Punjab National Bank closed the third quarter of FY’16 with Global Business touching Rs9.41 lakh crore; thereby registering double digit YoY growth of 11.20 per cent. While Global Deposits grew by 13.30 per cent to reach Rs5.48 lakh crore, Net Advances of the bank inched up by 8.4 per cent to reach a level of Rs3.92 lakh crore. On the liability side, the share of CASA deposits of the bank to domestic deposits increased to 40.38 per cent as on December 31, 2015 as compared to 39.44 per cent 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 focussing on small ticket advances — 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 per cent in December 2014 to 60.29 per cent in December 2015. Retail loan portfolio of the bank has shown a YoY growth of 17.6 per cent as on December 31, 2015. In terms of bottom-line parameters, the Operating Profit of the Bank stood at Rs8,988 crore in 9M FY 2016 and Rs2,918 crore in Q3 FY 2016. The Bank recorded Net Profit of Rs1,393 crore in 9M FY 2016 and Rs51 crore in Q3 FY 2016. The bank’s domestic net interest margin stood above three per cent at 3.13 per cent during Q3 FY 2016.
The bank has shown reduction in the share of restructured standard advances to gross advances from 9.76 per cent as on March 31, 2015 to 8.64 per cent as on December 31, 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 per cent and Tier I capital at 8.52 per cent as per Basel III.