Punjab & Sind Bank posted a 39.7% increase in net profit to Rs 412 crore in the September quarter, up from Rs 295 crore a year earlier, as the state-owned lender recorded growth in net interest income and operating profit.
The bank's net interest income rose 22% year-on-year to Rs 1,161 crore in the September quarter, compared with Rs 950 crore in the corresponding period last year.
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The lender's operating profit climbed 22.3% from a year earlier to Rs 617 crore in the September quarter, up from Rs 505 crore in the corresponding period last year.
The increase in operating profit, alongside higher net interest income, supported the bank's overall earnings growth during the quarter.
The bank's provisions declined during the reporting period, indicating a lower provisioning burden compared with the previous quarter and the corresponding period last year.
Provisions stood at Rs 52 crore in the September quarter, down from Rs 94 crore in the preceding quarter and Rs 148 crore in the year-ago period. The sequential and annual declines in provisions provided additional support to profitability.
The improvement in provisions, along with growth in net interest income and operating profit, contributed to the bank's higher bottom line.
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Investors will also track the lender's asset quality indicators, including gross non-performing assets (GNPA) and net non-performing assets (NNPA), to assess the sustainability of its earnings growth and the extent of any improvement in its loan portfolio.
Punjab & Sind Bank's quarterly performance comes amid continued investor focus on the earnings momentum of public sector banks, with profitability, loan growth, margins and asset quality remaining key indicators for assessing their financial performance.
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