1 min read.Updated: 29 Jul 2009, 09:24 PM ISTTeena Jain
Treasury gains boost profits at Corporation Bank, PNB, IOB
Three state-owned banks announced on Wednesday an average 41% jump in net profit for the first quarter of this fiscal, led by Punjab National Bank (PNB), as they benefited from higher treasury gains. The other two banks were Corporation Bank and Indian Overseas Bank (IOB).
PNB’s net profit rose 62.38% in the three months ended June from a year earlier to Rs832.05 crore as it focused on better management of assets and liabilities. Revenue rose 34.5% to Rs6,177.59 crore from Rs4,594.62 crore a year ago. Operating profit leapt 60% to Rs1,569.34 crore. The bank set aside Rs150 crore towards wage revision. It reported a treasury income of Rs358 crore, up sharply from Rs13 crore a year earlier, through trading in bonds.
PNB executive director M.V. Tanksale said the bank expected to post a profit of Rs3,700 crore in 2009-10.
The lender’s deposits and advances increased to Rs2.18 trillion and Rs1.57 trillion, registering a growth of 26.51% and 38.06%, respectively.
“We are looking at a growth of 24-25% in deposits and 22% in advances. The company restructured loans of around Rs5,000 crore in this quarter," said Tanksale.
Corporation Bank posted 41.75% growth in net profit to Rs261.24 crore in the quarter ended June. Revenue increased 45% to Rs2,101.52 crore in the period from Rs1,446.28 crore in the corresponding period last year.
IOB reported an 18% jump in its net profit to Rs301.77 crore in the three months ended June. The lender’s revenue increased 28.4% to Rs2,808.51 crore from Rs2,186.83 crore a year earlier.
The bank’s total business grew to Rs1.77 trillion in the quarter from Rs1.48 trillion in the same quarter last fiscal. During the quarter, total deposits stood at Rs1 trillion, registering an increase of 18.59% on a year-on-year basis.
PNB shares rose 3.45% to end at Rs747.55 each, while Corporation Bank fell 0.81% to close at Rs342.15 and IOB declined 1.84% to end at Rs87.85 on a day when BSE’s benchmark Sensex fell 1% to close at 15,173.46 points.
PTI contributed to this story.
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