PNB net profit rises 13.4% to Rs 329 crore in first half

Our Economic Bureau

New Delhi, Oct 30: Delhi-based Punjab National Bank (PNB) has reported a net profit of Rs 329.02 crore in the first half of the current financial year, registering an increase of 13.4 per cent.

According to a bank press release, PNB registered an increase in profit despite making higher provisions of Rs 463.44 crore towards income tax, non-performing assets (NPAs), standard assets and investment depreciation. The PNB had made a provision of Rs 310.32 crore during the corresponding period last year.

The bank has booked a gross profit of Rs 849.44 crore during April-September 2001 as compared to Rs 600.51 crore in the first half of the previous year, registering an increase of 41.5 per cent. However, after accounting for Voluntary Retirement Scheme (VRS) expenses amounting to Rs 56.98 crore, the gross profit worked out to be Rs 792.46 crore.

Total income of the bank increased from Rs 3,187 crore in the six months ending September 2000 to Rs 3,787 crore in the first half of the current fiscal, registering an increase of 18.8 per cent. Interest income amounted to Rs 3,256 crore for the first half, recording an increase of 16.5 per cent. Non-interest income during the period increased to Rs 532 crore from Rs 393 crore, showing an increase of 35.3 per cent.

Expenditure during the period too increased to Rs 2,938 crore from Rs 2,587 crore in the first half of the previous year, registering an increase of 13.6 per cent. While the interest expenses showed an increase of 13.6 per cent, the operating expenses increased by 3.7 per cent.

On the side of liabilities, total deposits at the end of September 2001 amounted to Rs 60,123 crore, showing an increase of Rs 8,750 crore or 17 per cent over the corresponding period last year. The low cost deposits constituted 44.21 per cent of the total deposits.

Total credit of the bank at the end of September 2001 stood at Rs 29,786 crore, registering an increase of Rs 6,519 crore or 28 per cent over Rs 23,267 crore at the end of first half of last fiscal. The bank has continued to focus on retail customers.

As far as priority sector advances were concerned, the credit at Rs 12,949 crore at the end of September 2001 amounted to 45.6 per cent of the net credit, above the prescribed norm of 40 per cent. Under the Kisan Credit Card Scheme, the bank issued 1.72 lakh cards during April-September 2001.