Shri Swarup Kumar Saha, MD & CEO, Punjab & Sind Bank
MUMBAI, 22nd JANUARY, 2023 (GPN): State-owned Punjab & Sind Bank reported a 24 per cent jump in profit at Rs 373 crore for the quarter ended December 2022, aided by healthy growth in interest income and decline in bad loans.
The bank had posted a net profit of Rs 301 crore in the same quarter a year ago. Total income increased to Rs 2,245 crore in the December quarter from Rs 2,042 crore in the year-ago period, the bank said in a regulatory filing.
The bank’s interest income increased to Rs 2,107.44 crore from Rs 1,871.18 crore in the third quarter a year ago while Net Interest Income (NII) improved to Rs 805 crore from Rs 758 crore in October-December quarter of the previous fiscal.
Net Interest Margin (NIM) stood at 3.12 per cent at the end of December 2022. On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 8.36 per cent as compared to 14.44 per cent at the end of third quarter of previous fiscal.
Net NPAs also eased to 2.02 per cent as against 3.01 per cent in the same period a year ago. However, the capital adequacy ratio declined to 15.57 per cent in the December quarter as against 17.82 per cent. Total Business grew by 12.08 per cent on a year-on-year basis to Rs 1,87,242 crore as on December 2022. Gross advances rose by 16.54 per cent to Rs 77,745 crore while total deposit increased by 9.11 per cent to Rs 1,09,497 crore.
The bank has surpassed the targets in priority sector lending at 52.54 per cent and agriculture advance at 20.15 per cent of Adjusted Net Bank Credit (ANBC), as on September 2022, against the target of 40 per cent and 18 per cent respectively. Net profit for the nine months of 2022-23 increased to Rs 856 crore from Rs 693 crore in April-December 2021-22.
According to the bank, as of December 2022, it had 18.42 lakh PMJDY accounts and CASA deposits totalling Rs. 539 crore. As of Q3FY23, the bank had 1528 branches, of which 572 were rural, 278 semi-urban, 356 urban, and 322 metro, as well as 803 ATMs and 357 BCs.
BANKS Q3FY23 PERFORMANCE IN NUTSHELL:
~Financial Results for the Quarter and Nine Months Ended 31st December 2022~
Key Highlights (Q3 FY 2023)
- Net Profit stands at Rs.373 Cr against Net Profit of Rs.301 Cr for Dec’ 2021 and Rs.278 Cr for Sept’ 2022, a growth of 23.92% and 34.17% respectively.
- Operating Profit up by 8.18% (Q-o-Q) and 3.61% (Y-o-Y).
- Gross Non-Performing Assets (GNPA) ratio reduces by 608 bps on Y-o-Y basis to 8.36%.
- Net Non-Performing Assets (NNPA) ratio reduces by 99 bps on Y-o-Y basis to 2.02%.
- Capital Adequacy ratio (CRAR) at 15.57% with Common Equity Tier 1 (CET-1) ratio of 12.79% at the end of December 2022.
- Return on Assets (RoA) improves to 1.11%, improvement of 13 bps (Y-o-Y).
- Net Interest Income grows by 6.20% on Y-o-Y basis.
- Yield on Advances improves to 8.11%, improvement of 42 bps (Y-o-Y).
- CASA Deposit grows by 11.33% on Y-o-Y basis and its share in Total Deposit stands at 33.30%, improvement of 67 bps.
- RAM (Retail, Agriculture & MSME) Advances up by 19.07% (Y-o-Y).
- Retail advances up by 32.31% to Rs.14739 Cr (Y-o-Y).
- MSME advances up by 14.92% to Rs.13929 Cr (Y-o-Y).
- Agriculture advances up by 9.63% to Rs.11288 Cr (Y-o-Y).
- Credit – Deposit (CD) ratio improves to 71.00%, improvement of 452 bps (Y-o-Y).
- Slippage ratio improves to 0.36% for Q3 FY2023 from 0.58% for Q2 FY2023.
Other Highlights:
- Total Business grows by 12.08% on Y-o-Y basis to Rs.187242 Cr as on Dec’ 2022.
- Total Deposit up by 9.11% on Y-o-Y basis to Rs.109497 Cr in Q3 FY2023.
- Gross Advances up by 16.54% on Y-o-Y basis to Rs.77745 Cr as on Dec’ 2022 against Rs.66710 Cr as on Dec’ 2021.
- RAM advances as a percentage of Gross Advances stands at 51.39%, improvement of 109 bps (Y-o-Y).
- Bank surpasses the targets in Priority Sector Advance at 52.54% and Agriculture Advance at 20.15% of ANBC, as on Sept’ 2022, against the target of 40% and 18% respectively.
- Credit to Small and Marginal farmers stands at 11.22% of ANBC, against the target of 9.50%.
- Credit to Weaker Sections stands at 13.41% of ANBC, against the target of 11.50%.
- Credit to Micro Enterprises stands at 13.25% of ANBC, against the target of 7.50%.
- Operating Profit shows a growth of 3.61% on Y-o-Y basis to Rs.344 Cr for Q3 FY2023 as against Rs.332 Cr for Q3 FY2022. The same was Rs.318 Cr for the quarter ended 30.09.2022.
- Cost to Income Ratio improves to 63.47% for Q3 FY2023 as against 64.20% for Q3 FY2022. The same was 65.30% for the quarter ended 30.09.2022.
- Provision Coverage Ratio (PCR) (including TWO) stands at 89.31% in Dec’ 2022 against 87.77% in Dec’ 2021.
Financial Inclusion:
Bank is having 18.42 lakh PMJDY accounts with a CASA Deposits of Rs.539 Cr as at Dec’ 2022.
Distribution Network:
As on 31st Dec’ 22, the Bank has 1528 number of branches, out of which 572 are Rural, 278 Semi-Urban, 356 Urban and 322 Metro along with 803 number of ATMs, 357 BCs.
Awards & Accolades:
- Top Improver Bank in EASE Reforms Index 5.0 for Q2 FY 2022-23.
- 3rd Top Performing Bank in Theme 4 i.e. Collaboratively and Development focused banking under EASE 5.0 as on 30.09.2022. Ends
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