kz ds ykhk dk lgh 'ks"k n'kkzrk gs ; vksj (iii) udnh çokg fooj.k i=k ml frffk dks lekir o"kz gsrq lgh vksj mfpr udn çokg n'kkzrk gs A egroiw.kz ekeyk % 7- gekjs er ds lkfk dksbz 'krz yxk, fcuk] ge uksv la- 38(ts) dh vksj è;ku vkdf"kzr djrs gsa ftlds vkèkkj ij jru,oa vkhkw"k.k ra=k ds varxzr vkus okyh dqn èkks[kkèkm+h okys [kkrksa esa dqy ` djksm+ ds cnys ` djksm+ dh jkf'k esa 50 çfr'kr dk çkoèkku fd;k x;k gs A tslk fd vkj ch vkbz ds fnukad ds i=k la- 8720@ @2017&18 }kjk fn;k x;k gsa vu; fofèk,oa fofu;ked vis{kkvksa ij fjiksvz 8- rqyui=k vksj ykhk o gkfu [kkrk csaddkjh fofu;eu vfèkfu;e] 1949 dh [k.m 29 ls fy;s x;s gsa A 9- mi;qzdr vuqpnsn 1 ls 5 esa lwfpr ys[kkijh{kk dh lhekvksa ds vè;èkhu rfkk csaddkjh daifu;ka (miøeksa dk vtzu,oa varj.k) vfèkfu;e 1970] }kjk ;Fkkisf{kr rfkk muesa visf{kr çdvhdj.kksa dh lhekvksa ds vè;èkhu ge çfrosfnr djrs gsa fd % (d) gekjh lokszùke tkudkjh vksj fo'okl ds vuqlkj ys[kk ijh{kk ds fy, tks Hkh lwpuk o Li"Vhdj.k vko';d Fks] os gesa çkir gks x, gsa vksj geus mugsa larks"ktud ik;k gs A ([k) csad ds tks ysunsu gekjh tkudkjh esa vk;s gsa] os csad dh 'kfdr;ksa ds varxzr gsa A (x) csad ds dk;kzy;ksa vksj 'kk[kkvksa ls çkir foojf.k;ka] mu dfri; ekeyksa tgka foojf.k;ka çcaèku ds fo'okl ds vkèkkj ij çekf.kr dh x;h gsa] dks NksM+dj gekjh ys[kkijh{kk ds mís'; ls i;kzir ik;h x;h gsa A but not for the purpose of expressing an opinion on the effectiveness of the Bank s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the 5. We believe that the audit evidence we have obtained is opinion. Opinion 6. In our opinion, as shown by books of bank, and to the best of our information and according to the explanations given to us: (i) the Balance Sheet, read with the notes thereon is a full and fair Balance Sheet containing all the necessary particulars, is properly drawn up so as to exhibit a true and fair view of state of affairs of the Bank as at March 31, 2018 in conformity with accounting principles generally accepted in India; thereon shows a true balance of loss, in conformity with accounting principles generally accepted in India, for the year covered by the account; and (iii) the Cash Flow Statement gives a true and fair view Emphasis of Matter 7. Without qualifying our opinion, we draw attention to Note No. 38(J) regarding 50% amounting to ` 7, crores as against the total amount of ` 14, crores in respect of fraud involving certain accounts under Gems & Jewellery Sector as per the dispensation given by the Reserve Bank of India vide their letter No. 8720/ / dt Report on Other Legal and Regulatory Requirements been drawn up in accordance with Section 29 of the Banking Regulation Act, Subject to the limitations of the audit indicated in paragraph 1 to 5 above and as required by the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and subject also to the limitations of disclosure required therein, we report that: (a) We have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit and have found them to be satisfactory; (b) The transactions of the Bank, which have come to our notice, have been within the powers of the Bank; and of the Bank have been found adequate for the purposes of our audit PNB Full AR indd Jul-18 5:38:29 PM

138 10- ge vkxs fjiksvz nsrs gs% (d) bl fjiksvz ds }kjk rqyu i=k vksj ykhk o gkfu [kkrk cgh [kkrk vksj fjvuzl ds lkfk esy [kkrs gsaa ([k) csaddkjh fofu;eu vfèkfu;e] 1949 dh [k.m 29 ds varxzr csad ds 'kk[kk vkwfmvlz }kjk 'kk[kk dk;kzy;ksa ds [kkrksa dh vkwfmfvm fjiksvz dks gesa Hkst nh xbz gs vksj gekjs }kjk bl fjiksvz dks rs;kj djus esa leqfpr dkjzokbz dj yh xbz gsa (x) gekjs er esa] rqyu i=k] ykhk o gkfu [kkrk,oa ds'k Ýyks fooj.kh,dkmafvax ekudksa ds vuqdwy gsa Ñrs lwjh,am deiuh lunh ys[kkdkj,iqvkj,u ,l (ih os.kqxksiky) lk>snkj lnl; la Ñrs th,l ekfkqj,oa deiuh,iqvkj,u ,u (jktho dqekj oèkkou) lk>snkj lnl; la LFkku% ubz fnyyh fnukad% Ñrs,lih,eth,aM deiuh lunh ys[kkdkj,iqvkj,u lh (vons'k xqirk) lk>snkj lnl; la Ñrs,pMh,lth,oa,lksfl,V~l,iQvkj,u ,u (nychj flag xqykvh) lk>snkj lnl; la Ñrs,edsih,l,aM,lksfl,V~l lunh ys[kkdkj,iqvkj,u bZ (çnhi dqekj ykb) lk>snkj lnl; la We further report that: with by this report are in agreement with the books of account and returns; audited by branch auditors of the Bank under section 29 of the Banking Regulation Act, 1949 have been sent to us and have been properly dealt with by us in preparing this report; Account and Cash Flow Statement comply with the applicable accounting standards. For Suri & Co Chartered Accountants FRN S (P Venugopal) Partner (M.No ) For GS Mathur & Co. Chartered Accountants FRN N (Rajiv Kumar Wadhawan) Partner (M.No ) Place: New Delhi Date: May 15, 2018 For SPMG & Co. Chartered Accountants FRN C (Avadesh Gupta) Partner (M.No ) For HDSG & Associates Chartered Accountants FRN N (Dalbir Singh Gulati) Partner (M.No ) For MKPS & Associates Chartered Accountants FRN E (Pradip Kumar Lath) Partner (M.No ) PNB Full AR indd Jul-18 5:38:29 PM

139 lesfdr foùkh; fooj.k Consolidated Financial Statement PNB Abridged AR indd Jul-18 4:33:17 PM

140 IkatkCk us'kuy CkSad dk 31 EkkpZ] 2018 dk laf{kirk lesfdr Rkqyu Ik=k ABRIDGED CONSOLIDATED BALANCE SHEET OF PUNJAB NATIONAL BANK AS ON MARCH 31, 2018 Ikwath vksj nsõkrkk,a CAPITAL & LIABILITIES (lhkh jkf'k ` yk[k Eksa) (All amounts in ` lac) 31 ekpz 2018 dks 31 ekpz 2017 dks As on March 31, 2018 As on March 31, 2017 Ikwath Capital çkjf{krk vksj vfèk'ks"k Reserves & Surplus lkafofèkd çkjf{krka Statutory Reserves Ikwath çkjf{krk (vyika'k C;kt lfgr) Capital Reserves (including minority interest) 'ksõkj çhfekõkek Share Premium jktlo RkFkk vuõk çkjf{krk Revenue and other Reserves ykhk o gkfu [kkrks Eksa 'ks"k tekkjkf'kõkka Deposits Ekkax tekkjkf'kõkka Demand Deposits CkpRk CkSad tekkjkf'kõkka Savings Bank Deposits lkofèk tekkjkf'kõkka Term Deposits mèkkj Borrowings HkkjRk Eksa mèkkj Borrowings in India (d) HkkjRkhÕk fj koz CkSad ls (a) from Reserve Bank of India ([k) vuõk CkSadksa ls (b) from other Banks (x) vuõk lalfkkvksa vksj,tsaflõkksa ls (c) from other Institutions and Agencies HkkjRk ls Ckkgj mèkkj Borrowings outside India vuõk nsõkrkk,a,oa çkoèkku Other liabilities and provisions nsõk fcky Bills Payable vurk% dkõkkzyõk lekkõkkstu ('kq¼) mikfprk CÕkkt Interest accrued Ekkud vkflrkõkksa ds fy, çkoèkku Provisions towards standard assets PNB Abridged AR indd Jul-18 4:33:18 PM

141 IkatkCk us'kuy CkSad dk 31 EkkpZ] 2018 dk laf{kirk lesfdr Rkqyu Ik=k ABRIDGED CONSOLIDATED BALANCE SHEET OF PUNJAB NATIONAL BANK AS ON MARCH 31, 2018 vklfkfxrk dj nsõkrkk ('kq¼) vuõk Others 31 ekpz 2018 dks As on March 31, 2018 (lhkh jkf'k ` yk[k Eksa) (All amounts in ` lac) 31 ekpz 2017 dks As on March 31, dqy Ikwath vksj nsõkrkk,a vkflrkõkka ASSETS udnh,oa HkkjRkhÕk fj koz CkSad ds Ikkl 'ks"k Cash and balances with Reserve Bank of India CkSadksa ds Ikkl tekk 'ks"k vksj Ekkax RkFkk vyik lwpuk Ikj çkiõk èku Balances with Banks & Money at Call & Short Notice HkkjRk Eksa CkSadksa ds Ikkl 'ks"k Balances with Banks in India HkkjRk Eksa Ekkax RkFkk vyik lwpuk Ikj çkiõk èku HkkjRk ls Ckkgj 'ks"k Balances outside India fuos'k Investments HkkjRk Eksa In India d) ljdkjh çfrkhkwfrkõkka (a) Government Securities [k) vuõk vuqekksfnrk çfrkhkwfrkõkka (b) Other Approved Securities x) 'ksõkj (c) Shares?k) fmcksupj vksj Ckk.M (d) Debentures and Bonds M) vuq"kafxõkka vksj@vfkok laõkqdr m Ek p) vuõk (f) Others HkkjRk ls Ckkgj Outside India vfxzek Advances HkkjRk Eksa In India d) [kjhns vksj Hkquk, x, fcky (a) Bills purchased and discounted [k) udn mèkkj] vksojmªkýv vksj Ekkax Ikj nsõk ½.k repayable on demand PNB Abridged AR indd Jul-18 4:33:19 PM

142 IkatkCk us'kuy CkSad dk 31 EkkpZ] 2018 dk laf{kirk lesfdr Rkqyu Ik=k ABRIDGED CONSOLIDATED BALANCE SHEET OF PUNJAB NATIONAL BANK AS ON MARCH 31, 2018 x) fekõkknh ½.k (lhkh jkf'k ` yk[k Eksa) (All amounts in ` lac) 31 ekpz 2018 dks 31 ekpz 2017 dks As on March 31, 2018 As on March 31, HkkjRk ls Ckkgj Outside India vpy vkflrkõkka Fixed Assets vuõk vkflrkõkka Other Assets vark% dkõkkzyõk lekk'kksèku ('kq¼) mikfprk CÕkkt Interest accrued dj dk vfxzek HkqxRkku@dj dh ÏksRk Ikj dvksrkh Tax paid in advance / deducted at source vklfkfxrk dj vkflrk ('kq¼) Deferred tax asset (net) nkoksa ds fuikvku gsrkq çkirk xsj CkSa dx vkflrkõkka vuõk Others dqy vkflrkõkka Total Assets vkdflekd nsõkrkk,a Contingent Liabilities CkSad ds fo:¼,sls nkos ftugsa ½.k ds :Ik Eksa ugha Ekkuk xõkk gs Claims against the Bank not acknowledged as debts CkdkÕkk okõknk fofuekõk lafonkvksa ds dkj.k nsõkrkk,a contracts xzkgdksa dh vksj ls nh xõkha xkjafvõkka Guarantees given on behalf of constituents LohÑfRkÕkka] Ik` kadu vksj vuõk nkfõkro Acceptances, endorsements and other obligations vuõk Eknsa ftuds fy, CkSad vkdflekd :Ik ls fteeksnkj gs Other items for which the Bank is contingently liable olwyh ds fy, fcky Bills for collection çkjf{krk fufèkõkksa vksj vfèk'ks"k ds varkxzrk IkquEkwZYÕku çkjf{krk fufèk PNB Abridged AR indd Jul-18 4:33:19 PM

143 ih ds ok".kzs;,l ds tsu ih ds 'kekz P K Varshney S K JAIN P K SHARMA eq[; çckuèkd mi EkgkçCkUèkd EkgkçCkUèkd Chief Manager DY. GENERAL MANAGER GENERAL MANAGER,y oh çhkkdj L V PRABHAKAR dkõkzikkyd funs'kd EXECUTIVE DIRECTOR lquhy esgrk lquhy esgrk SUNIL MEHTA SUNIL MEHTA çca/ funs'kd,oa eq[; dk;zikyd vf/dkjh vè;{k MANAGING DIRECTOR & CEO CHAIRMAN jfo feùky MkW jch,u fejk egs'k ckcw xqirk RAVI MITAL Dr. RABI N MISHRA MAHESH BABOO GUPTA funs'kd funs'kd funs'kd DIRECTOR DIRECTOR DIRECTOR lqèkhj uk;j lat; oekz SUDHIR NAYAR SANJAY VERMA funs'kd funs'kd DIRECTOR DIRECTOR bzou frffk dks gekjh fjiksvz ds vuqlkj As per our Report of even date d`rs lwjh,am deiuh ÑRks,lih,eth,aM deiuh Ñrs,edsih,l,aM,lksfl,V~l For Suri & Co. For SPMG & Co. For MKPS & Associates lunh ys[kkdkj &,IkQvkj,u ,l lunh ys[kkdkj &,IkQvkj,u lh lunh ys[kkdkj &,iqvkj,u bZ Chartered Accountants - FRN S Chartered Accountants - FRN C Chartered Accountants - FRN E fnukad % 15@05@2018 Date : 15/05/2018 LFkku % ubz fnyyh (ih- os.kqxksiky) (vons'k xqirk) (çnhi dqekj ykb) lköksnkj lköksnkj lköksnkj (P. Venugopal) (Avadesh Gupta) (Pradip Kumar Lath) Partner Partner Partner lnlõk la lnlõk la lnlõk la M No M No M No ÑRks th,l ekfkqj,am deiuh ÑRks,pMh,lth,aM,lksfl,V~l For G S Mathur & Co. For HDSG & Associates lunh ys[kkdkj &,IkQvkj,u ,u lunh ys[kkdkj &,IkQvkj,u ,u Chartered Accountants - FRN N Chartered Accountants - FRN N (jktho dqekj oèkkou) (nychj lg xqykvh) lk>snkj lk>snkj (Rajiv Kumar Wadhawan) (Dalbir Singh Gulati) Partner Partner lnlõk la lnlõk la M No M No PNB Abridged AR indd Jul-18 4:33:19 PM

144 IkatkCk us'kuy CkSad dk 31 EkkpZ] 2018 dks lekir o"kz ds fy, laf{kir lesfdr ykhk&gkfu [kkrk ABRIDGED CONSOLIDATED PROFIT AND LOSS ACCOUNT OF PUNJAB NATIONAL BANK FOR THE YEAR ENDED MARCH 31, 2018 (lhkh jkf'k ` yk[k Eksa) (All amounts in ` lac) dks For the year ended March 31, dks For the year ended March 31, 2017 vkõk Income v trk CÕkkt Interest Earned vfxzekksa@fckyksa Ikj On advances/bills fuos'kksa Ikj On Investments HkkjRkhÕk fjtoz CkSad ds Ikkl 'ks"k vksj vuõk vurk% CkSad fufèkõkka On balances with RBI and other inter-bank funds vuõk Others vuõk vkõk Other Income dekh'ku] fofuekõk,oa nykyh Commission, Exchange and Brokerage fuos'kksa dh fckøh Ikj 'kq¼ ykhk HkwfEk] Hkou] vksj vuõk vkflrkõkksa dh fckøh Ikj 'kq¼ ykhk fofuekõk ysunsuksa Ikj 'kq¼ ykhk HkkjRk@fons'k Eksa vuq"kafxõkksa vksj@vfkok laõkqdr m Ekksa ls ykhkka'k brõkkfn }kjk vkõk Income by way of Dividends etc. from subsidiaries fofoèk vkõk Miscellaneous Income dqy vkõk Total Income OÕkÕk Expenditure [kpz fdõkk xõkk CÕkkt Interest Expended tekk jkf'kõkksa Ikj On Deposits HkkjRkhÕk fjtoz CkSad@vURk% CkSad mèkkjksa Ikj On RBI/ Inter - bank borrowings vuõk Others PNB Abridged AR indd Jul-18 4:33:19 PM

145 IkatkCk us'kuy CkSad dk 31 EkkpZ] 2018 dks lekir o"kz ds fy, laf{kir lesfdr ykhk&gkfu [kkrk ABRIDGED CONSOLIDATED PROFIT AND LOSS ACCOUNT OF PUNJAB NATIONAL BANK FOR THE YEAR ENDED MARCH 31, 2018 (lhkh jkf'k ` yk[k Eksa) (All amounts in ` lac) Ikfjpkyu OÕkÕk Operating Expenses dekzpkfjõkksa dks HkqxRkku vksj muds fy, çkoèkku Payments to and Provisions for employees fdjkõkk] dj,oa fcktyh Ekqæ.k,oa ys[ku lkekxzh Printing and Stationery fokkiku vksj çpkj Advertisement and Publicity CkSad dh leikfùk Ikj EkwYÕkßkl Depreciation on Bank's property funs'kdksa dh iqhl] HkÙks,oa [kpz Directors' fees, allowances and expenses ys[kkikjh{kdksa dh iqhl,oa [kpz ('kk[kk ys[kk Ikjh{kdksa lfgrk) Auditors' fees and expenses (including branch auditors) fofèk çhkkj Mkd] Rkkj] VsyhiQksu vkfn Postage, Telegrams, Telephones, etc. EkjEEkRk vksj j[kj[kko Repairs and Maintenance CkhEkk Insurance vuõk Others dks For the year ended March 31, dks For the year ended March 31, çkoèkku,oa vkdflekdrkk,a Provisions and contingencies fuos'k Ikj EkwYÕkßkl ds fy, izkoèkku Provisions for depreciation on Investment vutzd vkflrkõkksa ds fy, çkoèkku Provision towards non performing assets Ekkud vkflrkõkksa ds fy, çkoèkku Provision towards standard assets vuõk (vkõk djksa ds vfrkfjdr) Others (excluding income taxes) dqy [kpsz,oa çkoèkku Total expenses and provisions dj IkwoZ ykhk@(gkfu) orkzekku dj Current tax vklfkfxrk dj Deferred tax (218745) (121367) (709278) (150773) PNB Abridged AR indd Jul-18 4:33:19 PM

146 IkatkCk us'kuy CkSad dk 31 EkkpZ] 2018 dks lekir o"kz ds fy, laf{kir lesfdr ykhk&gkfu [kkrk ABRIDGED CONSOLIDATED PROFIT AND LOSS ACCOUNT OF PUNJAB NATIONAL BANK FOR THE YEAR ENDED MARCH 31, 2018 dj Ik'PkkRk vyika'k dh vk; esa fgllk ('kq¼) vkxs ys tk;k x;k dqy Total (lhkh jkf'k ` yk[k Eksa) (All amounts in ` lac) dks For the year ended March 31, dks For the year ended March 31, fofuõkkstu Appropriations lkafofèkd çkjf{krk fufèkõkksa dks varkj.k Transfer to Statutory Reserve vuõk çkjf{krk fufèkõkksa dks varkj.k Transfer to Other Reserves ljdkj dks varkj.k@çlrkkfork ykhkka'k Transfer to Government / proposed dividend Rkqyu Ik=k Eksa ys tkõkk xõkk 'ks"k Balance carried forward to balance sheet vu; Others ih ds ok".kzs;,l ds tsu ih ds 'kekz P K Varshney S K JAIN P K SHARMA eq[; çckuèkd mi EkgkçCkUèkd EkgkçCkUèkd Chief Manager DY. GENERAL MANAGER GENERAL MANAGER,y oh çhkkdj L V PRABHAKAR dkõkzikkyd funs'kd EXECUTIVE DIRECTOR lquhy esgrk lquhy esgrk SUNIL MEHTA SUNIL MEHTA çca/ funs'kd,oa eq[; dk;zikyd vf/dkjh vè;{k MANAGING DIRECTOR & CEO CHAIRMAN jfo feùky MkW jch,u fejk egs'k ckcw xqirk RAVI MITAL Dr. RABI N MISHRA MAHESH BABOO GUPTA funs'kd funs'kd funs'kd DIRECTOR DIRECTOR DIRECTOR PNB Abridged AR indd Jul-18 4:33:20 PM

147 lqèkhj uk;j lat; oekz SUDHIR NAYAR SANJAY VERMA funs'kd funs'kd DIRECTOR DIRECTOR bzou frffk dks gekjh fjiksvz ds vuqlkj As per our Report of even date d`rs lwjh,am deiuh ÑRks,lih,eth,aM deiuh Ñrs,edsih,l,aM,lksfl,V~l For Suri & Co. For SPMG & Co. For MKPS & Associates lunh ys[kkdkj &,IkQvkj,u ,l lunh ys[kkdkj &,IkQvkj,u lh lunh ys[kkdkj &,iqvkj,u bZ Chartered Accountants - FRN S Chartered Accountants - FRN C Chartered Accountants - FRN E fnukad % 15@05@2018 Date : 15/05/2018 LFkku % ubz fnyyh (ih- os.kqxksiky) (vons'k xqirk) (çnhi dqekj ykb) lköksnkj lköksnkj lköksnkj (P. Venugopal) (Avadesh Gupta) (Pradip Kumar Lath) Partner Partner Partner lnlõk la lnlõk la lnlõk la M No M No M No ÑRks th,l ekfkqj,am deiuh ÑRks,pMh,lth,aM,lksfl,V~l For G S Mathur & Co. For HDSG & Associates lunh ys[kkdkj &,IkQvkj,u ,u lunh ys[kkdkj &,IkQvkj,u ,u Chartered Accountants - FRN N Chartered Accountants - FRN N (jktho dqekj oèkkou) (nychj lg xqykvh) lk>snkj lk>snkj (Rajiv Kumar Wadhawan) (Dalbir Singh Gulati) Partner Partner lnlõk la lnlõk la M No M No PNB Abridged AR indd Jul-18 4:33:20 PM

148 ys ksa ij fviif.k;ka 1-05 lgk;d] 10 lg;ksxh,oa 01 la;qdr m e (tks iatkc us'kuy csad ds lkfk] isjsav] lewg dk xbu djrs gsa)] lesfdr foùkh; fooj.k&i=kksa esa ftu vuq"kafx;ksa ij fopkj fd;k x;k gs] os fueufyf r gsa % (» esa) vuq"kaxh daiuh dk uke dgk xfbr gqbz fueufyf r frffk;ksa dks èkkfjr çfr'kr erkfèkdkj ih,uch fxyvl fyfevsm* Hkkjr iatkc us'kuy csad ;w-ds (bavjus'kuy)fyfevsm $ 3- ih,uch buoslvesav lfozlst Hkkjr fyfevsm 4- Mªd ih,uch csad fy- HkwVku ih,uch chek czksfdax çk- fy-* Hkkjr * bu dk;kzy;ksa ds foùkh; fooj.k i=k deiuh vfèkfu;e] 2013 ds vurxzr Hkkjr ds fu;u=kd,oa egkys kijh{kd }kjk vuqiwjd ys k&ijh{kk iwjh gksus vksj mudh fjiksvz dh çkfir ds vè;èkhu gsaa $ ih,uch lewg ds lesfdr foùkh; fooj.k rs;kj djrs le; vu&ys[kkijhf{kr foùkh; dk;zokbz dh xbz gs A daiuh dks lekir djus ds dne mbk;s tk jgs gsa D;ksafd deiuh us fnukad dks ykblsal igys gh okfil dj fn;k gs A 2- lesfdr foùkh; fooj.k i=kksa ds fy, fueufyf r lg;ksxh lalfkkvksa ij fopkj fd;k x;k gs % (» esa) lg;ksxh deiuh dk uke ftl ns'k esa xfbr gqbz fueufyf r frffk;ksa dks LokfeRo dk çfr'kr eè; fcgkj xzkeh.k csd] Hkkjr ivuk 2- loz gfj;k.kk xzkeh.k csad] Hkkjr jksgrd 3- fgekpy xzkeh.k csad] Hkkjr eamh 4- iatkc xzkeh.k csad] Hkkjr diwjfkyk 5- loz ;wih xzkeh.k csad] Hkkjr esjb 6- fçafliy ih,uch,lsv usiky esustesav d- çk- fy- 7- fçafliy VªLVh d- Hkkjr çk- fy- 8- ih,uch esvykbiq bafm;k Hkkjr ba';ksjsal daiuh fy- 9- ts,llh Vsaxjh csad],yekvh] Hkkjr dtkf Lrku 10- ih,uch gkmaflax iqkbzusal dtkf Lrku fyfevsm 11-,ojsLV csad fyfevsm (la;qdr miøe) Hkkjr NOTES TO ACCOUNTS 1. The 05 Subsidiaries, 10 Associates and 01 Joint Venture (which along with Punjab National Bank, the parent, constitute the Group), considered in the are as under: (in %) incorporation % Voting power held as at PNB Gilts Limited* India Punjab National Bank United Kingdom (International) Ltd$. 3. PNB Investment Services India Ltd. 4. Druk PNB Bank Ltd. Bhutan PNB Insurance Broking Pvt Ltd* India been surrendered on Associates / Joint Venture considered in consolidated Joint Venture 3. Himachal Pradesh Meerut. Ltd. Pvt. Ltd. 10.PNB Housing Finance Limited 11. Everest Bank Ltd. (Joint Venture) incorporation (in %) Proportion of ownership percentage as at India India India India India India India India India PNB Full AR indd Jul-18 4:39:29 PM

149 iqqvuksv% 2-1,ojsLV csad fyfevsm dk ys kadu o"kz gekjs csad ls fhkuu gsa 2-2 o"kz 2017&18 ds fy, fueufyf r lg;ksxh deifu;ksa ls çkir xsj ys k&ijhf{kr foùkh; fooj.k i=kksa ds vkèkkj ij ys ksa esa csad ds 'ks;j ds fo"k; esa fopkj fd;k x;k gsa d- fçafliy ih,uch vlsv esustesav deiuh çk-fy- - fçafliy VªLVh deiuh çk-fyx- ts,llh (Vsaxjh csad)],yekvh] dtkf Lrku?k- fgekpy xzkeh.k csad] eamh Ä- iatkc xzkeh.k csad] diwjfkyk p- loz ;wih xzkeh.k csad] esjb N- ih,uch esvykbiq bafm;k ba';ksjsal daiuh fyt-,ojslv csad fy- usiky (la;qdr miøe) 2-3 iw th çkjf{kr dk fooj.k fueufyf r gs %& fooj.k dh flfkfr (` djksm+ esa) dh flfkfr lk iw th çkjf{kr fufèk lk ('kq¼) lesdu ij iwath çkjf{kr fufèk csfe;knh caèki=k@xks.k mèkkjksa ds :i esa Øe'k% Vh;j&A vksj Vh;j&AA iw th fueuor tqvkbz gsa (` djksm+ esa) fooj.k dks dks o"kz ds nksjku yksvj Vh;j&AA iw th ds :i esa tqvkbz xbz xks.k ½.k dh jkf'k o"kz ds nksjku vij Vh;j&AA iw th ds :i esa tqvkbz xbz xks.k ½.k dh jkf'k o"kz ds nksjku Vh;j&A iw th ds :i esa tqvkbz xbz csfe;knh caèki=kksa dh jkf'k csad lewg dk iw th i;kzirrk vuqikr (csly&iii) fueufyf r gs% Footnotes: :- Ltd. 2.3 The break-up of Capital Reserve/Goodwill is as follows: - Particulars As on (` As on Goodwill Goodwill (Net) Perpetual bonds/sub-ordinated debt raised as Tier I and Tier II Capital: Particulars As on (` As on group is as under: fooj.k csly III lkeku; bfdovh Vh;j A iwath vuqikr (») (csly AAA) Vh;j&1 iwath vuqikr (») (csly AAA) Vh;j&2 iwath vuqikr (») (csly AAA) dqy iwath vuqikr (lhvkj,vkj) (») (csly AAA) ys k ekudksa }kjk visf{kr çdvhdj.k 4-1 ys k ekud&5 iwoz vofèk vksj ys kadu uhfr esa ifjorzu Particulars Basel III (Basel- III) Total Capital ratio (CRAR) (%) (Basel- III) PNB Full AR indd Jul-18 4:39:30 PM

150 Hkkjrh; lunh ys kdkj lalfkku }kjk tkjh ys k ekud&5 ds vèkhu dksbz egroiw.kz iwoz&vofèk vk;@o;; dk çdvhdj.k visf{kr ugha gsaa finys o"kz esa vuqikfyr dh xbz fdlh ys kadu uhfr esa dksbz ifjorzu ugha fd;k x;k gsa 4-2 ys k ekud 6 % ewy;ßkl ys k fofèk o"kz esa vkflr;ksa ds çr;sd oxz ds fy, fd, x, ewy;ßkl dk C;kSjk fooj.k (vkflr Js.kh) dks lekir o"kz (` djksm+ esa) dks lekir o"kz ifjlj vu; vpy vkflr;ka iêðs okyh vkflr;ka dei;wvj lkwývos;j tksm ys k ekud 9 % jktlo igpku ftl vk; dks olwyh ds vkèkkj ij ys kafdr fd;k x;k gs mls egroiw.kz ugha ekuk x;k gsa 4-4 ys k ekud 11 fons'kh fofue; njksa esa ifjorzu % fons'kh fofue; mrkj p<+ko fufèk dh?kvc<+ % jkf'k (` djksm+ esa) fooj.k çkjafhkd 'ks"k o"kz ds nksjku tek o"kz ds nksjku vkgfjr lekfir 'ks"k ys k ekud 15 dezpkjh ykhk (ewy deiuh)% ys[kk ekud 15 (la'kksfèkr) dk izdvhdj.k% ;kstuk dk çdkj% isa'ku (jkf'k ` djksm+ esa) I. çèkku chekafdd eku;rk (Hkkfjr vkslr ds :i esa O;Dr fd;k x;k) cêðk nj 7.89% 8.05% ;kstuk vkflr;ksa ds çfriqy dh lahkkfor nj 2.80% 2.80% osru esa o`f¼ dh nj 6.50% 6.50% ßkl nj 1.00% 1.00% ;kstuk laifùk ij okilh dh visf{kr nj 8.61% 8.61% II. nkf;roksa ds orzeku ewy; esa ifjorzu &vksifuax vksj Dyksftax 'ks"kksa dk feyku vofèk dh 'kq:vkr esa nkf;roksa dk orzeku ewy; C;kt ykxr pkyw lsok ykxr iwoz lsok ykxr& veku; iwoz lsok ykxr& eku; iwoz lsok ykxr& xsj ifj'kksfèkr Hkqxrku fd, tk pqds ykhk AS 6 - Depreciation accounting (` Particulars (Class of Assets) Year ended Year ended Premises Leased assets Total AS 9 - Revenue Recognition basis is not considered to be material. 4.4 AS 11- Changes in foreign exchange rates: ` Particulars Closing Balance DISCLOSURE IN ACCORDANCE WITH AS-15(R): TYPE OF PLAN: PENSION I. PRINCIPAL ACTUARIAL ASSUMPTIONS Expressed as weighted averages 7.89% 8.05% 2.80% 2.80% 6.50% 6.50% 1.00% 1.00% 8.61% 8.61% II. CHANGES IN THE PRESENT VALUE OF THE OBLIGATION (PVO) - RECONCILIATION OF OPENING AND CLOSING BALANCES: Past service cost -Unrecognised PNB Full AR indd Jul-18 4:39:30 PM

151 nkf;ro ij oklrfod (ykhk) (larqyu vkadm+k) vofèk ds var esa ihohvks III. ;kstuk vkflr;ksa ds mfpr ewy; esa ifjorzu&vksifuax vksj Dyksftax 'ks"kksa dk feyku vofèk dh 'kq:vkr esa ;kstuk vkflr;ksa dk mfpr ewy; ;kstuk vkflr;ksa ij lahkkfor çfriqy va'knku Hkqxrku fd, x, ykhk ;kstuk vkflr;ksa ij chekafdd gkfu@ykhk (feyku fd;s x;s vkadm+s) vofèk ds var esa ;kstuk vkflr;ksa dk mfpr ewy; IV. ;kstuk vkflr;ksa ij oklrfod çfriqy ;kstuk vkflr;ksa ij lahkkfor çfriqy ;kstuk vkflr;ksa ij chekafdd ykhk (gkfu) laosnu'khy çfrhkwfr;ksa ij C;kt nj vksj ,iQMhvkj ij vftzr C;kt lfgr voklrfod iwathxr iwath (gkfu) lfgr ;kstuk vkflr;ksa ij oklrfod çfriqy V. eku; chekafdd vofèk ds fy, chekafdd ykhk@(gkfu) &nkf;ro vofèk ds fy, chekafdd ykhk@(gkfu) ;ktuk vkflr;ka vofèk ds fy, dqy chekafdd ykhk@(gkfu) vofèk esa eku; chekafdd ykhk@(gkfu) o"kz ds var esa veku; chekafdd (gkfu)@ 0 0 ykhk VI. rqyui=k esa eku; jkf'k vksj lecafèkr fo'ys"k.k % nkf;roksa dk orzeku ewy; ;kstuk vkflr;ksa dk mfpr ewy; vurj veku; Vªkft'uy ns;rk;sa 0 0 veku; xr lsok ykxr & fufgr ykhk & 0 0 rqyui=k esa eku; ns;rk,a isjk 55 ds vurxzr udkjkred fuèkkzfjr jkf'k Hkkoh va'knkuksa esa dvksrh vksj miycèk Hkkoh dvksrh dk orzeku ewy; isjk 59ch ds vurxzr lhek vuqlkj eku; vkflr VII. ykhk o gkfu krs esa eku; O;; pkyw lsok ykxr Actuarial loss/(gain) on obligation III. CHANGES IN THE FAIR VALUE OF PLAN ASSETS - RECONCILIATION OF OPENING AND CLOSING BALANCES: FAIR VALUE OF PLAN ASSETS AS AT THE BEGINNING OF THE PERIOD Contributions IV. ACTUAL RETURN ON PLAN ASSETS V. ACTUARIAL GAIN / LOSS RECOGNI ED Obligation VI. AMOUNTS RECOGNISED IN THE BALANCE SHEET AND RELATED ANALYSES (b) VII. EXPENSES RECOGNISED IN THE STATEMENT OF PROFIT AND LOSS: PNB Full AR indd Jul-18 1:53:02 PM

152 C;kt ykxr ;kstuk vkflr;ksa ij lahkkfor çfriqy o"kz ds nksjku eku; 'kq¼ vfkok gkfu o"kz ds nksjku eku; Vªkaft'kuy 0 0 ns;rk,a xr lsok ykxr& xsj ifj'kksfèkr 0 0 xr lsok ykxr& eku; 0 0 isjk 59ch esa lhek dk çhkko 0 0 çkwfiqv,am yksl LVsVesaV esa eku; O;; VIII. rqyui=k esa eku; gksus okyh 'kq¼ ns;rk esa mrkj&p<+ko çkjfehkd 'kq¼ ns;rk O;; mijksdrkuqlkj lanùk va'knku vafre 'kq¼ ns;rk IX. orzeku vofèk ds fy, jkf'k nkf;roksa dk orzeku ewy; ;kstuk vkflr;ka veku; xr lsok ykxr ls iwoz vfèk'ks"k@ (?kkvk) ;kstuk ns;rkvksa esa vuqhkkfod lek;kstu &(gkfu)@ykhk ;kstuk vkflr;ksa esa vuqhkkfod lek;kstu& (gkfu)@ykhk X. ;kstuk vkflr;ksa dh çeq Jsf.k;k (dqy ;kstuk vkflr;ksa dk çfr'kr) Hkkjr ljdkj dh çfrhkwfr;k 8.66% 8.85% jkt; ljdkj dh çfrhkwfr;k 30.68% 31.90% mpp fdle ds dkwikzsjsv ckw.m 10.58% 13.82% lwphc¼ deifu;ksa ds bfdovh 'ks;j 0.00% 0.00% laifùk 0.00% 0.00% fo'ks"k tek ;kstuk,a 0.00% 0.00% fuxzedrkz }kjk pykbz xbz fufèk;k 37.62% 32.68% vu; csad tekjkf'k;ka vksj tek çek.ki=k 12.46% 13.00% tksm % % XI. vkxkeh o"kz ds nksjku ,aVjçkbZt ds va'knku dk Js"Bre vuqeku ;kstuk dk çdkj% minku I. çèkku chekafdd eku;rk (Hkkfjr vkslr ds :i esa O;Dr fd;k x;k) cêðk nj 7.97% 7.37% osru esa o`f¼ dh nj 6.00% 6.00% ßkl nj 1.00% 1.00% ;kstuk laifùk ij okilh dh visf{kr nj 8.61% 8.61% II. nkf;roksa ds orzeku ewy; esa ifjorzu &vksifuax vksj Dyksftax a a 'ks"kksa dk feyku vofèk dh 'kq:vkr es nkf;roks dk orzeku ewy; Past service cost - recognised VIII. MOVEMENTS IN THE LIABILITY RECOGNI ED IN THE BALANCE SHEET IX. AMOUNT FOR THE CURRENT PERIOD X. MAJOR CATEGORIES OF PLAN ASSETS (BOOK VALUE PROPORTIONS) 8.66% 8.85% State Government Securities 30.68% 31.90% 10.58% 13.82% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 37.62% 32.68% 12.46% 13.00% Total % % XI. ENTERPRISE S BEST ESTIMATE OF CONTRIBUTION DURING NEXT YEAR TYPE OF PLAN: GRATUITY I. PRINCIPAL ACTUARIAL ASSUMPTIONS Expressed as weighted averages % 7.37% 6.00% 6.00% 1.00% 1.00% 8.61% 8.61% II. CHANGES IN THE PRESENT VALUE OF THE OBLIGATION (PVO) - RECONCILIATION OF OPENING AND CLOSING BALANCES: PNB Full AR indd Jul-18 4:39:31 PM

153 C;kt ykxr pkyw lsok ykxr iwoz lsok ykxr lanùk ykhk nkf;ro ij oklrfod (ykhk) (larqyu vkadm+k) vofèk ds var esa ihohvks III. ;kstuk vkflr;ksa ds mfpr ewy; esa ifjorzu&vksifuax vksj Dyksftax 'ks"kksa dk feyku vofèk dh 'kq:vkr esa ;kstuk vkflr;ksa dk mfpr ewy; ;kstuk vkflr;ksa ij lahkkfor çfriqy va'knku lanùk ykhk nkf;ro ij chekafdd (ykhk) (larqyu vkadm+k) vofèk ds var esa ;kstuk vkflr;ksa dk mfpr ewy; IV. ;kstuk vkflr;ksa ij oklrfod çfriqy ;kstuk vkflr;ksa ij lahkkfor çfriqy ;kstuk vkflr;ksa ij chekafdd ykhk (gkfu) laosnu'khy çfrhkwfr;ksa ij C;kt nj vksj ,iQMhvkj ij vftzr C;kt lfgr voklrfod iwathxr iwath (gkfu) lfgr ;kstuk vkflr;ksa ij oklrfod çfriqy V. eku; chekafdd vofèk ds fy, chekafdd ykhk@(gkfu) &nkf;ro vofèk ds fy, chekafdd ykhk@(gkfu) ;kstuk vkflr;ka vofèk ds fy, dqy chekafdd ykhk@(gkfu) vofèk esa eku; chekafdd ykhk@(gkfu) o"kz ds var esa veku; chekafdd (gkfu)@ 0 0 ykhk VI. rqyui=k esa eku; jkf'k vksj lecafèkr fo'ys"k.k % nkf;roksa dk orzeku ewy; ;kstuk vkflr;ksa dk mfpr ewy; vurj veku; Vªkft'uy ns;rk;sa 0 0 veku; xr lsok ykxr 0 0 rqyui=k esa eku; ns;rk,a isjk 55 ds vurxzr udkjkred fuèkkzfjr jkf'k Hkkoh va'knkuksa esa dvksrh vksj miycèk Hkkoh dvksrh dk orzeku ewy; isjk 59ch ds vurxzr ifj.kkeh vkflr VII. ykhk o gkfu krs esa eku; O;; pkyw lsok ykxr C;kt ykxr Interest Cost Current service cost Past service cost Actuarial loss/(gain) on obligation III. CHANGES IN THE FAIR VALUE OF PLAN ASSETS - RECONCILIATION OF OPENING AND CLOSING BALANCES: Contributions IV. ACTUAL RETURN ON PLAN ASSETS the interest rate sensitive securities V. ACTUARIAL GAIN / LOSS RECOGNI ED Obligation Plan Assets VI. AMOUNTS RECOGNISED IN THE BALANCE SHEET AND RELATED ANALYSES Sheet (b) VII. EXPENSES RECOGNISED IN THE STATEMENT OF PROFIT AND LOSS: Current service cost Interest Cost PNB Full AR indd Jul-18 1:5 : 3 PM

154 ;kstuk vkflr;ksa ij lahkkfor çfriqy o"kz ds nksjku eku; 'kq¼ chekafdd (ykhk) gkfu o"kz ds nksjku eku; Vªkaft'kuy 0 0 ns;rk,a xr lsok ykxr& eku; isjk 59ch esa lhek dk 0 0 çhkko çkwfiqv,am yksl LVsVesaV esa eku; O;; VIII. rqyui=k esa eku; gksus okyh 'kq¼ ns;rk esa mrkj&p<+ko çkjfehkd 'kq¼ ns;rk mdr ds vuqlkj O;; lanùk va'knku vafre 'kq¼ ns;rk IX. orzeku vofèk ds fy, jkf'k nkf;roksa dk orzeku ewy; ;kstuk vkflr;k vfèk'ks"k@)?kkvk ;kstuk ns;rkvksa esa vuqhkkfod lek;kstu &(gkfu)@ykhk ;kstuk vkflr;ksa esa vuqhkkfod lek;kstu& (gkfu)@ykhk X. ;kstuk vkflr;ksa dh çeq Jsf.k;k (dqy ;kstuk vkflr;ksa dk çfr'kr) Hkkjr ljdkj dh çfrhkwfr;k 14.05% 13.54% jkt; ljdkj dh çfrhkwfr;k 32.50% 32.13% mpp fdle ds dkwikzsjsv ckw.m 8.25% 14.05% lwphc¼ deifu;ksa ds bfdovh 'ks;j 0.00% 0.00% laifùk 0.00% 0.00% fo'ks"k tek ;kstuk,a 0.00% 0.00% fuxzedrkz }kjk pykbz xbz fufèk;k 30.05% 14.86% vu; (csad tekjkf'k;ka vksj tek çek.ki=k 15.15% 25.42% lhmh) tksm % % XI. vkxkeh o"kz ds nksjku,avjçkbzt ds va'knku dk Js"Bre vuqeku ;kstuk dk çdkj% fo'ks"kkfèkdkj Nqfêð;ksa dk udnhdj.k I. çèkku chekafdd eku;rk (Hkkfjr vkslr ds :i esa O;Dr fd;k x;k) cêðk nj 7.97% 7.37% osru esa o`f¼ dh nj 6.00% 6.00% ßkl nj 1.00% 1.00% ;kstuk laifùk ij okilh dh visf{kr nj 0.00% 0.00% II. nkf;roksa ds orzeku ewy; esa ifjorzu &vksifuax vksj Dyksftax 'ks"kksa dk feyku vofèk dh 'kq:vkr esa nkf;roksa dk orzeku ewy; C;kt ykxr pkyw lsok ykxr Expected return on plan assets Net actuarial (gain)/loss recognised in the year Transitional Liability recognised in the 0 0 year Past service cost-recognised Effect of the limit under paragraph (b) Expenses recogni ed in the statement VIII. MOVEMENTS IN THE LIABILITY RECOGNI ED IN THE BALANCE SHEET Opening net liability Expense as above Contribution paid Closing net liability IX. AMOUNT FOR THE CURRENT PERIOD Present Value of obligation Plan Assets Experience adjustments on plan liabilities -(loss)/gain Experience adjustments on plan assets (loss)/gain X. MAJOR CATEGORIES OF PLAN ASSETS (BOOK VALUE PROPORTIONS) Government of India Securities 14.05% 13.54% State Government Securities 32.50% 32.13% High Quality Corporate Bonds 8.25% 14.05% Equity shares of listed companies 0.00% 0.00% Property 0.00% 0.00% Special Deposit Scheme 0.00% 0.00% Funds managed by Insurer 30.05% 14.86% Others including bank deposits and 15.15% 25.42% CDs Total % % XI. ENTERPRISE S BEST ESTIMATE OF CONTRIBUTION DURING NEXT YEAR TYPE OF PLAN: PRIVILEGE LEAVE ENCASHMENT I. PRINCIPAL ACTUARIAL ASSUMPTIONS Expressed as weighted averages Discount Rate 7.97% 7.37% Salary escalation rate 6.00% 6.00% Attrition rate 1.00% 1.00% Expected rate of return on Plan Assets 0.00% 0.00% II. CHANGES IN THE PRESENT VALUE OF THE OBLIGATION (PVO) - RECONCILIATION OF OPENING AND CLOSING BALANCES: PVO as at the beginning of the period Interest Cost Current service cost PNB Full AR indd Jul-18 1:55:59 PM

155 iwoz lsok ykxr&(xsj fufgr ykhk) 0 0 iwoz lsok ykxr&(fufgr ykhk) 0 0 lanùk ykhk nkf;ro ij oklrfod (ykhk) (larqyu vkadm+k) vofèk ds var esa ihohvks III. ;kstuk vkflr;ksa ds mfpr ewy; esa ifjorzu&vksifuax vksj Dyksftax 'ks"kksa dk feyku vofèk dh 'kq:vkr esa ;kstuk vkflr;ksa dk 0 0 mfpr ewy; ;kstuk vkflr;ksa ij lahkkfor çfriqy 0 0 va'knku lanùk ykhk nkf;ro ij oklrfod (ykhk) 0 0 (larqyu vkadm+k) vofèk ds var esa ;kstuk vkflr;ksa dk mfpr 0 0 ewy; IV. ;kstuk vkflr;ksa ij oklrfod çfriqy ;kstuk vkflr;ksa ij lahkkfor çfriqy 0 0 ;kstuk vkflr;ksa ij chekafdd ykhk (gkfu) 0 0 ;kstuk vkflr;ksa ij oklrfod çfriqy 0 0 V. eku; chekafdd vofèk ds fy, chekafdd ykhk@(gkfu) &nkf;ro vofèk ds fy, chekafdd ykhk@(gkfu) 0 0 ;kstuk vkflr;ka vofèk ds fy, dqy chekafdd ykhk@(gkfu) vofèk esa eku; chekafdd ykhk@(gkfu) o"kz ds var esa veku; chekafdd (gkfu)@ 0 0 ykhk VI. rqyui=k esa eku; jkf'k vksj lecafèkr fo'ys"k.k % nkf;roksa dk orzeku ewy; ;kstuk vkflr;ksa dk mfpr ewy; 0 0 vurj veku; Vªkft'uy ns;rk;sa 0 0 veku; xr lsok ykxr& xsj 0 0 fufgr ykhk rqyui=k esa eku; ns;rk,a VII. ykhk o gkfu krs esa eku; O;; pkyw lsok ykxr C;kt ykxr ;kstuk vkflr;ksa ij lahkkfor çfriqy 0 0 o"kz ds nksjku eku; 'kq¼ vfkok gkfu o"kz ds nksjku eku; Vªkaft'kuy ns;rk,a 0 0 xr lsok ykxr& xsj fufgr ykhk 0 0 Past service cost - (non vested PVO as at the end of the period III. CHANGES IN THE FAIR VALUE OF PLAN ASSETS - RECONCILIATION OF OPENING AND CLOSING BALANCES: Fair value of plan assets as at the 0 0 beginning of the period Fair value of plan assets as at the 0 0 end of the period IV. ACTUAL RETURN ON PLAN ASSETS V. ACTUARIAL GAIN / LOSS RECOGNI ED Obligation Actuarial (gain) / loss recognized in the period 0 0 VI. AMOUNTS RECOGNISED IN THE BALANCE SHEET AND RELATED ANALYSES sheet VII. EXPENSES RECOGNISED IN THE STATEMENT OF PROFIT AND LOSS: PNB Full AR indd Jul-18 4:39:33 PM

156 xr lsok ykxr& fufgr ykhk 0 0 çkwfiqv,am yksl LVsVesaV esa eku; O;; VIII. rqyui=k esa eku; gksus okyh 'kq¼ ns;rk esa mrkj&p<+ko çkjfehkd 'kq¼ ns;rk mdr ds vuqlkj O;; lanùk va'knku vafre 'kq¼ ns;rk IX. orzeku vofèk ds fy, jkf'k nkf;roksa dk orzeku ewy; ;kstuk vkflr;k 0 0 vfèk'ks"k@)?kkvk) ;kstuk ns;rkvksa esa vuqhkkfod lek;kstu &(gkfu)@ykhk ;kstuk vkflr;ksa esa vuqhkkfod lek;kstu& (gkfu)@ykhk 0 0 X. ;kstuk vkflr;ksa dh çeq Jsf.k;k (dqy ;kstuk vkflr;ksa dk çfr'kr) Hkkjr ljdkj dh çfrhkwfr;k 0.00% 0.00% jkt; ljdkj dh çfrhkwfr;k 0.00% 0.00% mpp fdle ds dkwikzsjsv ckw.m 0.00% 0.00% lwphc¼ deifu;ksa ds bfdovh 'ks;j 0.00% 0.00% laifùk 0.00% 0.00% fo'ks"k tek ;kstuk,a 0.00% 0.00% fuxzedrkz }kjk pykbz xbz fufèk;k 0.00% 0.00% vu; 0.00% 0.00% tksm+ 0.00% 0.00% XI. vkxkeh o"kz ds nksjku,avjçkbzt ds va'knku dk Js"Bre vuqeku 0 0 rkfydk XII- vu; nh?kkzofèk dezpkjh ykhk (xsj fufèkd) fooj.k vkdfled Nqêðh lfgr chekjh dh Nqêðh (xsj fufèkd),y,iqlh (xsj fufèkd) (jkf'k #i;s djksm+ esa) flyoj tqcyh cksul (xsj fufèkd) nkf;ro dk orzeku ewy; laøe.k'khy ns;rk dk çkjfehkd 'ks"k o"kz ds nksjku eku; laøe.k'khy ns;rk laøe.k'khy ns;rk dk bfr'ks"k rqyui=k esa eku; ns;rk Expenses recognized in the VIII. MOVEMENTS IN THE LIABILITY RECOGNI ED IN THE BALANCE SHEET IX. AMOUNT FOR THE CURRENT PERIOD X. MAJOR CATEGORIES OF PLAN ASSETS (AS PERCENTAGE OF TOTAL PLAN ASSETS) 0.00% 0.00% State Government Securities 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total 0.00% 0.00% XI. ENTERPRISE S BEST ESTIMATE OF CONTRIBUTION DURING NEXT YEAR 0 0 TABLE XII OTHER LONG TERM EMPLOYEE BENEFITS (UNFUNDED) Description Sick leave & Unavailed casual leave Leave fare concession Silver Jubilee balance sheet PNB Full AR indd Jul-18 4:39:33 PM

157 csad dh cksmz }kjk vuqeksfnr,,l 15 ikwfylh ds vkèkkj ij] ds fy, chekafdd ewy;kadu fjiksvz esa O;kid èkkj.kk,a viukbz xbz gsaa a. cêðk nj la'kksfèkr ys k ekud la[;k 15 ds isjk 78 ds vuqlkj nkf;roksa dh vuqekfur 'krks± ds vuq#i ljdkjh caèk i=kksa (,iqchvkbz,y }kjk çdkf'kr) ij ( ] vksj Vªstjh ifjpkyu ds fy, vodk'k) dks cktkj çkfir;ksa ds vuqlkj cêðk nj fuèkkzfjr dh x;h gs A b. osruo`f¼ nj vkbzch, }kjk çnku fd, x, O;kid ekxzn'kzu ds vkèkkj ij] csad ds fy,,lbzvkj 6» fuèkkzfjr fd;k x;k gs (yxhkx 6» dh dqy osru o`f¼ ds lkfk 2-8» dh ewy osru o`f¼ vksj yxhkx 6-5» dh Mh, o`f¼a) c. ßkl nj finys vuqhko vksj LoSfPNd vkgj.k ls lacafèkr Hkfo"; ds vuqhko ds lanhkz esa ßkl nj 1» fuèkkzfjr dh xbz gsa d. vlolfkrk ;wlh,y e. ;kstuk vkflr;ksa ij çfriqy dh lahkkfor nj MsVk ço`fùk ds vkèkkj ij] ;g ekuk x;k gs fd vkxs ys tkbz x;h vlolfkrk Nqêðh vksj ;wlh,y dk 95» csad ls vyx gksrs le; lekir gks tk,xha ;g lahkkfor gs fd isa'ku vksj minku fufèk ls lacafèkr ;kstuk laifùk;ksa ij okilh oklrfod fjvuz vksj iqam esa C;kt nj laosnu'khy çfrhkwfr;ksa ij oklrfod okilh vksj voklrfod ykhk ds vkèkkj ij 8-61» çfr o"kz gksxha ekpz] 2018 dks lekir o"kz gsrq amokj lwpuk Ø- lafooj.k dks lekir o"kz (ys kijhf{kr) (lesfdr) (jkf'k ` djksm+ esa) dks lekir o"kz (ys kijhf{kr) (lesfdr) i. amokj jktlo d) Vªstjh ) dkwikzsjsv@ gksylsy csa dx x) fjvsy csa dx ?k) vu; csa dx ifjpkyu tksm ii. amokj ifj.kke d) Vªstjh ) dkwikzsjsv@ gksylsy csa dx x) fjvsy csa dx ?k) vu; csa dx ifjpkyu tksm iii. xsj vkcafvr O;; iv. ifjpkyu ykhk v. dj gsrq çkoèkku vi. vlkèkkj.k ensa vii. lgk;d lalfkkvksa esa 'ks;kjksa dk vtzu ('kq¼) viii. vyika'k fgr 'kq¼ ykhk vu; lwpuk x. amokj vkflr;k d) Vªstjh ) dkwikzsjsv@ gksylsy csa dx x) fjvsy csa dx Valuation reports for , based ON THE Board approved a. Discount b. Escalation c. d. Sick Leave e. 4.6 SEGMENT REPORTING FOR THE YEAR ENDED 31 ST MARCH 2018 SI. No. Particulars Year Ended (Audited) (Consolidated) (` Year Ended (Audited) (Consolidated) i. a) b) Banking c) d) Total ii. a) b) Banking c) d) Total iii iv v vi vii (Net) viii x. a) b) Banking c) PNB Full AR indd Jul-18 4:39:34 PM

158 Ø- lafooj.k dks lekir o"kz (ys kijhf{kr) (lesfdr) (jkf'k ` djksm+ esa) dks lekir o"kz (ys kijhf{kr) (lesfdr)?k) vu; csa dx ifjpkyu mi tksm Ä) xsj vkcafvr vkflr;k dqy vkflr;k xi. amokj ns;rk,a d) Vªstjh ) dkwikzsjsv@ gksylsy csa dx x) fjvsy csa dx ?k) vu; csa dx ifjpkyu mi tksm Ä) xsj vkcafvr vkflr;k dqy vkflr;k Hkkx % HkkSxksfyd am Ø- lafooj.k lekir o"kz dks (ys kijhf{kr) (lesfdr) (jkf'k ` djksm+ esa) lekir o"kz dks (ys kijhf{kr) (lesfdr) 1. jktlo d-?kjsyw varjkz"vªh; dqy vkflr;ka d-?kjsyw varjkz"vªh; dqy uksv 1- amokj ns;rkvksa dks mudh lec¼ amokj vkflr;ksa ds vuqikr esa vkcafvr fd;k x;k gs A 2- finyh vofèk ds vkadm+ksa dh vko';drkuqlkj iqu% lewgu@iquozxhzdj.k fd;k x;k gs rkfd mugsa rqyuh; cuk;k tk lds A 4-7 Hkkjrh; lunh ys kdkj lalfkku }kjk tkjh la'kksfèkr ys k ekud & 18 ds vuqlkj çdvhdj.k lacafèkr ikfvz;ksa ds uke rfkk csad ds lkfk muds lacaèk% eq[; çcaèku dkfezd % i) Jherh m"kk vuarlqczã.;u] çcaèk funs'kd,oa dk;zikyd vfèkdkjh rd dk;zjr ii) Jh lquhy esgrk] çcaèk funs'kd,oa dk;zikyd vfèkdkjh ls çhkko esa iiii) Jh ds oh czãth jko] dk;zikyd funs'kd iv) MkW- jke,l laxkiwjs] dk;zikyd funs'kd] rd dk;zjr v) Jh latho 'kj.k] dk;zikyd funs'kd vi) Jh,y-oh-çHkkdj] dk;zikyd funs'kd] fnukad ls dk;zjr SI. No. Particulars Year Ended (Audited) (Consolidated) (` in Crores) Year Ended (Audited) (Consolidated) d) Other Banking Operations Sub Total e) Unallocated Assets Total Assets xi. Segment Liabilities a) Treasury b) Corporate/Wholesale Banking c) Retail Banking d) Other Banking Operations Sub Total e) Unallocated Liabilities Total Liabilities Part B GEOGRAPHIC SEGMENTS SI. No. Particulars Year Ended (Audited) (Consolidated) (` in Crores) Year Ended (Audited) (Consolidated) 1. Revenue a) Domestic b) International Total Assets a) Domestic b) International Total Note 1. Segment Liabilities are distributed in the ratio of their respective Segment Assets. 2. Figures of the previous period have been re-grouped / 4.7 Disclosure of Related Parties as per AS 18 issued by ICAI - Parent Company Bank: Key Management Personnel: i) Mrs. Usha Ananthasubramanian, Managing Director & CEO, Remained upto iii) Shri K.V.Brahmaji Rao, Executive Director iv) Dr. Ram S.Sangapure, Executive Director, Remained upto v) Shri Sanjiv Sharan, Executive Director PNB Full AR indd 1 16-Jul-18 1:59:15 PM

159 vuq"kafx;ka % i) ih,uch fxyv~l fyfevsm ii) iatkc us'kuy csad (bavjus'kuy) fyfevsm] ;wdsiii) ih,uch buoslvesav lfozlst fyfevsm iv) Mªd ih,uch csad fyfevsm HkwVku v) ih,uch ba';ksjsal czksfdax çk-fy-* *daiuh dks can djus ds dne mbk;s tk jgs gsa] D;ksafd daiuh }kjk dks ykblsal ljsamj dj fn;k x;k gsa lg;ksxh lalfkk,a i) fçafliy ih,uch vlsv esustesav deiuh çk- fyii) fçafliy VªLVh deiuh çk- fyiii) ih,uch esvykbiq bafm;k,a';ksjsal da- fyiv) ih,uch gkåflax iqkbusal fyfevsm v) ts,llh (VsaxMh csad) dtkfdlrku vi) eè; fcgkj xzkeh.k csad] ivuk vii) loz gfj;k.kk xzkeh.k csad] jksgrd viii) fgekpy çns'k xzkeh.k csad] e.mh ) iatkc xzkeh.k csad] diwjfkyk ) loz ;wih xzkeh.k csad] esjb la;qdr m e i),ojslv csad fyfevsm] dkbekamw] usiky Subsidiaries: i) PNB Gilts Ltd. iii) PNB Investment Services Ltd. v) PNB Insurance Broking Pvt Ltd*. Associates: Ltd. iv) PNB Housing Finance Ltd. Joint Venture: PNB Full AR indd Jul-18 4:39:35 PM

160 lacafèkr ikfvz;ksa ds lkfk ysu nsu ` yk ksa esa ensa@lacafèkr ikvhz ewy** (LokfeRo vfkok fu;a=k.k ds vuqlkj) vuq"kafx;ka** lg;ksxh@la;qdr m e eq[; çcaèku dkfezd eq[; çcaèku dkfezd ds fj'rsnkj ;ksx vfèkdre cdk;k jkf'k vfèkdre cdk;k jkf'k vfèkdre cdk;k jkf'k vfèkdre cdk;k jkf'k vfèkdre cdk;k jkf'k vfèkdre cdk;k jkf'k ikfjjfed ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha (115.42) ykxw ugha ykxw ugha ykxw ugha (115.42) ykxw ugha mèkkj ykxw ugha ykxw ugha ykxw ugha ykxw ugha tekjkf'k;k ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ( ) (43.11) (154.23) (0.42) (0.42) ( ) (154.65) tekjkf'k;ksa dk ykxw ugha ykxw ugha ykxw ugha ykxw ugha fu;kstu ykxw ugha ykxw ugha ykxw ugha ykxw ugha vfxze ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha (0) (116.41) (117.21) (0) (0) (116.41) (117.21) 'ks;j iw th esa fuos'k ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ( ) ( ) ½.k i=kksa esa fuos'k ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha xsj fufèkd çfrc¼rk,a ykxw ugha ykxw ugha ykxw ugha ykxw ugha yh x;h yhftax@,pih O;oLFkk çkoèkku dh x;h yhftax@,pih O;oLFkk vpy vkflr;ksa dh Ø; vpy vkflr;ksa dh fcøh mihkksx dh x;h yhftax@,pih O;oLFkk çnùk C;kt ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ( ) ( ) çkir C;kt ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha lsok,a çkir djuk ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha lsok,a çnku djuk ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha çcuèku lafonk,a ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha çkir ykhkka'k ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha ykxw ugha csad çhkkj çkir deh'ku (dks"bdksa esa fn, x, vkwadm+s finys o"kz ds gsa) **vuq"kafx;ksa vksj dqn lg;ksxh lalfkkvksa ds lkfk gq, ysunsu dk çdvhdj.k ys k ekud & 18 lecfuèkr ikvhz çdvhdj.k ds isjk 9 ds eísutj ugha fd;k x;k gs tks jkt; }kjk fu;af=kr m eksa dks mudh,slh vu; lecfuèkr ikfvz;ksa ls ysunsu esa ls fdlh ls lecfuèkr lwpuk nsus ls NwV nsrk gs tks jkt; }kjk fu;af=kr gksa A PNB Full AR indd Jul-18 4:39:35 PM

161 Transactions with Related Parties (` in lakhs) Parent** (as per ownership or control) Subsidiaries** Associates/ Joint ventures Personnel Personnel Total outstanding outstanding outstanding outstanding outstanding outstanding (115.42) (115.42) Borrowings ( ) (43.11) (154.23) (0.42) (0.42) ( ) (154.65) Investments in share Investments in debentures arrangements availed assets (0) (116.41) (117.21) (0) (0) (116.41) (117.21) ( ) ( ) arrangements availed ( ) ( ) Interest received Management contracts Dividend received PNB Full AR indd Jul-18 4:39:36 PM

162 4-8- ys k ekud 20 % çfr 'ks;j vtzu (bzih,l) ` in Crore) fooj.k dks dks bzih,l ewy xsj okf"kzñr dj ds i'pkr x.kd ds :i esa mi;ksx dh xbz jkf'k ij ykhk@gkfu (` gtkj esa) 'ks;jksa dk vafdr ewy; ` 2.00 çfr ` 2.00 çfr ewy;oxz ds :i esa mi;ksx fd, x, bfdovh 'ks;jksa dh Hkkfjr vkslr la[;k 4-9- vklfkfxr dj vkflr;k rfkk ns;rkvksa ds çeq[k?kvd fueufyf[kr gs% fooj.k As on (` djksm+ esa) As on vklfkfxr dj vkflr;k v'kksè; vksj lafnxèk ½.k ds fy, çkoèkku Nqê~Vh udnhdj.k ds fy, çkoèkku isa'ku o minku ds fy, çkoèkku èkkjk 43ch ds varxzr lkafofèkd n;rk dj ;ksx; uqdlku (vkxs ys tk;k x;k) tksm vklfkfxr dj ns;rk,a vpy vkflr;ksa ij ewy;ßkl vk;dj vfèkfu;e] 1961 dh èkkjk 36(1) (viii) ds varxzr dvksrh vu; tksm vklfkfxr dj 'kq¼ ys k ekud 28 vkflr;ksa dk vutzu (beis;jesav) csad dh vkflr;ksa esa i;kzir fgllk foùkh; vkflr;ksa dk gs ftuij ys k ekud 28 vkkflr;ksa dk vutzu ykxw ugha gsa csad dh jk; esa bldh vkflr;ksa (ftu ij ekud ykxw gksrk gs) dh mdr ekud dh 'krz ds vèkhu visf{kr igpku ds fy;s 31 ekpz 2018 dks fdlh egroiw.kz lhek rd vutzd ugha gsa 4-11 ys k ekud 29 % çkoèkku] vkdfled ns;rk,a vksj vkdfled vkflr;kwa % i- ns;rkvksa ds fy, çkoèkkuksa esa?kv&c<+* (` djksm+ esa) fooj.k osru le>ksrs dh dkuwuh ekeys@ ckrphr ds vurxzr vkdfledrk, osru cdk;k 1 vçsy] 2017 dks 'ks"k vofèk ds nksjku çkoèkku vofèk ds nksjku ç;qdr jkf'k;ka vofèk ds nksjku iyvh x;h jkf'k ekpz] 2018 dks 'ks"k AS 20 - Earnings Per Share Particulars As on (` in Crores) As on Earnings per Share Basic Diluted after tax (` In Crore) Nominal value of shares ` 2.00 each ` 2.00 each Weighted average number of equity shares used as the denominator 4.9 Major components of deferred tax assets and liability are set out below: Particulars As on (` in Crores) As on Deferred Tax Assets Provision for bad & doubtful debts Provision for leave encashment Provision for Pension & Gratuity Statutory Liabilities u/s 43B Others Total Deferred Tax Liabilities Deduction u/s 36(1)(viii)of Income- tax Act,1961 Others Total Deferred Tax Assets/ (Liability) Net AS 28 - Impairment of Assets A substantial portion of the bank s assets comprise Impairment of Assets is not applicable. In the opinion of standard applies) to any material extent as at 31 st March 2018 requiring recognition in terms of the said standard AS 29 - Provisions, Contingent Liabilities and Contingent Assets i. Movement of provisions for liabilities * (` in Crores) Particulars Salary Legal cases/ arrears under contingencies negotiation Balance as at 1 st April Provided during the year Amounts used during the year Reversed during the year Balance as at 31 st March PNB Full AR indd Jul-18 2:02:07 PM

163 (` djksm+ esa) fooj.k osru le>ksrs dh dkuwuh ckrphr ds vurxzr vkdfledrk, osru cdk;k vfuf'prrk dk le; oklrfod Hkqxrku ij føf"vyhdj.k ij cfgxzu oklrfod Hkqxrku ij føf"vyhdj.k ij cfgxzu * vu; ds fy, çkoèkku dks NksM+dj ii- ykhk o gkfu krs esa O;; 'kh"kz ds vurxzr fn k, x, çkoèkkuksa o vkdfledrkvksa dk fooj.k fueufyf r gs% (` djksm+ esa) fooj.k dks lekir o"kz dks lekir o"kz fuos'k ij ewy;ßkl ds fy, çkoèkku vutzd vkflr;ksa ds fy, çkoèkku vutzd vkflr;ksa ds fy, ÝyksfVax çkoèkku (Hkkjrh; fjtoz csad ds çkoèkkuhdj.k ekun.mksa ls vfèkd) ekud vkflr;ksa ds fy, çkoèkku vk;dj ds fy, fd;k x;k çkoèkku (,iq ch Vh rfkk lainkdj lfgr) vu; çkoèkku,oa vkdfledrk,a tksm ÝyksfVax çkoèkkuksa dk fooj.k fueufyf r gs % (` djksm+ esa) fooj.k dks çkjfehkd 'ks"k o"kz ds nksjku fd;s x;s ÝyksfVax çkoèkku dh ek=kk o"kz ds nksjku vkgfjr jkf'k dk mís'; dks vfure 'ks"k 4-13 vkdfled ns;rkvksa ij vuqlwph 12 ns sa,slh ns;rk,a U;k;ky; ls ckgj le>ksrksa] vihyksa ds fuivku rfkk ek xh x;h jkf'k] lafonkxr nkf;roksa dh 'krks± lac¼ ikfvz;ksa }kjk dh x;h rfkk mbk;h x;h ek xksa ij Øe'k% vkèkkfjr gsaa,sls ekeyksa esa dksbz çfriwfrz çr;kf'kr ugha gsa 4-14 csad ds ;wukbvsm fdaxme esa fu;a=kd çwmsafl;y fouk;ed çkfèkdj.k (ihvkj,) dks ;w-ds- flfkr viuh vuq"kaxh iatkc us'kuy csad (bavjus'kuy) fyfevsm ds lacaèk esa,d pqdksrh vk'oklu i=k tkjh fd;k gs ftlesa bl ckr dk vk'oklu fn;k x;k gs fd ;fn iatkc us'kuy csad (bavjus'kuy) fyfevsm] ;wds viuh forrh; çfrc¼rk,a iwjh u dj ik;k rks csad mls forrh; lgk;rk çnku djsxk A mijksdr ds vfrfjdr] csad us dksbz ysvj vkwiq deiqvz tkjh ugha fd;s gsa vr% ysvj vkwiq deiqvz ds vurxzr dksbz lap;h foùkh; nkf;ro ugha gsa Particulars arrears under negotiation On actual (On actual (` Legal cases/ contingencies ii Break-up of Provisions and Contingencies Loss Account is as follows: Particulars Year ended (` Year ended investment Total Break-up of Floating Provisions is as follows: (` Particulars Refer Schedule-12 on Contingent Liabilities PNB Full AR indd Jul-18 4:39:37 PM

164 ;wukbvsm fdaxme esa fu;a=kd çwmsafl;y fouk;ed çkfèkdj.k (ihvkj,) us vius i=k fnukad ds }kjk csad dks okp lwph esa j k x;k gsa ;gk ij dksbz fof'k"v çfrcuèk ;k n.m ugha gs A dks ih,uch us U;wure~ fofu;ked iwath vko';drkvksa dks iw.kz djus ds fy, 20 fefy;u ;w,l Mh dh ubz iwath dk lekos'k fd;k gsa 5- vu; fviif.k;ka d- csad us fofùk; o"kz 2017&18 ds nksjku lsch fofu;e 2009 ds çkoèkku (iawth vksj çdvhdj.k dh vko';drkvksa dk ekeyk) ds vuqlkj dqy ` 5000 djksm+ ds ` çfr 'ks;j ds çhfe;e ij ` 2@& çfr 'ks;j ds vafdr ewy; okys 29]76]19]047 bfdovh 'ks;j tkjh fd, gsaa - csad us fofùk; o"kz 2017&18 ds nksjku lsch (vkbzlhmhvkj) fofu;e] 2009 le; ij ;Fkkla'kksfèkr ds vè;k; ds lanhkz esa cksmz }kjk fuèkkzfjr ` çfr 'ks;j ds çhfe;e ij Hkkjr ljdkj dks ` 2-00@& çfr 'ks;j ds bfdovh 'ks;j vkoafvr fd, gsaa bl [kkrs esa csad }kjk çkir dqy 'ks;j ` djksm+ gs ftlesa bfdovh iwath ds :i esa ` djksm+ vksj çhfe;e ds :i esa ` djksm+ 'kkfey gsaa x- ifjlj lfgr %& I. ` 2-60 djksm+ ('kq¼ ewy;âkl) ykxr ` 8-05 djksm+ dh jkf'k dh vkb laifùk;ksa ftudh fuoy iquewzy;kafdr jkf'k okyh ` djksm+ (ewy;âkl ds ckn ekpz 18 rd)] LoRo foys[k ds iathdj.k dh çrh{kk dj jgh gsa II. ` djksm+ dh iwathxr dk;z pkyw gsa III. yhtgksym laifùk gsrq fnyyh fodkl çkfèkdj.k ds ikl tek fd;k x;k ` 5-29 djksm+ dk ifjorzu 'kqyd iwathñr gs] MhMh, esa fu"iknu gsrq iw.kz LokfeRo foys[k (ÚhgksYM MhM) yafcr gsa laifùk gsrq gqm~mk dks Hkqxrku fd;k x;k ` 1-95 djksm+ dk folrkj 'kqyd] ikfylh ds vuqlkj iqathñr gsa Hkw[kaM ij fuekz.k 'kq: gksuk vhkh ckdh gsa 6- tgk dgha vko';d le>k x;k gs xr o"kz blh vofèk ds vuq:i vk dm+ksa dk iqu% lewgu@ iqu% O;oLFkk@ iqu% oxhzdj.k dj fy;k x;k gsa 2 nd 5. Other Notes ` Institutional Placement (QIP) in accordance with the ` ` 5000 crore. b. During the Financial Year the bank has ` 2.00 each ` account is ` crores which includes ` ` crores as ` 2.60 crore (Net ` 8.05 crore having ` ` crore. ` ` PNB Full AR indd Jul-18 4:39:37 PM

165 31 ekpz 2018 dks lekir o"kz ds rqyui=k ds lkfk layxu lesfdr udnh izokg fooj.k&i=k CONSOLIDATED CASH FLOW STATEMENT ANNEXED TO THE BALANCE SHEET FOR THE YEAR ENDED 31st MARCH 2018 (vkadm+s ` djksm+ esa) (Figures ` fooj.k Particulars v- A. Ikfjpkyu dkõkzdykikksa ls udnh çokg (i) (ii) dj ds Ik'PkkRk~ 'kq¼ ykhk tksfm+, % lg;ksfx;ksa esa 'ks;jksa dk vtzu vyika'k C;kt ls iwoz 'kq¼ ykhk tksfm+, % dj ds fy, çkoèkku (vklfkfxrk dj dk 'kq¼) dj ls IkwoZ ykhk fueufyf[krk ds fy, lekkõkkstu% vpy vkflrkõkksa Ikj EkwYÕkßkl?kVkb, % IkquEkwZYÕkkadu çkjf{krk fufèk ls vkgfjrk jkf'k vutzd vkflrkõkksa ds fy, çkoèkku Ekkud vkflrkõkksa Ikj çkoèkku fuos'kksa ('kq¼) Ikj çkoèkku Provision on Investments (net) vuõk çkoèkku ('kq¼) Other Provisions (net) vuõk ls ykhkka'k (fuos'k dkõkzdykik) CkkW.Mksa ls CÕkkt (foùkhõk dkõkzdykik) vpy vkflrkõkksa dh fckøh ls ykhk@ gkfu ('kq¼) (12,111.27) 1, (i) (19,373.08) 1, (58.49) (139.53) (95.90) (2.60) (5.45) (ii) 27, , Ikfjpkyu vkflrkõkks a o nsõkrkkvks a Eks a IkfjoRkZuks a ls IkwoZ Ikfjpkyu ykhk (i+ii) 8, , PNB Full AR indd Jul-18 4:39:38 PM

166 31 ekpz 2018 dks lekir o"kz ds rqyui=k ds lkfk layxu lesfdr udnh izokg fooj.k&i=k CONSOLIDATED CASH FLOW STATEMENT ANNEXED TO THE BALANCE SHEET FOR THE YEAR ENDED 31st MARCH 2018 (vkadm+s ` djksm+ esa) (Figures ` (iii) vk- B. b- C. Ikfjpkyu vkflrkõkksa o nsõkrkkvksa Eksa 'kq¼ IkfjoRkZu ds fy, lekkõkkstu fuos'kksa Eksa (o`f¼) vfxzekksa Eksa (o`f¼) vuõk vkflrkõkksa Eksa (o`f¼) tekkjkf'kõkksa Eksa (dekh) mèkkjksa Eksa (dekh) vuõk nsõkrkkvksa o çkoèkkuksa Eksa (dekh) Ikfjpkyuksa ls mrikâ udnh çnùk dj (okiklh dk 'kq¼) Ikfjpkyu dkõkzdykikksa ls 'kq¼ udnh Net Cash used in Operating Activities fuos'k dkõkzdykikksa ls udnh çokg@(iz;qdr) vpy vkflrkõkksa dh [kjhn (fckøh dk 'kq¼) vuq"kafxõkksa@ laõkqdr m Ekksa@ {ks-xzk- CkSadksa ls çkirk ykhkka'k vuq"kafxõkksa@ laõkqdr m Ekksa@ {ks-xzk- CkSadksa Eksa fuos'k@(vfuos'k) vu; fuos'k Other Investments fuos'k dkõkzdykikksa Eksa çõkqdr 'kq¼ udnh Net Cash used in investing Activities foùkhõku dkõkzdykikksa ls udnh çokg (iz;qdr) 'ksõkj Ikw th tkjh djuk (çhfekõkek lfgrk) tkjh@ckkw.mksa dk (ekspu) (VhÕkj&A o VhÕkj&AA) CkkW.Mksa Ikj çnùk CÕkkt (VhÕkj&A o VhÕkj&AA) ykhkka'k dk HkqxRkku (ykhkka'k Ikj dj lfgrk) foùkhõku dkõkzdykikksa ls 'kq¼ udnh (iii) (6,982.50) 6, (i+ii+iii) (v) (A) (vk) (B) (b) (C) 1, , (140.21) 21, (654.98) (496.02) (587.72) (1,103.17) (51.86) (74.91) 7, (9,767.07) PNB Full AR indd Jul-18 4:39:38 PM

167 31 ekpz 2018 dks lekir o"kz ds rqyui=k ds lkfk layxu lesfdr udnh izokg fooj.k&i=k CONSOLIDATED CASH FLOW STATEMENT ANNEXED TO THE BALANCE SHEET FOR THE YEAR ENDED 31st MARCH 2018 bz- D udnh RkFkk udnh RkqYÕkksa Eksa 'kq¼ IkfjoRkZu Net Change in Cash and Cash Equivalents o"kz ds vkjehk Eksa udnh RkFkk udnh RkqYÕk udnh vksj HkkjRkhÕk fj koz CkSad ds Ikkl 'ks"k CkSadksa ds Ikkl 'ks"k vksj Ekk x o vyik lwpuk Ikj çkiõk èku (v$vk$b) (A+B+C) (vkadm+s ` djksm+ esa) (Figures ` , , , , o"kz ds vark Eksa udnh RkFkk udnh RkqYÕk udnh vksj HkkjRkhÕk fj koz CkSad ds Ikkl 'ks"k CkSadksa ds Ikkl 'ks"k vksj Ekk x o vyik lwpuk Ikj çkiõk èku 97, , fviikf.kõkk % 6, , çnùk çrõk{k djksa (okiklh dk 'kq¼) dks Ikfjpkyu dkõkzdykikksa ls m Rk Ekkuk xõkk gs RkFkk bugsa fuos'k RkFkk foùkhõku dkõkzdykikksa ds EkèÕk fohkdr ugha fdõkk xõkk gs A 2 dks"bd Eksa fn, x, lhkh vkadm+s ^udnh Ckká izokg* n'kkzrks gsa A Notes :- ih ds ok".kzs;,l ds tsu ih ds 'kekz S K JAIN P K SHARMA eq[; çckuèkd mi EkgkçCkUèkd EkgkçCkUèkd Chief Manager DY. GENERAL MANAGER GENERAL MANAGER,y oh çhkkdj L V PRABHAKAR dkõkzikkyd funs'kd EXECUTIVE DIRECTOR lquhy esgrk lquhy esgrk SUNIL MEHTA SUNIL MEHTA çca/ funs'kd,oa eq[; dk;zikyd vf/dkjh vè;{k MANAGING DIRECTOR & CEO CHAIRMAN PNB Full AR indd Jul-18 4:39:38 PM

168 jfo feùky MkW jch,u fejk egs'k ckcw xqirk RAVI MITAL Dr. RABI N MISHRA MAHESH BABOO GUPTA funs'kd funs'kd funs'kd DIRECTOR DIRECTOR DIRECTOR lqèkhj uk;j lat; oekz SUDHIR NAYAR SANJAY VERMA funs'kd funs'kd DIRECTOR DIRECTOR bzou frffk dks gekjh fjiksvz ds vuqlkj As per our Report of even date d`rs lwjh,am deiuh ÑRks,lih,eth,aM deiuh Ñrs,edsih,l,aM,lksfl,V~l For Suri & Co. For SPMG & Co. For MKPS & Associates lunh ys[kkdkj &,IkQvkj,u ,l lunh ys[kkdkj &,IkQvkj,u lh lunh ys[kkdkj &,iqvkj,u bZ Chartered Accountants - FRN S Chartered Accountants - FRN C Chartered Accountants - FRN E (ih- os.kqxksiky) (vons'k xqirk) (çnhi dqekj ykb) lköksnkj lköksnkj lköksnkj Partner Partner Partner lnlõk la lnlõk la lnlõk la M No M No M No ÑRks th,l ekfkqj,am deiuh ÑRks,pMh,lth,aM,lksfl,V~l For G S Mathur & Co. For HDSG & Associates lunh ys[kkdkj &,IkQvkj,u ,u lunh ys[kkdkj &,IkQvkj,u ,u Chartered Accountants - FRN N Chartered Accountants - FRN N (jktho dqekj oèkkou) (nychj lg xqykvh) lk>snkj lk>snkj Partner Partner lnlõk la lnlõk la M No M No fnukad % 15@05@2018 LFkku % ubz fnyyh Place : New Delhi PNB Full AR indd Jul-18 4:39:38 PM

169 iatkc us'kuy csad lewg ds lesfdr foùkh; fooj.k i=kksa ij Lora=k ys[kk ijh{kdksa dh fjiksvz lsok esa iatkc us'kuy csad ds lnl; 1- geus iatkc us'kuy csad ds vuq"kafx;ksa] lgk;dksa vksj la;qdr m eksa (ih,uch lewg) ds 31 ekpz] 2018 ds layxu rqyui=k vksj mdr frffk dks lekir o"kz ds lesfdr ykhk&gkfu [kkrs rfkk udnh çokg dh ys[kkijh{kk dh gs rfkk egroiw.kz ys[kkadu uhfr;ksa dh la{ksi vksj vu; O;k[;kRed lwpuk blds lkfk layxu gs] ftlesa fueufyf[kr 'kkfey gsa% i) gekjh ys[kk ijh{kk fjiksvz fnukad 15 ebz] 2018 ds ekè;e ls gekjs }kjk ys[kk ijhf{kr iatkc us'kuy csad (csad) ds ys[kk ijhf{kr [kkrs] ii) vu; ys[kk ijh{kdksa }kjk 2 vuq"kafx;ksa vksj 3 lgk;d ds ys[kk ijhf{kr [kkrs] vksj iii) 3 vuq"kaxh] 7 lg;ksfx;ksa vksj 1 la;qdr m e ds xsj&ys[kk ijhf{kr [kkrsa 2- geus bu vuq"kafx;ksa uker% i) ih,uch fxyv~l fyfevsm ii) ih,uch fçafliy ba';ksjsal czksfdax çk-fy-] iii) iatkc us'kuy csad (bavjus'kuy) fyfevsm] iv) ih,uch buoslvesav lfozlst fy-] v) Mªd ih,uch csad fyfevsm ds foùkh; fooj.kksa dh ys[kk ijh{kk ugha dh ftuds foùkh; fooj.kksa esa 31 ekpz] 2018 dks lekir o"kz ds fy, #i;s djksm+ dh dqy vflr;k rfkk #i;s djksm+ dk dqy jktlo n'kkz;k x;k gs bu foùkh; fooj.kksa rfkk vu; lwpukvksa dh muds lecfuèkr ys[kk ijh{kdksa }kjk ys[kk ijh{kk dh x;h vksj rrlacaèkh fjiksvksaz esa çlrqr dh x;ha vksj gekjk er mu ys[kk ijh{kdksa dh fjiksvksaz ij gh vkèkkfjr gs A yanu dh ys[kk ijh{kk vius ys[kk ijh{kdksa }kjk dh xbz gs ftldh fjiksvz gesa Hksth xbz gs vksj gekjk er iw.krz% mu ys[kk ijh{kk dh fjiksvz ij vkèkkfjr gsa 3- d- 3 vuq"kaxh] 7 lg;ksfx;ksa vksj,d la;qdr m e ds foùkh; fooj.kksa ftudh ys[kk ijh{kk,d ys[kk ijhf{kr lg;ksxh ds lkfk ugha fd;k x;k gs] ftl dkj.k dks lekir o"kz ds fy, ih,uch lewg dks # djksm+ dh gkfu gqbz gsa [k- gekjk er vuqlwph 17,oa 18 esa ys[kksa ij fviif.k;ksa ij fvii.kh la[;k 2 dh in fvii.kh (2-2) esa mfyyf[kr lhkh 3 vuq"kafx;ksa] 7 lg;ksfx;ksa vksj 1 la;qdr m e ds lkfk lkfk ih,uch lewg ds 3 ys[kk ijhf{kr lg;ksxh ds xsj ys[kk ijhf{kr foùkh; fooj.kksa ij vkèkkfjr gs A x- {ks=kh; xzkeh.k csadksa (lg;ksxh lalfkkvksa) us dqn dezpkjh ykhkksa ds fy, Hkkjrh; lunh ys[kkdkj lalfkku }kjk tkjh ys[kkekud & 15 (la'kksfèkr) ugha viuk;k gs] fdarq mugsa rnfkz@ is&, k&;w&xks vkèkkj ij fglkc esa fy;k gsa 4- mi;qzdr isjk 2 ls 3 esa fn, x, gekjs er ds vèkhu ge lwfpr djrs gsa fd ih,uch lewg çcuèku }kjk lesfdr foùkh; fooj.k i=k Hkkjrh; lunh ys[kkdkj lalfkku }kjk tkjh (lesfdr fooj.k i=kksa INDEPENDENT AUDITORS REPORT ON CONSOLIDATED FINANCIAL STATEMENTS OF PUNJAB NATIONAL BANK GROUP To The Members of Punjab National Bank, 1. We have audited the attached Consolidated Balance Sheet of Punjab National Bank, its subsidiaries, associates and Joint Venture (collectively known as PNB Group) as at 31 st Account and the Consolidated Cash Flow Statement for accounting policies and other explanatory information annexed thereto, in which the following are incorporated: i) Audited accounts of Punjab National Bank (The Bank), audited by us, vide our audit report dated May 15, 2018, ii) iii) Audited accounts of 2 Subsidiaries and 3 associates, audited by other auditors and Unaudited accounts of 3 Subsidiaries, 7 Associates and 1 Joint Venture. assets of ` Crores as at 31 st March 2018 and total revenues of ` Crores for the year then ended. been audited by their respective auditors whose reports have been furnished to us and our opinion is based solely on the reports of the said auditors. 3. a). The Financial Statements of 3 Subsidiaries, 7 Associates and 1 Joint Venture which have not been audited contribute ` Crore loss to PNB group for the year ended statements of 3 Subsidiaries, 7 Associates and 1 notes to accounts as well as two audited subsidiaries and three associates of PNB group. c). Regional Rural Banks (associates) have not followed Accounting Standard -15 (Revised), issued the same on adhoc/pay as you go basis. 4. Subject to our observations in paragraph 2 to 3 above, we report that the Consolidated Financial Statements have been prepared by the management of PNB Group in PNB Full AR indd Jul-18 2:05:16 PM

170 lecuèkh) ys[kkadu ekud&21 esa vis{kkvksa ds vuq:i rfkk ys[kk ekud&23 (lesfdr fooj.k i=kksa esa lg;ksxh deifu;ksa esa fuos'k ds ys[kkadu) vksj Hkkjrh; fjtoz csad dh vis{kkvksa ds vuqlkj rs;kj fd, x, gsaa foùkh; fooj.kksa ds fy, çcaèku dk nkf;ro 5- ;s lesfdr foùkh; fooj.k csad ds çcaèku dk nkf;ro gs vksj bugsa çcaèku }kjk csaddkjh fofu;eu vfèkfu;e] 1949 dh èkkjk 29 ds çkoèkkuksa ds vuqlkj vyx vyx foùkh; fooj.kksa vksj?kvdksa ds lacaèk esa vu; foùkh; lwpuk ds vkèkkj ij rfkk lwpuk ij csaddkjh fofu;e vfèkfu;e] 1949 dh r`rh; vuqlwph ds iqkez ^d* o ^[k* ds vuq:i vko';d fopkj&foe'kz djds rs;kj fd;k x;k gs A ;s foùkh; fooj.k Hkkjrh; lunh ys[kkdkj lalfkku }kjk tkjh ykxw ys[kkadu ekudksa dh vuqikyuk djrs gsa A bl nkf;ro esa foùkh; fooj.k tks egroiw.kz xyr fooj.k] pkgs èkks[kkèkm+h vfkok pwd ds dkj.k gks] ls eqdr gsa] rs;kj djus ls lacafèkr vkarfjd fu;a=k.k ds j[k&j[kko] fmtkbu vksj ykxw djuk 'kkfey gs A ys[kkijh{kdksa dk nkf;ro 6- gekjk nkf;ro bu fooj.k i=kksa ij gekjs }kjk dh xbz ys[kk ijh{kk ds vkèkkj ij er çdv djus rd gs A geus bulvhv;wv vkwiq pkvzm,dkmavsuv~l vkwiq bafm;k }kjk tkjh ys[kk ijh{kk ij tkjh ekudksa ds vuqlkj ys[kkijh{kk dh gs A ;s ekud vis{kk djrs gsa fd ge usfrd vko';drkvksa dk vuqikyu djsa vksj ge ys[kk ijh{kk dh vk;kstuk rfkk mldk fu"iknu bl çdkj djsa fd gesa foùkh; fooj.khi=kksa ds lacaèk esa,slk leqfpr vk'oklu fey tk, fd muesa dksbz =kqfv ugha gs A 7-,d ys[kk ijh{kk esa dk;zfu"iknu çfø;k;sa layxu gsa ftuls foùkh; fooj.k i=kksa esa mfyyf[kr jkf'k;ksa vksj çdvhdj.k ds ckjs esa lk{;~ çkir fd;s tkus gsaa p;fur lkafofèkd ys[kk ijh{kd ds iqslys ij vkèkkfjr gksrh gs ftuesa foùkh; fooj.k i=kksa ds xyr dfku] pkgs os èkks[kkèkm+h ds dkj.k gs ;k =kqfv ds tksf[keksa dk fuèkkzj.k lfeefyr gs A mu tksf[ke fuèkkzj.kksa dks cukus ds fy, mi;qdr ifjflfkfr;ksa ds vuqlkj ys[kkijh{kk lafofèk;ksa dk fmtkbzu djus ds fy, ys[kk ijh{kd foùkh; fooj.k i=kksa dh mfpr çlrqrhdj.k rfkk csad dh rs;kjh ls lac) vkurfjd fu;a=k.k ij fopkj djrk gs A ys[kk ijh{kk esa ç;qdr ys[kk uhfr;ksa dh mi;qdrrk dk ewy;kadu çcaèku }kjk fd;s x;s ys[kk vuqekuksa dh rkfdzdrk] lkfk gh foùkh; fooj.ki=kksa dk ldy çlrqrhdj.k dk ewy;kadu Hkh lfeefyr gs A 8- gesa fo'okl gs fd ys[kk ijh{kk lk{;] tks gesa çkir gq, gsa] gekjs vfhker dks vkèkkj çnku djus ds fy; i;kzir vksj mi;qdr gs A vfhker 9- gekjs }kjk dh xbz ys[kk ijh{kk vksj vu; ys[kk ijh{kdksa dh vyx vyx foùkh; fooj.kksa ij fjiksvksaz vksj Åij isjk 2 esa nh xbz vuq"kafx;ksa vksj lg;ksfx;ksa dh vu; foùkh; lwpuk dks ns[krs gq, vksj gekjh lokszùke tkudkjh vksj gesa fn;s x;s Li"Vhdj.k ds vuqlkj gekjh jk; esa% We believe that the audit evidence we have obtained is Opinion: PNB Full AR indd Jul-18 4:39:39 PM

171 d) lesfdr rqyui=k vksj mlds lkfk ifbr fviif.k;ka,d iw.kz rfkk mfpr rqyui=k gs ftlesa lhkh vko';d fooj.k fn;s x;s gsa vksj ;g Hkkjr esa lkeku;r% LohÑr ys[kkadu fl¼kurksa ds vuq:i bl rjg ls rs;kj fd;k x;k gs fd blesa csad dk;ksaz dh 31 ekpz] 2018 dh lgh vksj mfpr flfkfr çnf'kzr gksrh gs [k) lesfdr ykhk o gkfu [kkrk rfkk mlds lkfk ifbr fviif.k;ka] Hkkjr esa lkeku;r;k LohÑr ys[kkadu fl¼kurksa ds vuq:i o"kz ds ykhk dk lgh 'ks"k n'kkzrk gs vksj x) lesfdr udnh çokg fooj.k i=k ml frffk dks lekfir o"kz gsrq ih,uch lewg lgh vksj mfpr udn çokg n'kkzrk gs A egroiw.kz ekeyk 10- vius er ds lkfk dksbz 'krz yxk, fcuk] ge fvi..kh la 38 (ts )dh vksj è;ku vkdf"kzr djrs gs ftlds vkèkkj ij jru,oa vkhkw"k.k {ks=k ds varxzr vkus okyh dqn èkks[kkèkm+h okys [kkrksa esa dqy # djksm+ ds eqdkcys # djksm+ dh jkf'k esa 50% dk çkoèkku fd;k tk;sxk tslk fd vkjchvkbz ds fnukad ds i=k la- &8720@ @2017 }kjk fn;k x;k gs A vu; fofèk,oa fofu;ked vis{kkvksa ij fjiksvz 11- rqyui=k vksj ykhk o gkfu [kkrk csaddkjh fofu;eu vfèkfu;e] 1949 dh rhljh vuqlwph ds Øe'k% iqkez ^,* vksj ^ch* ls fy;s x;s gsaa 12- gekjs er esa] ih,uch lewg lesfdr rqyui=k] ykhk o gkfu ys[kk vksj udnh çokg fooj.k ykxw ys[kkdau ekudksa ds vuqlkj gsa A st ` ` Ñrs lwjh,am deiuh lunh ys[kkdkj,iqvkj,u ,l (ih os.kqxksiky) lk>snkj lnl; la Ñrs th,l ekfkqj,oa deiuh,qvkj,u ,u (jktho dqekj oèkkou) lk>snkj lnl; la LFkku% ubz fnyyh fnukad% Ñrs,lih,eth,aM deiuh lunh ys[kkdkj,iqvkj,u lh (vons'k xqirk) lk>snkj lnl; la Ñrs,pMh,lth,oa,lksfl,V~l,Qvkj,u ,u (nychj flag xqykvh) lk>snkj lnl; la Ñrs,edsih,l,aM,lksfl,V~l lunh ys[kkdkj,iqvkj,u bZ (çnhi dqekj ykb) lk>snkj lnl; la Partner (M.No ) Wadhawan) Partner (M.No ) Place: New Delhi Partner (M.No ) (Dalbir Singh Gulati) Partner (M.No ) Partner (M.No ) PNB Full AR indd Jul-18 4:39:39 PM

172 NOTES 6 PNB Full AR indd Jul-18 4:39:39 PM

173 NOTES 6 PNB Full AR indd Jul-18 4:39:39 PM

174 NOTES 6 PNB Full AR indd Jul-18 4:39:39 PM

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