The country’s second largest state-owned lender, Punjab National Bank (PNB), on Thursday reported a 31.1% growth in net profit at Rs 927 crore in the second quarter ending September. The growth in profit is fuelled by higher interest and treasury income.
PNB said the growth in profit was after making provisions for revised wages. Net interest income grew by 22.4%, while net non-performing assets was reduced to 0.14%.
The bank has initiated steps to buy majority stake in a bank in Kazakhstan, PNB’s first overseas acquisition. “The board today approved acquisition of 63.6% stake in Kazakhstan-based Dana Bank,” PNB’s newly appointed CMD K R Kamath told reporters after announcing the second quarter numbers.
The joint venture would have five branches, he said, adding that the bank would now seek necessary regulatory approvals for operationalisation of the JV. The deal size is expected to be $24 million (about Rs 115 crore). PNB is also looking at setting up a subsidiary in Vancouver, Canada and a joint-venture company in Bhutan. Recently, the bank opened branches in Hong Kong and UK.
Mr Kamath also said PNB expects to complete 26% stake sale in its wholly-owned housing finance subsidiary by December this year. Steps are also underway to merge PNB Gilts with the parent bank, he said.
Courtesy:- ET dt:- 30-10-2009
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