New Delhi, May 09 Punjab National Bank (PNB) has declared its fourth quarter results. The bank’s reported a net profit of Rs 1,424, supported by higher interest and other incomes. Bank’s total business crossed Rs. 6.73 lac cr, operating profit crossed Rs. 10000 cr.
Its net interest income increased 9.3% on year-on-year (YoY) basis to Rs 3,310 crore.
Addressing media persons, K R Kamath, CMD, Punjab National Bank says, the bank sees net interest margins (NIM) at 3.50% ahead.
He sees 18% deposit growth and 19-20% credit growth in FY13. “The Reserve Bank has given an estimate of 16% on deposits and 17% on credit. The bank has always been growing 1-2% more than this. Keeping this as a basis, we intend growing at 18% on deposits and about 19-20% on the credit,” he asserts.
The bank has also declared final dividend of Rs. 22 per share.
Net Profit of the Bank for the quarter ended March 2012 amounted to Rs. 1424 cr as against Rs 1201 cr last year, registering a YOY growth of 18.6%, while Net Profit of the Bank for Financial Year ended March 2012 amounted to Rs. 4884 crore as compared to Rs 4433 crore last year, recording a y-o-y growth of 10.2 %.
Deposits of the Bank rose to Rs. 379588 cr compared to Rs 3,12,899 cr last year, registering y-o-y growth of 21.3%.
CASA deposits increased to Rs. 1,34,129 cr as against Rs. 1,20,325 cr in March’11, recording a growth of 11.5%. CASA share stood at 36.2%. Saving deposits increased by 13.0% to Rs. 105657 crore while Current deposits rose by 6.1% to Rs. 28472 crore.
Market Share: Market share of the Bank in both deposits and Advances improved from 5.28% and 5.43% respectively in March’11 to 5.60% (Deposits) and 5.55% (Advances) in March 2012.
Gross NPA ratio stood at 2.93% against whereas Net NPA ratio was 1.52%.
Speaking to Sarkaritel.com Mr Kamath said “I would say that the NPLs, in the current quarter, I don’t think that it is concentrated in one particular sector. I think it has come from almost all sectors. But if you look at the restructured book, yes, it did come from power sector, telecom sector and aviation sector.
On the restructured book, during this year, Rs 7,925 crore came from the infrastructure segment. Out of that, Rs 6,874 crore has come from the power sector, Rs 990 crore has come from the telecom sector and Rs 2,245 crore has come from aviation sector.
Bank has established overseas footprints in 10 countries via 4 overseas branches and an offshore banking unit in Mumbai, wholly owned subsidiary in UK with 7 branches & a subsidiary each in Kazakhstan & Bhutan; 5 Representative offices in Australia, Norway, Dubai, China and Kazakhstan; and one joint venture with Everest Bank Ltd., Nepal.
PNB is also looking to upgrade its Representative Offices in Oslo in Norway, Sydney in Australia & Shanghai in China to full fledged branches .
Bank’s future overseas forays include a wholly owned subsidiary in Canada and presence in Maldives, South Africa, Bangladesh, Myanmar, Pakistan, Singapore and Brazil.
Under Financial Inclusion plan, Bank has covered all 4588 villages with population over 2000 as allocated by SLBCs for providing Banking services during FY 2011-12. The Bank has been continuing 39 Information & Communication Technology based projects in 16 States covering 3219 villages through the Business Correspondent Model. Electronic Benefit Transfer (EBT): The Bank has undertaken 5 projects under the EBT for payment of Social Security Benefits/NREGA payments with 3.60 lakh beneficiaries.
Under PNB VIKAS (village adoption scheme), Bank has adopted 118 villages to develop the identified villages in an integrated manner, which includes Human Development, Economic Development & other Infrastructure Development.
Bank’s 58 Financial Literacy and Credit Counseling Centers (FLCCs) attended to enquiries from more than 2.0 lakh people and another 1.96 lac persons attended the seminars conducted by FLCCs; Free of cost training imparted by 39 PNB Rural Self Employment Training Institutes and 10 Farmers’ Training Centres to more than 1.15 lac persons.
PNB new initiatives added Cash Deposit Machines installed in the branches providing a self service terminal where customers can deposit cash which gets credited to their account on real time basis. Installed Self Service Pass Book Printer terminals in the branches and e-lobbies, which help the customers to get the passbook updated at their convenience.
Important Points
- Net Interest Margin (NIM) for FY ended March’12 is 3.84% (3.96% in the previous year).
- Return on Assets stood at 1.28% in the Q4 FY’12. (FY ended March’12: 1.19%).
- Cost of Deposit stood at 6.80% for Q4 FY’12 and 6.59% for FY ended March’12.
- Cost to Income ratio stood at 35.97% in Q4 FY’12 and 39.75% in FY ended March’12.
- Return on Average Equity stood at 22.84% in Q4 FY’12 and 21.05% in FY ended March’12.
- Earnings Per Share was Rs. 179.13 for Q4FY’12 and Rs. 154.02 in FY ended Mach’12 (Rs 140.60 in March’11)
- Book Value per Share improved to Rs 777.42 in March’12 as against Rs.632.48 in March’11.
- CRAR of the bank was comfortable at 12.63% under BASEL-II (Tier-I Capital: 9.28%;Tier-II Capital: 3.35%).
- Bank’s branch network stands at 5670 (including 6 extension counters).
- Bank has 6009 ATMs and around 169 lakh card holders.
- PNB Internet Banking Channels are witnessing a steady increase in usage with about 17 lac internet banking users.
- More than 80 lac customers are availing SMS alert facility.
- More than 27.7 % of transactions are being conducted through Alternate Delivery Channels.
- Retail loans outstanding grew by 23.6% on YoY basis to cross Rs. 29,000 crore at end of March’12 as against Rs. 23,621 crore in corresponding period last year.
- Good y-o-y growth in Car/Vehicle loan (53.9%), Reverse Mortgage scheme (30.6%), Pensioners loan portfolio (28.0%), Housing loan (16.9%) and Education loan (17.3%).
- Gold loan portfolio rose by robust 115.0% to Rs. 807.8 crore.
- Outstanding Agricultural advances grew by 29.48 % to Rs 45917 crore, constituting 19.34 % of ANBC thereby exceeding the stipulated ratio of 18 %.
- PS Advances grew by 26.76% to Rs 95898 crore and accounted for 40.7% of Adjusted Net Bank Credit (ANBC) as against the stipulated ratio of 40 %.
- National goals in respect of financing to Weaker Sector have also been surpassed besides meeting the target of 15% of Priority Sector advances to Minority communities.
- Issued 40.8 lac Kisan Credit Cards (KCC) till March 31st, 2012.