PSB turns around '06 profit at Rs 108 cr, from Rs 71 cr loss in '0

New Delhi, July 21 (UNI) Reaping the benefit of a 26 per cent growth in its business, Punjab and Sind Bank (PSB) today reported a major turnaround in its performance, with a profit of Rs 108 crore during 2006-06, as against a net loss of Rs 71.6 crore last year.

One among the only four other banks that have achieved the profit target as per the data collated by the Finance Ministry, the percentage of reduction in gross Non Performing Assets (NPAs) through cash recovery has been the highest in PSB at 82 per cent.

Finance Minister P Chidambaram and Chiefs of Public Sector Banks, at a meeting held here today, named Canara Bank, Indian Bank, Indian Overseas Bank, State Bank of Hyderabad and PSB, as those that have achieved the profit target.

The performance of PSB in the area of overall growth of business, mobilising low cost deposits, huge reduction in net NPAs from 8.11 per cent to 2.43 per cent, improvement in net interest margin from 3.62 per cent to 3.70 per cent and substantial increase in return on assets from -0.45 per cent to 0.64 per cent, was instrumental in achieving the target profit.

Continuing to take rapid strides in its business growth during the current financial year, the bank has already added a total business of Rs 1,762 crore in the first quarter ended June 2006, as against a decline of Rs 487 crore during the corresponding quarter last year.

The net profit of the bank stood at Rs 46.87 crore as on June 2006, against Rs 5.95 crore last June. Year-on-Year deposits grew by 26 per cent, while advances recorded a growth of 57 per cent.

Net interest income of the bank was up 32 per cent, while total income of the bank went up from Rs 331 crore to Rs 424 crore, recording a growth of 28 per cent, while provisions and contingences were up by a mere 3 per cent.

Taking into account the vast improvement in the performance of the bank during the last financial year, the Reserve Bank of India has suo-moto removed some of the restrictions imposed on the bank earlier.

The bank will also be shortly implementing Core Banking Solutions to provide technological based services to its clients. The solutions, which will be available on a pilot basis in a few branches soon, will cover 300 branches in the next 2-3 years.

UNI RA CS KN1711