Headroom to raise Rs 6,800 crore from bonds: PNB

Punjab National Bank (PNB) today said it can raise up to Rs 6,800 crore from bonds to fund growth plans.

"We have headroom of raising Rs 6,800 crore from both tier-I and tier-II bonds and funds would be raised depending on the requirement," said PNB Chairman and Manging Director K R Kamath.

The fund would be raised when the interest rates are optimum, he said.

Meanwhile, PNB posted a 31.13 per cent increase in net profit to Rs 1,135 crore for the March quarter. The bank had a net profit of Rs 866 crore during the fourth quarter of the previous fiscal.
    
Total income during the fourth quarter, however, grew only moderately by 6.8 per cent to Rs 6,460.78 crore against Rs 6,047.94 crore in the corresponding period of the previous fiscal.
    
On an annual basis, net profit rose by 26.4 per cent to Rs 3,091 crore compared to Rs 3,091 crore a year ago, he said.
    
"Good numbers are on the back of efficient cost management and net interest income," Kamath said, adding that total income during the year rose 12.1 per cent to Rs 24,879 crore against Rs 22,192 crore in the previous fiscal.
    
The bank board has recommended a dividend of 120 per cent at the rate of Rs 12 a share for the full year ended March, the bank chairman said.
    
Total business crossed a milestone of Rs 4 lakh crore during the year, he said, adding that total business rose to Rs 4.35 lakh crore, registering a growth of 19.6 per cent. Deposits rose 18.9 per cent to Rs 2,49,330 crore by end-March, while advances jumped 20.6 per cent to Rs 1,86,601 crore.
    
Kamath said the bank expects to clock a 20 per cent increase in business during the current fiscal. At the same time, credit expansion should be between 22 and 24 per cent in 2010-11.