Lastly, the

proportion oI cash and due Irom banks to total

assets slightly rose to 14.7 percent (P834.5
billion) Irom 14.6 percent (P750.3 billion) in
2007 to shore up liquidity. This is indicative oI
the apparent shiIt in Iavor oI traditional
sources oI income (e.g., lending and
Iixed-income securities) due to rising interest
rates and heightened risk aversion at the
onset oI global Iinancial meltdown.

This is a result oI the company entering a sale and purchase agreement Ior the sale oI certain
nonperIorming loans and Ioreclosed properties booked under 'Investment Properties, a
pool oI NPL was sold in 2007.

Asset Quality
Non perIorming loans ratio
A decrease in the non-perIorming loans ratio can be seen in the year 2006 compared to the
previous year as a result oI the bank`s P15.3 billion sale under the Special Purpose Vehicle
Law. Other NPL accounts were either collected, restructured or subjected to the Iinal option
oI Ioreclosure. This is a positive indication that the banks had been taking eIIective meas.
The general improvement in the banking system`s asset quality has been largely attributed to
the implementation oI Special Purpose Vehicle (SPV) Law oI 2002 which Iacilitated the
disposal oI a signiIicant number oI nonperIorming assets.
The impending implementation oI Basel II in July 2007 will make it costly Ior banks to hold
on to a large portIolio oI bad assets as risk weights Ior non-perIorming loans will be
increased to 150 Irom 125. Thus, the year 2006 was punctuated by a Ilurry oI asset
disposition activities as banks cleaned up their books.
2007
The upswing in the real estate market coupled with the implementation oI new programs and
strategies; and the re-engineering oI the Bank`s Asset Management enabled PNB to dispose
more oI its
acquired assets. In addition, a Joint Auction Agreement with Allied Banking Corporation and
Eton Properties Philippines Inc. was entered by the bank . The Bank`s Remedial...



Bank Name
Number oI Branches
No.oI Employees
Total Income(Rs Mn)
Net ProIit (Rs Mn)
State Bank oI India
9143
198774
431836
44067
ICICI Bank Limited
557
25479
187676
25401
Punjab National Bank
4066
58047
108153
14393
Canara Bank
2532
46893
100890
13432
Standard Chartered Bank
85
5390
38780
9048
HDFC Bank Limited
515
14878
55993
8708
Bank of Baroda
2687
38737
82917
8270
Indian Overseas Bank
1523
24178
51345
7834
Allahabad Bank
1932
18742
43739
7061
Citibank N.A.
39
3250
41075
7055
Bank oI India
2563
41808
82131
7014
Union Bank oI India
2095
25421
64888
6752
Industrial Development Bank oI India Limited
173
4548
66612
5609
riental Bank of Commerce
1161
14962
46717
5572
Syndicate Bank
1897
24624
46420
5365