PNB Net profit up 7 per cent, higher provisioning

By Staff
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Google Oneindia News

New Delhi, May 23 (UNI) Punjab National Bank (PNB) today announced a net profit growth of nine per cent to Rs 1,540 crore during 2006-07 and declared a dividends of 100 per cent for the fiscal.

Announcing the results for the fiscal 2006-07, PNB Chairman S C Gupta told newspersons here that the profit in 2005-06 was Rs 1,478 crore and dividend rate 90 per cent.

Net Profit for the fourth quarter of 2006-07 amounted to Rs 238 crore.

Mr Gupta said operating profit of the Bank increased by 10.8 per cent Y-on-Y to touch Rs 3,231 crore during the FY 2006-07.

The CMD attributed the lower rate of profit to higher provisioning of Rs 1,691 crore towards income tax, wealth tax, NPAs, standard assets, depreciating, gratuity, pension, and leave enchashment.

Mr Gupta said net interest margin has increased from 4 per cent in March 2006 to 4.07 in March 2007. Return on assets stood at 1.03 per cent on March 31, 2007.

Mr Gupta said net interest income increased by 18.2 per cent to reach Rs 5,515 crore during the FY 2006-07.

He said total business increased by 21.7 per cent to Rs 2,36,456 crore at the end of March 2007.

Deposits at the end of March 2007 amounted to Rs 1,39,860 crore, showing an increase of 16.9 per cent. Low cost deposits formed 46,16 per cent of total deposits.

Advances at the end of March 2007 increased by 29.4 per cent to Rs 96,597 crore.

Mr Gupta said average cost of deposits increased from 4.32 per cent in March 2006 to 4.53 per cent in March 2007.

The growth rate for real estate has come down from 35 per cent in 2005-06 to 18 per cent in 2006-07.

UNI

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