Good news for investors, the govt. has stepped forward to make India’s second largest public sector bank on basis of yearly profits as State-owned Bank of Baroda (BoB) has planned to overtake PNB.
However from last few months, investment market situation worsen a lot, reducing sharply slope of economy due to inflation and rupee weaken, but with all these issues, performance of banks is not downed.
According to source, BoB and PNB’s gross NPA has risen, BoB , Mumbai-based lending institution hit more than Rs 5,000 crore net profit in period of 2011-12, 18 % hike as compare to the previous year.
In field of taxable income, the bank also scored high with profit of Rs 322 crore in the fourth quarter and 7% in net interest income.
Beside this, the appreciation is also seen in financial net position of Punjab National Bank as its net profit rose by 10.2%, Rs 4,884 crore during fiscal 2012.
In the fourth quarter of 2011-12, the bank recorded 3.44% net interest margin for domestic operations and 2.96 % for international operations, source said.
Over all both banks are pertaining high growth and scope to be going ahead with huge profits and surely become India’s second largest public lender.
Last week the bank had been able to post sound growth despite economic challenges like industrial slowdown, high inflation and elevated interest rates, BoB Chairman and Managing Director M D Mallya told reporters.