Punjab & Sind Bank Q1 profit surges 5-fold to Rs 121 cr

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SummaryState-owned Punjab & Sind Bank today reported over 5-fold jump in profit.

State-owned Punjab & Sind Bank today reported over 5-fold jump in profit at Rs 121.71 crore for the first quarter ended June, 2013 on account of treasury profit and improvement in margins. The bank had earned net profit of Rs 24.03 crore in the April-June quarter of 2012-13, PSB said in a statement. The total Q1 income rose to Rs 2,000.15 crore, from Rs 1,844.15 crore in the year-ago period. According to PSB Chairman and Managing Director D P Singh, the bank expects net profit growth of 40-50 per cent while total business is likely to see a growth of 25 per cent in the current fiscal. The bank booked treasury profit of Rs 64 crore during the first quarter as against Rs 12 crore in the same period of the previous fiscal. At the same time, the bank replaced bulk deposits through low cost deposit resulting in improvement in margins.

The net interest margin of the bank improved to 2.12 per cent as compared to 2 per cent in the same quarter of the previous fiscal. As of June 30, 2013, the bank's gross non-performing assets (NPAs) deteriorated to 3.45 per cent of gross advances as against 1.73 per cent in the same quarter of the previous fiscal. It's net non-performing assets also rose to 2.47 per cent from 1.23 per cent. At the same time, provisions other than the tax of the lender during the quarter under the review declined to Rs 38.26 crore against Rs 85.53 crore in the first quarter of the last fiscal. The bank's Capital Adequacy Ratio (CAR) as of June 30 stood at 12.64 per cent. Total business crossed Rs 1.20 lakh crore at the end of the quarter, an increase of 7.9 per cent. PSB recorded a credit growth of 6.90 per cent to Rs 50,865 crore while deposits grew by 8.76 per cent to Rs 70,028 crore at the end of first quarter.

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