Punjab & Sind Bank

Dear Stakeholders,

Greetings! It is with great pleasure that l present the key highlights of your Bank's performance for the financial year 2024 25. A comprehensive overview of our achievements and strategic initiatives can he found in the Annual Report

In the f inancial Year 2024-25, the Bank demonstrated its adaptability, leadership, and innovation in a dynamic financial landscape. Through strategic execution and targeted investments in talent, processes, and high-impact initiatives, it has transformed into a stronger, more resilient organization.

Economic and Banking Overview:

In FY.2024-25. India has shown robust economic growth, according to the National Statistical Office (NSO), the Second Advance Estimates real Gross Domestic Product (GUI¹) growth at 6.5% for the fiscal year 2024-25. Real GVA is estimated at I 171.87 lakh crore in the year 2024-25. against the FRE for Lhe year 2023-24 off 161.51 lakh crore, registering a growth rate of 6.4% as compared to 8.6% growth rate in 2023-24. Nominal GVA is estimated to attain a level oTf 300.22 lakh crore during FY 2024- 25, against f274.13 lakh crore in 2023-24, showing a growth rale of9.5%.The global economy expanded by 3.3% in 2024, a slight decline from 3.5% in 2023. IMF forecasted global growth at 2.8% in 2025 and 3.0% in 2026. Inflation is projected to decrease from 4.9% in 2024 to 4.0% in 2025 and 3.4% in 2026.

Reserve Bank oT India (RBI) projected GDP growth at 6.5% for the fiscal year 2026, though some moderation is expected due to Geopolitical factors and Trade war. Plowever, strong domestic consumption and investment activity, rein forced by liscal and monetary policies and lower inflation, will help counter these headwinds.

l am pleased to present the key highlights of our Bunk's in Fy 2025.

The Bunk's Total Business crossed Rs.2.29 lakh entire in Financial Year 2024-25, reflecting the Bank's consistent performance over the last 4 years across all major parameters notwithstanding the challenges on the geo-political and domestic fronts. Encouraging growth in the business mix reflects the Bank's strong momentum and solid fundamentals.

Total Business of the Bank registered a growth of 11.69% with Deposit and Advances growth of 8.68% and 15.87% respectively.

The banking industry continued to face headwinds in deposit mobilization, driven by rising costs and a growing shift toward higher-yield investment alternatives. To navigate these challenges, the Bank launched a range of strategic initiatives focused on building a stable and sustainable deposit base.

Our approach emphasized the growth of CASA and retail term deposits through innovative products, enhanced value-added services, focused outreach campaigns, and differentiated marketing efforts. In FY 2024-25, Bank achieved yearly deposit growth of 8.68%, Under CASA segment Bank grew by 5.38% similarly Under Retail Term Deposits Segment Bank grew by 9.81% Year on Year Basis respectively.

Retail, Agriculture &. MSME. grew 23.53% on Year-on-Year Basis, accounting for 55.15% of the total loan book, a clear indicator of ours trategic shift towards more profitable growth.

Profitability:

During FY 2024-25, Bank registered an Operating ProfiL of Rs.2075 Grand Net Profit of Rs. 10t Cr (FY), Core Fee income ol the Bank increased from Rs. 491 Cr as of 31-03-2024 to Rs. 622 Cr as of3 1 *03,2025, an increase of 26*68% Y-tvY basis. Yield on Advances of the Bank increased from 8,66% in March 2024 to 9.09% in Mach 2025.

Bank's balance sheet remained a cornerstone of strength, supported by strong capital adequacy and robust asset quality metrics. (Jur asset quality improved in b Y 2025, driven by higher recoveries and upgrada turns. 1 he Gross NBA ratio declined by 205 bps to 3.38% und Net NBA ratio improved from 1.63% as of March 2024 to 0.96% as of March 2025. The overall slippages for the BY were also grossly reduced leading to a reduction in the slippage ratio. The provision coverage ratio {BCR) is at 91.38% as on 31.03.2025. Strong Recovery in Technical Wrillen-Off (TWO) accounts 1'ot FY 2024-25 was of Rs. 822 Cr.

Bank is with capitalized with Capital Adequacy ratio (CRAR) 17.41% as of March 2025. CET-I ratio of the bank is at 15.50% as uf March 2025, on the back of better capitaI planning, internal resource generation and efficient risk management of the banking book.

+ Bank achieved the targets in Priority Sector Advance which stood at 44.24% and Agriculture

Advance at 13.17%ofANBC,asofMaTich 2025, against the regulatory target of 40% and 18% respectively.

• Credit to Small and Marginal farmers stood at 10.36% ol'ANBC, against the regulatory target of 10%.

• Credit to Mi cm Enterprises stood at 11,76% ol'ANBC, against the regulatory ^Target of 7.50%.

Our Bank is taking all the steps to provide the banking facilities to all households al a reasonable cost and opened 26.56 lakh BMJDY accounts under Financial Inclusion Mission ofGol as at the end ot March 2025.

During b Y 2024-25. the Bank has undertaken strategic initiatives to achieve Lhe long-term objectives set by hank. Some of the important initiatives are as under:

• The bank is working on the implementation of expansion of the BC network. Bresenlly. Bank is having 2,083 BCs( As on March ^T25) as against 1709 BCs as of March '24.

• Bank continued k> focus on branch expansion considering the present uneven geographical spread, 52 branches were opened during the FY 2024-25 including the branches in areas like Somipur, D barman agar. Barpela Road, Sivasugur, MoranhuL. Rangpo, etc. aligning with the government vision of Financial Inclusion. The total branches oTthe Bank stood at 1610 as on 31.03.2025.

• MID Corporate Branches: Bank is planning to increase the total mid-corporate branches, to ensure it faster turnaround lime in the credit decision-making process anti focused approach towards mid- corporate customers

• I hematic Compliance Testing: During FY 2024-25 Bank has introduced a more focused theme- based compliance testing of processes, systems within the Bank like Strengthening of MIS, Efficiency of AML monitoring, LCR computation, etc.

• Bank has placed Dedicated Compliance Officers in Zones for exclusively dealing with the compliance related obligations, thereby improving the oversight and elfeclive decision making at the corporate level through the independent information and feedback received from DCQs. As on March 2025, Bank has 15 DC.'O covering aII25 Zones.

• Bank has set up a dedicated Call Centre to cater customers' queries, complaints, customer acquisition and lead generation. We are in process oTrevamping the Call-Centre to further improve the quality oT services,

• Development of Data Quality Index (DQI) based on Data Integrity Rules (DIR): A framework based on the Data Integrity Rules (DIR) has been developed to check the Data Quality Index (DQI). I his will improve data integrity and consequently bring accuracy in regulatory reporting, strategy formulation etc.

• Automation of the Compliance Function For end to end digitizing the enterprise-wide compliance function. Bank has procured Compliance Solution EGG (Empowering Compliance &. Governance

• The Bank has initiated the process of Centralizing of Trade Finance (CTF) in FY 2024-25. Through centralization of trade finance, all the process related to import and export as well as remittance which are at present handled at Authorized Dealers branches will he processed at centralized processing cell. This will improve the compliances of the bank and will help in augmenting Trade Finance business oT the bank.

• Bank has scored 54.50 marks in EASE 7.0 and secured 1st position in Top Improver Category in Annual Indexing Result.

• Bank received W inner award for creating awareness for MSMLs & Runner-up award in promoting Government Schemes by C1MSME.

• Bank received Best Tech talent & Organisation Award in the category of Small Banks at 20lh Banking Technology Con Terence organized by I BA.

• Bank was honored with the ''Highest DQI Improvement Aw ard' in the I'SU Commercial Segment for Fy 25- Way I'umard:

Bunk proudly celebrated 117 remarkable years of trust, growth, and dedicated service. I extend my heartfelt gratitude to all our stakeholders fur Lhoir steadfast support and for placing their trust in me to lead this exceptional team into a promising future.

Looking ahead. Bank is focused on enhancing both products and processes to drive sustainable, risk- calibrated growth. We are expanding our regional footprints with four new zonal offices at Agra, Patna, Varanasi & Moga to strengthen our branch network and Corporate BC model. We are also strengthening our customer grievances redressal system with additional customer relationship management. On the digital front, we continue to upgrade our FSB UnlC mobile app and roll out innovative services to meet evolving customer needs. Strategic partnerships with Finlcch's and NBFCs, along with robust capacity- building initiatives, are key to our transformation journey Guided by our commitment to resilience, inclusion, and innovation, we aim to deliver greater value to all stakeholders while contributing meaningfully to nation-building.

Every milestone we've reached this year is more than just a marker of progress, it's a step toward a broader vision: a future where opportunity, equity. and sustainability are not privileges, but guarantees Tor all. Looking ahead to FY 2025 26, we remain focused on sustainable value creation and enhancing stakeholder .satisfaction.

We extend our heartfelt gratitude to Dr. Outran Singh. Non-Executive Chairman: Dr. Ram Jass Yaduv, Executive Director: Sh. K.P. Putnaik, RBI Nominee Director; Sh.T.R. Mcndiralta, Shareholders Director & Sh. S,L. Agarwal, Non official Director, for their invaluable contributions towards Bank's growth during iheiT tenure, which concluded during the financial year. I sincerely thank the Board members lor their invaluable support, guidance, and insights, which have significantly bolstered the Bank's initiatives. J also extend my gratitude to the Government ol'Jndia, The Department of financial Services, and The Reserve Bank of India Tor their stead fast support and guidance. I also thank all the stakeholders for their unw avering support and for being an integral part of our journey toward success. My heartfelt appreciation goes to all employees for their relent less hard work, dedication, and commitment. Your trust forms the foundation of our success and inspires us every day. At Punjab &. Sind Bank, we deeply value your ongoing support, patronage, and gotxlwill as we pursue excellence.

Looking ahead, Bunk is focused on enhancing both products anti processes to drive sustainable, risk- calibrated growth. We arc expanding our regional footprints with four new zonal offices at Agra, Patna, Varanasi & Moga to strengthen our branch netw ork and Corporate BC model. We are also strengthening our customer grievances redressal system with additional customer relationship management. On the digital front, w e continue to upgrade our PSB UnIC mobile app and roll out innovative services to meet evolving customer needs. Strategic partnerships with Finlech's and NBFCs, a king with robust capacity-building initiatives, are key to our transformation journey. Guided by our commitment to resilience, inelusion, and innovation, we aim to deliver greater value to all stakeholders while contributing, meaningfully to nation- building.

Every milestone we've reached this year is more Lhan just a marker of progress, it's a step toward a broader vision: a Future where opportunity, equity, and sustainability are nol privileges, but guarantees Tor all. Looking ahead to FY 2025 26, we remain Focused on sustainable value creation and enhancing stakeholder satisfaction.

We extend our heart Tell gratitude to Dr. Charm Singh, Non-Executive Chairman; Dr. Ram Jass Yadav, Executive Director; Sh. k.P. Patnaik, RBI Nominee Director; Sh. T.R. Mendiralta, Shareholders Director & Sh. S.L. Agitrwal. Non official Director, for their invaluable contributions towards Bank's growth during their tenure, which concluded during the financial year. I sincerely thank the Board members Tor their invaluable support, guidance, and insights, which have significantly bolstered the Bank's initiatives. I also extend my gratitude to die Government of India. I he Department of Financial Services, and 1 lie Reserve Bank oflndia lor their steadfast support and guidance. I also thank all the stakeholders for iheiT unwavering support and for being an integral part of our journey toward success. My heartfelt appreciation goes to all employees for tlicirreJentless hard work, dedication, and commitment. Your trust forms the foundation of our success and inspires us every day. At Punjab & Sind Bank, we deeply value your ongoing support, patronage, and goodwill as we pursue excellence.