Punjab National Bank registered posted over two-fold jump in net profit to Rs 544 crore for the fourth quarter ended March 31 on the back of better recovery and improved margin. The bank had a net profit of Rs 238 crore in the fourth quarter of 2006-07.
The total income of the bank rose to Rs 4,417 crore for the fiscal ended March 31, up by 19 per cent, from Rs 3,713 crore in the year-ago period.
Besides, improvement in net interest margin, the sharp rise in the profit is also due to the fact bank has changed the accounting policy and have written back provisions in excess of Rs 500 crore on account of pension liability, which was provided in the first three quarters.
However, to replenish the pension liability, the bank has made provisions from reserve under the new accounting policy. And in turn also revalued some of the fixed assets such as building of the bank.
KC Chakrabarty, chairman and managing director of the bank said that the impressive performance was brought about by the bank's focus on streamlining administration, various cost control measures, better asset liability management and strengthening recovery mechanism.
The bank proposed a dividend of 130 per cent, at the rate of Rs 13 per share, on every Rs 10 share held, for the year ended March 31, 2008.
For the entire fiscal ended March 31, 2008, the bank posted a net profit of Rs 2,049 crore, a growth of 33 per cent against Rs 1,540 crore in the previous year. The total income rose by 25 per cent to Rs 16,263 crore for 2007-08, from Rs 12,967 crore a year ago. The total business of the bank witnessed an increase of 21 per cent at Rs 2,85,959 crore at the end of March 31, 2008.