Punjab and Sind Bank’s net profit rises 24% on strong loan growth

Punjab and Sind Bank’s net profit rose 24% year-on-year in October-December due to a growth in its advances and a write-back in bad loan provisions.

The bank posted a bottomline of Rs 373 crore in the December quarter, up 34.2% on a sequential basis.

Gross advances rose 16.5% year-on-year to Rs 77,745 crore as on December 31.

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Specifically, retail advances rose 32.3% year-on-year, and loans to micro, small and medium-sized enterprises rose 14.9% year-on-year.

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Total deposits rose 9.1% year-on-year to nearly Rs 1.1 trillion as on December 31. Specifically, current account savings account deposits grew 11.33% year-on-year and its share in total deposits stands at 33.30% as on December 31.

The bank’s credit deposit ratio stood at 71% as on December 31 from 66.48% a year ago.

Net interest income rose 6.2% year-on-year to Rs 805 crore in October-December. Net interest margin rose by 6 basis points year-on-year to 3.12% in October-December.

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Gross Non-Performing Assets (GNPA) ratio fell by 608 bps on year-on-year basis to 8.36% as on December 31. Net Non-Performing Assets (NNPA) ratio fell by 99 bps on year-on-year basis to 2.02%.

The bank’s bottomline in the December quarter was also aided by a write-back of bad loan provisions worth Rs 271 crore.

The bank’s capital adequacy ratio stood at 15.57% as on December 31.