Punjab & Sind Bank (PSB) on Saturday reported a 63 per cent decline in net profit for the quarter ended June 30, at Rs 24 crore (Rs 64 crore).
Total income for the quarter under review increased 16 per cent to Rs 1,844 crore (Rs 1,595 crore). Operating profit grew 6 per cent to Rs 177 crore (Rs 167 crore).
Increase in bad loans and restructured assets hit the bottomline. This also led to higher provisioning towards income taxes.
“The loan restructuring — mainly to electricity distributors — hit our balance sheet this quarter. The increase in bad loans also impacted the financial performance”, Mr P. K. Anand, Executive Director, PSB told Business Line.
While bad loans were on the rise across sectors, it was more visible in textiles, he added.
Gross Non-Performing Assets (NPAs) of the bank as at end June stood at Rs 823 crore (Rs 531 crore), which is 1.73 per cent of advances.
The net NPA number as on June 30 stood at Rs 583 crore (Rs 331 crore). The net NPA ratio stood at 1.23 per cent , higher than 0.77 per cent as of June-end 2011. While provisions (other than taxes) increased to Rs 86 crore (Rs 68 crore), the provision towards tax expense nearly doubled to Rs 68 crore (Rs 35 crore)
On the outlook for the bank in the coming quarters, Mr Anand said that much would depend on how the economy performs in the coming days.