You are here: Home » PTI Stories » National » News
Business Standard

Punjab & Sind Bank posts Rs 255cr loss for Q3 as bad loans soar

Business Finance

Press Trust of India  |  New Delhi 

Punjab & Sind Bank on Monday reported a net loss of Rs 255.49 crore for the quarter ending December due to a spike in bad loans.

The state-owned lender had made a net profit of Rs 22.34 crore during the same quarter of the previous fiscal year.

Total income during the third quarter of 2019-20 declined to Rs 2,077.01 crore from Rs 2,337.13 crore for the year ago same period, the bank said in a regulatory filing.

Bad loans or non-performing assets (NPAs) of the bank showed deterioration as gross NPAs jumped to 13.58 per cent of gross advances by the end of December 2019 as against 11.19 per cent by the same period of 2018.

In value-terms, gross NPAs were Rs 8,923.49 crore by end-December, higher than Rs 7,990.67 crore at end-December 2018.

Net NPAs too increased to 8.71 per cent (Rs 5,417.79 crore) from 6.90 per cent (Rs 4,696.47 crore).

Provisions for bad loans during the quarter increased to Rs 464.01 crore as against Rs 453.88 crore the bank had parked aside in the year ago quarter.

The bank is carrying a provision of Rs 11.52 crore as against the outstanding balance of Rs 230.40 crore as at December 31, 2019 being 5 per cent of outstanding food credit availed by Punjab as per the RBI letter issued to SBI, the lead bank.

PSB shares closed at Rs 18.45 on BSE, down 1.60 per cent from previous close.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, February 10 2020. 20:40 IST