Date:31/01/2006 URL: http://www.thehindubusinessline.com/2006/01/31/stories/2006013101430600.htm

Back Lower cost of deposits lifts PNB net 18 pc in Q3

Our Bureau

Mr. S.C. Gupta, CMD, Punjab National Bank, addressing a press conference in the Capital on Monday. -- Kamal Narang

New Delhi , Jan. 30

PUNJAB National Bank has recorded a net profit of Rs 370 crore for the quarter ended December 31, 2005, a 17.9 per cent rise over the net of Rs 314 crore during the corresponding period in the previous fiscal.

The operating profits for the third quarter rose by 27.3 per cent to reach Rs 548.36 crore (Rs 430.75 crore). Its total business on December 31, 2005, stood at Rs 1,72,939 crore (Rs 1,47,162 crore).

Addressing a press conference here on Monday, the Chairman and Managing Director, Mr S.C. Gupta, said that net profit for the nine-month ended December 31, 2005, stood at Rs 1150.64 crore, a growth of 9.6 per cent over the net of Rs 1049.49 crore during the corresponding period in the previous fiscal.

Mr Gupta said that the improved results were due to the bank's focus on reduction in cost of deposits (as a result of implementing centralised banking solutions) and improvement in yield on advances.

He said the increase in net profit in the third quarter was despite margins coming down. However, he added that the bank's net interest margin had increased to 4.02 per cent in December 2005 from 3.86 per cent.

Mr Gupta said that PNB was keen on acquiring a domestic bank and was also open to overseas acquisitions. He said that there was no concrete proposal in this regard at present.

He said that the bank was also expanding its international presence and is waiting for RBI approval for opening offices/subsidiaries in the UK, Canada, Hong Kong and Singapore.

Mr Gupta said that the bank did not plan to raise any fresh capital in the near future as it was comfortably placed on the capital adequacy ratio front.

PNB's capital adequacy stood at 13.99 per cent.