PNB net profit rises 45 per cent in Q4

Punjab National Bank (PNB), the second largest public sector lender, has posted a 45.11 per cent jump in its fourth quarter net profit mainly due to the rise in other income.

The lender has posted a consolidated net profit of Rs 3,197 crore in January-March 2009, compared with Rs 2,203 crore in the corresponding period in 2007-08. During the quarter, other income increased 46 per cent to Rs 2,912 crore as against Rs 1,993 crore in January-March 2008.

On a standalone basis, the bank posted a net profit of 59 per cent to Rs 865 crore in January-March 2009 as against Rs 544 crore in the year-ago period. Total income went up by 38 per cent to Rs 6,098 crore compared to Rs 4,417 crore, while net interest income rose 25.7 per cent to Rs 1,906 crore.

Total deposits rose by 26 per cent to Rs.2,09,760 crore, while advances increased by 29.5 per cent to Rs 1,54,703 crore. The board declared a dividend of 200 per cent at the rate of Rs 20 a piece on shares of face value of Rs 10 each for FY09.

The capital adequacy ratio under Basel II stood at 14.03 per cent. Non-performing assets (NPAs) were well under control. Percentage of net NPAs dropped to 0.17 from 0.64 in the fourth quarter of 2007-08. The bank’s global business went up by 27.5 per cent to Rs 3,64,463 crore during the quarter.

PNB on Wednesday unveiled plans to enter into factoring services for which it will apply to the Reserve Bank of India (RBI) for approval. In order to issue fresh capital, the bank said that it will disinvest 26 per cent stake in PNB Housing Finance to Dawnay Day. This will take the disinvestment to 49 per cent.