Punj Sind Bank

The reduction is operating costs and cost to deposits most certainly helped the Bank boost its profitability but in terms of asset quality, there are more miles to go. The Bank’s operating profit rose 20% (YoY) at Rs.329 crore and net profit too showed a healthy 24% rise at Rs.53 crore. Total operating costs were down 6% and cost of deposit reduced from 7.79% to 7.06%. Net Interest Income (NII) rose 8.5% to Rs.561 crore while Net Interest Margins (NIM) improved from 2.10% to 2.25%.

On the asset quality front, Gross NPA (QoQ) rose from 6.48% to 7.23% and Net NPA rose from 4.62% to 5%.  And despite this fall in asset quality, provisions for NPAs, sequentially, fell 41% to Rs.207 crore.

Govt of India holds 79.62% stake and LIC holds 10.49%.