PNB net rises 86% to 1,006 crore, IOB profit up 26%

Written by feBureau | Agencies | New Delhi,Chennai,Mumbai | Updated: Feb 1 2009, 03:55am hrs
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Ahead of public sector banks' meeting with external affairs and finance minister Pranab Mukherjee on Monday, Punjab National Bank (PNB) on Friday decided to slash prime lending rate by 50 basis points to 11.5% with effect from February 1. The bank has also decided to bring its deposit rates down by 50-100 basis points.

The net profit of the bank was pushed up by 85.76% at Rs 1,005.82 crore during the quarter ended December 31 due to treasury gains and rising net interest incomes. Net profit was Rs 541.45 crore a year ago. Total income also grew 51.47% to Rs 6,239.91 crore from Rs 4,119.57 crore. PNB's net interest margin stood at 3.85% at the end of December 2008.

With the global financial crisis hitting India in October, domestic and overseas sources of funds dried up and more and more corporates turned to banks for loans. This shot up the net interest income of PNB up by close to 40% and its loan book grew 39.4%. "We are lending when others are not lending," PNB chairman and managing director K C Chakrabarty told reporters in New Delhi.

The bank also reported increase in treasury profits to Rs 341 crore in the quarter from Rs 71 crore a year ago. This was the result of benchmark bond yields coming down 337 basis points after Reserve Bank of India cut short term lending rate, repo rate, thrice to 5.5% during the period to help boost growth in the flagging economy and as inflation abated.

The benefit of reduction of benchmark rate will be passed on to all existing and new accounts linked with PLR under small & micro enterprises and agriculture, Chakrabarty said.

IOB Q3 net at Rs 388 cr

State-owned Indian Overseas Bank (IOB) reported a good performance in overall business, advances and net profit for the quarter ended December 31, 2008, owing to limited exposure to high cost deposits, better rated advances and overall operational efficiency.

The bank's net profit during the quarter shot up 26.04% to Rs 388.44 crore, as against Rs 308.18 crore. Total income grew 39.63% to Rs 3,204.90 crore, as against Rs 2,295.34 crore during the year-ago period. Interest income recorded a year-on-year growth of 24.70% to Rs 7,298.23 crore from Rs 5,852.40 crore.

Addressing a press conference in Chennai on Friday, SA Bhat, chairman and managing director, IOB, said, "We have bettered the industry growth average in overall business as well as advances; we grew 22% in overall business to Rs 1,62,575 crore; our advances grew 31.28% to Rs 71,709 crore during the quarter."

"Deposits during the quarter grew well below the industry average, owing to our conscious decision not to focus on high cost deposits," he added. IOB's deposits posted a 15.33% growth over the year-ago period.

Even in capital adequacy ratio, the bank has done well as compared to other banks under Basel II norms. While capital adequacy ratio was 13.34% under Basel I norms, it improved to 14.09% under Basel II norms, Bhat pointed out.

Net interest income during the quarter increased from Rs 655.99 crore in the year-ago period to Rs 822.67 crore; net interest margin improved from 3.11% to 3.15% during the one year period, he added.

The bank's credit deposit ratio increased to 78.92% as of December 31, 2008, from 69.32% as of December 31, 2007.

Bhat said that the bank is targeting total business of Rs 1,75,000 crore by the end of March 2009, along with a net profit growth of 15%. IOB may place Rs 300 crore worth of NPAs with ARCIL or some other recovery agency.

Under RBI's recent reclassification norms, the bank made a total provision of Rs 479 crore, including Rs 300 crore towards income tax, he said.

Bhat also noted that the bank is planning to open overseas offices in Dubai and New Zealand during the year. Business from existing offices in Singapore, Hong Kong and Bangkok has been encouraging, he informed.

To a question on the exposure to Satyam group, Bhat said: "We have no exposure to Satyam Computer Services, but a small amount of Rs 92 crore towards Maytas Infra. We hope there is no problem in recovering the same; some parts of the exposure have been already recovered."

OBC net jumps 82%

The net profit of Oriental Bank of Commerce (OBC) jumped to Rs 252.19 crore in Q3 ending December 31, 2008, as compared to Rs 138.48 crore during corresponding period last year, registering an 82.11% increase.

Addressing the media, Alok K Misra, chairman and managing director, OBC, said that the business-mix of the bank had increased to Rs 1,56,991 crore as on December 31, 2008, thereby registering a growth of 25.19% (YoY).

Aggregate deposits of the bank grew 23.18% (Y oY) and stood at Rs. 91,374 crores , while gross advances showed a growth of 28.10% (YoY) at Rs 65,617 crores.

Sundaram Fin Q3 net down

Sundaram Finance reported a lower net profit at Rs 30.69 crore for the third quarter ended December 31, 2008, as compared to Rs 118.61 crore during the same quarter last year.

Total income from operations went up sharply to Rs 274.02 crore during the quarter, as against Rs 231.64 crore during the corresponding quarter of the previous year, the company informed the stock exchanges on Friday.

Indiabulls Real Estate Q3 net dips

Indiabulls Real Estate on Friday reported a 96.25% decline in consolidated net profit at Rs 11.32 crore for the quarter ended December 31, 2008. The company had a net profit of Rs 302.26 crore for the quarter ended December 31, 2007.

Total income of the company on a consolidated basis decreased to Rs 95.28 crore for the December quarter of this fiscal from Rs 491.81 crore a year ago, the company said informing the Bombay Stock Exchange.

On a stand alone basis the company posted a net profit of Rs 6.77 crore for the third quarter of this fiscal from Rs 410.04 crore recorded in the previous fiscal.

Total income on a stand-alone basis decreased to Rs 37.44 crore for the December quarter of the 2009 fiscal from Rs 535.72 crore in the previous year.

Meanwhile, the company said the Delhi High Court has sanctioned the scheme of amalgamation of Indiabulls Power Services Ltd (IPSL) with Sophia Power Company which has come into effect.

Accordingly, the company has been alloted 197,500,000 equity shares in Sophia on the basis of share exchange ratio as per the approved scheme and in consideration of its existing equity holding in IPSL. Post such allotment, the company holds 71.43% equity of Sophia.

Besides, the compensation committee constituted by the Board of Directors of the company allotted 20 lakh stock options representing an equal number of equity shares of face value of Rs 2 each in the company to eligible employees at an exercise price of Rs 110.50.

Mundra Port Q3 net up

Mundra Port and Special Economic Zone on Friday reported a 92.23% growth in net profit at Rs 100.81 crore in the third quarter ended December 31, 2008. The company had a net profit of Rs 52.44 crore in the December quarter of FY'08, the Adani Group-promoted Mundra Port said in a filing to the BSE. Total income rose to Rs 303.27 crore in the third quarter from Rs 209.99 crore in the same period last fiscal.

OnMobile Global net rises

Telecom solution provider OnMobile Global on Friday reported a 7.63% growth in net profit at Rs 27.64 crore in the third quarter ended December 31, 2008. The company had a net profit of Rs 25.68 crore in the December quarter of FY'08, OnMobile Global said in a filing to the Bombay Stock Exchange.

Total revenue rose to Rs 115.72 crore in the latest quarter from Rs 80.50 crore in the corresponding year-ago period.

On a standalone basis, OnMobile Global registered a 88.72% jump in net profit at Rs 20.42 crore in the third quarter compared with Rs 10.82 crore in the same quarter last fiscal.

The company's standalone income increased to Rs 94.70 crore for the quarter ended December, from Rs 57.84 crore in the same period last fiscal. Shares of the company were trading at Rs 208, down 1.77% on the BSE.

Patel Engineering Q3 net rises 5.55%

Patel Engineering on Friday said that its consolidated net profit for the third quarter ended December 31, rose by 5.55% to Rs 39.69 crore. The company had a net profit of Rs 38.85 crore in the same quarter the previous fiscal, Patel Engineering said in a filing to the Bombay Stock Exchange.

Net sales of the company rose to Rs 494.65 crore for the quarter ended December 31, against Rs 378.85 crore in the same period last fiscal.

For the nine month ended December 31, the company has posted a net profit of Rs 117.26 crore, against Rs 101.42 crore in the same period last year.

Arshiya International net profit up 25%

Arshiya International Ltd, a global supply chain and logistics infrastructure solutions company, posted an increase of 25% in its net profit at Rs 13.02 crore for the quarter ended December 31, 2008, as compared to Rs 10.41 crore during the corresponding quarter last year.

The company also posted an increase of 9% in its total income at Rs 114.16 crore for the third quarter of this fiscal, as compared to Rs 104.77 crore during the corresponding quarter last year.

Earnings per share of the company stood at Rs 0.51 for the quarter, as compared to Rs 0.50 during the year-ago period.

Nitin Fire net up 80.51% at Rs 27.69 crore

Nitin Fire Protection Industries Ltd (NFPIL), a player in fire protection, safety and security, reported a 80.51% jump in its consolidated net profit after extraordinary items for the nine months ended December 2008 at Rs 27.69 crore, compared to Rs 15.34 crore in the corresponding period in the previous year.

Net sales rose 91.33% to Rs 194.26 crore, compared to Rs 101.53 crore in the same period of the previous year.

For the quarter ended December 31, 2008, the companys net profit stood at Rs 8.17 crore, compared to Rs 6.24 crore in the corresponding quarter last year, a rise of 30.73 %. Net sales rose 72.71% at Rs 68.34 crore, compared to Rs 39.57 crore in the corresponding quarter last year. In Q3 FY09, an amount of Rs 3.87 crore was provided under extraordinary items on account of exchange fluctuation loses.

Commenting on the earnings, Nitin Shah, chairman and managing director, Nitin Fire Protection Industries Ltd, said, With the availability of CNG in India set to double in the next three years, and the improving of CNG infrastructure, we believe the demand for CNG vehicles will also rise. This, in turn, will boost demand for CNG cylinders. With foray into high pressure seamless CNG cylinder business and fire protection for hotels and banks, we expect margins of group companies to improve, going forward, Shah added.

Indoco Remedies Q3 net dips 94%

Indoco Remedies Ltd registered a 94% decline in net profit at Rs 63 lakh for the third quarter ended December 2008, against a profit of Rs 11 crore for the corresponding period of the previous year.

It registered sales of Rs 77.9 crore against Rs 91 crore during the year-ago period.