PNB Records 50% Rise In 02-03 Net

New Delhi, May 26: | Updated: May 27 2003, 05:30am hrs
Punjab National Bank (PNB) has clocked a growth of 50 per cent in its net profit in 2002-03 to Rs 842.2 crore. It has also opted for returning Rs 130 crore capital to the government, thereby bringing down its stake to 60 per cent. The process will however take some time, PNB chairman and managing director SS Kohli said at a press conference on Monday.

Earlier, the board had adopted the audited accounts for the last fiscal, and recommended a dividend of 35 per cent. The present equity held by the government is Rs 212 crore of the total paid-up capital of Rs 265 crore. The proposal needs approval from PNBs annual general meeting and the Reserve Bank, he added.

Operating profit rose 25.4 per cent to Rs 4,033 crore against Rs 3,216 crore the previous year. On the mutual fund venture, he said PNB proposes to sign an agreement with Prinicpal Group in a fortnights time for an asset management company in which it would hold 30 per cent stake.

Net profit rose to Rs 842.2 crore in 2002-03 compared to Rs 562.39 crore the previous year. Total business grew 17.8 per cent to Rs 1,16,044 crore as against Rs 98,492 crore in 2001-02.

Capital adequacy ratio stood at 12.02 per cent, up from 10.7 per cent in 2001-02. Net non-performing assets (NPA) swelled to Rs 1,817 crore, or 5.3 per cent of net advances. Excluding the effects of its merger with Nedungadi Bank, PNB would have registered a net NPA ratio of 3.5 per cent.

Mr Kohli said PNB has got permission to open three representative offices one each in Dubai, the United Kingdom and China. He ruled out any possibility of the bank shedding stake in its subsidiary, PNB Gilts, at this juncture, adding that moves to find a suitable foreign partner had not worked, but the bank was content having a specialised institution as a listed arm and is not contemplating a merger.