Punjab National Bank registers net profit growth of 31.1% in Q2, FY10

New Delhi, October 29, 2009:

Highlights of the performance for the quarter ended September 2009:

• Operating Profit increased from Rs.1368 crore as at Sept’08 quarter to Rs.1606 crore as at the quarter ended Sept’09, registering a y-o-y growth of 17.4% during the period. Operating Profit increased to Rs. 3176 crore as at the Half Year ended Sept’09. (Half Year ended Sept’08, Rs.2350 crore - growth 35.1%)

• Net Profit of the bank was Rs.927 crore for the quarter ended Sept’09 as against Rs. 707 crore in the corresponding period last year recording a growth of 31.1%. Net Profit increased to Rs. 1759 crore as at the half year ended Sept’09 showing a growth of 44.2% over Rs. 1219 crore during the corresponding period last year.

• Interest Income during Q2 ended Sept’09 at Rs. 5407 crore show a growth of 16.3%. Interest Income stood at Rs. 10615 crore as at the half year ended Sept’09 showing y-o-y growth of 20.8%.

• Non-Interest Income.increased to Rs.1639 crore as at the half-year ended Sept’09 showing y-o-y growth of 46.5%.

• Total Business of the bank stood at Rs.394382 crore as on 30.09.2009 as against Rs.316747 crore in previous year, showing a y-o-y growth of 24.5%.

• Deposits of the bank went up to Rs. 230823 crore as on 30.09.2009 from Rs.186315 crore as on 30.09.2008 and Rs.209760 crore as on 31.3.2009. Year-on-Year basis, total Deposits grew by 23.9%.

• Credit of the bank was Rs. 163559 crore as on 30.09.2009 as against Rs.130432 crore as on 30.09.2008 and Rs.154703 crore as on 31.3.2009. Year-on-Year basis, the Credit of the bank increased by 25.4%.

• Credit Deposit Ratio stood at 70.86% as at Sept’09.

• Gross NPA to Gross Advances ratio further declined to 1.58% as at Sept’09 from 2.18% as at Sept’08 and 1.60% as at March 2009.

• Net NPA to Net Advances ratio declined to 0.14% as at Sept’09 from 0.42% as at Sept’08 and 0.17% as at March 2009.

• Provision Coverage Ratio reached 91.11%.

• Earnings Per Share increased from Rs.89.70 (annualized) for the quarter ended 30.09.08 to Rs.117.60 in the quarter ended 30.09.2009 (HY: Rs.111.58 against Rs.77.35)

• Capital Adequacy Ratio (Base II) increased from 13.64% as on 30.09.2008 to 14.74% as on 30.09.2009 against the stipulated norm of 9% (Tier-I Capital: 9.41% Tier-II Capital: 5.33%).

Retail Credit

• Aftermath Global financial turmoil, the sentiments of retail consumers dampened to a great extent. In consonance with market trend, total Retail outstanding of the bank marked a y-o-y increase of 6.8% to Rs. 17033 crore at the end of Sept’09.

• Bank has launched Festival Bonanza for its housing and Car loan schemes in which rebate in interest rates and processing fees are available to its customers upto 31.10.2009.

Social Banking

• Priority Sector Credit grew from Rs 44918 crore as on 30.09.2008 to Rs.53756 crore as on 30.09.2009, registering an absolute growth of Rs 8838 crore and y-o-y growth of 19.7%.

• Outstanding Agriculture Credit increased from Rs. 20749 crore as at Sept’08 to Rs. 25009 crore as at Sept’09, registering an absolute growth of Rs. 4260 crore and y-o-y growth of 20.5%.

• Multi pronged strategy has been put in place to disburse fresh agriculture loans of around Rs. 18368 crore during the current year.

• Credit to Micro & Small Enterprises grew from Rs 13928 crore as on 30.09.2008 to Rs. 24351 crore as on 30.09.2009 registering an absolute growth of Rs. 10423 crore and y-o-y growth of 74.8%.

• By end Sept’09, the bank has opened 58.21 lakh “No Frill” accounts/PNB Mitra account. Out of these 27.30 lakh are technology based ‘No Frill’ accounts, which have been opened with the help of BC/BF. The bank has also issued more than 56,140 General Credit Cards.

• The bank has launched unique initiatives focusing on the marginalized sections of the economy, such as - comprehensive scheme covering finance, insurance (health & life) for rickshaw pullers, tie-up with Mother Dairy in Bulandshahar to provide door step transaction facility to dairy farmers, project for migrant construction workers at Bangalore, etc.

• MoU for Interest subsidy claim under “Interest Subsidy Scheme for Housing Urban Poor” (ISHUP) has been executed with National Housing Bank under EWS and LIG category of borrowers.


(This is a press release from Punjab National Bank)