The banks gross profit in the quarter has grown 32.3 per cent to Rs 521.27 crore, despite higher provisions and contingencies of Rs 244.12 crore. It achieved higher net profit after making a provision of Rs 319.12 crore towards income tax, non-performing assets and standard assets as per RBI guidelines, a statement by the bank said.
Total income of the bank increased by 12 per cent to Rs 2,059 crore while expenditure went up 6.6 per cent to Rs 1,538 crore during the first quarter of 2002. Deposits rose 14 per cent to Rs 63,987 crore till June 2002 and credit grew 22.4 per cent at Rs 35,381 crore.
Priority sector credit at Rs 15,044 crore at the end of June 2002 was 44 per cent of net credit which was more than the stipulated level of 40 per cent.
Chairman and managing director SS Kohli said a separate credit policy and risk management division has been set up to implement risk management systems.
Further, a preventive monitoring system for looking into loan accounts and generate early warning signals has been set up, he said. The bank has also set up a separate credit audit and review division to undertake post-sanction review of loan accounts where PNBs exposure is Rs 3.5 crore and above along with other high-risk accounts.
Moodys had also upgraded the financial strength rating of the bank from negative to stable on account of the profitability and improvement in asset quality.