PNB net profit jumps 86% to Rs 1,006 crore

Two public sector lenders, Punjab National Bank (PNB) and Oriental Bank of Commerce (OBC), have posted over 80 per cent increase in net profit in the third quarter ended December 31. The good show is mainly due to higher income from loans and treasury operations.

PNB, the country’s third-largest lender, posted an 86 per cent increase in net profit at Rs 1,006 crore in the December quarter as compared to Rs 541 crore for the same quarter a year ago. It registered a 51 per cent increase in total income at Rs 6,240 crore for the quarter as compared to Rs 4,119 crore in the corresponding quarter of the previous year.
 

SURGING AHEAD Q3 FY09 performance table (In Rs crore)
Parameters	PNB	OBC	IOB
Net Profit	1005.82 (541.45)	252.19 (138.48)	388.44 (308.18)
Net Int. Income	1967.35 (1424.4)	567 (402)	822.67 (655.99)
Total Income	6239.91 (4119.57)	2718.20 (1915.28)	3204.90 (2295.34)
Net NPA  (%)	1.74 (1.21)	0.76 (0.67)	1.30
Note: figures in brackets are of Q3 last year Source: Banks

This increase is attributed to higher interest earnings and gains from treasury operations. The net interest margin (NIM), the difference between the cost of funds and the lending rate, rose to 3.85 per cent as compared to 3.66 per cent a year ago.

PNB expects 20-25 per cent growth in net profit in the March quarter, its Chairman K C Chakrabarty told reporters.

The share price of PNB today rose by 2.59 per cent to Rs 400.35 from the previous closing of Rs 390.25 on the Bombay Stock Exchange (BSE).

OBC net soars 82%

Oriental Bank of Commerce (OBC) has posted an 82 per cent increase in net profit at Rs 252 crore for the quarter ended December 31, 2008 as compared to Rs 138 crore for the same quarter a year ago.

The bank’s total income has increased by 41 per cent to Rs 2,718 crore for the quarter as compared to Rs 1,915 crore for the corresponding quarter of the previous financial year.

The share price of the bank today rose by 5.27 per cent to Rs 144.70 as compared to the previous closing of Rs 137.45 on BSE.

IOB net rises 26%

Indian Overseas Bank (IOB), the Chennai-based public sector lender, posted a 26 per cent increase in net profit at Rs 388.44 crore for the quarter ended December 2008 as compared to Rs 308.18 crore a year ago.

The bank’s total income for the reporting quarter was up 39.63 per cent to Rs 3,204.90 crore as against Rs 2,295.34 crore, during the same quarter last year. Its net interest income rose from Rs 655.99 crore to Rs 822.67 crore. The bank’s NIM improved to 3.15 per cent from 3.11 per cent during the corresponding reporting quarter a year ago.