Credit Analysis & Research (CARE) assigned 'CGR 2' ratings to Punjab National Bank's (PNB) Corporate Governance Rating (CGR) facilities.
The assigned CGR rating reflects PNB’s transparent ownership structure marked by majority ownership with the Government of India (GOI), satisfactory board processes & performance monitoring by the management. The rating also factors prudent disclosures to shareholders and depositors and well-defined organisational structure with experienced professionals at both the board level as well as other key positions in the Bank.
The rating is however, constrained by systemic and structural issues facing Public Sector Banks (PSBs) characterized by, amongst others, limited managerial autonomy and susceptibility to state intervention in policy decisions of the bank
