Punjab and Sind Bank a turn around story 2005-06
New Delhi, Apr 27: The Punjab and Sind Bank (PSB), which came under fire sometimes back from Finance Minster P Chidambaram for its lacklustre performance, today reported a turn around story in fiscal 2005-06 registering a robust growth in deposit mobilisation, credit disbursment, reduction in Non Performing Assets (NPAs) and net profit.
The bank, which recorded a loss of Rs 71 crore in 2004-05 declared a net profit of Rs 108.32 crore during the current year.
''The commitment made to the government for acheiving various business targets for the year were not only acheived but also surpassed. In fact, the net NPAs of the bank, which were required to be brought down to 2 per cent by March 2008 have been brought down to 2.43 per cent as on March 2006,'' a bank release said here.
The management of PSB claimed that the reduction in NPAs was the result of an aggressive recovery drive by the bank.
The capital adequacy of the bank is at the remarkably high level of 12.83 per cent as on March 31, 2006.
As part of its strategic shift, the management reduced its invesment portfolio considerably and utilised its funds for growth in the credit portfolio.
The bank made out a case that its profits would have been higher but for the fact that the rising interest rate scenario dwindled opportunites from treasury operations.
The total business of the bank registered a growth rate of 26 per cent with business growing from Rs 21,144 crore in 2005 to Rs 26,724 in the current fiscal.
The gross deposits of the bank registered a growth of 19.43 per cent for the year as against a growth rate of 3.88 per cent during the year 2004-05.
The gross advances of the bank have recorded an impressive growth of 40.53 per cent during the year as against a paltry growth of 5.24 per cent last year.