PNB achieved its all-time high of Rs 163 in the afternoon trades today, on buying interest following impressive results recorded by the company.

The scrip of the large commercial bank eased later to Rs 162, still up 7.18%. The day's low for the stock was Rs 143.90. Substantial volumes of over 35.47 lakh shares changed hands on BSE till 13:50 IST. The scrip has now risen 332% from Rs 37.50 (on listing) on 26 April 2002.

In afternoon trades today, Punjab National Bank (PNB) unveiled its full year results for the period ended 31 March 2003. For FY 2002-03, the company recorded a 50% rise in net profit to Rs 842 crore (Rs 562 crore) on a 14.5% increase in total income to Rs 8,735 crore (Rs 7,626 crore).

The rise in the stock is also attributed to news that the company plans to reduce its capital by returning equity to the government. PNB is expected to return Rs 130 crore of equity to the government out of the total equity of Rs 265.30 crore. Currently, the government holds 80% equity stake in PNB.

The details of the scheme are still being worked out. However reports reveal that the price will be related to the market price, which is expected to dampen the scrip's prospects.

However, with the capital reduction, the company's EPS (on the basis of its full year results) should rise from Rs 31.73 to Rs 51.

The scrip, as have other banking stocks, has also been bolstered by the Securitisation Act that was passed in Parliament in November 2002. Banks have since started serving notices to defaulters and in some cases have even seized assets.

PNB had come out with its initial public offer (IPO) of 5.30 crore shares at Rs 31 per share on 21 March 2002. The ssue was oversubscribed 4.4 times.

Subsequently (in April 2002), PNB got listed on three exchanges -- the Bombay Stock Exchange (BSE), the National Stock Exchange (NSE) and the Delhi Stock Exchange (DSE).

Recently, PNB merged its operations with the Kerala-based Nedungadi Bank, thus paving the way for the New Delhi-based bank's expansion in the southern state.

The 108-year-old PNB is among the oldest professionally managed institutions in the Indian banking industry. It has one of the largest domestic branch networks (4,262 branches as on 31 December 2001) in the country, including 3,861 branches and 401 extension counters.

Of these, 365 branches have been awarded the ISO 9002 certification. This vast domestic network of branches offers the bank a very low-cost deposit base.

PNB has been servicing its customers by offering a gamut of financial products in retail and corporate banking, industrial finance, agricultural finance, financing of trade and international banking.

The bank has appointed international consulting firm Boston Consulting Group (BCG) to help it in restructuring operations. It is implementing recommendations of BCG in the areas of organisational structuring, credit and treasury functions, realignment of branches, retail and office control functions.

PNB has widened its product portfolio by venturing into new business areas like gold dealing, insurance and credit cards. Its subsidiaries provide services relating to capital market, housing finance, asset management, government securities, etc.

As on 31 March 2003, the public and institutions held 8.63% and 9.79% stake respectively in PNB.