The country’s second largest public sector lender, Punjab National Bank, on Thursday reported a 31.1 per cent growth in net profit at Rs. 927 crore for the second quarter ended September 30, 2009.

Total income of the state-run lender rose to Rs. 6,075.86 crore during the July-September quarter, from Rs. 5,313.18 crore in the year-ago period, PNB said in a statement.

Interest income rose to Rs. 5,407 crore, an increase of 16 per cent over the corresponding quarter in the last fiscal.

The capital adequacy ratio surged to 14.74 per cent at the end of September 30, the newly appointed Chairman and Managing Director of PNB K.R. Kamath told reporters here.

However, the net interest margin declined to 3.64 per cent against 3.78 per cent in the preceding quarter.

Total business of the bank has gone up to Rs. 3,94,382 crore at the end of the period.

Mr. Kamath said the board has approved acquiring a 63.6 per cent stake in a joint venture floated in association with Kazakhstan-based Dana Bank.

The bank would be moving ahead with regards to taking necessary regulatory approvals for operationalisation of the JV, he added.

Shares of PNB were trading at Rs 842, down 1.16 per cent in the afternoon trade on the BSE.

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