Punjab & Sind Bank Q1 net profit rises 18% to `205 crore

NEW DELHI: State-owned Punjab & Sind Bank on Monday reported an 17.82 per cent growth in net profit at Rs 205 crore in the April-June quarter of FY23, helped by a decline in bad loans.

The bank had posted a net profit of Rs 174 crore in the year-ago quarter. Sequentially, it had registered a net profit of Rs 346 crore in the JanuaryMarch 2022 quarter.

Bank’s net interest income grew by 22.45 per cent to Rs 709 crore in the first quarter of FY23.

The bank’s asset quality showed an improvement and the gross Non-Performing Assets (NPAs or bad loans) came down to 11.34 per cent of the gross advances as of June 30, 2022, against 13.33 per cent a year ago.

The net NPA ratio also fell to 2.56 per cent from 3.61 per cent in the first quarter of the last financial year.

The bank intends to bring down gross NPA and net NPA to less than 10 per cent and 2 per cent, respectively by the end of the current financial year, the bank’s managing director Swarup Kumar Saha said.

Net Interest Margin (NIM) improved to 2.92 per cent in the quarter from 2.50 per cent in the same period a year ago.

Saha expects the NIM to stay at the same level by March.

Asked about profit outlook, he said, on conservative side, it should be around the last year. Last year, the bank got proceeds of the Air India sale as exceptional item.

Capital Adequacy ratio (CAR) stood at 16.79 per cent, out of which Tier-I is 13.08 per cent and Tier-II is 3.71 per cent in first quarter of FY2023 .

The bank is looking to double its credit growth to 15 per cent in FY23 from existing 7 per cent at present.

CASA Deposit share improves by 269 bps and stands at a level of 34.00 per cent with a growth of 11.97 per cent on Y-o-Y basis.

Gross Non-Performing Assets (GNPA) ratio declines to 11.34 per cent as on June 30, 2022 against 13.33 per cent as on June 30, 2021. The same was 12.17 per cent as on March 31, 2022.

Net Non-Performing Assets (NNPA) ratio declines to 2.56 per cent as on June 30, 2022 against 3.61 per cent as on June 30, 2021. The same was 2.74 per cent as on March 31, 2022.

Provision Coverage Ratio (PCR) stands at 88.10 per cent in June 2022 against 84.22 per cent in June 2021 and 87.89 per cent in March 2022.

Cost of Deposit (COD) is at 4.16 per cent, improves by 26 bps (Y-o-Y).

Total Business grows by 4.72 per cent on Y-o-Y basis to Rs.174261 Cr as on June’ 2022.

Total Deposit up by 3.10 per cent on Y-o-Y basis to Rs.101534 Cr as on Q1 FY2023.

Gross Advances grow by 7.06 per cent on Y-o-Y basis to Rs.72727 Cr as on June’ 2022 against Rs.67933 Cr as on June’ 2021. Bank’s operating profit stands at Rs.252 Cr for Q1 FY2023.

Bank has opened 15.47 lakh accounts under PMJDY and mobilized CASA deposits of Rs.563 cr as at June’ 2022.

As on June 30, 2022, the Bank has 1526 number of branches, out of which 569 are Rural, 278 Semi-Urban, 357 Urban and 322 Metro along with 802 number of ATMs, 357 Business Correspondents (BCs).