Punjab & Sind Bank Q1 net loss narrows

Punjab & Sind Bank on Wednesday said its first quarter net loss narrowed on the back of lower provisioning and higher other income.

The bank posted a net loss of Rs.30 crore for the three months ended 30 June compared to a loss of Rs.398 crore in the year-ago period.

Provisions during the quarter decreased 67.37% to Rs.334.5 crore as against Rs.1,025 crore in the year-ago quarter. In the January-March quarter, the bank had set aside Rs.433.76 crore in provisions.

Other income, which includes core fee income, increased 10.39% to Rs.167 crore in the quarter as compared to Rs.151.25 crore a year ago.

Net interest income, or the difference between interest earned on loans and that paid on deposits, decreased 20.14% to Rs.567.59 crore from Rs.710.73 crore in the corresponding period last year.

Gross non-performing assets (NPAs), as a percentage of total advances, were at 12.88% in the June quarter compared with 11.83% in the March quarter and 10.55% in the year-ago June quarter.

Post-provision, the net NPA ratio was at 7.77% as against 7.22% in the January-March quarter and 5.92% in the year-ago quarter.