PNB Q1 net rises 62% to Rs 832 cr

Punjab National Bank (PNB) has posted 62.39 per cent rise in net profit at Rs 832.05 crore for the quarter ended June 30, 2009 as compared to Rs 512.40 crore in the corresponding quarter last year. Total income during the quarter under consideration increased from Rs 4594.62 crore to Rs 6177.58 crore.

In terms of the Agricultural Debt Waiver and Debt Relief Scheme, 2008 framed by the Centre, final debt waiver claim of Rs 1146.25 crore has been lodged with RBI, which has been certified by the SCAs. Bank has already received the first installment of Rs 467.17 crore from the government. Further, an amount of Rs 996.73 crore, has been worked out as eligible under the scheme for debt relief, for which claim will be lodged with RBI upon closure of the scheme after due certification by the SCAs.

The bank has clarified that in respect of debt relieve, it is holding a provision of Rs 60 crore against loss in present value terms of amount receivable for eligible farmers by utilising the existing provision held under IRAC norms.

It has raised upon Tier - II bonds of Rs 1000 crore during the quarter and has also redeemed Tier - II bonds worth Rs 95 crore during the quarter.