Public sector lender Punjab & Sind Bank on Wednesday reported a net loss of Rs 468.73 crore for the second quarter ended September 30, 2019, widening from a net loss of Rs 109.23 crore in the same quarter previous year, on account of higher provisioning.
"The bank had posted a net loss of Rs 30.38 crore in the June quarter," Punjab & Sind Bank said in a filing to the Bombay Stock Exchange.
Total income of the bank declined to Rs 2,222.57 crore as against Rs 2,409.41 crore in the same period a year ago and Rs 2,237.91 crore in June quarter.
Punjab & Sind Bank's other income (non-interest income), including core fee income, declined marginally to Rs 208.91 crore against Rs 209.42 crore in the same period last year.
During the July-September period of this fiscal, the bank's operating profit (before Provisions & Contingencies) increased to Rs 250.69 crore from Rs 350.51 crore in the year-ago period.
The provisions and contingencies of Punjab & Sind Bank rose sharply by 63.81 per cent to Rs 972.62 crore as compared to Rs 593.73 crore made in the year-ago quarter. The bank's provisions, stood at Rs 334.53 crore in June quarter.
As of September 30, 2019, the provision coverage ratio and liquidity coverage ratio stood at 65.52 per cent and 166.66 per cent, respectively (previous quarter 59.77 per cent and 166.35 per cent, respectively).
Retail advances increased from Rs 15,425 crore to Rs 16,137 crore and priority sector lending rose to Rs 28,124 crore from Rs 27,233 crore in the year-ago period.
The business of the bank stood at Rs 161,558 crore as on September 30, 2019. Current account savings account (CASA) has improved from 22.91 per cent to 26.20 per cent on YoY basis.
The bank's asset quality declined during September quarter, as gross non-performing assets (NPAs) ratio increased to 13.64 per cent, versus 10.02 per cent in the year-ago quarter. Net NPA increased to 7.07 per cent from 5.25 per cent in the corresponding quarter last year. The bank's absolute gross NPA stood at Rs 9,218.22 crore in Q2FY20 against Rs 7,202.17 crore in Q2FY19.
Following Q2 earnings, shares of Punjab & Sind Bank declined 3.33 per cent to close at Rs 18.85 apiece on the Bombay Stock Exchange.
Edited by Chitranjan Kumar