Page 3 - Punjab & Sind Bank

Punjab & Sind Bank loss zooms to Rs 2,375 cr in Q3 as provisions spike

Punjab & Sind Bank on Saturday said its net loss in December quarter 2020-21 spiralled to Rs 2,375.53 crore on higher provisions for bad loans. The lender had posted a net loss of Rs 255.49 crore in the same period a year ago. In September quarter also, the bank had a loss of Rs 401.27 crore. Total income in the quarter under review also fell to Rs 1,982.52 crore from Rs 2,077.01 crore in the same period of 2019-20, Punjab & Sind Bank said in a regulatory filing. Net income fell 9.1 per cent to Rs 1,763.10 crore and income on investments was down 12.1 per cent to Rs 455.42 crore. The bank's gross non-performing assets (NPAs) remained high at 13.14 per cent of the gross advances as of December 31, 2020, compared to 13.58 per cent by the year-ago same period. In value terms, gross NPAs or bad loans stood at Rs 8,489.89 crore by the end of December 2020 as against Rs 8,923.49 crore earlier. Net NPAs came down significantly at 2.84 per cent (Rs 1,638.25 crore) as against 8.71 per .

Punjab & Sind Bank reports fraud of Rs 94 crore in NPA account

Punjab & Sind Bank on Thursday reported a fraud of Rs 94.29 crore in an NPA account of Supertech Township Projects. In a regulatory filing, the state-owned lender said it has reported the fraud to the Reserve Bank of India (RBI). "...it is informed that an NPA Account, viz M/s Supertech Township Projects Limited with outstanding dues of Rs 94.29 crore has been declared as fraud and reported to RBI today as per regulatory requirement," the Delhi-headquartered bank said. The account has been fully provided for as per the existing RBI norms, it added.

Best of BS Opinion: Bank recap, a wobbly first year for the CDS & more

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Short-cut on bank recap

P&SB's zero-coupon bonds violate prudent accounting practices

RBI may red-flag Punjab and Sind Bank's Rs 5,500-crore zero-coupon bonds

Bank could be asked to hold it at discounted value in HTM

P&SB recapitalisation: Centre issues Rs 5,500 cr worth of zero-coupon bonds

P&SB to park investment in HTM category; raises concern

Punjab & Sind Bank to raise up to Rs 5,500 cr through preferential issue

State-owned Punjab & Sind Bank on Saturday said its board has approved a proposal to raise up to Rs 5,500 crore by issuing shares on a preferential basis. The board approval is in line with the government sanction to infuse an amount of Rs 5,500 crore in the bank towards contribution of the Centre in the preferential allotment of equity shares during FY2020-21. The board has cleared agenda to "offer, issue, create and allot equity shares up to Rs 5,500 crore including share premium to the Government of India by way of preferential issue of equity shares", the bank said in a regulatory filing. The fund raising will help bank meet its regulatory and growth capital.

Punjab & Sind Bank's board to consider plan for raising up to Rs 5,500 cr

State-owned Punjab & Sind Bank on Wednesday said the board of bank will meet later this week to consider raising up to Rs 5,500 crore by issuing shares on a preferential basis. "A meeting of board of directors of Punjab & Sind Bank is scheduled to be held on Saturday, November 21, 2020, for considering to offer, issue, create and allot equity shares up to Rs 5,500 crore (including preferential issue of equity shares)," the bank said in a regulatory filing. Shares of Punjab & Sind Bank on Wednesday closed 0.88 per cent up at Rs 11.40 apiece on the BSE.

Punjab & Sind Bank narrows net loss at Rs 401 cr in September quarter

Punjab & Sind Bank on Thursday reported narrowing of its net loss at Rs 401.27 crore in the second quarter ended September 2020. The state-owned lender had posted a net loss of Rs 468.73 crore in the same period a year ago. The loss, however, widened sequentially from Rs 116.89 crore in the June quarter of FY2020-21. Total income of the bank fell to Rs 1,999.19 crore in July-September of 2020-21 from Rs 2,222.57 crore in the same period of 2019-20, Punjab & Sind Bank said in a regulatory filing. Bank's provisioning for bad loans and contingencies were down at Rs 863.82 crore for Q2FY21 from Rs 972.62 crore in Q2FY20. Of this, bad loans or NPAs provisioning were Rs 845 crore, as against Rs 949.36 crore a year earlier. Asset quality impaired with gross non-performing assets (NPAs) rising to 14.06 per cent by end of September 2020 from 13.64 per cent at end of September 2019. Value wise, the gross NPAs stood at Rs 8,673.16 crore, lower than Rs 9,218.22 crore. Net NPAs, however, .

Govt okays Rs 5,500 cr equity infusion into Punjab & Sind Bank

Public sector Punjab & Sind Bank (PSB) on Tuesday said the government has okayed infusion of Rs 5,500 crore capital into the bank in lieu of preferential allotment of shares. The bank is in receipt of letter dated November 10, 2020 from the Ministry of Finance regarding sanction to infuse an amount of Rs 5,500 crore, it said in a regulatory filing. The capital infusion, the lender said, is towards the contribution of the central government in the preferential allotment of equity shares of the bank during financial year 2020-21. The government's shareholding in the bank as of September 30, 2020 stood at 83.06 per cent, as per data on BSE. Stock of PSB closed 3.50 per cent higher at Rs 11.23 apiece on BSE on Tuesday.

Punjab & Sind Bank reports IF&FS Financial Services as fraud account to RBI

Punjab and Sind Bank on Friday said it has reported to the Reserve Bank of India (RBI) the account of IL&FS Financial Services (IFIN) as fraud with outstanding dues of over Rs 561 crore. The NPA account, IL&FS Financial Services, with outstanding dues of Rs 561.13 crore has been declared as fraud and reported to the RBI as per the regulatory requirement, the bank said in a regulatory filing. "Further, the bank has already made 100 per cent provisioning as per the prescribed prudential norms and the account is technically written off," it added. The scam at the IL&FS group came to light in September 2018 after several group entities defaulted on repayments due to severe liquidity problems. Later, the government superseded the board of directors to revive the ailing group. IFIN, which has been found to be funding its own revenues for several years, was the main source of funds for the IL&FS group entities. The group had accumulated a debt burden of over Rs 90,000 crore.

Punjab & Sind Bank, LVB get ratings downgrade on various bond programmes

Punjab & Sind Bank and Lakshmi Vilas Bank on Wednesday said rating firms have downgraded their bond programmes totalling over Rs 2,580 crore. CARE has downgraded the rating on various bonds issued by the bank totalling Rs 2,537.30 crore, Punjab & Sind Bank said in a regulatory filing. The ratings firm has downgraded the ratings on the bank's Rs 1,000 crore Basel III compliant tier-I bonds to CARE A from CARE A+. Among others, the ratings on lower tier-II bond issuances of Rs 300 crore, Rs 500 crore, Rs 237.30 crore and Rs 500 crore have been downgraded to CARE AA- (double A minus) from CARE AA each. The outlook on all the five bond issuances remains at 'negative', the public sector lender said. In a separate filing, private sector Lakshmi Vilas Bank (LVB) said Brickwork Ratings India has downgraded the rating from "BWR BB+" (credit watch with developing implications) to "BWR B+" (credit watch with negative implications) for its unsecured redeemable non-convertible subordinated

S Krishnan takes charge as MD & CEO of state-owned Punjab & Sind Bank

State-owned Punjab & Sind Bank on Friday said the government has appointed S Krishnan as the managing director and chief executive officer of the lender. "S Krishnan has taken over the charge on September 4, 2020," the bank said in a BSE filing. The Department of Financial Services, Ministry of Finance, through a notification dated September 3, 2020, appointed S Krishnan as MD and CEO of Punjab & Sind Bank, it said. Previously, Krishan served as the executive director of Syndicate Bank from November 2017 to March 2020 and executive director of Canara bank from April 2020 to September 3, 2020. He had joined Indian Bank in 1983. Krishnan has specialisation in credit, specifically corporate credit and risk management, the filing added. A post graduate in commerce, he is a qualified cost accountant and a certified associate of Indian Institute of Bankers (CAIIB).

Punjab & Sind Bank Q1 net loss widens to Rs 117 cr on mounting bad loans

The total income of the bank also fell to Rs 1,954.39 crore in April-June, as against Rs 2,237.91 crore in same period of 2019-20, the bank said in a regulatory filing

Punjab & Sind Bank Q4 loss widens to Rs 236 cr as provisions for NPAs rise

Punjab & Sind Bank on Tuesday reported widening of loss to Rs 236.30 crore for the fourth quarter of 2019-20 as provisions for bad loans rose. The public sector bank had posted a loss of Rs 58.57 crore in January-March, 2018-19. Total income declined to Rs 2,289.43 crore in the three months to March against Rs 2,304.37 crore in the year-ago period, Punjab & Sind Bank said in a regulatory filing. During the quarter, the bank earned an operating profit of Rs 429.75 crore as against Rs 404.13 crore in the same period of the previous fiscal. On the assets quality front, gross non-performing assets (NPAs) rose to 14.18 per cent of gross advances at the end of March 2020, as against 11.83 per cent by the same period last year. Net NPAs also increased to 8.03 per cent as against 7.22 per cent in the year-ago period. As a result of this, provisions for bad loans during the March quarter more than doubled to Rs 683.80 crore, compared to Rs 312.09 crore in the year-ago period. Provision

Punjab & Sind Bank declares Golden Jubilee Hotels as fraud account

Golden Jubilee Hotels Pvt Ltd is a public-private partnership (PPP) with the Department of Tourism and Youth Advancement, Tourism & Culture, Government of Telangana

Stress in the agriculture sector is significant, says Punjab & Sind Bank MD

Punjab is an important area of operation for the bank, says S Harisankar

Punjab & Sind Bank cuts MCLR by 20 basis points for various tenors

State-owned Punjab & Sind Bank (PSB) on Saturday said it has lowered its marginal cost of funds based lending rate (MCLR) by up to 0.20 per cent for various tenors. "Our bank has reviewed the marginal cost of fund based lending rate (MCLR) for different tenors and the same will be effective from 16.08.2019," Punjab & Sind Bank (PSB) said in a regulatory filing. The public sector bank has lowered the benchmark one-year MCLR to 8.50 per cent from 8.70 per cent earlier. Most of the consumer loans such as personal, auto and home are priced on the basis of the one-year MCLR. PSB has lowered MCLR on overnight, one-month, three-month and six-month duration loans by 0.15 per cent to 8.20 per cent, 8.30 per cent, 8.40 per cent and 8.50 per cent, respectively. It also reduced MCLR on three-year tenor loans by 0.5 per cent to 9.20 per cent. The rate cut follows an MCLR cut by the country's largest lender SBI post the RBI's decision to reduce the key interest rate (repo) by 0.35 ...

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After PNB, Punjab & Sind Bank detects Rs-238 cr fraud by Bhushan Power

Earlier this month, Punjab National Bank (PNB) said it had reported a borrowing fraud of Rs 3805 crore in Bhushan Power's account to the Reserve Bank of India