State-owned Punjab and Sind Bank (PSB) today reported a 77.8 per cent decline in net profit at Rs 13.70 crore for the second quarter ended September, mainly due to rise in bad loans.
Net profit of the bank stood at Rs 61.89 crore for the same quarter a year ago.
Total income also declined to Rs 2,166.64 crore in the second quarter from Rs 2,203.74 crore in the corresponding period a year earlier, PSB said in a statement.
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For the quarter under review, the bank's asset quality deteriorated further as Gross non-performing assets (NPAs) surged to 11.25 per cent of gross advances from 8.63 per cent a year earlier.
Net NPAs also soared to 7.72 per cent from 6.21 per cent year ago.
As a result, provision for bad loans rose to Rs 277.36 crore as against Rs 228.14 crore a year ago.
During the quarter, it said, Net Interest Margin (NIM) improved to 2.27 per cent from 2.07 per cent a year earlier.
At the same time, Net Interest Income (NII) increased to Rs 596 crore from Rs 519 crore as compared to the same period last fiscal.
The bank is committed to bring overall improvement in the performance especially by improving asset quality and recovery of NPAs, it said.
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