State-owned Punjab & Sind Bank announced a significant rise in its net profit for the December 2024 quarter, reporting Rs. 282 crore, more than doubling the Rs. 114 crore recorded in the same quarter last year. The impressive growth is attributed to a decline in bad loans and improved income.
The bank’s total income rose to Rs. 3,269 crore during the quarter, compared to Rs. 2,853 crore in the previous year. Interest income also saw an increase, reaching Rs. 2,931 crore from Rs. 2,491 crore.
Asset quality improved substantially, with gross non-performing assets (NPAs) reducing to 3.83% of gross loans by December 2024, down from 5.70% a year earlier. Similarly, net NPAs fell to 1.25% from 1.80%. The Provision Coverage Ratio, including technically written-off accounts, improved to 89.53% from 88.16%. The bank’s Capital Adequacy Ratio stood at 15.95%, slightly lower than 16.13% recorded at the end of December 2023.
During the quarter, the bank successfully raised Rs. 3,000 crore through the issuance of long-term infrastructure bonds on a private placement basis. Additionally, the bank disclosed a funded exposure of Rs. 123.84 crore in two accounts under litigation, for which adequate provisions have been made.
