Pnb Gilts Turnover Soars Over 200%

Primary dealer PNB Gilts Ltd has emerged as one of the largest traders in government securities, posting a turnover growth of over 200 per cent in the fiscal ended March 31, 2002.

In actual terms, turnover stood at Rs 1,06,800 crore in 2001-02 against Rs 33,306 crore in 2000-01.

A company spokesperson said, "With the total outright turnover rising more than 200 percent, we have emerged as one of the largest debt traders in the country. We were also able to achieve a turnover ratio of 90.08 times for treasury bills and 146.69 times for government-dated securities against the minimum RBI stipulation of 10 times and five times, respectively."

The company has also fulfilled the bidding commitments in the primary market and achieved the required success ratio in the bids made for both treasury bills and gilts.

"During the year, we submitted bids worth Rs 11,045 crore and Rs 6,075 crore against a commitment of Rs 10,000 crore and Rs 5,525 crore in dated securities and treasury bills, respectively. In tune with aggressive marketing, the relationship based turnover showed a substantial growth during the year to Rs 21,334 crore from Rs 7,000 crore," said the spokesperson.

PNB Gilts' profit before tax amounted to Rs 176.26 crore representing an increase of more than 100 per cent over Rs 80.69 crore achieved in 2000-01.

Profit after tax rose to Rs 112.59 crore in the last fiscal compared with Rs 47.05 crore in 2000-01.

"The performance was mainly aided by the soft interest rate environment with the yields on government securities falling by 250-300 basis points," said S S Kohli, chairman of the company. He also said that PNB Gilts undertook significant human resources development, technology and marketing initiatives during the year.

The primary dealer has 46 people on its rolls and plans to expand its branch network.