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PUNJAB NATIONAL BANK DECLARES FINANCIAL RESULTS FOR Q1 FY’17

   July 30, 2016

PUNJAB NATIONAL BANK DECLARES FINANCIAL RESULTS FOR Q1 FY’17

 

Punjab National Bank concluded the first quarter of FY’17 with the Global Business at Rs 9.46 lakh crore.  While the Global Deposits of the Bank reached Rs 5.54 lakh crore, the Net Advances stood at Rs 3.92 lakh crore as on 30th June’16. The Bank continued to report the double digit YoY growth of 12.1% in CASA Deposits which stood at Rs 2.04 lakh crore.  This growth was supported by 14.4% YoY growth in Saving Deposits which crossed Rs 1.70 lakh crore as on 30th June’16. The share of CASA deposits in domestic deposits at 41.39% in June’16 consistently remained above 40%. The Bank has reduced its bulk deposits which has brought down the Cost of Deposits from 5.99% in June’15 to 5.46% in June’16. The Bank has reoriented its business model in alignment with the economic scenario towards small ticket advances i.e, Retail, MSME and Agriculture. As a result, the share of small ticket advances to domestic non food credit has improved from 56.1% in June’15 to 58.9% in June’16.

 

  1. In terms of Bottom Line parameters, the Bank has witnessed turnaround to Net Profit of Rs 306 crore in Q1 FY’17. The Bank’s Operating Profit also increased from Rs 3132 crore in Q1 FY’16 to Rs 3275 crore in Q1 FY’17. This was due to robust growth in Non Interest Income (68.5% on YoY basis). The Bank’s Trading Profit increased from Rs 237 crore in Q1FY’16 to Rs 601 crore in Q1FY’17 and Recovery in written off accounts which increased from Rs 217 crore in Q1FY’16 to Rs 727 crore in Q1 FY’17.

 

  1. The Bank continues to lay emphasis on improving the asset quality and the cash recovery and upgradation was over Rs 6000 crore in June’16. Further, the standard restructured assets declined to Rs 18909 crore in June’16 from Rs 39969 crore in June’15. This resulted in improvement in the ratio of standard restructured advances to gross advances from 10.19% in June’15 to 4.59% in June’16. The Provision Coverage Ratio increased from 51.06% in March’16 to 52.50% in June’16.

 

  1. Recently the Bank was allocated Rs 2816 crore of capital by the Government. The capital adequacy ratio at 11.58% as at the end of June’16 stood above the regulatory requirement.

 

Author: sarkarimirror