PNB Q2 net up 6.63%, operating profit declines 4.97%

New Delhi, Oct 29 (UNI) Public sector lender Punjab National Bank (PNB) today said it has registered 6.63 per cent increase in net profit whereas it's operating profit declined 4.97 per cent for the second quarter ended September 30 compared to corresponding period last fiscal.

The net profit jumped to Rs 538.48 crore against Rs 504.99 crore in the said period. However, the operating profit dropped to Rs 854.98 crore from Rs 899.67 crore.

''The fall in operating profit is primarily due to increase in cash reserve ratio (CRR) to seven per cent,'' PNB CMD K C Chakrabarty told reporters here.

The total income of the bank stood at Rs 3,930.89 crore for the second quarter this fiscal, compared to Rs 3,059.19 crore registered in the corresponding period of the previous fiscal, posting a rise of 28.49 per cent.

For the half year ended September 30 current fiscal, the bank posted a net profit of 963.55 crore compared to Rs 872.51 crore in the same period last fiscal, recording a growth of 10.4 per cent.

Total income of the bank increased 29.2 per cent to Rs 7,228 crore against Rs 5,596 crore in the said period.

At the end of September 2007, the ratio of NPAs to net advances was 1.86 per cent while gross NPAs to gross advances of the bank stood at 4.57 per cent during the period.

''This increase is due to technical reasons that has changed the defintion of NPAs,'' Mr Chakrabarty said.

He said the bank is evolving a new busines model which will reduce NPAs and improve profitability.

UNI