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Kamal Narang

Dr. K. C. Chakrabarty (left), CMD, Punjab National Bank, and Mr K. Raghuraman, ED, at a press conference in the Capital on Wednesday. -

Our Bureau

New Delhi, July 30 Punjab National Bank has reported a 20.6 per cent increase in net profit in the first quarter of the current fiscal to Rs 512.40 crore (Rs 425.07 crore). Total income of the bank for the period under review increased to Rs 4,594.62 crore (Rs 3,795.12 crore).

For the quarter under review, profit on sale of investments was Rs 12 crore (Rs 120 crore). The bank had also provided for marked-to-market loss of about Rs 150 crore in the first quarter of the current fiscal.

The bank Chiarman and Manging Director, Dr K. C. Chakrabarty also announced a hike in benchmark prime lending rate.

Dr Chakrabarty said the bank was responding to the signal given by the monetary authorities.

“The RBI Governor is giving a signal that inflation control is top priority and we (banks) need to make credit costlier and dearer. Containing credit growth will reduce inflation. As a responsible market player, we have to work as per the signals. The signals are visible. I am sure there is no other alternative for other banks also, they will have to raise PLR,” Dr Chakrabarty said.

On the impact of the PLR hike, Dr Chakrabarty said that he does not see any slowdown in small loans on account of the interest rate hike. He made it clear that the PLR hike would in no way affect the credit flow to agriculture and SME sectors

The bank is targeting a deposit growth rate of 18 per cent, credit growth of 19-20 per cent and net profit growth of 20-22 per cent in fiscal 2008-09.

PNB’s shares closed at Rs 464.95 at the National Stock Exchange (NSE) on Wednesday, up 2.85 per cent over the previous day’s close of Rs 452.06.

More Stories on : Financial Performance | Public Sector Banks | Punjab National Bank

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