Sbi Vs.

Pnb - Better Option For Investment

Dr. Ajit Singh Tomar1 , Dr. Charul Jain2 , Dr. Ajay Mishra3 , CA Aniket Sharma4

1
Associate Professor, Symbiosis University of Applied Sciences, Indore.
2
HOD and Associate Professor, Symbiosis University of Applied Sciences, Indore.
3
Associate Professor, Symbiosis University of Applied Sciences, Indore.
4
Academician, Freelance Financial Trainer and Consultant, Indore.
DOI: 10.47750/pnr.2022.13.S10.764

The banks create the portfolio of any country and same is with India. SBI being a Government Bank has created a huge
trust in Indians and towards safe investment of money of Indians. Similarly, PNB is the second largest bank in Public
sector of India. SBI and PNB have been biggest contributors in uplifting the economy of India. The research aims at
studying the same. The research focuses on providing an insight to the investor to select either of SBI or PNB. This
analysis will be on 4 variables – Reserves and Surplus, Non-Performing Assets, Assets, Deposits. Time series analysis
is the tool used in the analysis for a defined aim and objective. The study covers the above 4 variable and their movement
from 2018 to 2022.
Keywords: Reserves, Surplus, Net Non-Performing Assets, Deposits, Assets

1. Introduction:
The research discusses the financial viability and credibility of SBI and PNB on the basis of Reserves and
Surplus, Non-Performing Assets, Assets, Deposits. Both SBI (being the government bank) and PNB (being
the public sector bank) have been top priority for any Indian investor to invest money in to secure his future.
But when it comes to selecting either of the two, then discussion moves towards either to opt for government
bank or private bank. This movement of 4 variables will be taken from 2018 to 2022. Also, the aim and
objective of this research is to provide a guideline for investors. Also, it is to analyze how banks are
performing financially.

2. Literature Review:
• SBI Annual Report FY (2018), uses key financial indicators for the past 10 years. The report shows
consolidated Total Assets as INR 11,242.81 Billion on the study of 4867 branches.
• SBI Annual Report FY (2019), shows consolidated Total Assets as INR 12.39 Trillion on the study of
4874 branches.
• SBI Annual Report FY (2020), shows consolidated Total Assets as INR 13.77 Trillion on a study of
5324 branches.
• SBI Annual Report FY (2021), shows consolidated total assets as INR15.74 Trillion Consolidated and
INR161.93 Trillion of Total assets.
• SBI Annual Report FY (2022), shows consolidated Total Assets as INR 1,411,297.74 Crore on the study
of 5418 branches.
• PNB Annual Report FY (2018), shows a Net Profit of INR17,487 Crore which increased by 20.2% from
the previous year. Total deposits were INR1,063,934 Crore which is 22.5% more than the previous year.
• PNB Annual Report FY (2019), shows Net Profit of INR 12,44,541 Crore which increased by 20.5%

Journal of Pharmaceutical Negative Results ¦ Volume 13 ¦ Special Issue 10 ¦ 2022 6181

from the previous year. Total deposits were INR 9,23,141 Crore which was 17.0% higher than the previous
year.
• PNB Annual Report FY (2020), shows a 17.0% increase in Net profit.
• PNB Annual Report FY (2021), shows a total balance sheet size of INR1746871 Crore.
• PNB Annual Report FY (2022), shows a total balance sheet size of INR 2068535 Crore.

3. Objectives of Study:
• To study the Financial growth of SBI and PNB by analyzing total assets
• To study the Financial growth of SBI and PNB by analyzing Reserves and Surplus
• To study the Financial growth of SBI and PNB by analyzing Deposits
• To study the Financial growth of SBI and PNB by analyzing Net Non-Performing Assets

4. Hypothesis:

SBI has higher assets than PNB Ho: SBI does not have higher assets than PNB from
from 2018-2022 2018-2022.

H1: SBI does have higher assets than PNB from 2018-
2022.

SBI has higher reserves and Ho: SBI does not have higher reserves and surplus
surplus than PNB from 2018-2022 than PNB from 2018-2022.

H1: SBI does have higher reserves and surplus than PNB
from 2018-2022.

SBI has higher deposits than PNB Ho: SBI does not have higher deposit growth than PNB
from 2018-2022 from 2018-2022.

H1: SBI does have higher deposit growth than PNB from
2018-2022.

SBI has lower NNPA than PNB Ho: SBI does not have a higher NNPA reduction than
(Net Non-Performing Assets) from PNB from 2018-2022.
2018-2022
H1: SBI does not have a higher NNPA reduction than PNB
from 2018-2022.

SBI has had higher financial Ho: SBI does not have significantly higher financial
growth than PNB from 2018-2022 growth than PNB from 2018 – 2022.

H1: SBI does have significantly higher financial growth

than PNB from 2018 – 2022.

Journal of Pharmaceutical Negative Results ¦ Volume 13 ¦ Special Issue 10 ¦ 2022 6182

5. Research Methodology:
For the study, Time series analysis is used. Time series have analyzed the movement and changes in
the assets, revenue and surplus, deposits and NNPA. These factors depict the financial growth of SBI
and PNB. With the help of time series, we wish to establish a study to show if SBI has better financial
growth than PNB on the basis of 4 variables. The time-series have been conducted on financial
information from 2018 to 2022:

6. Data Analysis and Interpretation:

Time series Analysis:

As on
Total Assets (in
Trillions) 31.03.2018 31.03.2019 31.03.2020 31.03.2021 31.03.2022
SBI 3454752 3680914 3951394 4534430 4987597
PNB 765830 774949 830666 1260633 131805

Figure 01: Total Assets

Total Assets
SBI PNB

6000000

5000000 4987597
4534430
4000000 3951394
3680914
3454752
3000000

2000000

1260633
1000000
765830 774949 830666

0 131805
31.03.2018 31.03.2019 31.03.2020 31.03.2021 31.03.2022

Total Assets of SBI are observed to be 3454752(Trillion) in 2018 and grew to 4987597(Trillion) in 2022. The
growth of total assets seems to have increased by 44.37%. Similarly, total assets of PNB are observed to be
765830(Trillion) in 2018 and grew to 1314805(Trillion) in 2022. The growth of total assets seems to have
increase by 71.68%. There is surely a growth in assets in both SBI and PNB.
From 2018 to 2022, assets growth of SBI is 44.37% (Considering the base) and of PNB is 71.68% (Considering
the base). Therefore, it is clear that SBI has grown higher assets as compared to PNB during the 5 years of
time-series (i.e., from 2018 – 2022).

As on
Surplus and Revenue (in
Trillions) 31.03.2018 31.03.2019 31.03.2020 31.03.2021 31.03.2022

Journal of Pharmaceutical Negative Results ¦ Volume 13 ¦ Special Issue 10 ¦ 2022 6183

SBI 218236 220021 231115 252983 279196

PNB 40522 43866 61010 88842 93285

Figure 02: Surplus and Revenue

Surplus and Revenue

SBI PNB

300000
279196
250000 252983
218236 220021 231115
200000
150000
100000 88842 93285
50000 61010
40522 43866
0
31.03.2018 31.03.2019 31.03.2020 31.03.2021 31.03.2022

Total Reserves and Surplus of SBI are observed to be 218236(Trillion) in 2018 and grew to 279196(Trillion)
in 2022. The growth of total Reserves and Surplus seems to have increased by 27.93%. Similarly, the Reserves
and Surplus of PNB are observed to be 40522(Trillion) in 2018 and grew to 93285(Trillion) in 2022. The
growth of Reserves and Surplus seems to have increased by 130.21 %. There is surely a growth in Reserves
and Surplus in both SBI and PNB.
From 2018 to 2022, the Reserves and Surplus growth of SBI is 27.93% (Considering the base) and of PNB is
130.21 % (Considering the base). Therefore, it is clear that SBI has grown higher Reserves and Surplus as
compared to PNB during the 5 years of time-series (i.e., from 2018 – 2022).

As on
Deposits (in Trillions) 31.03.2018 31.03.2019 31.03.2020 31.03.2021 31.03.2022
SBI 2706343 2911386 3241621 3681277 4051534
PNB 642226 676030 703846 1106332 1146218

Figure 03: Deposits

Journal of Pharmaceutical Negative Results ¦ Volume 13 ¦ Special Issue 10 ¦ 2022 6184

 Deposits
SBI PNB

4500000
4000000 4051534
3681277
3500000
3241621
3000000 2911386
2706343
2500000
2000000
1500000
1000000 1106332 1146218
642226 676030 703846
500000
0
31.03.2018 31.03.2019 31.03.2020 31.03.2021 31.03.2022

Total Deposits of SBI are observed to be 2706343(Trillion) in 2018 and grew to 4051534(Trillion) in 2022. The
growth of deposits seems to have increased by 49.70 %. Similarly, deposits of PNB are observed to be
642226(Trillion) in 2018 and grew to 1146218(Trillion) in 2022. The growth of deposits seems to have increased
by 78.46 %. There is surely a growth in deposits in both SBI and PNB. From 2018 to 2022, the deposit growth
of SBI is 49.70% (Considering the base) and of PNB is 78.46% (Considering the base). Therefore, it is clear
that SBI has grown higher deposits as compared to PNB during the 5 years of time-series (i.e., from 2018 –
2022)

As on

NNPA - Net Non-Performing

Assets (in Trillions) 31.03.2018 31.03.2019 31.03.2020 31.03.2021 31.03.2022
SBI 110855 65895 51871 36810 27966
PNB 48684 30038 27719 38576 34909

Figure 04: NNPA

Journal of Pharmaceutical Negative Results ¦ Volume 13 ¦ Special Issue 10 ¦ 2022 6185

 NNPA
SBI PNB

120000
110855
100000

80000

65895
60000
48684 51871
40000 38576
36810 34909
30038 27719 27966
20000

0
31.03.2018 31.03.2019 31.03.2020 31.03.2021 31.03.2022

Total Net Non-Performing Assets (NNPA) of SBI are observed to be 110855(Trillion) in 2018 and decreased
to 27966(Trillion) in 2022. The decrease of Net Non-Performing Assets (NNPA) seems to have come down
by 74.77%. Similarly, Net Non-Performing Assets (NNPA) of PNB are observed to be 48684(Trillion) in 2018
and decreased to 34909(Trillion) in 2022. The decrease of Net Non-Performing Assets (NNPA) seems to come
down by 28.29 %. There is surely a decrease in Net Non-Performing Assets (NNPA) in both SBI and PNB.
From 2018 to 2022, the Net Non-Performing Assets (NNPA) decrease of SBI is 74.77% and of PNB is -
28.29%. Also, observing the actual figures for 2022 are SBI 27966(Trillion) and PNB 34909(Trillion).
According to the actual figures, it is clear that Net Non-Performing Assets are less in PNB than SBI, which
depicts that in terms of NNPA, PNB has performed better during the 5 years of time-series (i.e., from 2018 –
2022).

Hypothesis Testing:

Parameter Ho H1 Remark
SBI has higher assets than PNB from 2018- Rejected Accepted SBI has Significantly
2022 higher assets than PNB
SBI has higher reserves and surplus than PNB Rejected Accepted SBI has Significantly
from 2018-2022 higher Reserves and
Surplus than PNB
SBI has higher deposits than PNB from 2018- Rejected Accepted SBI has Significantly
2022 higher deposits than PNB
SBI has lower NNPA than PNB (Net Non- Accepted Rejected SBI does not have
Performing Assets) from 2018-2022 Significantly lower
NNPA than PNB
SBI has had higher financial growth than Rejected Accepted SBI has Significantly
PNB from 2018-2022 higher financial growth
than PNB

7. Conclusion:
• The study included the financial reports of both SBI and PNB for 3 years, i.e. from 2018 to 2022.

Journal of Pharmaceutical Negative Results ¦ Volume 13 ¦ Special Issue 10 ¦ 2022 6186

 • 4 Factors were studied - Assets, Deposits, Net Non-Performing Assets, Reserves and Surplus.
• Both SBI and PNB original reports were referred for the study.
• As per the time-series trend analysis, SBI has shown higher assets growth than PNB from 2018 to
2022, which shows SBI is grown financially during this time.
• As per the time-series trend analysis, SBI has shown higher reserves and surplus growth than PNB
from 2018 to 2022, which shows SBI is grown financially during this time.
• As per the time-series trend analysis, SBI has shown higher deposits growth than PNB from 2018
to 2022, which shows SBI is grown financially during this time.
• As per the time-series trend analysis, SBI has shown higher Net Non-Performing Assets growth
than PNB from 2018 to 2022, which shows PNB is grown financially during this time.
• It is remarkable to note that SBI has higher decrease in Net Non-Performing Assets.
• Therefore, as a part of the suggestion if SBI can reduce the NNPA ahead, then its financial growth
will be faster and way higher than in 2022.

References:
• https://www.sbigroup.co.jp/english/investors/library/annualreport/pdf/2018ar_e-042-103.pdf
• https://www.sbi.co.in/corporate/AR1819/download-annual-report.htmlSBI Integrated Annual Report
2021-2022.
• https://www.moneycontrol.com/financials/statebankindia/balance-sheetVI/SBI
• SBI Integrated Annual Report 2020-2021.
• SBI Integrated Annual Report 2019-2020.
• SBI Integrated Annual Report 2018-2019.
• SBI Integrated Annual Report 2017-2018.
• https://www.pnbindia.in/annual-reports.html
• PNB Bank Annual Report FY2022.
• PNB Bank Annual Report FY2021.
• PNB Bank Annual Report FY2020.
• PNB Bank Annual Report FY2019.
• PNB Bank Annual Report FY2018.

Journal of Pharmaceutical Negative Results ¦ Volume 13 ¦ Special Issue 10 ¦ 2022 6187