Punjab & Sind Bank shares surged by 3.52% to ₹70.87 following a significant 19% year-on-year (YoY) increase in standalone net profit, reaching ₹181.50 crore in Q1 FY25. The bank's total income also rose by 14.09%, amounting to ₹2,846.02 crore, compared to the same period last year.
This strong performance reflects the bank's steady growth and resilience in the financial sector, making it an attractive option for those looking to buy shares online.
Profit before tax sees a slight decline
Despite the overall growth, Punjab & Sind Bank reported a 9% YoY decline in Profit Before Tax (PBT), which stood at ₹213.22 crore in Q1 FY25. This dip indicates some challenges that the bank faced during the quarter.
However, the robust net profit and revenue growth suggest that the bank remains a solid investment opportunity for those interested in buying shares online.
Net interest income and business growth
The bank's Net Interest Income (NII) saw a 14.51% increase, reaching ₹2,652 crore in Q1 FY25, compared to ₹2,316 crore in Q1 FY24. This growth in NII was supported by a 7.10% YoY increase in the bank's total business, which now stands at ₹2,08,331 crore.
The total advances rose by 9.24% YoY to ₹87,738 crore, reflecting the bank's expanding lending activities. Investors looking to buy shares online should consider the bank's consistent growth in business operations as a positive indicator.
Steady rise in deposits and CASA ratio
Total deposits at Punjab & Sind Bank increased by 5.59% YoY, reaching ₹1,20,593 crore in Q1 FY25. The bank's Current Account Savings Account (CASA) deposits also grew by 5.36% YoY to ₹38,134 crore.
The CASA ratio slightly decreased to 31.62% as of June 30, 2024, from 31.69% in the previous year. The steady rise in deposits and a healthy CASA ratio underline the bank's stability, making it a reliable option for investors seeking to buy shares online.
Improvement in asset quality and capital adequacy
Punjab & Sind Bank made significant strides in improving its asset quality, with Gross Non-Performing Assets (GNPA) declining by 24.14% YoY to ₹4,144.93 crore as of June 30, 2024. The Gross NPA ratio dropped to 4.72% in Q1 FY25 from 6.80% in Q1 FY24, while the Net NPA ratio fell to 1.59% from 1.95% in the same period.
Additionally, the bank's Capital Adequacy Ratio (CRAR) improved by 11 basis points to 17.30%, with the Tier I capital ratio (including CCB) increasing to 14.80%. These improvements suggest a stronger financial position, reinforcing its appeal to those looking to buy shares online.
Strategic fundraising and expansion plans
The bank's board has approved the raising of ₹3,000 crore through the issuance of Basel III compliant Additional Tier I and Tier II Bonds, along with ₹5,000 crore through Long Term Infrastructure Bonds.
This strategic move is expected to bolster the bank's capital base and support its future growth initiatives. With a network of 1,569 branches and 1,053 ATMs, Punjab & Sind Bank is well-positioned to continue its expansion, offering a promising outlook for investors planning to buy shares online.
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