PNB aims net profit of Rs 3,700 cr in FY10

The country's second-largest public sector lender, Punjab National Bank (PNB), is aiming to earn a net profit of about Rs 3,700 crore during the current fiscal against Rs 3,091 crore posted a year ago.

"We would like to maintain our profit target, which is Rs 3,700 crore for the current fiscal," PNB Executive Director M V Tanksale told reporters after announcing the first quarter results here.

Asked about the drivers for the growth, Tanksale said efficient management of asset and liabilities would be the key drivers.

On a percentage basis, the growth would be 20 per cent higher than the previous fiscal.

During 2008-09, the bank's net profit crossed the landmark Rs 3,000-crore level to reach Rs 3,091 crore.

For the first quarter ended June 2009, the bank has reported a net profit of Rs 832.05 crore, an increase of 62.39 per cent.

The bank expects credit growth of 22 per cent, while deposits are likely to increase by 24-25 per cent during the fiscal, he said.

The bank would like to maintain net interest margin of 3.5 per cent for the fiscal, he said.

He also said that the interest rates have bottomed out and there is very little chance of rates coming down further.