Gupta: Looking ahead

New Delhi, Oct. 29: Punjab National Bank (PNB) is looking at the acquisition route to expand.

“We are ready for consolidation. We are looking at inorganic growth, which may come through acquisition of non-banking financial companies (NBFCs), private sector banks or even public sector banks. We are looking for the right opportunity and time,” PNB chairman S.C. Gupta told newspersons after announcing the bank’s quarterly results here today.

According to Gupta, consolidation in the banking industry was inevitable.

“Things (on consolidation) should start moving sooner if not by March 2006,” he said.

Gupta said the bank would set up a full-fledged subsidiary in London and had sought the approval of the Reserve Bank of India to set up overseas branches in Singapore, Hong Kong and Canada.

PNB has recorded a meagre 2.1 per cent growth in net profit for the quarter ended September 30, 2005. Net profit for the second quarter (July to September 2005) stood at Rs 422.04 crore against Rs 412.55 crore achieved during the corresponding period of the previous year.

On a half-yearly basis, the bank’s net profit registered a growth of 6.1 per cent. Net profit amounted to Rs 780.20 crore at the end of September 30, 2005 compared with Rs 735.22 crore in the corresponding period last year.

Gupta attributed the low growth in net profits to payment of wage settlement arrears (Rs 187 crore), fringe benefit tax (Rs 57 crore) and higher depreciation booking (Rs 185 crore) due to low treasury income.

Total business of the bank stood at Rs 1,73,282 crore at the end of September 2005 compared with Rs 1,46,459 crore last year, registering a year-on-year growth of 18.3 per cent.

The bank announced an interim dividend of 30 per cent.

Kotak earnings

Kotak Mahindra Bank Ltd has reported a 50.94 per cent rise in net profit at Rs 31.17 crore for the second quarter ended September 30 compared with Rs 20.65 crore in the corresponding previous quarter.

Total income was up 91.49 per cent at Rs 235.85 crore during the quarter from Rs 123.16 crore last year.

The group’s earnings stood at Rs 83.36 crore against Rs 32.50 crore last fiscal. Total income increased to Rs 619.89 crore from Rs 317.74 crore a year ago.

Kotak Mahindra is planning to raise Rs 15 crore by way of international or domestic public offerings of its equity shares.

The shareholders have approved the issue of 1.5 crore equity shares of Rs 10 face value each, the company told the Bombay Stock Exchange.

Bank of India

Bank of India has registered a 166.81 per cent jump in net profit at Rs 132.18 crore for the quarter ended September 30 against Rs 49.54 crore in the year ago period. Total income rose 10.25 per cent at Rs 1,964.51 crore compared with Rs 1,781.74 crore last year.

ING Vysya in black

ING Vysya Bank Ltd has posted a net profit of Rs 19.70 crore in the JulySeptember quarter compared with a net loss of Rs 29.20 crore in the corresponding previous quarter.

Total income grew 95.76 per cent at Rs 372.02 crore for the quarter ended September 30 against Rs 190.03 crore a year ago.