Page 5 - Punjab & Sind Bank

Punjab & Sind Bank to buy 2% stake in bad bank NARCL for Rs 55 cr

Punjab & Sind Bank on Friday said it has entered into an agreement to buy 2 per cent stake in asset reconstruction company NARCL for Rs 55 crore. "Punjab & Sind Bank has entered into an agreement with National Asset Reconstruction Company on March 10, 2022 regarding investment in NARCL," the lender said in a regulatory filing. The bank said the equity investment would be done in tranches, with the first investment of Rs 28.18 crore expected to be completed by March 31, 2022. The financial investment is being done to ensure prompt resolution, including recovery of NPA (non-performing assets) accounts, the bank said. NARCL was incorporated on July 7, 2021 with a total authorised share capital of Rs 2,750 crore to act as a bad bank for speedy resolution of bad assets of the banks. In January, SBI Chairman Dinesh Khara said that 38 NPA accounts worth Rs 82,845 crore were identified to be transferred to NARCL. Transfer of these accounts will happen in a phased manner with banks ...

Govt to provide bulk of Rs 15,000 cr capital support to weak PSU banks

Weak public sector lenders like Central Bank of India and Punjab & Sind Bank will get the lion's share of the Rs 15,000 crore earmarked for capital infusion in state-owned banks for the current fiscal. This will help these public sector banks (PSBs) meet regulatory requirements. The capital infusion of Rs 15,000 crore would go mostly to banks which had got money through non-interest-bearing bonds in the previous year as the RBI had raised some concerns on the fair valuation of these instruments, sources said. As per the RBI, the net present value of infusion made last year through zero-coupon bonds is much lower than face value as they were issued at discount, the sources added. These special securities with tenure of 10-15 years are non-interest bearing and valued at par. Such bonds usually are non-interest bearing and issued at a deep discount to the face value. So, the effective Tier 1 capital levels for the banks could be lower than the regulatory requirement. According to ...

Punjab & Sind Bank reports net profit of Rs 301 crore in December quarter

State-owned Punjab & Sind Bank (PSB) on Monday reported a net profit of Rs 301 crore for the quarter ended December 2021 as the lender saw good growth in overall business mix and better cash recoveries following its turnaround strategy started a year back. The lender had posted a net loss of Rs 2,376 crore in the same quarter a year ago. Sequentially, the net profit was up by 38.1 per cent from Rs 218 crore in the quarter ended September 2021. "The bank was undergoing a turbulent time a year before and then the bank turned around in the quarter ended March 2021 after a consecutive loss for about eight quarters. "Since then, the bank has been continuously making profits. Having said that, if we look into Q3FY22, it is one of the highest bottomline that we have. The net profit is at Rs 301 crore while a year before it was a huge loss," S Krishnan, MD and CEO, Punjab & Sind Bank told a media conference after the earnings announcement. Total income rose to Rs 2,042.03 crore, as ...

Punjab and Sind Bank post Rs 301 cr net profit in Q3 versus year-ago loss

Interest margins improve; provisions & contingencies fall sharply

Punjab & Sind Bank posts Rs 218 crore profit in September quarter

Public sector Punjab & Sind Bank (P&SB) on Monday reported a net profit of Rs 218.28 crore in the quarter ended in September 2021 on the back of NPA recovery. The bank had reported a net loss of Rs 401.27 crore in the year-ago period but had a net profit of Rs 173.85 crore in the April-June 2021 quarter. Total income of the bank during the July-September quarter of FY22 was down at Rs 1,945.12 crore against Rs 1,974.78 crore in the corresponding period of FY21, P&SB said in a regulatory filing. The bank's gross non-performing assets (NPAs) rose further to 14.54 per cent of the gross advances at the end of September 2021 from 14.06 per cent at September-end 2020, and from 13.33 per cent by the end of June 2021. The bank managing director S Krishnan said the increase in gross NPA is due to two large accounts of Srei Group. In value terms, the gross NPAs (bad loans) of the Delhi-headquartered bank stood at Rs 9,822.80 crore by end of Q2FY22, as against Rs 8,673.16 crore by ...

Punjab & Sind Bank sets off accumulated losses of Rs 3,577 crore

Punjab & Sind Bank (PSB) on Monday said it has set off accumulated losses of over Rs 3,577 crore against the share premium account of the bank. The bank had obtained approval of shareholders in its AGM in July to set off the accumulated losses from the share premium account. The bank, "subsequent to the approval of the Reserve Bank of India, has appropriated accumulated losses of Rs 3,577.55 crore from share premium account of the bank today", it said in a regulatory filing. Share premium account balance is a reserve that can only be used for defined purposes. It reflects the difference between the face value and subscription price of shares. The New Delhi-headquartered lender has not proposed any dividend for 2020-21. Its accumulated loss stands against the securities premium amount of Rs 4,835.11 crore in its balance sheet. The bank in June said that setting-off of the accumulated losses will present a true and fair view of the financial position of the bank. It will not affect

Govt banks continue to have truncated boards, 10 don't even have a chairman

Meeting quorum of board sub-committees becomes difficult sometimes, say bankers

Punjab & Sind Bank reports first quarter net profit at Rs 174 crore

State-owned Punjab & Sind Bank on Thursday reported a net profit of Rs 173.85 crore for the first quarter ended June 30. The bank had posted a net loss of Rs 116.89 crore a year ago. Sequentially, it had registered a net profit of Rs 160.79 crore in the March 2021 quarter. The total income of the bank during Q1FY22 rose to Rs 2,039.61 crore from Rs 1,954.39 crore in Q1FY21, Punjab & Sind Bank said in a regulatory filing. Provisions for bad loans and contingencies for the quarter fell to Rs 77.30 crore from Rs 382.56 crore in the year-ago period. The bank's asset quality showed an improvement and the gross non-performing assets (NPAs or bad loans) came down to 13.33 per cent of the gross advances as of June 30, 2021, against 14.34 per cent a year ago. In absolute value, the net NPAs stood at Rs 9,054.96 crore, up from Rs 8,848.06 crore. The net NPAs ratio fell to 3.61 per cent (Rs 2,206.70 crore), from 7.57 per cent (Rs 4,326.41 crore). The bank said it has kept the account of .

Reserve Bank of India imposes Rs 25 lakh penalty on Punjab & Sind Bank

The state-owned bank had reported a few cyber incidents to the RBI on May 16 and 20, 2020

Good show by banks but can they sustain it?

Till March, banks could hold on but not all of them will be in a position to stomach the impact of the second wave of the pandemic

Punjab & Sind Bank shares close over 4% higher after Q4 profit

Shares of Punjab & Sind Bank on Monday closed over 4 per cent higher as the company turned profitable in the fourth quarter of the financial year 2020-21 after eight consecutive quarters of losses. The stock rallied 7.33 per cent to Rs 21.95 during the day on the BSE. It closed at Rs 21.35, a gain of 4.40 per cent. On the NSE, it jumped 3.16 per cent to close at Rs 21.20. The state-run bank turned profitable in the fourth quarter of the financial year 2020-21 after eight consecutive quarters of losses, posting a profit after tax of Rs 161 crore on the back of improvement in recoveries and decline in bad loans. The lender had registered a net loss of Rs 236.3 crore in the year-ago period. However, for the full year, its loss widened to Rs 2,732.9 crore as against Rs 990.8 crore in financial year 2019-20. "The profitability is due to our focussed monitoring and also on account of recoveries. Though it has been challenging times, we were able to make a reasonable amount of ...

Shares of Punjab & Sind Bank jump nearly 7% after turning profitable in Q4

Shares of Punjab & Sind Bank on Monday jumped nearly 7 per cent as the company turned profitable in the fourth quarter of FY21 after eight consecutive quarters of losses. The stock rallied 6.60 per cent to Rs 21.80 on BSE. On NSE, it jumped 6 per cent to Rs 21.80. The state-run bank turned profitable in the fourth quarter of FY21 after eight consecutive quarters of losses, posting a profit after tax of Rs 161 crore on the back of improvement in recoveries and decline in bad loans. The lender had registered a net loss of Rs 236.3 crore in the year-ago period. However, for the full year, its loss widened to Rs 2,732.9 crore as against Rs 990.8 crore in FY20. "The profitability is due to our focussed monitoring and also on account of recoveries. Though it has been challenging times, we were able to make a reasonable amount of recoveries. "We were also able to arrest slippages to a great extent. This has helped in bringing down the credit costs, which enabled us to register profit,"

Govt to infuse Rs 14,500 crore in 4 banks, issue recapitalisation bonds

Special securities shall be non-interest bearing and no interest shall be payable on issue of the securities

Govt infuses Rs 5,500-crore equity capital into Punjab and Sind Bank

The government has infused Rs 5,500 crore equity capital into Punjab & Sind Bank in lieu of allotment of over 335 crore preference shares to it. The lender on Thursday allotted 3,35,16,14,868 equity shares of the bank at an issue price of Rs 16.41 per equity share to the government aggregating to Rs 5,500 crore. The shareholders approved the allotment of shares to the government with requisite majority of 99.018 per cent, cast in favour of the resolution, the bank said in a regulatory filing on Friday. With the allotment, Government of India holding has increased from 83.06 per cent to 97.07 per cent, it said. Punjab & Sind Bank stock was trading at Rs 16.10 on BSE, down 1.83 per cent from the previous closes.

Punjab & Sind Bank shares advance nearly 5%; hits the upper circuit

Shares of Punjab & Sind Bank advanced nearly 5 per cent in morning trade on Wednesday after the bank said it will allot shares worth Rs 5,500 crore to the government in lieu of capital infusion. After opening in the green territory, the bank's shares rose 4.98 per cent to hit the upper circuit limit at Rs 17.48 a piece on the BSE. The scrip hit its upper trading limit on the NSE as well, with a gain of 4.80 per cent at Rs 17.45. An extraordinary general meeting (EGM) of the shareholders of the bank is scheduled on March 25, 2021 for preferential issue of equity shares to the government up to Rs 5,500 crore, the bank said in a regulatory filing on Tuesday. The EGM, the bank said, will take place through video conferencing and other audio visual means for passing the resolution for issuing shares to the government. In September, the government had approved a Rs 20,000 crore fund as part of the Supplementary Demands for Grants for 2020-21, for capital infusion into public sector ...

Punjab & Sind Bank loss zooms to Rs 2,375 cr in Q3 as provisions spike

Punjab & Sind Bank on Saturday said its net loss in December quarter 2020-21 spiralled to Rs 2,375.53 crore on higher provisions for bad loans. The lender had posted a net loss of Rs 255.49 crore in the same period a year ago. In September quarter also, the bank had a loss of Rs 401.27 crore. Total income in the quarter under review also fell to Rs 1,982.52 crore from Rs 2,077.01 crore in the same period of 2019-20, Punjab & Sind Bank said in a regulatory filing. Net income fell 9.1 per cent to Rs 1,763.10 crore and income on investments was down 12.1 per cent to Rs 455.42 crore. The bank's gross non-performing assets (NPAs) remained high at 13.14 per cent of the gross advances as of December 31, 2020, compared to 13.58 per cent by the year-ago same period. In value terms, gross NPAs or bad loans stood at Rs 8,489.89 crore by the end of December 2020 as against Rs 8,923.49 crore earlier. Net NPAs came down significantly at 2.84 per cent (Rs 1,638.25 crore) as against 8.71 per .

Punjab & Sind Bank reports fraud of Rs 94 crore in NPA account

Punjab & Sind Bank on Thursday reported a fraud of Rs 94.29 crore in an NPA account of Supertech Township Projects. In a regulatory filing, the state-owned lender said it has reported the fraud to the Reserve Bank of India (RBI). "...it is informed that an NPA Account, viz M/s Supertech Township Projects Limited with outstanding dues of Rs 94.29 crore has been declared as fraud and reported to RBI today as per regulatory requirement," the Delhi-headquartered bank said. The account has been fully provided for as per the existing RBI norms, it added.

Best of BS Opinion: Bank recap, a wobbly first year for the CDS & more

Here's a selection of Business Standard opinion pieces for the day

Short-cut on bank recap

P&SB's zero-coupon bonds violate prudent accounting practices

RBI may red-flag Punjab and Sind Bank's Rs 5,500-crore zero-coupon bonds

Bank could be asked to hold it at discounted value in HTM