Performance Highlights

Audited Financial Results

For the period ended 31st March, 2005

( Rs. in Crore)

Sl No	PARTICULARS	Quarter Ended		Year ended
Sl No	PARTICULARS	31.03.2005 (Audited)	31.03.2004 (Audited)	31.03.2005 (Audited)	31.03.2004 (Audited)
1	INTEREST EARNED (a+b+c+d)	2184.65	2027.46	8459.85	7778.94
	a) Interest/ discount on advances/ bills	1079.83	995.31	4246.12	3876.01
	b) Income on Investments	1022.16	969.31	3974.05	3680.22
	c) Interest on Balances with RBI & other Inter Bank Funds	55.00	45.08	164.25	113.13
	d) Others	27.66	17.76	75.43	109.58
2	Other Income	377.35	390.11	1675.68	1867.63
A	TOTAL INCOME (1+2)	2562.00	2417.57	10135.53	9646.57
3	Interest Expended	1112.57	1011.18	4453.11	4154.99
4	Operating Expenses(e+f)	922.45	707.91	2975.21	2370.72
	e) Payments to and provisions for employees	622.43	486.96	2121.23	1654.06
	f) Other Operating Expenses	300.02	220.95	853.98	716.66
B	TOTAL EXPENSES (3+4) (excluding Provisions & Contingencies)	2035.02	1719.09	7428.32	6525.71

C	Operating Profit (A-B) (Profit before Provisions & Contingencies)	526.98	698.48	2707.21	3120.86

	Total Provisions & Contingencies	166.35	401.86	1297.09	2012.17
D	Other Provisions and Contingencies (Net)	52.70	246.78	801.60	1351.38
	-of which provision for Non- Performing Assets	194.61	391.43	425.79	1401.00
E	Provision for Taxes	113.65	155.08	495.49	660.79
F	NET PROFIT (C-D-E)	360.63	296.62	1410.12	1108.69

5	Paid up equity Share Capital	315.30	265.30	315.30	265.30
6	Reserves excluding Revaluation Reserves	7533.51	4425.46	7533.51	4425.46

7	Analytical Ratios
	(i) Share holding of Govt. of India (%)	57.80	80	57.80	80
	(ii) Capital Adequacy Ratio (%)	14.78	13.10	14.78	13.10
	(iii) Earning per Share in Rs. (Non-Annualised, at face value of Rs 10/-)	13.54	11.21	52.93	41.79
	(iv) (a)Amount of gross non-performing assets	3741.34	4670.13	3741.34	4670.13
	(b) Amount of net non-performing assets	119.44	448.96	119.44	448.96
	(c) % of gross NPAs	5.96	9.35	5.96	9.35
	(d) % of net NPAs	0.20	0.98	0.20	0.98
	(v) Return on Assets % *(Annualised)	1.14*	1.16*	1.12	1.08
8	Aggregate of Non-Promoter Share holding
	(i) No. of Shares	133061200	53061200	133061200	53061200
	(ii)Percentage of Share Holding	42.20	20.00	42.20	20.00

Segment Reporting Mar'05

Notes:

The above financial results were taken on record by the Board of Directors in its meeting held on 29.04.2005.
During the year Bank has paid interim dividend @ 30% on the then Capital amounting Rs. 265.30 crore and has proposed a final dividend @ 30% on enhanced Capital amounting Rs.315.30 crore.
Results include Rs.207.70 crores on account of depreciation on certain Govt. securities transferred from AFS to HTM category in terms of RBI guidelines. The figures of the corresponding period are not comparable to that extent.
Financial results have been arrived at after considering provisions for loan losses and Standard Assets, depreciation on Investments and Fixed assets, Gratuity, Pension, Bonus, Leave Encashment, Tax on Income and amortisation of deferred expenditure on VRS-2000.
Based on best estimates of liability, the Management has made a provision of Rs. 302.75 crores in respect of wage arrear.
During the year, the Bank has come out with a follow on public issue of 8 crores equity shares of Rs. 10 each at a price of Rs. 390/- per equity share. In accordance with the terms stipulated in letter dated 7th January 2005 from the Ministry of Finance, Govt. of India, the Bank has returned to the Govt. of India an aggregate amount of Rs. 1153.01 crores representing the amount raised for 3 crores equity shares of Rs 10 each at issue price net of the proportionate cost of public offer.
PNB Assets Management Company Ltd. wholly owned subsidiary of the Bank, was amalgamated with the Bank, on appointed date i.e. 1st October 2004. The accumulated losses amounting to Rs. 4.42 crores (net of Reserves) have been debited to 'Revenue and other Reserves'.
Any complaints from the Investors were not pending at the beginning of the quarter. During the quarter-ended on 31.03.2005, 614 complaints were received and all such complaints stand resolved at the end of the period.
Figures of the corresponding previous period have been regrouped/ rearranged/ reclassified wherever considered necessary.

     (Dr. K. C. Chakrabarty)                                 (S.S. Kohli)

     Executive Director                           Chairman & Managing Director

Date : 29.04. 2005
Place : New Delhi