PNB aims at Rs 2 lakh cr biz in FY06

Punjab National Bank (PNB) is aiming at 20% growth in net profit and Rs 2,00,000 crore business in this fiscal by focusing on the retail segment, chairman S C Gupta said.

"Our aim is to become the strongest bank in the country. We expect to maintain the net profit growth of 20%, if not more," Gupta said.

PNB, which posted a robust 27% rise in net profit at Rs 1,410 crore for 2004-05, is aiming to take it up to Rs 1,700 crore by the end of this fiscal.

Gupta said the bank also expects its business to grow by 18-20% in this fiscal.

The PNB chief has set an ambitious target of attaining 50% of the budgeted goals in the first half of the fiscal so as to minimise the pressure and ensure better asset-liability management in the second half.

The Delhi-based bank, which clocked a business (advances and deposits) of Rs 1,63,579 crore last fiscal, is aiming to cross the Rs 2,00,000 crore mark by March 2006.

PNB expects deposits to cross Rs 1,15,000 crore in 2005-06 from Rs 1,03,167 crore in 2004-05, and loan advances to grow from Rs 60,413 crore to Rs 72,000 crore.

Gupta, who took charge of PNB from S S Kohli this month, said the bank will focus on retail segment like housing and personal loans where risks are low. The bank will also target export and agriculture sectors apart from the corporate segments for pushing up loan growth.