Performance of Punjab National Bank 2011 - Launched " PNB VIKAS”

CMD Mr K R Kamath today in Press conference held in New Delhi declared PNB yearly and Q4 results for the year ending 31 March 2011 and highlighted the Banks future strategy for its growth. CMD declared the Net Profit of the Bank for the quarter ended March 2011 (Q4 FY’11) amounted to Rs. 1201 crore as against Rs.1135 crore last year, registering a YOY growth of 5.8%.Net Profit of the Bank for Financial Year ended March 2011 amounted to Rs.4433 crore as compared to Rs.3905 crore last year, recording a y-o-y growth of 13.5 %.
The Operating Profit for Q4 FY’11 stood at Rs.2508 crore in as against Rs.2332 crore in Q4 FY’10, registering a YOY growth of 7.5%.
Operating profit of the Bank during the Financial Year ended March 2011 grew by 23.6% to reach Rs.9056 crore from Rs 7326 crore.
Core Operating Profit (excluding treasury profit) in Q4 FY 2011 grew by 11.8% to reach Rs.2455 crore.
Core Operating Profit (excluding treasury profit) in FY’11 rose by robust 34.2% to Rs.8757 crore.
Total Business of the Bank reached Rs.5,55,005 crore as against Rs. 4,35,931 crore in March 2011, showing a y-o-y growth of 27.3%.
Deposits of the Bank rose to Rs.3,12,899 crore as on 31.03.2011 from Rs 2,49,330 crore as on 31.03.2010, exhibiting a y-o-y growth of 25.5%.
CASA deposits increased to Rs.1,20,325 crore in March’11 from Rs.1,01,850 crore in March’10, recording a growth of 18.1%.
CASA share stood at 39.16% at FY ended March’11.
Saving deposits increased by 19.7% to Rs. 93,487 crore while Current deposits rose by 13.2% to Rs. 26,838 crore.
Advances of the Bank at Rs.2,42,107 crore at the end of March’11 grew by robust 29.7% as against Rs.1,86,601 crore at the end of March’10.
Credit Deposit Ratio increased to 77.38% as at March’11 from 74.84% in March’10.

International operation of Punjab National Bank walks to its footprints via 4 overseas branches and an offshore banking unit in Mumbai, wholly owned subsidiary in UK with 7 branches & a subsidiary each in Kazakhstan & Bhutan, 4 Representative offices and one joint venture with Bank has established Everest Bank Ltd., Nepal.
Bank has acquired a controlling stake of 63.64% in JSC Dana Bank, Kazakhstan.
Bank’s future overseas forays include a wholly owned subsidiary in Canada and opening Rep-office in Sydney, Australia.

Launched “PNB VIKAS”, scheme for integrating development of adopted villages on a sustainable basis. Under this, the Bank has adopted 117 villages (60 in lead districts and 57 in non lead districts) across India.
Punjab National Bank has come out with various market strategy for wider reach and garner greater revenue for this following additional services are in offing-:
• An MoU signed with Indian Army Authorities for opening of salary accounts of Army Personnel under “PNB Rakshak” Scheme.
• Launched customized offers for LIC Agents, Doctors, Tour & Travel operators, etc for meeting their specific requirements.
• Entered into Rupee Drawing Arrangements (RDA) with 29 Exchange Houses in Gulf countries and one in Singapore to facilitate remittances from NRIs
• Tie up arrangements with TATA AIG and Kotak Mahindra Old Mutual Life Insurance Ltd. (KLI) offering life Insurance cover to borrowers to provide value addition to Housing and Education Loan Schemes.
• Branches equipped with Retail Loan Appraisal-cum-Approval Software for speedy processing of loan applications and faster service to retail customers.
• Soft launch of Corporate Credit Card with Corporate Liability in January 2011.
• Introduced a modified “Micro Credit- SHGs- Non Govt Sponsored Scheme” for financing of SHGs promoted by Bihar Rural Livelihoods Promotion Society (JEEVIKA).
• Developed web based software called Fixed Assets Management System (FAMS) to centralize upkeep and maintenance of Bank records of capital expenditure on fixed assets.

PNB Hikes BPLR and Base Rate in context of scenarios and policy measures adopted by Reserve Bank of India, Punjab National Bank has been aligning its interest rates from time to time.The Reserve Bank of India has been hiking policy rates for last couple of quarters continuously to rein in high inflation. In the annual policy statement announced on 03.05.2011, RBI hiked policy rates by 50 bps. Apart from that, RBI also raised the interest rate on savings deposits by 50 bps to 4.00%. In response to changing macro economic.The above measures of RBI are expected to raise the cost of funds of the bank in the current quarter and also in the forthcoming quarter.Hence, in the light of the above backgrounds, for better transmission of policy measures announced by RBI, PNB has decided to hike BPLR and Base rate by 50 bps each to 13.50% and 10.00% respectively.The revised rates would be applicable from 05.05.2011.