PNB net up 18.6% on interest income

Punjab National Bank (PNB) on Wednesday reported a 18.6 per cent rise in net profit to Rs 1,424 crore for the quarter ended March 31, against Rs 1,201 crore in the fourth quarter of the previous year. The increase came on account of a rise in interest income and lower provisioning during the quarter.

Total income increased by 27.6 per cent to Rs 10,956 crore in the January-March quarter from Rs 8,585 crore in the year-ago period. The country’s second largest state-run lender saw its Q4 operating profit grow 17.1 per cent to touch Rs 2,936 crore, compared with Rs 2,508 crore in the corresponding period of 2010-11.

The bank had to make lower provision for retirement pension and taxes paid in the last quarter as it made higher provisions in the previous quarters, Chairman and Managing Director K R Kamath told a press conference after declaring the results.

The bank saw 15.7 per cent jump in total provisioning to Rs 1,512.10 crore. Of this, provision for non-performing assets (NPA) went up 73 per cent to Rs 939 crore. Gross NPA ratio stood at 2.93 per cent at the end of 2011-12, while net NPA ratio was 1.52 per cent. Net interest income increased by 9.3 per cent to Rs 3,310 crore, against Rs 3,029 crore in the same quarter of 2010-11.

The capital adequacy ratio at the end of March was 12.6 per cent, against 12.4 per cent in FY11.

Net interest margin (NIM) declined to 3.84 per cent from 3.96 per cent at the end of March 2011. Kamath said the bank would try to hold it at 3.5 per cent this year. Net profit for FY ended March 2012 amounted to Rs 4,884 crore, against Rs 4,433 crore last year, recording a growth of 10.2 per cent.

Deposits rose to Rs 3,79,588 crore at the end of March 2012 from Rs 3,12,899 crore in March 2011 — a growth of 21.3 per cent.

Advances at Rs 2,93,775 crore at the end of March 2012 also grew by 21.3 per cent, against Rs 2,42,107 crore at the end of March 2011.

The bank is expecting a credit growth of 20 per cent and deposit growth of 18 per cent during the current fiscal.

The bank restructured loans worth Rs 15,334 crore during the year, against just Rs 2,848 crore in the previous financial year. The restructuring included two airlines, three electricity distribution companies and a telecom tower company. Total provisions in the year rose by 23.97 per cent at Rs 5,730.09 crore.