Punjab National Bank (PNB) Q4 03/04 earnings summary

Executive summary

• Net profit reached Rs 1,108.69 crore in FY2003-04, up 31.6% YoY; operating profit rose 34.7% to Rs 3,120.86 crore.

• Total business reached Rs 1,35,141 crore, up 16.5% YoY; deposits rose 16% and advances 17.4%.

• Net NPAs fell to 0.98% of net advances from 3.86%; all 4,022 branches were computerized and 97% of business was computer-captured.

Financial highlights

• Total income was Rs 9,646.57 crore vs Rs 8,735.32 crore; interest earned was Rs 7,779.70 crore vs Rs 7,485.01 crore.

• Other income rose to Rs 1,866.88 crore from Rs 1,250.31 crore; investment-sale gains were Rs 1,236.37 crore vs Rs 672.28 crore.

• Total expenses were Rs 6,525.72 crore vs Rs 6,418.02 crore; provisions and contingencies rose to Rs 2,012.17 crore from Rs 1,475.09 crore.

• Deposits were Rs 87,916 crore and advances Rs 47,225 crore at March 2004; low-cost current and savings deposits were 45.9% of deposits.

Outlook and guidance

• FY2004-05 real GDP growth was projected at 6.5%, with inflation expected near 5%; non-food credit growth was expected to continue and buoyant capital inflows to support short-term rate stability.

• Growth prospects were linked to continued reforms and industrial and services momentum; higher non-food credit could affect interest-rate direction, while global oil prices and US economic activity remained external uncertainties.