Punjab National Q1 profits up by 28.4%
Punjab National Bank (PNB), India’s third
largest bank by assets, has reported first quarter net profits of
INR10.68bn ($226.6m), up 28.4% from the corresponding period last
year, boosted by a 45.4% increase in net interest income.
But profits at PNB’s retail division fell by
7.7% to INR6.47bn.
First quarter group highlights at the
5,002-branch-strong PNB included:
- A 70 basis point year-on-year improvement in net interest
margin to 3.94%;
- Deposits increased year-on-year by 16.6%, while lending grew by
24.6%;
- Deposit and lending market shares both increased year-on-year,
by 11 basis points and 8 basis points respectively, to 5.28% and
5.51%;
- Low costs CASA deposits as a percentage of total bank deposits
increased by 260 basis points to 40.9%, and
- Total assets increased by 20.4%.
Retail lending hits included a 39%
year-on-year increase in personal loans while mortgage loans were
up by 16%. Product successes included the opening of 5.7 million
‘No Frill/PNB Mitra’ accounts while 46,000 new credit card
customers signed up in the quarter.
A platinum credit card range will be launched
later in 2010.
PNB flagged up a number of distribution
successes in the past year: more than 1m of its customers are now
regular users of its internet channel while 230,000 customers are
using its mobile banking service.