With the merger of Centurion bank of Punjab the bank’s equity capital increased by 701.9 Million to Rs.4, 246.2 Million. During the current reporting period bank reported revenues of Rs.362.1 Billion an increase of 22% over the last quarter and 70% over the same quarter last year. The company posted a net profit of Rs.4, 643.5 Million increase of Rs.44% as against Rs.3, 212.3 Million the corresponding quarter last fiscal. Total income for this quarter moved up by 59.6% to Rs.421 Billion as against Rs.264 billion earned in the quarter ended June 30, 2007. The provisions made for this quarter lowered by 25% as against the last quarter because most of the securities in the investment portfolio of the bank are at the maturity corner.Net interest income rose by 74.9% to Rs.172.3 Billion. Non interest income moved up by 3.65% from Rs.5725 Million derived in the quarter ended June 30 2008 to Rs.5934 Million. The fee income for the quarter ended June 30, 2008 soared by 37% to Rs.5112 Million. The revenues from the sale of investments moved up by 47% to Rs.776 Million on YoY basis and foreign exchange revenues rose by 7% to Rs.1574 Million. The rise in the Fee income and foreign exchange income aided the bank to raise its income level. The total deposits for the quarter ended June 30 2008 moved up by 60% to Rs.13091 billion as against the same quarter last fiscal. Savings account and Current account deposits at the end of the quarter were at Rs.3185 Billion and Rs.2686 Billion respectively. Total CASA deposits accounted for 45% of the total deposits. Despite increase in the lending rates the net advances moved up by 79% to Rs.9679 Million. At the end of this quarter the bank’s total customer assets including corporate debentures, investments in securitized papers and advances amounted to Rs.9955 billion. As of June 30 2008 the bank’s total Capital adequacy ratio stood at 12.2 as against the regulatory minimum of 9%. 

STOCK OUTLOOK 

At present stock market is positively reacting to the downward movement in crude oil prices and faster clearance of India specific nuclear safeguards by IAEA, which will help India secure approval by the Nuclear Suppliers Group as well as US Congress from there on. The stance of Reserve Bank of India to regulate the money supply and increase cost of funds is unlikely to help the market unless inflation settles down at a lower rate of growth. Operations of financial institutions are impacted by the measures the RBI has introduced so far; perhaps they shall remain affected as the higher interest rates will invariably reduce the volume of business and crystallize sub-prime risk in the lending business. 

The stock is moving in the level of Rs.1100-1230. The stock is in a downward trend since hitting Rs.1540 in the first week of May. This decline has resulted in the erosion of nearly 40% in the last two months. But in the third week of last month the stock faced a steep growth from Rs.900 level and gained 30% in short span of one week. As the stock is having strong support level at Rs.900 investors with a near term perspective may pick this after the price gets stabilized at the level of Rs.1050.