Q4 net declines 20 per cent
19 June 2006
in the case of other banks, fourth quarter numbers of
Punjab National Bank also points towards rising interest
costs and a decline in net interest margin. Though PNB
has managed its operational costs very well, a sharp jump
in provisions impacted the bottom line.
the fourth quarter ended 31 March 2006, net profits
declined 19.95 per cent to Rs288.67 crore from Rs360.63
crore. Total income increased to Rs2,890.41 crore from
Rs2,562 crore for the previous year quarter.
income increased 13.01 per cent to Rs2,468.91 crore
from Rs2,184.65 crore for the previous year quarter.
Interest expenses increased by 15.83 per cent to Rs1,288.72
crore from Rs1,112.57 crore. Income from treasury operations
and other income rose 11.7 per cent as compared to the
previous year quarter.
expenses declined by 34.59 per cent over the previous
year quarter while staff costs declined substantially
by 43.35 per cent. Other operating expenses were lower
by 16.39 per cent. But most of these cost savings were
negated by a sharp rise in provisions to Rs611.14 crore
from Rs52.7 crore.
the full year 2005-06, net profits increase marginally
by 2.07 per cent to Rs1,439.31 crore from Rs1,410.12
crore. Total income increased 6.74 per cent to Rs10,815.31
crore from Rs10,135.53 crore for the previous year.
interest income for the year increased 13.29 per cent
to Rs9,584.15 crore from Rs8,459.85 crore. Interest
expenses increased at a lower 10.43 per cent to Rs4,917.39
crore from Rs4,453.11 crore for the previous year.
from treasury operations and other income declined 26.53
per cent to Rs1,231.16 crore from Rs1,675.68 crore.
expenses for the full year increased marginally by 1.61
per cent. Staff costs for the full year declined marginally
while other expenses went up by 6.35 per cent. Provisions
were higher by 4.67 per cent for the year.
net profits for the year 2005-06 increased 9.53 per
cent to Rs1,532.71 crore from Rs1,399.36 crore for the
previous year. Consolidated income increased 7.78 per
cent to Rs11,002.96 crore from Rs10,208.73 crore.
reports on Punjab National Bank