Punjab & Sind Bank result update
State-owned Punjab & Sind Bank reported a 70% decrease in net profit to Rs 139 crore for the fourth quarter ending March 2024, primarily due to provisions made for bad loans. This compares to a net profit of Rs 457 crore in the corresponding period last year. Despite this decline, the bank’s total income rose to Rs 2,894 crore from Rs 2,652 crore in the same quarter of the previous year, as stated in a regulatory filing. Interest income also saw growth, increasing to Rs 2,481 crore from Rs 2,105 crore year-over-year.
On the asset quality front, the bank‘s gross non-performing assets (NPAs) reduced to 5.43% of gross advances as of March 31, 2024, down from 6.97% in March 2023. Similarly, its net NPAs decreased to 1.63% from 1.84% over the same period. However, the bank set aside Rs 111 crore for bad loans in the reviewed quarter, in contrast to a write-back of Rs 290 crore in the corresponding quarter of the previous fiscal year.
For the full financial year ending March 2024, the bank’s net profit more than halved to Rs 595 crore compared to Rs 1,313 crore in the previous fiscal. Total income for FY24 surged to Rs 10,915 crore from Rs 8,933 crore in the preceding fiscal. The board proposed a dividend of Rs 0.20 (2%) per equity share of face value Rs 10 each fully paid up for the year 2023-24, subject to approval at the upcoming annual general meeting.
Furthermore, the bank’s Capital Adequacy Ratio improved to 17.16% compared to 17.10% as of March 31, 2023.
