Punjab & Sind Bank Q1 Results: Net profit falls 25% to Rs 153 crore, asset quality improves

Punjab & Sind Bank's net non-performing assets (NNPAs) fell to 1.95 percent from 2.56 percent.

Public sector lender Punjab & Sind Bank (PSB) on August 5 reported a 25.4 percent fall in net profit to Rs 152.67 crore for the April-June quarter of FY24, as against Rs 204.7 crore last year.

During the quarter, the lender earned an interest income of Rs 2,316 crore compared to Rs 1,800 crore in the year-ago period, as per a regulatory filing.

The bank's gross non-performing assets (GNPAs) declined to 6.80 percent from 11.34 percent in the June quarter of the previous fiscal. Net non-performing assets (NNPAs) fell to 1.95 percent from 2.56 percent.

The bank's net interest margin (NIM) in the quarter increased to 2.63 percent from 2.53 percent a year ago.

Shares of PSB on August 4 closed at Rs 33 apiece on the BSE, 0.75 percent higher than the previous close.

Total income increased to Rs 2,494 crore in the first quarter of 2023-24 against Rs 1,915 crore a year ago.

Explaining the reason for the decline in profit, Punjab & Sind Bank's Managing Director Swarup Kumar Saha said the bank has made a Rs 57 crore provision towards the wage revision under negotiation and Rs 450 crore in fresh slippages, including a mid-corporate of Rs 92 crore in the quarter.

With regard to business growth, Saha said credit growth is expected to be 13-14 percent, while deposit mobilisation would witness a growth of 8-10 percent during the current fiscal.