6th November, 2015
PNB PROFITABILITY SURGES AHEAD – USHA ANANTHSUBRAMANIAN MD & CEO DECLARES BANK HALF YEARLY RESULTS
Smt. Usha Ananthasubramanian, Managing Director and CEO Punjab National Bank today declared half yearly results of the Bank alongwith Shri Gauri Shankar, K.V. Brahmaji Rao, Dr. Ram S. Sangapure – Executive Directors at a Press Conference in New Delhi today.
2. The Bank has closed the first half of financial year 2015-16 by registering a double digit YoY growth of 14.0% in Global Deposits and 10.9% in Global Business. Within the deposits side, the share of CASA Deposits in Domestic Deposits improved from 38.94% in June’15 to 40.23% as on 30th Sept’15. The CASA Deposits increased from Rs 1.72 lakh crore in Sept’14 to Rs 1.95 lakh crore in Sept’15. The Bank is endeavouring to mobilize low cost deposits on continuous basis. As a result, the Bank’s Cost of Deposits reduced on sequential basis from 5.99% in Q1 FY16 to 5.95% in Q2 FY16. Further, the Cost of Funds fell below 5% to 4.99% in Q2 FY16.
3. In terms of Bottom-line parameters, the Bank reported 7.9% growth in Net Profit during Q2 FY16. Further, the Operating Profit reached Rs 2939 crore in Q2 FY16. The Bank’s domestic Net Interest Margin increased from 3.29% in Q1 FY16 to 3.37% in Q2 FY16 which is one of the highest amongst nationalized banks.
4. The second quarter of FY 16 continued to show improvement on Asset Quality front. The Bank’s Gross NPA as well as Net NPA ratio reduced from 6.47% and 4.05% in Q1 FY16 to 6.36% and 3.99% in Q2 FY16, respectively. The Provision Coverage Ratio of the Bank too increased sequentially from 59.32% to 61.35% in Q2 FY16.
5. The Bank is focused on customer centricity to maintain its competitive position. The Bank is planning to increase its business through two key strategic approaches – driving seamless digital channel adoption, and acquiring new customers through innovations in its product and service capabilities. Hence, the Bank is continuously treading the path of digitalization to keep pace with the customers’ growing expectations.