AAAAAAAAAAAAAAAAAAAAAAAAAAA

NT Bureau
Chennai, May 27:

        An eventful year for Punjab National Bank with progress card showing a robust growth.

        According to S C Gupta, chairman and managing director, Punjab National Bank, the bank's operating profit increased by 10.8 per cent on y-o-y basis to touch Rs 3231 crore while the fourth quarter amounted to Rs 1035 crore.

        Net profit rose by 7 per cent to Rs 1540 crore during 2006-07. This is after providing for necessary provisions of Rs 1691 crore towards income tax, wealth tax, NPAs, standard assets, depreciation, gratuity, pension, leave encashment as compared to Rs 1478 crore in the previous year. And net profit for the fourth quarter stood at Rs 238 crore.

        Bank's total income during the year rose by 15.9 per cent to Rs 12580 crore while interest income recorded a growth of 20.4 per cent to Rs 11537 crore in 2006-07. Non-interest income through commission, exchange and brokerage increased by 28.9 per cent to Rs 970 crore.

        Total income during the fourth quarter rose by 26.9 per cent to Rs 3713 crore.

        As for its overall business is concerned, it's total business increased by 21.7 per cent to Rs 2,36,456 crore at the end of March 2007. Deposits amounted to Rs 1,39,860 crore, showing an increase of 16.9 per cent. Bulk deposits mobilised at differential rate were contained at March 2006 level while core deposits registered a growth of 22.6 per cent. Advances increased by 29.4 per cent to Rs 96,597 crore.

        The bank has 10 Mid Corporate Branches (MCBs) to exclusively cater to the mid corporate segment.

        Bank has diversified and rebalanced its credit portfolio with focus on productive sectors while exposure to sensitive sectors like real estate has been contained well within the exposure ceilings. The growth rate for real estate has come down from 35 per cent in 2005-06 to 18 per cent in 2006-07.

        Retail advances grew by 21 per cent to touch Rs 21361 crore at the end of March 2007. Retail loans constitute 22 per cent of the bank's gross advances.

        On the future plans, he said that the bank plans to enter into the Credit Card business. Ernst & Young Pvt Ltd, the consultants will shortly be making arrangements for negotiations with the shortlisted companies for the proposed joint venture.

        Priority sector advances increased by 20.3 per cent to Rs 40198 crore while ratio of PS advances to net bank credit stood at 41.89 per cent against national goal of 40 per cent. Credit to agriculture increased by 27.3 per cent to reach Rs 18571 crore. The bank's ratio of agricultural credit to net bank credit stood at 18.9 per cent surpassing national goal of 18 per cent.

        The bank has opened more than 1.70 lakh 'No Frill Accounts' under 'PNB Mitra' scheme besides opening seven 'Farmers Training Centres' for providing free training to farmers, rural women and unemployed youth. Already 87356 persons, including 11618 women have been trained.

        Lending to SSI registered a growth of 28.1 per cent to touch Rs 11028 crore (LRF) at the end of March 2007.

        Regarding NPAs, he said that gross NPAs have increased to Rs 3391 crore as on 31 March 2007 from Rs 3138 crore as on 31March 2006. Gross NPAs as percentage to gross advances have declined to 3.45 per cent as on 31 March 2007 from 4.10 per cent.

        On export-import front, the bank's total turnover increased by 29 per cent to Rs 56721 crore while export credit outstanding increased by 25.6 per cent to Rs 6534 crore.

        The bank launched 'Gold Coin' scheme on 18 October , 2006 and sold more than 15000 gold coins weighing 135.81 kg.

        Interestingly, the bank implemented Core Banking Solution (CBS) in 2526 Service Outlets (SOLs) at 764 centres, covering 86 per cent of bank's total business. Around 20 million customers of the bank now have the facility of 'anytime and anywhere' banking.