PUNJAB NATIONAL BANK = Q3 FY 2011 RESULTS = Q/E DEC,2010 = HIGHLY CONSISTENT AND TOP PERFORMER FROM PSB PACK

PUNJAB NATIONAL BANK

Q3 FY 2011 RESULTS

 (Q/E DEC 2010)

PERFORMANCE HIGH LIGHTS

Note : Most of the data below is for 9 months ended Dec’2010.

·        TOTAL BUSINESS CROSSES Rs 5,00,000 CRORE MILESTONE

·        NET INTEREST INCOME SURGES BY 46.2%

·        NET INTEREST MARGIN IMPROVES TO 3.99%

·        NET PROFIT RECORDS 16.7% GROWTH TO REACH Rs. 3233 CRORE

·        OPERATING PROFIT GROWS BY 31.1% TO TOUCH Rs. 6548 CRORE

§  Total Assets Rs.3.44 Lac cr (24.0%)

§  Deposits Rs.2.89 Lac cr (23.5%)

§  Advances Rs.2.21 Lac cr (29.8%)

§  CASA Deposit Rs.1.13 Lac cr (22.0%)

§  Customer Base More 6 than cr

§  Net Interest Income grew by 46.2% to Rs.8778 cr backed by an impressive 29.8% growth in advances.

§  NIM improved to 3.99% due to 23.4% rise in interest income compared to 9.5% hike in interest expenses.

§  CASA Deposits to Total Deposits of the Bank stood at 39.1%.

§  Earnings per Share increased to Rs.136.70 (annualized).

Performance Highlights for the Q3 FY’11 and 9M FY’11 ended December 2010

    Net Profit of the Bank recorded a YoY growth of 7.8% to reach Rs.1090 cr for the third quarter of 2010-11 (Q3 FY’11) as compared to a profit of Rs.1011 cr in Q3 FY’10.

    Net Profit from core operations (excluding treasury operations and depreciation) witnessed a jump of 18.1% to reach Rs.959 cr in Q3 FY’11 from Rs.812 cr in Q3

    FY’10.

    Net Profit for nine months ended Dec’10 (9M FY’11) amounted to Rs.3233 cr as compared to Rs.2770 cr last year, registering a y-o-y growth of 16.7%.

    Operating Profit for Q3 FY’11 stood at Rs.2350 cr as against Rs.1818 cr in Q3 FY’10, registering a YoY growth of 29.2%.

    Core Operating Profit excluding trading profit rose substantially by 36.2% to Rs. 2262 cr in Q3 FY’11 from Rs.1661 cr in Q3 FY’10.

    Operating profit grew by 31.1% to reach Rs.6548 cr in 9M FY’11 as compared to Rs.4994 cr as at 9M FY’10.

ü Total Business of the Bank crossed Rs.5 lakh cr milestone to reach Rs.5,10,125 cr, recording a YoY growth of 26.2% over Rs.4,04,373 cr in Dec’09.

ü Deposits at the end of Dec’10 amounted to Rs.2,88,873 cr as compared to Rs.2,33,946 cr in Dec’09, exhibiting a growth of 23.5% on YoY basis.

ü CASA deposits increased to Rs.1,12,806 cr in Dec’10 from Rs.92,492 cr in Dec’09, recording a growth of 22%.

ü CASA share is 39.1% at Dec’10 end.

ü Saving deposits increased by 23.7% to Rs.89,860 cr while Current deposits rose by 15.5% to Rs.22,945 cr.

ü Advances of the Bank at Rs.2,21,252 cr at the end of Dec’10 grew by robust 29.8% (YoY) from Rs.1,70,427 cr at the end of Dec’09.

ü Credit Deposit Ratio improved to 76.59% as at Dec’10 from 72.85% in Dec’09.

·        Total income during Q3 FY’11 rose by 27.9% to Rs. 7976 cr due to healthy growth of 32.1% in Interest Income.

·        Total income during 9M FY’11 increased to Rs.22,013 cr, recording a growth of ·        19.1% on account of 23.4% growth in Interest Income.

·        Net interest income during 9M FY’11 improved by 46.2% to Rs.8778 cr (Q3 FY’11: Rs.3203 cr; Growth: 44.8%) as a result of nominal increase in interest expenses of 9.5% in 9M FY’11 (Q3 FY’11: 23.3%).

·        Non-Interest Income in Q3 FY’11 amounted to Rs.857 cr and Rs.2467 cr for 9M FY’11.

Ø Gross NPA ratio stood at 2.03% as at Dec’10 whereas Net NPA ratio was 0.72%.

Ø Provision Coverage Ratio at 77.18% was above stipulated 70%.

Ø Net Interest Margin (NIM) improved to 4.13% for the quarter ended Dec’10 and 3.99% for nine months ended Dec’10.

Ø Return on Assets stood at 1.27% in the Q3 FY’11. (Nine Months ended Dec’10: 1.34%).

Ø Cost of Deposit stood at 5.20% for Q3 FY’11 and 5.09% for 9M FY’11.

Ø Cost to Income ratio stood at 42.13% in Q3 FY’11 and 41.77% in 9M FY’11.

Ø Earnings Per Share (annualized) was Rs.138.25 for the Q3 FY’11 against Rs.128.30 last year (Nine Months ended Dec’10: Rs.136.70 against Rs.117.15 in previous period)

Ø Book Value per Share improved to Rs.617.28 in Dec ’10 as against Rs.492.84 in Dec’09.

Ø CRAR of the bank was comfortable at 11.90% under BASEL-II (Tier-I Capital: 7.58%;

Ø Tier-II Capital:4.32%).

Ø Bank’s branch network stands at 5017 (including 30 extension counters).

Ø 4400 ATMs facilitating around 124 lakh card holders.

Ø More than 12 lac internet banking users with 14 lac customers availing SMS facility.

Ø Around 28% of business is being conducted through Alternate Delivery Channels

RESULTS IN NUMBERS FOR  Q3

Note : All difference percentages are with reference to Qtr ending 31-Dec-2010

PNB	31-Dec-10	30-Sep-10	30-Jun-10	31-Mar-10	31-Dec-09
Interest on Advances	548940	503520	469469	432996	419372
Dif %1	5489 Cr	9.02	16.93	26.78	30.9
Income on Investments	149257	139718	127676	122768	128413
Dif %2	1493 Cr	6.83	16.9	21.58	16.23
Income on Balances With RBI	2552	2045	1600	3075	2309
Others	11163	261	441	1924	460
Interest Earned	711912	645544	599186	560763	550554
Other Income	85723	71825	87152	85315	73101
Total Income	797635	717369	686338	646078	623655
DIF %3	7976 cr	11.19	16.22	23.46	27.9
Interest Expended	391583	347874	337329	310968	317644
NII	320329	297670	261857	249795	232910
DIF %4	3203 Cr	7.61	22.33	28.24	37.53
Employees Cost	122354	111309	99522	65317	83273
Other Operating Expenses	48707	48177	39670	44692	40920
Operating Expenses	171061	159486	139192	110009	124193
Operating Profit	234991	210009	209817	225101	181818
DIF %5	2350 Cr	11.9	12	4.39	29.25
Provisions	71389	51603	53413	62186	28188
Net Profit	108977	107454	106829	113503	101131
DIF %6	1090 Cr	1.42	2.01	-3.99	7.76
Face Value (in Rs.)	10	10	10	10	10
Paid-up Equity	31530	31530	31530	31530	31530
Dividend (%)	-	-	-	120	100
Capital Adequacy Ratio	11.23	11.65	12.36	12.97	13.97
Basic EPS	34.56	34.08	33.88	36	32.07
% of Gross/Net NPA	0.72	0.69	0.66	0.53	0.48
Return on Assets	1.27	1.36	1.38	1.58	1.51
Public holding (%)	42.2	42.2	42.2	42.2	42.2

Among PSU Banks, PNB is marching ahead at a good pace. Its EPS is very high and is registering further improvement QOQ.

Its annualized EPS of Rs.138.25, on the current Market Price of Rs.1116 yields a PE Ratio of 8.09 – which is very LOW and looks very Cheap for the sustained performance of PNB.

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