Punjab and Sind Bank doubled its net profit to Rs 346 crore in the last quarter ended March 31, 2022. The lender had made a net profit of Rs 161 crore in the year-ago period. Its pre-provision profit also increased by 72% year-on-year to Rs 317 crore.
Lender’s Net Interest Margin (NIM), however, gradually declined by 27 basis points to 2.90% in Q4FY22. On a year-over-year basis, NIM has improved by 71 basis points.
The bank reported that the gross advance growth of about 4% over the year was Rs 70,387 crore in Q4FY22 from Rs 67,811 crore in the previous year. Progress in the retail, agriculture and MSME sectors grew by 10.5% year on year.
Retail loans increased by 15.3% year on year to Rs 11,737 crore while MSME advances increased by 13.3% to Rs 13,021 crore. Corporate debt fell 2.3% year-on-year to Rs 34,695 crore in the March 2022 quarter. Corporate debt constitutes 49.29% of total advances. The bank’s priority sector advances and agricultural advances were Rs 31,178 crore and Rs 12,551 crore, respectively.
“… the bank has continued its special focus on the retail business which has resulted in the formation of RAM (retail, agriculture and MSME) from 48% to 51% where the corporate advance has decreased from 52% to 49% on YoY basis … In the case of agricultural credit, it has exceeded the regulatory target of 40% and 18% respectively, ”said S Krishnan, MD and CEO, Punjab and Sind Bank.
In terms of asset quality, the gross NPA ratio has gradually decreased by 227 basis points to 12.17% in Q4FY22 from 14.44% in Q3FY22 and from 159 basis points per year in Q4FY21 to 13.76%. Net NPA ratio also dropped to 2.74% in Q4FY22, down from 3.01% in Q3FY22. The bank’s provision coverage ratio (PCR) was 87.89% in March 2022 which was 82.89% in March 2021.