Punjab & Sind Bank Reports 19% Rise in Net Profit for June 2024 Quarter

Punjab & Sind Bank has reported a 19% increase in net profit to Rs 182 crore for the June 2024 quarter, driven by a reduction in bad loans. The bank's total income rose to Rs 2,846 crore, and it showed improved asset quality with a decline in Gross and Net NPAs.

State-owned Punjab & Sind Bank announced a notable 19 percent uptick in net profit, reaching Rs 182 crore for the June 2024 quarter, primarily due to a reduction in bad loans.

In comparison, the Delhi-based financial institution had generated a net profit of Rs 153 crore during the same period last year. The bank reported a rise in total income to Rs 2,846 crore from Rs 2,494 crore the previous year.

Interest income increased to Rs 2,652 crore during the reviewed period, up from Rs 2,316 crore in the equivalent quarter of the preceding year. The bank's asset quality saw improvement, with Gross Non-Performing Assets (NPAs) dropping to 4.72 percent of gross advances as of June 30, 2024, down from 6.80 percent by the end of the same quarter in FY23. Concurrently, Net NPAs also decreased to 1.59 percent from 1.95 percent at June-end FY24.

Provisions for bad loans escalated to Rs 103 crore, a significant increase from the Rs 23 crore allocated a year ago. Additionally, the Capital Adequacy Ratio improved slightly to 17.30 percent compared to 17.19 percent on June 30, 2023.

The bank's board approved a plan to raise funds amounting to Rs 3,000 crore through the issuance of Basel III compliant Additional Tier I Bonds/Tier II Bonds or a combination of both. Furthermore, the board sanctioned the issuance of long-term infrastructure bonds to raise Rs 5,000 crore.

(With inputs from agencies.)