The Business Bytes
New Delhi, October 20, 2024 (TBB Bureau): Punjab & Sind Bank has posted strong financial performance for the quarter and half-year ended 30 September 2024, registering significant growth across key financial parameters.
The bank reported a Net Profit of ₹240 crore for Q2FY25, representing a 26.98% increase from ₹189 crore in Q2FY24. Total Income witnessed a year-on-year (YoY) rise of 15.86%, reaching ₹3,098 crore, up from ₹2,674 crore in the same quarter last year. Operating Profit showed an impressive surge of 76.15% YoY, amounting to ₹458 crore compared to ₹260 crore in Q2FY24.
Net Interest Income (NII) saw a notable growth of 29.33% YoY, climbing to ₹873 crore from ₹675 crore in the prior year, while the Net Interest Margin (NIM) expanded by 38 basis points (bps) to 2.71%, up from 2.33% in Q2FY24. The bank’s Core Fee Income also experienced a robust increase of 35.88% YoY, totaling ₹178 crore compared to ₹131 crore in Q2FY24.
In terms of business growth, the bank’s Total Business grew by 8.40% YoY to ₹2,15,057 crore, up from ₹1,98,387 crore in the same period last year. Total Deposits increased by 6.48% YoY, reaching ₹1,24,025 crore (compared to ₹1,16,481 crore in Q2FY24). Retail Term Deposits grew by 8.94% YoY to ₹52,239 crore from ₹47,951 crore in Q2FY24. Total Advances showed an 11.14% YoY increase to ₹91,032 crore, driven by a significant 18.09% YoY growth in RAM Advances, which rose to ₹49,033 crore from ₹41,520 crore in Q2FY24. RAM Advances (%) to Gross Advances improved by 317 bps to 53.86% in Q2FY25 from 50.69% in Q2FY24.
The bank demonstrated operational efficiencies, with the Cost-to-Income ratio improving by 958 bps to 62.82% in Q2FY25, compared to 72.40% in Q2FY24. Return on Assets (ROA) also improved, rising by 13 bps to 0.65% compared to 0.52% in the corresponding quarter last year.
Asset quality strengthened significantly, with Gross Non-Performing Assets (GNPA) reducing by 202 bps YoY to 4.21%, compared to 6.23% in Q2FY24. Similarly, Net Non-Performing Assets (NNPA) declined by 42 bps YoY to 1.46%, down from 1.88% in Q2FY24. The bank’s Yield on Advances improved to 8.75% from 8.62% YoY, while Yield on Investment increased to 7.06% from 6.76%.
The bank’s Provision Coverage Ratio (PCR) improved by 48 bps quarter-on-quarter, highlighting its commitment to maintaining a healthy balance sheet.
