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

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

The lender had reported a internet revenue of Rs 205 crore within the April-June quarter of 2022-23.
The full revenue elevated to Rs 2,494 crore within the first quarter of 2023-24 towards Rs 1,915 crore a 12 months in the past, as per a regulatory submitting.

Through the quarter, the financial institution earned an curiosity revenue 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 stated the financial institution has made a Rs 57 crore provision in the direction of the wage revision beneath negotiation and Rs 450 crore in contemporary 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 stated.
On the asset high quality facet, there was an enchancment in gross non-performing property (NPA) of the whole advances, easing to six.80 per cent at June-end from 11.34 per cent a 12 months earlier.
Equally, internet NPAs declined to 1.95 per cent in June 2023 towards 2.56 per cent.
The financial institution goals to convey down gross NPA to six per cent whereas Internet NPA under 1.5 per cent in the course of the 12 months, Saha stated.
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 stated the financial institution expects a restoration of Rs 1,500 crore within the present monetary 12 months.
Through the quarter, the financial institution recovered Rs 345 crore from non-performing property.
With regard to enterprise development, Saha stated credit score development is anticipated to be 13-14 per cent, whereas deposit mobilisation would witness a development of 8-10 per cent in the course of the present fiscal.
The financial institution’s internet curiosity margin (NIM) within the quarter elevated to 2.63 per cent from 2.53 per cent a 12 months in the past.
The outlook on NIM for your complete monetary 12 months is 2.9 per cent, Saha added.

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