PNB’s profit grows by 12.1 per cent, to decide on interest rates as per market trend

New Delhi: Country’s leading public sector bank, PNB today announced its results for the quarter ending on September’ 11 and said that they are waiting for market reactions to decide on increasing savings interest rates.

The bank registered a growth of 12.1 per cent in the net profit reaching to Rs 1205 crore as compared to a profit of Rs 1075 crore in second quarter of FY’11.
A growth of 22.5 per cent in total business of bank and 25 per cent in deposits was recorded in second quarter for the present financial year compared to the second quarter of previous year.
The total income of the bank rose by 37.2 per cent to Rs 9841 crore due to healthy growth of 38.7 per cent in interest income which reached Rs.8952 crore in the second quarter.
In the loans segment, the retail loans by 20.2 per cent on YoY basis and crossed Rs 24,000 crore at end September’11. On the other hand credit to MSME sector grew by 22.7 per cent to more than Rs 49,000 crore as at end September’11.
Talking about increase in deposit rates PNB Chairman and Managing Director KR Kamath told the reporters that "We are waiting for larger market players to react. Once more number of banks announce (new rate), our ALCO (asset liability committee) will take a call."
PNB currently offers an interest rate of 4 per cent on savings bank account, as was mandated by RBI.
But RBI last week had freed the banks to decide interest rate on their savings bank account.
Following this few private sector players raised their interest rates up to 6 per cent on their deposits of over Rs 1 lakh.
Talking about overseas plans of PNB, the bank said that it is upgrading its offices at Norway and China into branches, and is also exploring possibilities in Maldives, Bangladesh, Brazil and Singapore.
At present PNB's branch network stands at 5,300 with more than 5,600 ATMs.