State-owned Punjab & Sind Bank reported on Monday an over 5-fold jump in net profit at Rs 121.71 crore for the first quarter ended June, 2013 on account of treasury profit and improvement in margins.
State-owned Punjab & Sind Bank reported on Monday an over 5-fold jump in net profit at Rs 121.71 crore for the first quarter ended June, 2013 on account of treasury profit and improvement in margins.
The bank had reported a net profit of Rs 24.03 crore in the April-June quarter of 2012-13, it said in a statement.
Total income during the quarter ended June, 2013 rose to Rs 2,000.15 crore from Rs 1,844.15 crore in the corresponding quarter last year.
The bank expects 40-50 per cent net profit growth while its total business is likely to see a growth of 25 per cent in the current fiscal year, according to D P Singh, chairman and managing director of PSB.
The bank booked treasury profit of Rs 64 crore during the first quarter as against Rs 12 crore in the same period of the previous fiscal year.
At the same time, the bank replaced bulk deposits through low cost deposit resulting in improvement in margins.
Net interest margin of the bank improved to 2.12 per cent as compared to 2 per cent in the same quarter of the previous fiscal year.
As of June 30, 2013, the bank's gross non-performing assets (NPAs) deteriorated to 3.45 per cent of gross advances as against 1.73 per cent in the same quarter of the previous fiscal year.
Its net non-performing assets also rose to 2.47 per cent from 1.23 per cent.
At the same time, provisions other than the tax of the lender during the quarter under the review declined to Rs 38.26 crore against Rs 85.53 crore in the first quarter of the last fiscal year.
The bank's capital adequacy ratio (CAR) stood at 12.64 per cent, as of June 30.
Total business crossed Rs 1.20 lakh crore at the end of the quarter, an increase of 7.9 per cent.
PSB recorded a credit growth of 6.90 per cent to Rs 50,865 crore while deposits grew by 8.76 per cent to Rs 70,028 crore at the end of first quarter.
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