PNB’s VISION FOR PROMOTING FOOD & 

AGRO‐PROCESSING SECTOR

Agri‐Business Cell
Priority Sector & Lead Bank Division
Head Office: New Delhi
12‐13.11.2010
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 Indian Agriculture at a glance
Indian Agriculture has made rapid strides
since independence

• From food shortages and import

to self-sufficiency and exports.
• From subsistence farming
to intensive and technology led cultivation.
• Today , India is the front ranking
producer of many crops in the world.
• Ushered in through the
green, white, blue and yellow revolutions

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 Indian Agriculture Scenario

STRENGTHS WEAKNESSES
• Rich Bio-diversity • Fragmentation of land
• Arable land • Low Technology Inputs
• Climate • Uneven Distribution of Inputs
• Strong and well dispersed • Unsustainable Water Management
research and extension system • Wastage due to Lack of
• Skilled Labour infrastructure.
OPPORTUNITIES • Expose to Climatic Vagaries
• Bridgeable gaps in crop yields • Low value addition
• Exports THREATS
• Agro-based Industry • Indiscriminate Resource Use
• Horticulture • Unintegrated Regional
• Untapped potential in many Development
pockets across the nation.. • Imports

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 Production and Post Harvest  Losses in Agriculture
S.No. Type of food Present Post-harvest losses*
Commodity level of
production

Quantity % Quantity Monetary

Million Tons (Mt) value
(`.in Crore)

1 Durables (cereals pules, 230 10 23.0 23,000

oilseeds, etc.)

2 Semi-perishables 40 15 6.0 1,800

(Potato, tapioca etc)
3 Perishables 210 20 42.0 63,000
(fruits, vetetables. Milk,
meat, fish,eggs etc.)

Total/Average 480 14.8 71.0 87,800

* As per MoFPI, GOI

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 Scope
• Plan investment of Rs. 62000 crore during  11 th Five Year Plan.
• Thrust on increasing the percentage of processed Food & 
vegetables with projected 10% growth in consumption of 
processed foods.
• PNB has total exposure of Rs.2697 crores in  covering 2700 units 
in Food & Agro‐processing with major exposure in Haryana, 
Punjab, UP, Maharashtra, Chd,TN,Raj,Uttarakhand, & Delhi
 PNB‐ A proud past ,present and bright future

• Established in 1895‐ 115 years of experience in 
banking
• Global Presence‐Ranked 250th among Global Banks 
(Source: Bank of London)
• Over 60 Million satisfied customers
• Bank has continued to retain its leadership position 
among nationalized banks.
• 100% CBS connectivity in more than 5000 branches 
including extension counters spread over 2557 
centers.
• More than 4000 ATMs,1 lac touch points by 2013, 
117 lac Debit/ATM card holders 
• More than 11 lakh Internet  Banking users        
 Key Figures As on 30.09.2010

• Total Business                      : ` 4.80 Lac Crore
• Deposits                                : ` 2.73 Lac Crore
• Advances                               : ` 2.09 Lac Crore
• CD Ratio                                : 76.36%
• Provision Coverage Ratio  : 77.13%
• Earning per share (`)          : 135.92
• Return on equity (%)          : 23.34

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 International Forays
• Bank has established overseas footprints via 4 overseas 
branches,  2  subsidiaries,  1  joint  venture  and  4  Rep 
offices.
• Future  overseas  forays  include  a  wholly  owned 
subsidiary  in  Canada,  up  gradation  of  rep‐office  at 
Norway into a branch, opening Rep office in Sydney and 
acquiring majority stake in a Kazak Bank.
• Bank  has  165  branches  with  SWIFT  connectivity  for 
handling foreign exchange business
• Bank  has  set  up  11  specialised International  Banking 
Branches at important centres for dedicated services to 
oue exporter/importer clients
• Two Foreign Exchange Offices at Delhi and Mumbai 8
 RECENT AWARDS AND ACCOLADES

• PNB Ranks 24th in ET 500 List of 2010.
• Skoch Award 2010 for computerisation of RRBs
• Business  Today  ranked  PNB  as  14th most  valuable 
public sector company for 2010
• CSR Excellence Award 2010 by ASSOCHAM
• National  Award  for  Excellent  performance  in  lending 
under  Prime  Minister’s  Employment  Generation 
Programme scheme  in  North  Zone  for  2009‐10  by 
Khadi &  Village  Industry  Commission,  Ministry  of 
MSME, GOI.

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 PNB’s VISION 2013

FOOD PROCESSING Action Plan

9 Scope : The planned 9 to increase the share of food

investment of Rs.62000 crore in
food processing during 11th
plan.
9 Thrust on increasing the %age
of processing in foods and
vegetables and projected
growth of 10% in consumption
of processed foods.
and agro processing in
agriculture from 11% to 20% of
total agri advances by 2013.
9 Special treatment will be given
to food processing by
individuals in rural areas.

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PERFORMANCE OF PUNJAB NATIONAL BANK
(Last five years) `. in crore)

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 PNB’s Achievements
Achievement of National Goals

Mar.06 Mar.07 Mar.08 Mar.09 Mar.10

Total Priority Sector (40%) 44.22 41.89 44.11 41.53 40.55

Agriculture (18%) 19.09 18.91 18.94 19.72 19.53

Direct Agriculture (13.5%) 14.59 14.41 14.44 15.35 15.18

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 Promoting Food and Agro‐Processing Sector 
including Cold Storages
• General Concessional rate of interest to agro‐processing 
sector and Cold Storages
• Special concessional rate of interest and other fees to Agro‐
processing and Food Processing Sectors including cold 
storages in select locations.
• Centralised Credit Processing Centres & Hubs and 
Rehabilitation Cum Care Centers in all Circles.
• PNB SME Sahayog Scheme to extend  adhoc credit upto
20% of aggregate WC Limits or ` 25 lacs, whichever is less 
without linking to regular credit limits to meet the 
contingencies.
• Specialized SME Branches: 510
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 Centers approved for Special Package of ROI and other charges 
for financing to food & agro‐processing units and cold storage 
units
• Andhra Pradesh
• Chandigarh
• Haryana: Karnal & Kurukshetra
• Maharashtra : Nagpur
• Odisha
• Punjab
• Rajasthan: Sriganganagar
• UP: Agra, Bareilly, Meerut, Kanpur, Moradabad
• Uttarakhand: Kashipur
• West Bengal: Burdwan

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 Schemes for promoting Cold Storage Sector
Capital  investment  subsidy  for 
construction/expansion/modernization  of  cold  storage  for 
horticulture produce.
• Eligible  entities: Cooperatives,  Companies,  Partnership  and 
Proprietary  farms,  Agricultural  produce  marketing 
committees/boards,  Agro‐industries  Corporations  and  Growers 
associations.
• Borrowers contribution : 20‐25%
• Quantum of Subsidy:25% back‐ended capital investment subsidy 
by NHB not exceeding Rs 50.00 lakh per project. In North‐Eastern 
States, maximum subsidy admissible would be @ 33.1/3/% upto
Rs.60.00 lakh.
• Capacity:  Projects  up  to  a  capacity  of  5000  tonnes would  be 
promoted for wider dispersal
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 Cont…

• Rate of Interest: As per risk rating
• Repayment period: 9 years including grace period of 2 years
• NABARD will release the subsidy
• Implementing agency: National Horticulture Board 

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Central Sector Scheme for strengthening of Agricultural Marketing 
Infrastructure, Grading and Standardizations including Cold supply 
chains
• Eligible  entities: Individuals/Group  of 
farmers/growers/Partnership/NGOs/SHGs/Proprietary 
firms/Companies/Corporations.
• Owners contribution: 20‐25%
• Subsidy: 25%  of  the  project  cost  (Max.  Rs
50lakh/project  )33.3%  for  NE  States/States  of  UK,  HP 
and J&K/hilly areas /SC/ST and their co‐operatives (Max. 
Rs60lakh/project)
• The Scheme is reform linked and will be implemented in 
those  States/Union  Territories  which  amend  the 
Agriculture Produce Marketing Committee (APMC) Act.
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 Cont…

• Implementing period: Up to March, 2012
• Rate of Interest: As per credit risk rating ranging
• Repayment : 9 years
• NABARD will release the subsidy.
• Implementing agency: Directorate of Marketing & 
Inspection, GOI

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 PNB’s FOCUS
• Our bank would like to promote Cold Storage sector for 
preservation of agricultural produce and agro‐
processed foods for preventing wastage. 
• This will facilitate value addition and will give 
remunerative price to the producers and processors.
• Punjab National Bank will be pleased to consider any 
viable proposals to extend need base credit facilities 
through the large network of the branches backed by 
65 Circle offices.  

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 FOR FURTHER DETAILS, PLEASE CONTACT
Punjab National Bank,
Priority Sector and Lead Bank Division, HO
Agri-Business Cell
Atma Ram House
1, Tolstoy Marg
New Delhi 110 001
Phone No: 011 23311998, 23314402,
23350437
Fax: 011- 23311998, 23310313
Email Id: pnbagribiz@pnb.co.in
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THANK YOU

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