Profitability of Pnb

Profitability of PNB Manish Mahajan Roll No. 06232Pranab Rungta Roll No. 062 T. A. Pai localizeing Institute The Indian Banking sector has undergone a sea change in the past decade with the implementation of the ongoing banking sector reforms. The sector, oer the course of studys has become more efficient with the implementation of prudent norms for asset classification and improved thrust on engine room advancement. The PSBs still dominate the sector with 75% of the market plowshare of business and profits. The new private sector banks with their technology goaded business model are fast catching up with the PSBs. The last two years has seen banks book windfall gains in treasury profits. With the interest rates hardening up, banks lack to focus on core profit growth. The retailisation of the banks¡¦ balance sheet has seen banks improve their asset mix with home loans, auto loans and personal loans. Banking Scenario The year 2006-07 witnessed orderly trends in the financial market, although there was tightening of fluidity towards the third quarter of the year. The stance of the monetary policy of the run batted in was to maintain price stability and credit quality and at the same time to ensure the productive use of the credit.

run batted in and the Finance Ministry have been stressing on need for rebalancing of portfolios to ease push through pressures on overheated sectors like housing, commercial real estate,etc. and the need to syncronise credit growth with deposit growth. Credit demand move to record strong growth outpacing the deposit growth. RBI was prosperous in bringing a marginal reduction in non food credit growth to 28% in 2006-07 from 31.8% in 2005-06. This has been achieved by stiffer monetary tightening measures like hike in cash reserve ratio (CRR) by 150 footing points and raising the repo rate to 7.75%. Aggregate deposits rose by 23% during 2006-07. Demand for higher bank credit (upto Dec 2006) was principally led by industry that accounted for almost 35% of... If you privation to get a full essay, order it on our website: Orderessay

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