Friday, July 27, 2012

PUNJAB NATIONAL BANK - FIRST QUARTER RESULTS -Q1 FY 2012-13 - Total Income Up 25%YoY; NPT UP 12.7% YoY; RISING NPAS A MATTER OF CONCERN


PUNJAB NATIONAL BANK

FIRST QUARTER RESULTS
Q1 FY 2012-13

PUNJAB NATIONAL BANK  has released its RESULTS  for the first quarter ending June, 2012.

PNB has been one of the TOP PERFORMING BANKS from the PSU Banks sector.

Interest on Advances  for the first quarter stands at Rs.8196.51 Cr;  up by 9.36% from the previous quarter (Q4 FY 12) of Rs.7494.67 Cr; and up by 24.65% from the corresponding Qtr (Q1 FY 12) of Rs.6575.85 Cr.

Income on Investments for the first quarter stands at  Rs.2283.06 Cr ; up by 7.34% from the previous quarter,  of Rs.2127.03 Cr; and up by 35.43% from the corresponding Qtr, of Rs.1685.81 Cr.

Income on Balances With RBI for the first quarter stands at Rs.54.38 Cr ; up by 9.44% from the previous quarter, of Rs.49.69 Cr; and up by       61.46 % from the corresponding Qtr, of Rs.33.68 Cr.

Interest Earned    for the first quarter stands at Rs.10544.97 Cr ; up by 8.94% from the previous quarter, of Rs.9679.75 Cr; and up by 26.81% from the corresponding Qtr, of Rs.8315.24 Cr. The RISE IN INTEREST INCOME from all streams is thus quite Good.

Other Income for the first quarter stands at Rs.1166Cr; down by  -8.62% from the previous quarter, of Rs.1275.98 Cr; and up by 7.6% from the corresponding Qtr, of Rs.1083.67 Cr. 

Total Income for the first quarter stands at Rs.11710.97 Cr; up by 6.89% from the previous quarter, of Rs.10955.73 Cr; and up by 24.6% from the corresponding Qtr, of Rs.9398.91 Cr. Rise in TOTAL INCOME is in accordance with normal trend.

Interest Expended for the first quarter stands at Rs.6849.83 Cr; up by 7.54% from the previous quarter, of Rs.6369.80 Cr; and up by 31.73% from the corresponding Qtr, of Rs.5199.96 Cr. Interest expended has risen more proportionately compared with Income earned and total income YoY.

Employees Cost    for the first quarter stands at Rs.1419.73 Cr;  up by 41.01% from the previous quarter, of Rs.1006.80 Cr; and up by 17.08% from the corresponding Qtr, of Rs.1212.64 Cr.

Other Operating Expenses for the first quarter stands at Rs.600.52 Cr ; down by -6.6% from the previous quarter, of Rs.642.97 Cr; and up by 17.2% from the corresponding Qtr, of Rs.512.38 Cr.

Operating Expenses    for the first quarter stands at Rs.2020.25 Cr;  up by 22.46% from the previous quarter, of Rs.1649.77 Cr; and up by     17.11% from the corresponding Qtr, of Rs.1725.02 Cr.

Total Expdr(excl.provisions)     for the first quarter stands at Rs.8870.08 Cr ;  up by     10.61% from the previous quarter,of Rs.8019.57 Cr; and up by 28.09% from the corresponding Qtr, of Rs.6924.98 Cr. Growth of total expenditure is proportionately Higher compared to rise in total income.

Operating Profit   for the first quarter stands at Rs.2840.89 Cr; down by -3.24% from the previous quarter, of Rs.2936.16 Cr; and up by 14.83% from the corresponding Qtr, of Rs.2473.93 Cr. So, OPT is slightly down compared to previous quarter and up 15% compared to corresponding Qtr.

Provisions for the first quarter stands at Rs.1032.49 Cr; up by 0.5% from the previous quarter, of Rs.1027.31Cr; up by 15.55% from the corresponding Qtr, of Rs.893.52 Cr. Provisions on YoY Basis have risen significantly.

Profit  before tax for the first quarter stands at Rs.1808.40 Cr; down by -5.26% from the previous quarter, of Rs.1908.85 Cr; and up by 14.43% from the corresponding Qtr, of Rs.158041 Cr. PBT is also down QoQ but up YoY.

Tax Expense for the first quarter stands at Rs.562.73 Cr ; up by 16.08% from the previous quarter, of Rs.484.79 Cr; and up by 18.38% from the corresponding Qtr, of Rs.475.34 Cr.

Net Profit  for the first quarter stands at Rs.1245.67 Cr; down by   -12.53      % from the previous quarter, of Rs.1424.06 Cr; and up by 12.72% from the corresponding Qtr (Q1 FY 12) of Rs.1105.07 Cr. NPT is down 12.5% QoQ but up 12.7% YoY.

Capital Adequacy Ratio for the first quarter stands at 11.45% compared to 11.59% in previous Qtr and 11.45% in corresponding Qtr. The ratio stands at same level YoY.

Basic EPS for the first quarter stands at Rs.36.73; compared to Rs.44.78 in previous qtr and Rs.34.88 in corresponding Qtr. EPS has risen slightly YoY, though it has fallen QoQ.

Gross/Net NPA for the first quarter stands at Rs.4917.03 Cr; up by 10.39% from the previous quarter, of Rs.4454.23 Cr; and up by 135.18% from the corresponding Qtr, of Rs.2090.76 Cr.

 % of Gross/Net NPA stands at 1.68% compared to 1.52% in previous Qtr and 0.86% in corresponding Qtr. The NPA Ratio has risen significantly YoY.

Return on Assets for the first quarter stands at 1.08% ; compared to 1.28% in previous qtr and 1.16% in corresponding qtr. ROA has  fallen marginally.

Face Value of the share is Rs.10 and Paid-up Equity stands at Rs.339.18 Cr. Public Shareholding in PNB is 43.9%.  

WHAT THE BANK SAYS

PERFORMANCE HIGHLIGHTS FOR Q1 FY 13

Ø  TOTAL ASSETS CROSS Rs. 4.59 LAC CR.

Ø  Total Business reached Rs. 679823 Cr as against Rs 5,67,005 Cr in June 2011, showing a y-o-y growth of 19.9%.

Deposits rose to Rs. 385355 Cr as on 30.06.2012 from Rs 3,24,097 Cr as on 30.06.2011, exhibiting a y-o-y growth of 18.9%.

CASA deposits increased to Rs. 133149 Cr in June’12 from Rs. 1,21,260 Cr in June’11, recording a growth of 9.8%. CASA share worked out to 35.6% due to continued higher growth of Retail Term deposits on account of prevailing higher differential in Savings and Term deposit interest rates.

Saving deposits increased by 13.2% to Rs. 107425 Cr.

Advances at Rs. 294468 Cr at the end of June’12 grew by 21.2% as against Rs.2,42,908 Cr at the end of June’11.

Credit Deposit Ratio works out to 76.4% as at June’12.

Market Share: Market share in both deposits and Advances improved from 5.55% and 5.44% respectively in June’11 to 5.65% (Deposits) and 5.60% (Advances) in June 2012.

Current phase of difficult economic conditions has been resulting in increased delinquencies. Strong performance on NPA reduction during the quarter got outpaced by fresh slippages. Thus Gross NPA ratio stood at 3.34% as at June’12 whereas Net NPA ratio was 1.68%.

Net Interest Margin (NIM) remains good at 3.60% for Q1 FY’13.

Cost of Deposit stood at 6.98% for Q1 FY’13.

Cost to Income ratio stood at 41.56% in Q1 FY’13.

Return on Equity stood at 18.04% in Q1 FY’13.

Earnings Per Share (annualized) increased to Rs. 146.90 for the Q1 FY’13 from Rs. 139.52 last year.  

Book Value per Share improved to Rs. 814.14 in June’12 as against Rs. 667.36 in June’11.

CRAR of the bank was comfortable at 12.57% under BASEL-II (Tier-I Capital: 9.33%; Tier-II Capital: 3.24%).

Bank’s wide network of branches has almost reached 5700 branches during the quarter.

RETAIL CREDIT :- Focus on Retail lending continued during the quarter and Retail loans outstanding grew by 21.44 % on YoY basis to Rs. 29,280 Cr at end of June’12 as against Rs. 24,111 Cr in corresponding period last year.
Good y-o-y growth in Car/Vehicle loan (43.22%), Reverse Mortgage scheme (29.66%), Pensioners loan portfolio (22.47%), Housing loan (18.82%) and Education loan (15.49%).
Gold loan portfolio rose by robust 79.56% to Rs. 860.6 Cr.

COMMENTS :-

While the Bank has scored reasonably well in all other parameters, the Growing NPAs is a matter of Serious CONCERN, for PNB and many other PSU Banks, at present. This is not a matter that affects PSU Banks alone. It is evidently a spill-over from other Industries, which are Potentially, turning unhealthy. Those Industries need serious review and assistance by the authorities / regulatory bodies concerned – as individual companies become helpless by phenomena which affect total Industry. 

Re-structuring of Loans by the lending Banks is a temporary palliative. Review of (i) Demand-supply factors (ii) taxation structure and (iii) possible competition from outside the country – are all factors to be looked at – to ensure the health of these Industries. Some duty adjustments, as done in the case of Electrical Machinery import recently may be necessary in some Industries. Either enhanced export incentives or import duties may be needed. A stitch in time saves NINE.

Else, the growth of NPAs has potential to continue –if the basic issues of the concerned Industries are not identified and addressed urgently.

 *  *  *  E  N  D  *  *  *

No comments:

Post a Comment