Punjab & Sind Bank Q1 net profit down by 25.37% to Rs 153 crore

Last Updated on August 6, 2023 by Brajesh

On Saturday, we noted results of two Public Sector Banks in India, one of Bank Of Baroda and another of Punjab & Sind Bank for Q1 of Financial year 2023-24. The result of Punjab & Sind Bank is quite contrast to Bank OF Baroda. Bank Of Baroda Net profit grew by 88% , however Punjab & Sind Bank have reported Net Profit of Rs. 153 Cr, down by 25.37 percent compared to Q1 of FY 22-23.

P&S Bank has reported a Net Profit of Rs. 205 Cr in Q 1 of FY 22-23. For the entire fiscal year 2022-23, PSB had recorded a highest-ever net profit of ₹1,313 crore, but started new financial year on a lower note due increase in provision for bad loans.

Punjab & Sind Bank Q1 net profit down by 25.37%
Punjab & Sind Bank Q1 net profit down by 25.37%

Financial Numbers

P&S Bank has reported a net profit of Rs. 153 Cr down by 25.37 % compared to Q1 of FY 22-23. Last Year bank has posted a net profit of Rs 205 Cr in Q1.

Net Interest Income , which is Interest Income less Interest expenses, has gone up by 4.09 % to 738 Cr in Q1 , while Non Interest Income grew by 54.78 percent in Q1.

Non Interest Income comprises of Core Fee Income, Treasury Income, Forex Income & Recovery in written off A/Cs.

Operating Profit for the reported period is slightly increased to Rs 257 Cr from 252 Cr in Q1 of last year, up by mere 1.98 percent.

Business Performance

As a result of improved of figure of Loans & advances and also of Deposit, total Business of the bank went up by 11.63 percent to Rs.194525 Cr. as at June 2023. Total Deposit of the Bank grew by 12.49 percent to Rs 114211 Cr , while Loans & advance grew by 10.43 percent to Rs. 80314 cr.

Asset Quality

Major improvement noted in asset quality of the bank. Gross NPA declined by 454 bps to 6.80 percent in June 2023 . Earlier, Gross NPA reported in June 2022 qtr. was 11.34 percent. Net NPA has also shown a decline of 61 bps. Net NPA in June 2022 Qtr was at 2.56 percent, which came down to 1.95 in Q1 of 2023-24.

Other numbers

Bank low cost current & saving account deposit numbers i.e. CASA deposit decline by 231 bps Y-o-Y basis . CASA deposit of the bank for June 2023 is 31.69 percent. Capital Adequacy Ratio of the bank is at 17.19 percent in June 2023 which was at 16.79 percent in June 2022.

Reason for dip in profit

Total provision for the bank in Q1 went up by 121.28 percent to Rs 104 Cr, which was at 47 Cr in June 2022. so basically there were few 2 to 3 reason for decline in bank’s profits in the current quarter,

  • PSB had in the current quarter decided to provide upfront ₹57 crore towards wage revision
  • Recovery from the technically written-off account in this quarter was about ₹ 10 crore, much lower than ₹60 crore in same quarter last fiscal.
  • Additional provision of Rs 42 Cr noted in current qtr. Due to recognition of NPA of a mid corporate account with an exposure of Rs 92 Cr

Click here for Analyst Presentation

Leave a Comment