Date:30/04/2005 URL: http://www.thehindubusinessline.com/2005/04/30/stories/2005043001760600.htm

Back PNB annual net up 27 pc

Our Bureau

( From left) Dr K. C. Chakrabarty, ED, Punjab National Bank; Mr S. S. Kohli, CMD; and Mr C. P. Swarnkar, GM, at a press conference in the Capital on Friday. - - Kamal Narang

New Delhi , April 29

PUNJAB National Bank (PNB) has registered a net profit of Rs 1,410.12 crore for fiscal 2004-05, a 27.02 per cent growth over the previous year's net of Rs 1,108.69 crore. However, the operating profit was lower at Rs 2,707.20 crore (Rs 3,120.86 crore) in the previous year.

The board has recommended a final dividend of 30 per cent in addition to an interim dividend of 30 per cent.

Addressing a press conference here on Friday, the Chairman and Managing Director, S.S. Kohli, said that the lower operating profit for the year was due to non-availability of Rs 293 crore, an income earned in 2003-04 on account of one-time buy-back of the Government securities.

Moreover, during 2004-05, the bank had to provide for an additional Rs 208 crore on account of depreciation on the Government securities transferred from `available for sale' to `held to maturity' category.

Mr Kohli said that provisions of Rs 1,297 crore were made towards income-tax, wealth tax, NPAs, standard assets, gratuity, pension and depreciation, as compared to Rs 2,012 crore in the previous year. Total income during the year rose to Rs 10,136 crore from Rs 9,647 crore in March 2004. Interest income recorded a growth of 8.8 per cent to Rs 8,460 crore. Non-interest income through commission, exchange and brokerage increased by 25.3 per cent from Rs 552 crore to Rs 691 crore.

The bank's capital and reserves at the end of March 2005 increased to Rs 8,161 crore, a 62.8 per cent increase. Capital adequacy ratio stood at 14.78 per cent (13.10 per cent).

Total business stood at Rs 1,63,579 crore (Rs 1,35,141 crore) . While deposits reached Rs 1,03,167 crore (Rs 87,916 crore) in March 2004, advances amounted to Rs 60,413 crore (Rs 47,225 crore).

`No immediate change in rates': PNB is not considering any immediate change in deposit and lending rates on the back of the RBI increasing the reverse repo rate by 25 basis points in the Credit Policy.

"At present, we would not hike our deposit or lending rates. However, we would continuously review the situation and if need be, we will decide accordingly at a later date," Mr Kohli said.

He said that the bank was looking at an aggressive expansion plan overseas.