Punjab National Bank has entered into MOUs with Credit rating agencies Fitch Ratings India Ltd. and ICRA. Under these MoUs, Fitch Ratings and ICRA will assign ratings to the Bank’s loans and its other exposures under the standardized approach of RBI’s New Capital Adequacy framework for Basel-II.

Fitch Ratings India Ltd. and ICRA would carry out ratings under the standardized approach under its “Line of Credit” rating service which would enable Punjab National Bank to assign the new risk weights applicable to its borrowers under Basel-II. The risk weights would be linked to the various rating categories and would be as per RBI’s Basel- II guidelines.

Existing and potential borrowers of Punjab National Bank are being offered special concessional rates for obtaining Fitch Ratings India Ltd. and ICRA ratings.The MoUs between these two rating agencies would assist in implementing RBI’s New Capital Adequacy Framework under Basel-II.

Punjab National Bank, the largest nationalised Bank, has a network of 4,230 branches, 349 extension counters and 1325 ATMs across India with a total business of Rs 254156 crores as on December 31, 2007 a y-o-y growth of 16.6% . The bank maintains a diversified credit portfolio providing credit to all major sectors. The bank reported a profit after tax (PAT) of Rs 1505.01 crores for nine months ended December 31, 2007, registered a y-o-y growth of 15.6%. The total deposits figure at end of December 2007 was Rs 1,52,622 Cr registered a growth of 17.2 % on y-o-y basis The total advances figure at end of December 2007 stood at Rs 1,01,534 Cr thus registering a growth of 15.8 % on y-o-y basis. The Capital to Risk Asset Ratio (CRAR) of the bank stood at 14.04% as on December 31, 2007.

Sourced From: Punjab National Bank

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