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Punjab & Sind Bank FY20 loss widens to Rs 991 crore on higher provisions; stock hits 5% lower circuit

In Q4 FY20, Punjab & Sind Bank's net loss increased to Rs 236.30 crore compared to loss of Rs 58.57 crore in Q4 FY19, on account of higher provisions for bad loans

Chitranjan Kumar | June 30, 2020 | Updated 18:00 IST
Punjab & Sind Bank FY20 loss widens to Rs 991 crore on higher provisions; stock hits 5% lower circuit
Shares of Punjab & Sind Bank were trading at Rs 15.52 apiece, down 4.96 per cent, on the BSE

Public sector lender Punjab & Sind Bank has closed financial year 2019-20 (FY20) with net loss of Rs 990.80 crore as compared to loss of Rs 543.48 crore in 2018-19, due to decline in net interest income and rise in provisions. For the fourth quarter ended March 31, 2020 (Q4 FY20), the state-owned lender's net loss widened to Rs 236.30 crore on account of higher provisions for bad loans. The lender had posted a loss of Rs 58.57 crore in January-March quarter of FY19, Punjab & Sind Bank said in a regulatory filing.

For the full financial year, total income declined by 5.96 per cent to Rs 8,826.92 crore in FY20 as against Rs 9,386.95 crore in FY19. For Q4 FY20, total income decreased to Rs 2,289.43 crore against Rs 2,304.37 crore in the year-ago period, Punjab & Sind Bank said in a filing to the Bombay Stock Exchange.

Interest income of the bank too declined to Rs 7,929.53 crore in FY20 from Rs 8,558.67 crore in the preceding financial year. For Q4 FY20, interest income fell to Rs 190433 crore as compared to Rs 201820 crore in March quarter of FY19.

During the quarter under review, the bank earned an operating profit of Rs 429.75 crore as against Rs 404.13 crore in the same period of the previous fiscal. For FY20, operating profit stood at Rs 1,096.91 crore as compared to Rs 1,396.86 crore in FY19.

On asset quality front, gross non-performing assets (GNPAs) as a percentage of gross advances spiked to 14.18 per cent in FY20 compared to 11.83 per cent in FY19. The percentage of net NPA rose to 8.03 per cent against 7.22 per cent last year.

In absolute terms, the gross NPAs or bad loans of the bank were at Rs 8,874.57 crore as on March 31, 2020, compared to Rs 8,605.87 crore in the year-ago period.

As a result of this, provisions for bad loans during the March quarter more than doubled to Rs 683.80 crore, compared to Rs 312.09 crore in the year-ago period. Provision other than tax and contingencies too declined to Rs 817.83 crore from Rs 433.76 crore in the same period a year ago.

Following earnings reports, shares of Punjab & Sind Bank were trading at Rs 15.52 apiece, down 4.96 per cent, as against previous closing price of Rs 16.33 on the Bombay Stock Exchange.

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