PNB Q1 net up 62% at Rs 832 cr on rise in treasury income

Hefty increase in treasury income helped the country's second-largest PSU lender, Punjab National Bank (PNB), to post a 62.39 per cent rise in net profit at Rs 832.05 crore for the first quarter ended June 30, 2009, as compared to Rs 512.40 crore in the corresponding quarter a year ago.

"Despite the challenging operating environment, the net profit of the bank registered a year-on-year growth of 62 per cent," PNB Executive Director M V Tanksale told reporters after announcing the first quarter results here.

Interest income of the bank rose 26 per cent to Rs 5,207.42 crore, while the interest expenditure stood at Rs 3,345.61 crore, up 24 per cent over the year-ago period.

At the same time, non-interest income of the bank increased 112.69 per cent at Rs 970.16 crore, against Rs 456.13 crore at the end of June 2008.

Of this, fee based income was Rs 458.87 crore and profit on sale of investment or treasury income was Rs 358.47 crore, he said.

During the same quarter last fiscal, the treasury income stood at Rs 13 crore only, he added.

Total income of the bank surged to Rs 6,177.58 crore during the April-June quarter, from Rs 4,594.62 crore in the corresponding period the year-ago.