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Punjab National Bank Q4 net up 59% at Rs 865 cr

New Delhi, May 21, 2009

Punjab National Bank (PNB), the country's second-largest public sector lender, reported a 59 per cent jump in its fourth quarter net profit at Rs 865 crore on the back of high interest income.   The bank had a net profit of Rs 544 crore in the fourth quarter of FY08.

The bank's board has declared a dividend of 200 per cent at the rate of Rs 20 a piece, on shares of face value of Rs 10 each, for the financial year ended March 31, 2009.

"On a standalone basis during the Q4FY09, the net profit of the bank grew by 59.2 per cent to Rs 865 crore, the highest among the nationalised banks," PNB Chairman and Managing Director K C Chakrabarty told reporters here.

The total income rose 38 per cent to Rs 6,098 crore in the fourth quarter ended March 31, 2009.

Despite reducing the PLR twice during the quarter, Chakrabarty said, the net interest income grew by a healthy 25.7 per cent to Rs 1,906.5 crore from Rs 1,517.3 crore in the same quarter last fiscal.

For the full year 2008-09, the net profit crossed the landmark Rs 3,000-crore level to reach Rs 3,091 crore, which again was the highest among the nationalised banks, he said.

The bank posted a 51 per cent growth in net profit against Rs 2,048.80 crore recorded in 2007-08.

Total income of PNB increased by 36.8 per cent at Rs 22,245.9 crore during 2008-09.

Due to better margin management, the net interest income during 2008-09 increased by 27 per cent to Rs 7,030.9 crore against Rs 5,534.2 crore a year ago.

Operating profit registered growth of 43.4 per cent at Rs 5,744.4 crore compared with Rs 4,006.3 crore a year ago.

The impressive operational and financial performance has been brought about by the bank’s focus on customer-based business with thrust on SME, agriculture, better asset liability management, financial inclusion, improved margin management and thrust on recovery, Chakrabarty said.

The bank achieved these milestones even while being progressive in passing on the benefit of RBI’s easing monetary measures to its customers by offering one of the lowest PLR and retail interest rates, he added.

He said, the Net Interest Margin expanded to 3.62 per cent from 3.58 per cent last year despite aggressive rate cuts during 2008-09.

During the year, the bank raised Hybrid Perpetual Tier I bonds (Rs 220 crore) and Upper Tier II bonds (Rs 2,000 crore) to shore up capital base.

The gross NPAs reduced by Rs 552 crore to Rs 2,767 crore.

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