Punjab & Sind Bank's asset quality deterioration to moderate: CRISIL

Decrease in slippages and higher recoveries to help state-owned lender, says agency

Asset quality deterioration at Punjab & Sind Bank (PSB) is expected to slow down as the state-owned lender decreases slippages and makes higher recoveries, according to CRISIL Rating.

The Delhi-based lender’s gross non-performing assets (NPA) were at 11.34 per cent in June 2022 (they were 12.17 per cent in March 2022 and 13.76 per cent in March 2021). The decline in NPA in fiscal 2022 was largely driven by higher upgrades and write-offs.

Its recoveries and upgradation stood at Rs 383 crore in the first quarter ended June 30, 2022 and it has guided for recoveries and upgradation of Rs