Public sector PNB posts Q3 business growth of 11.2%
Punjab National Bank closed the third quarter of FY’16 with global business touching Rs 9.41 lakh crore, thereby registering double digit YoY growth of 11.20%. While global deposits grew by 13.30% to reach Rs 5.48 lakh crore, Net advances of the Bank inched up by 8.4% to reach a level of Rs 3.92 lakh crore.
On the liability side, the share of CASA deposits of the Bank to domestic deposits increased to 40.38% as on 31st December 2015 compared to 39.44% in the corresponding period last year. This shows that CASA share of the Bank is one of the highest amongst nationalised banks.
On the asset side, the Bank is focusing on small ticket advances ie, retail, MSME and agriculture credit. As a result of this, the share of small ticket advances in Domestic Non Food Credit increased from 57.07% in December 2014 to 60.29% in December 2015.
Retail loan portfolio of the Bank has shown a YoY growth of 17.6% as on 31st December 2015. Within retail loan, housing loan portfolio has shown a robust growth of 26.8% on YoY basis. The Bank also recorded 13.3% growth in MSME advances and 13.2% in agriculture and allied credit.
In terms of bottom-line parameters, the Operating Profit of the Bank stood at Rs 8988 crore in 9M FY16 and Rs 2918 crore in Q3 FY16. The Bank recorded Net Profit of Rs 1393 crore in 9M FY16 and Rs 51 crore in Q3 FY16. The Bank’s Domestic Net Interest Margin stood above 3% at 3.13% during Q3 FY16.
The Bank has shown reduction in the share of Restructured Standard Advances to Gross Advances i.e., from 9.76% as on 31st March 2015 to 8.64% as on 31st December 2015. The Bank is taking various measures to improve the asset quality besides meticulously following the RBI’s guidelines on asset qualification. The Bank is well capitalised with the capital to Risk Weighted Assets Ratio (CRAR) at 11.25% and Tier I capital at 8.52% as per Basel III as on 31st December 2015.
During Q3 FY16, the Bank launched slew of digital banking solutions aimed at improving customer experience. These includes 'PNB ATM Assist', ‘PNB MOBIEASE’, ‘PNB sleep easy’, Green PIN, etc. The Bank also remains committed towards nation building and remained front runner in all the social development schemes of the government.