PNB net rate margin dips to 3.82%

The net interest margin of Punjab National Bank is currently at 3.82 per cent compared to 4.07 per cent in March, Chairman and Managing Director K C Chakrabarty said today.

"We expect the net interest margin to stabilise at 3.75 per cent by March next year," Chakrabarty told reporters on the sidelines of an infrastructure conference. Even with the festive season around the corner, the bank has no plans to cut lending rates, Chakrabarty said.

"There is no scope for cutting lending rates as the cost of funds has gone up," he said.

Chakrabarty said he expects both the top line and bottom line of the state-owned bank to grow 18-19 per cent year-on-year. For 2006-07 (April-March), the bank earned a net profit of Rs 1,540 crore with total income at Rs 12,580 crore.

The bank is targeting to bring down its non-performing assets to 2.5 per cent by the end of the financial year from the current 4 per cent, Chakrabarty said.