Punjab & Sind Bank's Q2 PAT Drops 32% YoY To Rs 189 Cr, Stock Declines

In Q2 FY24, the standalone profit before tax for Punjab & Sind Bank amounted to Rs 295.25 crore, marking a significant 53.2 per cent year-on-year growth. However, the bank's Net Interest Income (NII) experienced a 12.90 per cent decline, dropping to Rs 675 crore in Q2 FY24 compared to Rs 775 crore in Q2 FY23. The Net Interest Margin (NIM) also decreased to 2.32 per cent in Q2 FY24, down from 3.06 per cent in Q2 FY23.

During the quarter, the bank's total business expanded by 10.85 per cent year-on-year, reaching Rs 1,98,387 crore. Gross Advances increased by 11.08 per cent YoY, amounting to Rs 81,906 crore. Total Deposits also saw a 10.68 per cent increase, reaching Rs 1,16,481 crore compared to the corresponding quarter last year.

CASA deposits for Q2 FY24 stood at Rs 36,327 crore, showing a 3.49 per cent growth compared to Q2 FY23, with a CASA ratio of 31.19 per cent as of September 2023, down from 33.36 per cent as of September 2022.

Regarding asset quality, the Gross Non-Performing Assets (GNPA) were reported at Rs 5,106.41 crore as of September 2023, compared to Rs 5,464.16 crore as of June 2023 and Rs 7,128.45 crore as of September 2022. The Gross NPA decreased by 344 basis points to 6.23 per cent in Q2 FY24, down from 9.67 per cent in Q2 FY23. The Net NPA also improved to 1.88 per cent in Q2 FY24, down from 2.24 per cent in Q2 FY23.

The Capital Adequacy Ratio (CARAR) increased by 155 basis points to 17.23 per cent and the Tier I Capital Ratio improved by 188 basis points to 14.53 per cent in Q2 FY24.

The bank's recovery and upgradation amounted to Rs 594 crore, reflecting a 17.62 per cent increase in Q2 FY24 compared to Rs 505 crore in Q2 FY23.

The core fee income for the bank in Q2 FY24 was Rs 131 crore, showing substantial growth of 28.43 per cent year-on-year. Additionally, the yield on advances reached 8.62 per cent in Q2 FY24, improving by 95 basis points.