PNB Q4 net up 128%

Of the total bad loan recovery of Rs 1,800 crore during 2007-08, the bank has recovered around Rs 800 crore during January-March 2008.

Similarly, the bank also provided for Rs 1,600 crore in the quarter, which was to be done incrementally over five years, for implementing AS15 accounting standard. As a result, the bank wrote back some of the earlier provisioning made on account of the new accounting norms.

 

Interest income of the bank was up by 24 per cent at Rs 3880 crore during the quarter over the corresponding quarter last year.

Total income of the bank rose 19 per cent in the quarter to Rs 4,417 crore as compared to Rs 3,712 crore in the corresponding period last year.

Even if the extraneous factors like writeback of bad loans and provisioning writeback is excluded, the bank would have posted a 25 per cent increase in net profit, a senior executive of PNB said.

"The increase in net profit is due to better asset liability management, recovery of bad loans and better net interest margin (NIM)," said K C Chakrabarty, chairman of the bank.