PNB registers 34% growth in Kanpur region

With the craze for private sector banks decreasing and many of its former clients coming back, the Punjab National Bank, Kanpur region, is revamping its working style. For the first time in a decade, it has exceeded its targets.

PNB Senior Regional Manager Vinod Kumar Joel, while announcing the half-yearly results of the region, said in the last one year, the region's business had jumped to Rs 2,347 crore from Rs 1,748 crore, registering a growth rate of 34 per cent.

There's been a rise of 31 per cent in deposits. Deposits increased to Rs 1,942 crore on September 6 this year from Rs 1,480 crore in September last year. Low-cost deposit continued to be the main area, contributing 25 per cent to the deposits.

The increase in deposits has had some impact on advances as well, which reached Rs 405 crore from Rs 268 crore in the same period. Of the total, retail advances grew by 91 per cent to Rs 90 crore, comprising housing loans, education loans, and trading segments.

Similarly, priority sector lending jumped to Rs 275 crore. Profits too showed an increase to Rs 12.60 crore. In spite of this good performance, the credit-deposit ratio was only 24 per cent.

Joel said: "Kanpur is no more a major industrial centre as it was before. Most of the larger-scale industries are closed. The whole of the National Textile Corporation with its five mills have been wiped out; the BIC group of textile mills are closed. So are the two JK mills of cotton and jute. Even Duncan Fertilizer is not working any more."

Asked about leather, Joel said the bank was doing business with almost all the major leather groups of the city, like Mirza International and Super House Leathers.

"More recently, we have given loans to spice industrial units as well. Thus, our credit-deposit ratio has improved but still there are investment opportunities," he added. PNB's asset classification is looking better in spite of major companies like JK group showing sickness.