Punjab National Bank (PNB) on Friday reported a 7.8 per cent increase in net profit to Rs 1,090 crore for the quarter ended December 2010. Its profit in the year-ago period was Rs 1,011 crore. Higher provisioning for bad loans and a dip in treasury income hit profitability.
The New Delhi-based bank’s total income rose 27.9 per cent to Rs 7,976 crore, backed by a 32.1 per cent increase in interest income. The net interest income surged 46.2 per cent to Rs 8,778 crore.
Net interest margins rose marginally to 4.13 per cent from 4.06 per cent in the second quarter of the financial year. Chairman and Managing Director K R Kamath said the current level of margins was not sustainable.
The bank provided Rs 713.8 crore for various liabilities as against Rs 281.8 crore in the corresponding period last year. Its treasury income fell from Rs 157 crore to Rs 87 crore. Operating profit stood at Rs 2,350 crore, as against Rs 1,818 crore last year, a growth rate of 29.2 per cent. Total business crossed Rs 5,00,000 crore to reach Rs 5,10,125 crore, 26.2 per cent more than the Rs 4,04,373 crore in the December quarter last year.
Deposits at the end of the quarter amounted to Rs 2,88,873 crore, compared with Rs 2,33,946 crore in the same quarter last year, a growth rate of 23.5 per cent. Advances grew 29.8 per cent to Rs 2,21,252 crore, as against Rs 1,70,427 crore at the end of December 2009-10.
BoM profit falls 19%
State-run Bank of Maharashtra on Friday reported a 19.4 per cent dip in net profit to Rs 90.3 crore for the quarter ended December 31. The bank had a net profit of Rs 112.04 crore in the corresponding quarter of the 2009-10 financial year. Total income stood at Rs 1,552.7 crore, up from Rs 1,329 crore in the quarter ended December 31, 2009, it said.
A S Bhattacharya, chairman and managing director, said, “The bank has done well this quarter. The dip in profit is due to substantial provisions for non-performing assets (NPAs) and lower treasury profits. We have already achieved the 70 per cent target for NPAs by the end of this quarter.”
Dhanlaxmi net up six-fold
Private sector Dhanlaxmi Bank is planning to raise Rs 1,000 crore equity in the first quarter of the next financial year, a top official has said. “We are yet to decide the mode of raising the capital. It could be through a follow-on-public offer, a rights issue or a QIP (qualified institutional placement),” said Chief Financial Officer Bipin Kabra.
| HOLDING STEADY PERFORMANCE IN QUARTER ENDED DECEMBER 31 | ||||||
| (In Rs crore) | PNB | Bank of India | Corp Bank | |||
| 10-Dec | % chg* | 10-Dec | % chg* | 10-Dec | % chg* | |
| Interest earned | 7,119.12 | 32.11 | 5,467.52 | 21.87 | 2,471.26 | 32.82 |
| Other income | 857.23 | 1.11 | 648.24 | 13.41 | 264.48 | 5.10 |
| Total income | 7,976.35 | 27.90 | 6,115.76 | 20.92 | 2,735.74 | 29.52 |
| Interest expended | 3,915.83 | 23.28 | 3,480.63 | 16.35 | 1,628.87 | 29.15 |
| NII | 3,203.29 | 44.80 | 1,986.89 | 32.92 | 842.39 | 40.53 |
| Net profit | 1,089.77 | 7.76 | 653.16 | 61.08 | 382.42 | 25.38 |
| (In Rs crore) | BoM | PSB | Dhanlaxmi Bank | |||
| 10-Dec | % chg* | 10-Dec | % chg* | 10-Dec | % chg* | |
| Interest earned | 1,429.29 | 17.40 | 1,260.38 | 28.26 | 249.87 | 78.68 |
| Other income | 123.45 | 9.30 | 92.10 | 21.04 | 33.35 | 100.66 |
| Total income | 1,552.74 | 16.84 | 1,352.48 | 27.74 | 283.22 | 81.02 |
| Interest expended | 907.57 | 6.10 | 874.14 | 33.44 | 176.29 | 75.12 |
| NII | 521.72 | 44.69 | 386.24 | 17.89 | 73.58 | 87.85 |
| Net profit | 90.25 | -19.45 | 135.30 | 8.59 | 7.26 | 450.00 |
| Note: PNB=Punjab National Bank, Corp Bank=Corporation Bank, BoM=Bank of Maharashtra, PSB=Punjab & Sind Bank *Over previous year Source : Capitaline Compiled by BS Research Bureau | ||||||
Earlier in the day, the bank reported a nearly six-fold increase in net profit to 7.3 crore for the third quarter ended December 31, as against Rs 1.3 crore in the corresponding period last year.
