Public sector lender Punjab & Sind Bank's net profit plunged over 91 per cent to Rs 8.33 crore in the January-March quarter of last fiscal due to a sharp spike in bad assets and higher provisioning.
Public sector lender Punjab & Sind Bank’s net profit plunged over 91 per cent to Rs 8.33 crore in the January-March quarter of last fiscal due to a sharp spike in bad assets and higher provisioning. The bank had posted a net profit of Rs 98.12 crore during the same quarter of 2015-16 fiscal.
Total income declined to Rs 2,110.11 crore in the last quarter of FY2016-17 from Rs 2,302.27 crore in the year-ago quarter, the bank said in a regulatory filing. The bank’s asset quality worsened with gross non- performing assets (NPAs) rising to 10.45 per cent of gross advances as on March 2017 against 6.48 per cent a year ago.
Net NPAs or bad loans also increased to 7.51 per cent of net advances at the end of 2016-17 fiscal against 4.62 per cent at the end of March 2016. For full 2016-17 financial year, the net profit of the bank was down at Rs 201.08 crore from Rs 335.97 crore in 2015 -16.
Income during the year fell to Rs 8,750.97 crore against Rs 9,222.82 crore a year earlier. Provisions to cover bad loans increased to Rs 464.51 crore, from Rs 349.95 crore a year ago. Shares of the bank closed 4.16 per cent down at Rs 62.25 on BSE today.