New Delhi, July 15: Punjab National Bank (PNB) has announced a net profit of Rs 238 crore for the year ended 1996-97 -- its highest ever net profit, according to a release put out by the bank. PNB had declared a net loss of Rs 95.62 crore in fiscal 1995-96.

The bank's operating profit for 1996-97 stood at Rs 620 crore, against Rs 384 crore in the previous year, a growth of 61 per cent.

Ratio of net non-performing assets to net advances declined to 10.38 per cent from 12.7 per cent in 1995-96.Priority sector credit of the bank amounted to Rs 5,428 crore or 38.8 per cent of net bank credit at the end of March 1997 compared to 38.1 per cent at the end of March 1996.

Total income touched Rs 4,123 crore, up from Rs 3,483 crore in the previous year. Interest income reached Rs 3,654 crore during the year, moving up from Rs 3,118 crore at the end of March '96.Average return on advances improved to 14.5 per cent from 12.5 per cent in 1996-97. The bank has improved its average yield on investments to 11.76 in 1996-97 from 11.63 per cent.

The bank's non-interest income during 1996-97 rose to Rs 469 crore from Rs 365 crore representing a growth of 28.4 per cent.The bank has also marked to market 70 per cent of its government approved securities investment portfolio as against the RBI requirement of 50 per cent.

Last year the bank had marked 50 per cent of such securities to market against the RBI requirement of 40 per cent. Interest-cost on deposits amounted to Rs 2,343 crore in 1996-97 compared to Rs 1920 crore in 1995-96. Average cost of deposits rose from 7.78 per cent 8.25 per cent in 1996-97. The bank has been able to contain its increase in establishment expenses to seven per cent.

Total deposits of the bank increased from Rs 27,123 crore in 1995-96 to Rs 30,806 crore in 1996-97 registering a growth of Rs 3683 crore which works out to 13.6 per cent.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.