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.
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