Matching Targets

State-run People’s Bank has met its performance targets for this year, but a promised capital injection is yet to materialise. State-run People’s Bank has met its performance targets for this year, but a promised capital injection is yet to materialise. The technically insolvent bank said Tuesday that its net profits were down 10.6 percent to Rs. 1.6 billion for the nine-months to September.

The bank’s net interest income rose 17.9 percent to Rs. 16.9 billion, while net interest expense was up 32.9 percent to 9.4 billion during the period under review.

Its loan book had swelled 10.9 percent to Rs. 133.6 billion pushing total assets up to Rs. 267.3 billion (up19.2 percent).

People’s Bank has also started paying taxes, after its brought forward losses eased off during the latter part of 2004. A tax bill of over a billion rupees squeezed out profits margins during the period.

The bank, which survives on a letter of comfort from the Treasury, needs around Rs. 7.0 billion to meet Central Bank’s Tier I capital requirements.

The government, through an Asian Development Bank loan, pledged to pump in US$ 20 milli