Punjab & Sind Bank profit down 42% at Rs. 58 cr in Q3

State-run Punjab & Sind Bank today posted a 42 per cent decline in net profit to Rs. 58 crore in the third quarter ended December 31, 2014.

The lender had earned a net profit of Rs. 100.1 crore in the October—December quarter of 2013—14.

Total income during the quarter increased to Rs. 2,266.34 crore as against Rs. 2,172.19 crore a year ago, Punjab & Sind Bank said in a filing to the BSE.

However, operating profit of the bank declined to Rs. 161.29 crore as against Rs. 190 crore in the year—ago period.

Gross NPAs as a percentage to total advances rose significantly to 5.01 per cent from 3.84 per cent in the same quarter a year ago.

Its net NPAs went up to 3.81 per cent from 2.68 per cent at the end of December 2013.

Gross NPA in absolute terms rose to Rs. 2,996.05 crore as compared to Rs. 2,195.76 crore.

Total provisions, excluding for income tax, rose to Rs. 104.93 crore as against Rs. 85.37 crore in the year—ago period.

Shares of the bank closed at Rs. 57.60 per unit, down 1.54 per cent on the BSE.


Source : Thehindubusinessline

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Punjab and Sind Bank to allot 9.46 crore shares on pref basis

The shareholders of Punjab and Sind Bank have approved a special resolution for allotting over 9.46 crore shares on a preferential basis to the Government of India at Rs59.14 a share. This was done at an extraordinary general meeting (EGM) held in the Capital on Friday, the bank said in a filing to the stock exchanges.

The allotment would be done by converting Rs200 crore worth of perpetual non-cumulative preference shares, Rs200 crore worth of perpetual cumulative preference shares and Rs160 crore worth of innovative perpetual debt instruments held by the Government.

The EGM also voted on allotting over 6.76 crore shares to LIC and GIC (along with its subsidiaries) at the same price on preferential basis.

After the preferential allotment, LIC’s stake in the bank would go up to 9.6 per cent from 4.2 per cent now, while that of GIC and its subsidiaries to 8.54 per cent from 0.06 now. The Government’s stake would come down from 81.41 per cent to 72.85 per cent.


Source : The Hindu

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Punjab & Sind Bank Q2 net down 63% at Rs 43 cr

Punjab & Sind Bank (PSB) has reported a 63 per cent decline in net profit for the quarter ended September 30 at Rs 43 crore (Rs 117 crore).

Total income for the quarter under review increased by 5 per cent to Rs 1,980 crore (Rs 1,886 crore).

For the six months ended September 30, PSB has reported a 17 per cent increase in net profit at Rs 165 crore (Rs 141 crore).

Total income in the first half of the current fiscal increased 7 per cent to Rs 3,981 crore (Rs 3,730 crore), PSB said in a filing with the stock exchanges.

Srivats.kr@thehindu.co.in

Source: thehindubusinessline

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IRDA slaps fine on Punjab & Sind Bank

The Insurance Regulatory and Development Authority (IRDA) has imposed Rs 5 lakh penalty on Punjab & Sind Bank for violating the norms for corporate agencies.

In an order, the regulator said that the bank has received payments from Aviva Life Insurance Company Ltd as its corporate agent over and above the permissible level of commission in the form of rent for infrastructure and advertisement and publicity expenses, among others.

This was in violation of the regulation and hence the penalty was imposed, the order said.

naga.gunturi@thehindu.co.in

Source: thehindubusinessline

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Punjab & Sind Bank cuts lending rate by 0.26%

Punjab & Sind Bank on Thursday announced a cut of 0.26 per cent in minimum lending rate to 9.99 per cent, a move which will lower EMIs.

The bank has reduced its base rate to 9.99 per cent from 10.25 per cent, Punjab & Sind Bank said in a statement.

All loans linked to base rate would become cheaper by at least 0.25 per cent. Base rate is the minimum lending rate below which banks cannot lend. The new rate would be effective from August 1, it added.

The change in the base rate shall immensely benefit the borrowing clientele of the bank, Punjab & Sind Bank Chairman and Managing Director D P Singh said.

Pursuant to decrease in base rate of the bank, the EMI on housing loans has come down to Rs 877 per lakh for a loan of 30 years and for auto loans the EMI has dropped to Rs 1686 per lakh for a loan of 7 years, he said.

Following Finance Minister P Chidambaram’s advice earlier this month, some banks, including Canara Bank, Union Bank of India and Bank of India reduced base rate by up to 0.3 per cent.

During the meeting with heads of public sector banks, the finance minister had asked banks to consider reducing lending rates to stimulate credit growth.

“We have advised banks to take a look at the base rate.The base rate of SBI is 9.7 per cent. The average of the base rate of other banks is 10.2 or 10.25,” he had said.

A cut in the base rate would be a powerful booster for the economy and a powerful stimulus to credit growth, he had said.

Source: thehindubusinessline

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PNB's KR Kamath leads bank chiefs’ clamour for a cut in policy rate

Punjab National Bank ( PNB) chairman KR Kamath led chief executives' call for a reduction in cash reserve requirement if the central bank is serious about lowering borrowing costs in the system, but voices seeking interest rate cut were feeble.

Demand for a cut in the repo rate, the rate at which the central bank lends to banks, which has been a constant for nearly two years, is fast vanishing from the thoughts of the industry as the currency slide makes it meaningless. There are fears that a sustained fall in the value of the currency could force the central bank to reverse its stance and raise borrowing costs.

"We asked RBI to give relief on CRR and repo rate, and also asked RBI to pay interest on CRR," Kamath told reporters after the customary pre-monetary policy meeting with central bank officials. "We also asked RBI to relax provisioning norms on restructured assets." Quarterly monetary policy is scheduled to be released on July 30.

The near 12% slide of the Indian rupee since May is threatening to fan inflation in the form of higher diesel and coal prices. Inflation as measured by the WPI which fell below 5% may begin to climb again throwing a spanner in the works. Industry, government and investors have been lobbying for interest rate cuts to reverse the slump in economic growth.

The repo rate is at 7.25% and the CRR, the proportion of deposits to be kept at the RBI, is at 4%. "If the rupee remains at its current levels (rupee averages .`58 per US$), average WPI inflation for 2013-14 would be closer to 6% rather than our baseline forecast of 5.3%," forecasts Crisil, a rating company.

With little clarity on the way the Federal Reserve may go, governor Duvvuri Subbarao could opt to pause on July 30. "While slowing growth does call for a rate cut, a sharp rupee depreciation of 12% against the dollar since April 13 and rising capital outflows of $8.8 billion since May 22, would likely restrict rate cuts in the near term, especially till the Fed's Sep 17 meeting," Religare Capital said in a note.

Abank chief who did not want to be quoted said that bankers conveyed to RBI that a cut in CRR will send a positive signal to corporates that interest rates are moving southward and it will also enable them to lower lending rates.

Last week, a few banks like Bank of India, Union Bank of India and Canara Bank cut lending rates due to pressure from finance ministry. During the meeting with RBI, banks indicated that a cut in CRR will result in a further reduction in lending rate.

In the past, SBI chief Pratip Chaudhuri has categorically said that the bank will be in a position to lower rate only if RBI cuts CRR. SBI has pegged its base rate — the floor rate at which it lends — stands at 9.70%.

During the meeting, bankers also told RBI that considers a reduction in provisioning norms for restructured loans. As per the revised guidelines banks have to make a provision of 5% for new restructured loans and 3.50% on all the old restructured loans from March 2014.

Bankers told senior RBI officials that these provisioning requirements are very steep given that the economy is facing a slowdown. Restructured loans constitute 5-6% of banks' loan book.

Source: EconomicTimes

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Punjab & Sind Bank, United Bank lower lending rates

Punjab & Sind Bank and United Bank of India today announced reduction of minimum lending rate, or base rate, by 0.25 per cent and 0.20 per cent respectively.

“The Bank has revised its ‘base rate’ from existing 10.50 per cent per annum to 10.25 per cent per annum with effective from March 1, 2013,” Punjab & Sind Bank said in a filing to the BSE.

Base rate is the minimum rate at which banks lend to customers.

“United Bank of India...has revised its base rate i.e., the benchmark rate for pricing its loan products, from existing 10.45 per cent to 10.25 per cent w.e.f. February 25, 2013,” United Bank of India said in a filing to the BSE.

Banks have been passing the benefit to the customers by cutting their lending rates post RBI’s decision to cut the repo rate in its monetary policy review in last month.

Country’s largest lender, SBI and others such as IDBI Bank, Royal Bank of Scotland, Punjab National Bank, Union Bank of India and Oriental Bank of Commerce, Syndicate Bank, Allahabad Bank, Federal Bank have already cut their lending rates.

Shares of Punjab & Sind Bank today closed at Rs 64.85 apiece on BSE, up 0.08 per cent from their previous close while shares of United Bank of India closed at Rs 67.25 apiece on BSE, down 0.22 per cent from their previous close.


Source: thehindubusinessline

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Punjab & Sind Bank to get Rs 140-cr capital infusion

State-owned Punjab & Sind Bank said it will get Rs 140-crore fund infusion through preferential issue of shares to the Government by end of next month.

The bank proposes preferential allotment of 1.98 crore shares to the Government aggregating about Rs 140 crore, Punjab & Sind Bank said in a statement.

The proposed price for preferential issue is Rs 70.66 a share including premium of Rs 60.66 per unit, it said

Following the infusion, the Government holding in the bank will go up to 79.86 per cent against the existing 78.16 per cent. With the issuance of about 1.98 crore preference shares, the total number of shares with Government will go up to about 20.28 crore.

This fund infusion is subject to shareholders approval, which will be sought on March 11 in an extraordinary general meeting.



Source: thehindubusinessline

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Punjab and Sind Bank Q2 net falls 21%

Punjab and Sind Bank on Friday said its net profit for the July-September period fell by 20.8 per cent to Rs 117.07 crore.

Its net profit over the same quarter a year ago stood at Rs 147.76 crore.

The total income of the state-owned lender grew by 10.2 per cent to Rs 1,885.75 crore in the second quarter from Rs 1,711.27 crore over the corresponding period a year earlier, PSB said in filing to BSE.

However, its income from other sources fell to Rs 87.34 crore in the second quarter from Rs 104.74 crore.

“Net NPA stood at Rs 774.49 crore as on September 30, 2012 against Rs 297.46 crore as on September 30,2011. The net NPA ratio is 1.58 per cent as on September 30, 2012 as against 0.71 per cent as on September 30, 2011,” it said.

Its total business stood at Rs 1.15 lakh crore as on September 30, 2012 against Rs 1.03 lakh crore as on September 30, 2011.

PSB scrips settled at Rs 66.20 a piece on the BSE today, down 3.98 per cent from the previous close.

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Punjab & Sind Bank pays Rs 36.61-cr dividend to Centre

Punjab & Sind Bank has paid Rs 36.61 crore to the Central Government towards dividend for the financial year 2011-12.

A sum of Rs 5.94 crore has also been paid as dividend distribution tax.

The dividend cheque was handed over to Finance Minister P. Chidambaram by the bank’s Chairman & Managing Director D.P. Singh here today.

For the financial year 2011-12, PSB had declared 20 per cent dividend on the equity shares.

srivats.kr@thehindu.co.in

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Punjab & Sind Bank net down 63% in first quarter

Punjab & Sind Bank (PSB) on Saturday reported a 63 per cent decline in net profit for the quarter ended June 30, at Rs 24 crore (Rs 64 crore).

Total income for the quarter under review increased 16 per cent to Rs 1,844 crore (Rs 1,595 crore). Operating profit grew 6 per cent to Rs 177 crore (Rs 167 crore).

Increase in bad loans and restructured assets hit the bottomline. This also led to higher provisioning towards income taxes.

“The loan restructuring — mainly to electricity distributors — hit our balance sheet this quarter. The increase in bad loans also impacted the financial performance”, Mr P. K. Anand, Executive Director, PSB told Business Line.

While bad loans were on the rise across sectors, it was more visible in textiles, he added.

Gross Non-Performing Assets (NPAs) of the bank as at end June stood at Rs 823 crore (Rs 531 crore), which is 1.73 per cent of advances.

The net NPA number as on June 30 stood at Rs 583 crore (Rs 331 crore). The net NPA ratio stood at 1.23 per cent , higher than 0.77 per cent as of June-end 2011. While provisions (other than taxes) increased to Rs 86 crore (Rs 68 crore), the provision towards tax expense nearly doubled to Rs 68 crore (Rs 35 crore)

On the outlook for the bank in the coming quarters, Mr Anand said that much would depend on how the economy performs in the coming days.

srivats.kr@thehindu.co.in

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Punjab & Sind Bank launches ‘tatkal’ scheme to sanction loans for corporates

Punjab and Sind Bank has launched a ‘tatkal’ scheme for sanctioning loans above Rs 25 crore for businesses.

“Everybody has a request for quick disposal of their loan applications and there is good demand especially from the corporates in this regard,’’ Mr Divinder Pal Singh, Chairman and Managing Director, Punjab and Sind Bank, told Business Line .

The loan can be applied for at any branch through a SMS with the details of company’s name, gist of proposal and the bank would get back to the customer.

“We will convey the expression of interest within 15 days from the time of first application,” Mr Singh said.

When asked on the nature of demand for loans post–RBI’s policy last week, the CMD said although key rates were not cut, the demand for corporate loans was still there.

Punjab and Sind Bank would also be fast-tracking housing and car loans, he added.

The bank would primarily focus on lending to infrastructure (roads, ports etc), tourism and hospitality industry. “Though there has been some concern, I still think there is some scope for lending even to real estate,’’ Mr Singh said.

EXPANSION

“We have been strong in Delhi and Punjab but see a need to expand in Andhra Pradesh, Tamil Nadu, Karnataka besides Maharashtra and Madhya Pradesh this year,’’ he said.

About 300 branches will be added to the existing network of over 1,000 branches. The recruitment of 1,000 probationary officers would also be taken up, he added.

“We are targeting at 25 per cent growth in the total business this year. The net interest margin might reach 3 per cent by end of December quarter,’’ Mr Singh said.

As of of March 31, 2012, the bank had a net interest margin of 2 per cent.

nagsridhu@thehindu.co.in

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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

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Punjab & Sind Bank cuts lending rate by 0.25%

State-owned Punjab & Sind Bank (PSB) today slashed its lending rate by 0.25%, in line with other lenders.

The bank has revised its base rate by 0.25% to 10.50% from from 10.75% per annum, PSB said in a BSE filing.

Base rate is the benchmark rate below which a bank cannot lend. With the reduction in the base rate, all kinds of loans would be cheaper by at least 0.25%.

The new rate would be effective from May 1.

Last week, PSB had trimmed its fixed deposit rates across various maturities in line with the market trend.

Following the Reserve Bank's decision to cut key interest rate by 0.5% to 8% in its annual credit policy last month, several banks including ICICI Bank, IDBI Bank and Punjab National Bank have reduced both lending and deposit rates.

Source: Business Standard

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Punjab & Sind Bank to hire 1,700 officers, clerks

Punjab and Sind Bank has notified the recruitment of 900 probationary officers and 800 clerks.

Candidates, who had taken the common written examination for probationary officers and clerical cadre vacancies conducted by the Institute of Banking Personnel Selection in 2011 and obtained a valid score card, are eligible to apply.

Clerical recruitment is earmarked for single window operators ‘A’ category of posts. Online registration for applying commenced on April 24 and will continue up to May 5, the bank said in a notification.

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Punjab & Sind Bank raises fixed deposit rates by up to 5 per cent

Taking a cue from other public sector lenders, Punjab and Sind Bank (PSB) has also announced an increase-- which is as steep as 5 percentage points-- in fixed deposit rates of select maturities amid tight liquidity situation.

Fixed deposits with maturity period of 7-15 days will earn 9 per cent interest as against existing 4 per cent, PSB said in a statement.

Interest rates on 15-30 days and 31-45 days fixed deposits have also been raised to 9 per cent/ Term deposits of 91-150 days will also attract 9 per cent interest rate, effective tomorrow.

However, interest rate one-year deposit has been raised by just 0.15 percentage points to 9.75 per cent from 9.60 per cent.

PSB last revised its fixed deposit rates in August last year.

Earlier this month, large public sector banks like Bank of Baroda, Bank of India also revised their deposit rates upwards.

According to analysts, the fixed deposit rate hike is mainly because of tight liquidity situation.

To improve liquidity in the system, RBI this month had reduced the cash reserve ratio (CRR)-- the portion of deposits banks require to keep with the central bank -- from 5.5 per cent to 4.75 per cent.

With the reduction, the central bank pumped in Rs 48,000 crore in the economy.

Source: EconomicTimes

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LIC may take up to 5% stake in Punjab & Sind Bank

The Government-owned Punjab and Sind Bank has decided to go for a preferential issue of shares to another state-run firm, Life Insurance Corporation of India (LIC).

Money realised through this issue will help the bank to strengthen Capital to Risk-weighted Assets Ratio (CRAR).

With the government being in a tight spot on the fiscal front, India's largest life insurance company is coming to the rescue of public sector banks to pump in funds to boost their Tier-I (core) capital.

After the government, LIC is the single biggest shareholder in majority of the public sector banks.

In the October- December 2011 period, India's largest life insurance company substantially upped stakes in State Bank of India, Punjab National Bank, Bank of Baroda and HDFC Bank.

Punjab & Sind Bank's share reacted positively to this news, closing with an increase of over 4 per cent to Rs 85.75. The bank, in a statement, said: “The Board of Directors of Punjab & Sind Bank has recommended preferential issue of equity shares to the LIC up to the extent of 5 per cent of the proposed total paid-up equity share capital of the Bank.”

A total of 1,12,91000 shares will be issued. Price will be decided later according to the SEBI's regulations.

The bank's CRAR came down to 12.99 per cent on December 31, 2011 from 14.13 per cent on December 31, 2010.

This ratio is an indicator of strength for lending money. The bank's credit surged to Rs 42,604 crore as on December 31 from Rs 37,806 crore a year ago showing a growth of Rs 12.69 per cent.

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Punjab & Sind Bank abolishes prepayment fines on housing loans

NEW DELHI: Punjab & Sind Bank on Wednesday said it has abolished pre-payment penalties on housing loans for all types of borrowers with immediate effect.

"The decision to waive repayment charges on housing loans reflects the concern of the bank for its borrowing clientele desirous of repaying housing loans before their repayment schedule," PSB Chairman and Managing Director D P Singh said in a statement.

He said the bank has kept the interests of the customer in the forefront while framing policies. State Bank of India, ICICI Bank and Central Bank of India abolished pre-payment penalty last year.

Housing finance companies has already been barred from charging foreclosure charges. In October 2011, the sector regulator National Housing Bank had directed housing finance companies to desist from imposing a pre-payment penalty on home loan borrowers.

Source: EconomicTimes

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Punjab & Sind Bank net down 32.27%

Punjab & Sind Bank reported a 32.27 per cent decline in net profit for the third quarter ended December 31, 2011 at Rs 91.63 crore (Rs 135.30 crore). The bottom-line declined despite a 30 per cent increase in total income at Rs 1,754.44 crore (Rs 1,352.48 crore).

A sharp increase in provisioning — for restructured advances as well as investments — had led to sharp fall in net profits for the third quarter. However, things are looking up and the fourth quarter seems to be very promising, said Mr P. K. Anand, Executive Director of the bank.

krsrivats@thehindu.co.in

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Government clears creation of new ED slot in public sector banks

KOLKATA: Large state-run lenders like Bank of Baroda and Punjab National Bank will get a third executive director (ED) on their board from next April, while smaller banks like Dena or United Bank will get their second ED.

The government has just cleared the Khandelwal Committee's recommendation to this end, two chief executives at state-run banks said. Banks with more than Rs 3 lakh crore business are considered as large entities.

The government has created the new slot in six large banks and said the third executive directors will be responsible for human resource development and technology.

Bank of India, Canara Bank, Central Bank of India and Union Bank of India are dubbed as large banks and will benefit from this move. This is in step with the director-HR position that exists in public sector undertakings like ONGC, Indian Oil, HPCL or BPCL.

"Creation of the ED position for HRD is an important step in the banking industry as this will help in bringing human resource development under board's direct attention," said AK Khandelwal, who headed the HR reform panel and submitted a series of recommendations in June 2010.

The government has also created a second executive director's position in five small banks having a business of less than Rs 1.5 lakh crore. Bank of Maharashtra, Dena Bank, Punjab & Sind Bank, United Bank of India and Vijaya Bank fall in this category and their second ED will also be responsible for HRD and technology. All these banks have one ED at their top deck at present.

Source: EconomicTimes

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