The managing director and chief executive officer of the Punjab National Bank, Sunil Mehta declared the quarterly results of the bank along with the bank’s executive directors KV Brahmaji Rao and Ram S Sangapure. The bank’s global business stood at Rs 1025366 crore in June 2017 registering Year over Year (YoY) growth of 8.4 per cent. CASA deposit increased by Rs 48041 crore to Rs 251551 crore in June 2017 from Rs 203510 crore in June 2016, registering YoY growth of 23.6 per cent. The share of CASA deposits in domestic deposits increased to 43.96 per cent in June 2017 from 41.39 per cent in June 2016.
Further, the bank’s credit segment of upto Rs. five Crore has grown by 15 per cent YoY. Retail loans comprising housing, car, education etc, have grown by 16 per cent YoY supported by housing and car loan which have grown by 17 per cent YoY. The bank has also achieved the National Goals under Priority Sector Advances. Operating Profit of the Bank increased to Rs 3217 crore in June 2017 from Rs 2820 crore in June 2016 registering YoY growth of 14.1 per cent. Net Profit of the Bank increased to Rs 343 crore in June 2017 from Rs 306 crore in June 2016 with YoY growth of 12.1 per cent. The bank also witnessed decline in Cost to Deposits to 5.10 per cent in Q1 FY’18 from 5.46 per cent in Q1 FY’17. In terms of Profitability Ratio, Return on Equity (ROE) has improved to 3.54 per cent in Q1 FY’18 from 3.43 per cent in Q1 FY’17.
The Net NPA of the bank reduced to Rs 34573 Crore (8.67 per cent) in June’17 from Rs 35729 Crore (9.16 per cent) in June’16. Gross NPA of the Bank is at Rs 57721 Crore (13.66 per cent) in June’17. The Provision Coverage Ratio (PCR) of the Bank has improved to 58 per cent in Q1 FY’18 from 52 per cent in Q1 FY’17.
The bank has launched a comprehensive transformational and business excellence programme “Mission PARIVARTAN” which has been put in action to orient the bank towards adding more efficiency, profitability and productivity. The acronym PARIVARTAN encompasses: Profit, Asset Quality, Recovery, Increase Credit, Vigilant, Alternate Delivery Channels, Retail Business, Turn Around Time, Ambience and New Relationships.
The bank has also launched a number of new age digital initiatives to provide greater ease and improved delivery of products and services to customers including BHIM PNB, E-Wallet PNB Kitty, TAB Banking, PNB Genie App- Single Point Destination for Credit Card Holders, PNB National Electronic Toll Collection and others.