Punjab National Bank (PNB) has recorded a 20 per cent growth in net profit at Rs 504.99 crore in the second quarter ended September 30 as compared with Rs 422.04 crore for the corresponding quarter last year. "The profit is higher due to higher interest, non-interest income and better asset-liability management," said S C Gupta, chairman and managing director, PNB. | |
| Total income rose to Rs 3,048.32 crore for the second quarter of FY07, up 14 per cent from Rs 2,682.84 crore in the same quarter a year ago. |
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| The bank is targeting a net profit of Rs 1,700 crore for the entire financial year. "We have set a net profit target of Rs 1,700 crore in 2006-07 as compared with Rs 1,439 crore in 2005-06, an increase of 18 per cent," Gupta said. |
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| Total business grew by 21 per cent to Rs 2,10,755 crore at the end of September 30 as compared with Rs 1,73,282 crore in the same period last year. Deposits rose by 17 per cent to Rs 1,28,415 crore, while advances registered 30 per cent growth to Rs 82,340 crore till September. |
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| Cost of deposits rose marginally to 4.35 per cent for the half year ended September as compared with 4.30 per cent in the year ago period. |
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| Gupta said the bank is likely to raise Rs 1,000 crore through bonds if Basel-II norms, which mandate provisioning for operational risk, are implemented from March 2007. |
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| The net interest margin has increased to 4.16 per cent from 4 per cent a year ago, despite a rising interest rate scenario, due to more low-cost deposit mobilisation from rural and semi-urban areas. |
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| The total income of the bank grew by 13.6 per cent to Rs 3,048 crore in the second quarter from Rs 2,683 crore in the same quarter last year. Net non-performing assets as per cent to net advances have declined from 0.32 per cent to 0.18 per cent. |
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| Retail credit was up by 48 per cent at Rs 19,794 crore. Housing loan saw 26 per cent growth to reach Rs 6,689 crore till September. Similarly, credit to agriculture grew by 33 per cent to Rs 16,570 crore. |
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| "We expect that interest rates will be stable in the short term as the Reserve Bank is unlikely to hike its key short-term interest rates when it reviews monetary policy tomorrow." Gupta said. |
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