State-owned Punjab & Sind Bank (PSB) on Monday reported a net profit of Rs 301 crore for the quarter ended December 2021 on healthy growth in core income and a fall in provisioning requirement.
The lender had posted a net loss of Rs 2,376 crore in the same quarter a year ago. Sequentially, the net profit was up by 38.1 per cent from Rs 218 crore in the quarter ended September 2021.
Total income rose to Rs 2,042.03 crore, as against Rs 1,973.78 crore in Q3 FY21, PSB said in a regulatory filing.
Net interest income was up by 23.1 per cent to Rs 758 crore, from Rs 616 crore.
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The net interest margin improved to 3.17 per cent in the December 2021 quarter from 2.86 per cent in the year-ago period. Also, the cost of deposits for the bank fell to 4.24 per cent from 4.97 per cent, while the cost of funds came down to 3.64 per cent from 4.30 per cent.
The bank's provisions for non-performing assets (NPAs) fell to Rs 325 crore during the quarter, as against Rs 1,482 crore reserved for the same period of the previous fiscal.
However, the gross non-performing assets showed a slight deterioration at 14.44 per cent of the gross advances as of December 31, 2021, from 12.14 per cent a year ago. But it improved quarter-on-quarter from 14.54 per cent at the end of September 2021.
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Likewise, the net NPAs or bad loans rose to 3.01 per cent year-on-year from 2.84 per cent but were down from 3.81 per cent in the preceding quarter.
The stock of the bank was trading 1.44 per cent up at Rs 17.65 apiece on BSE.
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