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Informist, Wednesday, Apr. 30, 2025

By Sourabh Kumar

MUMBAI – Punjab & Sind Bank's net profit for the March quarter jumped 125% on year due to strong growth in interest income. The bank's provisions also rose during the quarter, which held back its net profit from rising further.

The public sector bank's bottomline rose 125.18% on year to INR 3.13 billion in Jan-Mar, a sequential rise of almost 11%. The bank's interst income in the March quarter was INR 31.60 billion, up 27.4% on year and 7.8% on quarter. The net interest income jumped 62.8% on year to INR 11.22 billion. 

The bank's operating profit shot up over 142% in the March quarter to INR 8.16 billion. Sequentially, it was 68.6% higher.

The net interest margin of the bank increased by 41 basis points on quarter to 3.19% in Jan-Mar as the yield on advancements rose and the cost of funds dipped. Yield on advances increased to 9.69% in Jan-Mar from 9.14% a quarter ago, and the cost of funds fell to 5.85% from 5.91% a quarter ago and 5.77% a year ago.

In terms of the bank's balance sheet, total advances grew 15.9% on year to INR 996.05 billion and the total deposits were up 8.68% on year at INR 1.30 trillion as on Mar. 31. The credit-deposit ratio of the bank stood at 76.75%.

Within total deposits, current account and savings accounts deposits rose 5.4% on year to INR 407.90 billion. The CASA ratio stood at 31.43%, higher than 31.16% a quarter ago. Term deposits grew 10.3% on year to INR 889.84 billion, of which retail term deposits were up 9.8% on year at INR 543.97 billion. The cost of deposits fell to 5.74% in the reporting quarter from 5.84% in the previous quarter.

Within advances, the share of retail, agriculture and micro, small and medium enterprise has been increasing since March 2022, as per the bank's investor presentation. The share increased to 55.15% as on Mar. 31 from 51.73% a year ago.

The total retail, agriculture and micro, small and medium enterprise book was up 23.5% on year at INR 549.32 billion as on Mar. 31. Within this, the retail book was up nearly 37.7% on year, the agriculture book was up 7.4% and the MSME book was up nearly 22% as on Mar. 31. The corporate book was up 7.65% on year at INR 446.73 billion. Growth in home loans, vehicle loans and gold loans was also robust in the quarter.

The asset quality of the public sector bank improved, with the gross non-performing asset ratio at 3.38% as on Mar. 31, down from 3.83% a quarter ago, and the net NPA ratio at 0.96%, lower than 1.25% as on Dec. 31. The provision coverage ratio stood at 91.38% as on Mar. 31.

Fresh slippages fell to INR 8.01 billion during the quarter from INR 9.67 billion a year ago, with the slippage ratio down to 0.99% from 1.28%. Total recovery and upgrades stood at INR 8.91 billion in the reporting quarter.

Special mention accounts-I stood at INR 8.34 billion, against 8.08 billion a quarter ago. On the other hand, special mention accounts-II fell sharply to INR 1.32 billion from INR 4.35 billion.

On the National Stock Exchange, shares of Punjab and Sind Bank closed 3.2% higher at INR 30.24 on Tuesday.  End

Edited by Avishek Dutta

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