PNB aiming at raising deposits by 20%

Buoyed by 28.4 per cent jump in net profit, Punjab National Bank (PNB), aims at raising deposits by 20 per cent during 2010-11 besides launching micro insurance products in six months.

"Our plan is to increase deposits by 20 per cent and credit by 22 per cent during the current fiscal. Deposits rose to Rs 2.55 lakh crore in 2009-10, registering a 16.6 per cent jump over the previous year," PNB's Executive Director M V Tanksale told reporters here today.

The net profit of PNB mounted to Rs 1,068 crore, an increase of 28.4 per cent over the previous year, he said adding, during the first quarter net profit amounted to Rs 1,068.29 crore, compared to Rs 832.05 crore in the corresponding quarter last year.

Encouraged by the impressive show, the bank is set to launch micro insurance products in the next six months for which, it needs to enter into a tie-up with some insurance company, Tanksale said.

"We are now in the process of engaging a consultant for selecting an insurance company to collaborate for launching the new product," he said.

Stating that the bank has an international presence in nine countries, he said it is going to have a subsidiary in Canada soon. A wholly-owned subsidiary of the bank already exists in Britain with five branches the turnover of which is $2 billion.

On Orissa, Tanksale said PNB's business volume stands at about Rs 4,000 crore of which deposits amount to Rs 2,600 crore and advances to Rs 1,400 crore.