PNB to finalise IPO shortly

By Our Corporate Reporter

CHENNAI, AUG. 24. Punjab National Bank (PNB) plans to come out with a Rs. 320 crore initial public offer shortly. It had already received the Securities and Exchange Board of India and the Reserve Bank of India nod in this regard. The capital adequacy ratio has gone up to 12 per cent from 10 per cent. It had already subscribed Rs. 300 crores to Tier-I capital and still cushion is available for Rs. 190 crores to contribute under Tier II. The bank would be finalising its working results under U. S. GAAP (Generally Accepted Accounting Principles) standards. It would also be opening its full fledged branches in Canada, the U. S and the U. K., said Mr. S. S. Kohli, Chairman and Managing Director in an informal chat with presspersons here today.

The bank had already received RBI permission for entering into life insurance business with Zurich. It would be approaching the Insurance Regulatory and Development Authority for distributing the products, Mr. Kohli said.

The total business of the bank had crossed the Rs. 86,000 crore mark. Even with stiff interest margins, the bank had achieved a growth of 48 per cent in gross profit during 2000-01.

In the quarter ended June 30, 2001, the net profit has risen to Rs. 168 crores from Rs. 142 crores. The net profit had been arrived at after making a provision of Rs. 271 crores for the whole of 2000-01 and Rs. 28.50 crores in April-June 2001. The gross NPA has declined to 11.6 per cent from 13 per cent and net NPA to 6.69 per cent from 8.6 per cent. The bank had recovered about Rs. 500 crores in two years, he said. The gross NPA stood at Rs. 3,300 crores on March 31, 2001.

The share of priority sector advances to total accounted for 45 per cent. The bank is also focussing on infrastructure lending. The Andhra Pradesh State Electricity Board, TNEB, and the Karnataka Power Corporation had been approached for this purpose. The CD ratio in the southern region is over 100 per cent and the total business had crossed the Rs. 5,000 crore mark. The CD ratio for the bank as a whole accounted for 51 per cent.

The bank had computerised about 72 per cent of its branches and the total number of branches had gone up to 1,700 from 480. The ATM branches had gone up to 110 from 20. It plans to raise it to 300 by March 2002.

PNB Gilt, a subsidiary of the bank has achieved a gross profit of Rs. 45 crores in 2000-2001. A dividend of 18 per cent was declared on A larger capital against 14 per cent in the previous year. PNB Housing, another subsidiary, disbursed loans of Rs. 100 crores in the previous accounting period. These are expected to touch Rs. 300 crores this year, Mr. Kohli said. The bank opened its ATM at its Teynampet and Taylors Road branch in Chennai today.

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