Public sector lender Punjab & Sind Bank on Thursday reported a net profit of Rs 174 crore for the quarter ended June 2021 (Q1FY22). It had incuured a loss of Rs 117 crore in Q1FY21. The lender was back in black due to a surge in other revenue and lowered provisioning. Total provisions had been down 31% year-on-year (y-o-y) to Rs 237 crore, compared to Rs 343 crore in the corresponding quarter last year (Q1FY21). Other revenue of the lender grew 127% y-o-y to Rs 349 crore.
S Krishnan, MD and CEO of the bank, mentioned that lender has shown robust and resilient efficiency in just about all the organization parameters, regardless of the pandemic. He added that bank continued its specific focus on NPA recovery and, therefore, recovered Rs 858 crore such as recovery of Rs 124 crore in technically written-off (TWO) accounts.
The asset top quality of the lender enhanced for the duration of the June quarter. The gross non-performing assets (NPAs) ratio of the lender enhanced 43 basis points (bps) to 13.33%, compared to gross NPAs of 13.76% in the prior quarter. Similarly, net NPAs ratio also enhanced 43 bps to 3.61% from 4.04% in the March quarter.
Provision coverage ratio (PCR) strengthened additional at 84.22%, compared to 69.2% in June 2020. The bank was capable to reduce down the price to revenue ratio to 55.73% in the June quarter, compared to 67.33% in Q1FY21.
While the advances of the lender grew 10% y-o-y to Rs 67,933 crore, deposits grew 16% y-o-y to Rs 98,478 crore. Current accounts and savings account (CASA) deposits grew by 14.29% y-o-y to Rs 30,832 crore.
The capital adequacy ratio of the lender remained at 17.62% at the finish of June quarter, compared to regulatory requirement of 10.875%.