Pnb Net Up 13.6 Per Cent; Plans Rs 320 Crore Ipo

Punjab National Bank (PNB) posted a 13.6 per cent growth in net profit which grew to Rs 463.64 crore during 2000-01 compared with Rs 408.14 crore in the previous fiscal.

The bank, which plans to raise Rs 320 crore through an IPO in the second half of this fiscal, has cleaned up its balance sheet by providing Rs 482 crore towards income tax, wealth tax, non-performing assets, pensions, depreciations and gratuity, PNB chairman, S S Kohli announced here told.

PNB provided Rs 271 crore on account of outgo for voluntary retirement scheme (VRS) while providing Rs 325 crore for non-performing assets which came down to 6.69 per cent from 8.52 per cent in 1999-2000, he said.

"Gross profits of the bank without VRS expenditure touched Rs 1,216 crore at the end of March 2001 as compared with Rs 820.16 crore in the previous year registering a growth of 48.3 per cent," Kohli said.

The total business of the bank was over Rs 84,000 crore with deposits growing by 18.2 per cent to Rs 56,131 crore, while advances increased by 24.2 per cent to Rs 28,029 crore.

PNB, which is drawing up its 'Vision 2005' business plan with the help of Boston Consulting Group (BCG), would hit the markets in the third or fourth quarter of this fiscal for raising Rs 320 crore by diluting 27 per cent government stake.

"We have filed documents with the Sebi. We have priced the issue of face value Rs 10 at a premium of Rs 30 a share," Kohli said, adding the bank would issue a total eight crore shares.

The bank is planning to open an overseas branch to step up its international business, he said adding PNB has ties with Everest Bank of Nepal and has a representative office in Kazakhstan.

On insurance, Kohli said, "We have already applied to the RBI. After going through the books, we hope RBI would grant us permission for entering the insurance business." PNB has tied up with Hero group, Zurich and Vijaya Bank to enter the life and non-life insurance sector with a 15 per cent equity share.

As part of e-initiatives, PNB has roped in Infosys Technologies for inter-connecting its branches while working closely with RBI, Institute of Development and Research in banking technology and Indian Banks Association for payment systems.

"The bank has a plan to cover 1,500-2,000 branches in about three years time. This will enable the bank to offer 'anytime, anywhere' banking," Kohli said.

The bank would also offer ticketing through ATMs, cyber cafes and freight booking facilities for the Indian Railways as part of its pilot project at Delhi, he added.