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PNB Q1 net gains on higher advances

PNB Q1 net gains on higher advances
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First Published: Thu, Jul 22 2010. 03 21 PM IST
Updated: Thu, Jul 22 2010. 03 21 PM IST
New Delhi: State-run Punjab National Bank Ltd (PNB) said on Thursday its April-June quarter profit rose 28.4%, helped by higher advances and as lower expenses.
Deposits grew by 16.6% in the first quarter and advances grew by 24.6%. Low-cost CASA deposits grew 24.3% on year to 40.9% of total deposits.
A low increase in interest and operating expenses and a satisfactory interest income growth led to reduction in cost-to-income ratio to 39.88% for the quarter from 44.59% in the same period last year.
Banks are benefiting from improving business and consumer confidence in an economy set to grow about 8.5% in the year that began in April.
Punjab National Bank, India’s second-largest public sector lender, reported a net interest margin - a key measure of efficiency - of 3.94% for the April-June quarter, higher than 3.24% in the year-ago period.
“The major achievement of P&L account is our ability to maintain net interest margin at 3.94% despite the pressure on both sides on cost and yield,” chairman KR Kamath told reporters.
“The growth came from the effective management of net interest margins,” he said.
PNB’s net NPA to net advance ratio stood at 0.66% at end-June from 0.19% a year ago.
Shares in PNB, which the market values at about $7 billion, were down 0.47% at Rs1,056.5 on the Bombay Stock Exchange.
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First Published: Thu, Jul 22 2010. 03 21 PM IST