The People's Bank (PB) says it has posted 'remarkable' results for the financial year 2011 adding that this was due to "the unwavering commitment on the part of the bank to sustain and improve on its key performance indicators in a consistent and progressive manner".
The group reported 'exceptional PBT (pre-tax profit) of Rs. 21 billion in FY 2011 - the highest ever recorded in the banking industry to-date.
In a statement, the bank said it experienced a substantial increase in its gross interest income which expanded by 10% whilst its interest expenses increased only by 3.5% during the period under review.
Stringent cost management initiatives and budgetary control enabled the bank to reduce its overall overheads by 4.5% over 2010. This, along with growth in fee-based income enabled the bank to record a post-tax profit of Rs 10.2 billion, up 95% over the previous year's figure of Rs. 5.2 billion.Bank deposits, influenced by the increase in rupee savings, rose to Rs. 540 billion, 16.8% over the previous year's figure. The fixed deposits segment which represents a significant portion of the deposit portfolio also grew by 18%.
The bank's contribution by way of taxes, levies and dividends stood at Rs. 12.5 billion, an increase of 25% from 2010. "This amount incidentally is the highest ever contribution made by any single bank to state coffers in the history of the banking industry," the statement said.