Punjab & Sind Bank Q4 earnings rise 13%

Public sector lender Punjab & Sind Bank on Saturday reported a 13 per cent increase in net profit at Rs 147.80 crore (Rs 130.27 crore) for the fourth quarter ended March 31.

However, for fiscal 2011-12, the net profit declined by 14 per cent to Rs 451.2 crore (Rs 526.17 crore in 2010-11). This decline has prompted the bank to maintain a dividend payout at Rs 2 a share for 2011-12 as well, bank officials said.

The net profit performance for 2011-12 was weighed down by sluggish growth in credit (six per cent) and additional depreciation in Government securities of Rs 51 crore, said Mr P.K. Anand, Executive Director.

Mr D.P. Singh, Chairman & Managing Director, said he expected the economy to grow faster this fiscal. Riding on increased economic activity, the bank has set a target of 21 per cent growth in overall business this year. While the aim in advances growth has been pegged at 23 per cent, it is looking at 20 per cent growth in deposits.

BLOW FROM KINGFISHER

The debt-laden Kingfisher Airlines has turned a non-performing asset for Punjab & Sind Bank. “The airlines' account has become sub-standard for the bank in the March quarter,” Mr Anand told Business Line.

The bank had an exposure of Rs 50 crore as part of a consortium lending to Kingfisher Airlines.

It has also taken a hit on account of the recent debt recast of state-owned Air India. The estimated impact is about Rs 64 crore spread over eight quarters, bank officials said.

krsrivats@thehindu.co.in