Punjab & Sind Bank Q1 net profit falls 25% to Rs 153 crore

NEW DELHI: Public sector lender Punjab & Sind Financial institution on Saturday reported a 25 per cent decline in web revenue to Rs 153 crore for the June 2023 quarter, partly because of the provision of wage revision and recent slippages.

The lender had reported a web revenue of Rs 205 crore within the April-June quarter of 2022-23.
The overall earnings elevated to Rs 2,494 crore within the first quarter of 2023-24 towards Rs 1,915 crore a yr in the past, as per a regulatory submitting.

Throughout the quarter, the financial institution earned an curiosity earnings of Rs 2,316 crore in comparison with Rs 1,800 crore within the year-ago interval.
Explaining the rationale for the decline in revenue, Punjab & Sind Financial institution managing director Swarup Kumar Saha mentioned the financial institution has made a Rs 57 crore provision in the direction of the wage revision beneath negotiation and Rs 450 crore in recent slippages, together with a mid-corporate of Rs 92 crore within the quarter.
The financial institution has made a provision of Rs 42 crore for that specific account, which is within the logistics enterprise, he mentioned.
On the asset high quality aspect, there was an enchancment in gross non-performing belongings (NPA) of the full advances, easing to six.80 per cent at June-end from 11.34 per cent a yr earlier.
Equally, web NPAs declined to 1.95 per cent in June 2023 towards 2.56 per cent.
The financial institution goals to carry down gross NPA to six per cent whereas Internet NPA under 1.5 per cent through the yr, Saha mentioned.
The availability protection ratio stood at 88.58 per cent towards 88.10 in the identical quarter of the final fiscal.
Its capital adequacy ratio elevated to 17.19 per cent from 16.79 per cent on the finish of June 2022.
With regard to restoration, its managing director Swarup Kumar Saha mentioned the financial institution expects a restoration of Rs 1,500 crore within the present monetary yr.
Throughout the quarter, the financial institution recovered Rs 345 crore from non-performing belongings.
With regard to enterprise progress, Saha mentioned credit score progress is anticipated to be 13-14 per cent, whereas deposit mobilisation would witness a progress of 8-10 per cent through the present fiscal.
The financial institution’s web curiosity margin (NIM) within the quarter elevated to 2.63 per cent from 2.53 per cent a yr in the past.
The outlook on NIM for all the monetary yr is 2.9 per cent, Saha added.

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