Punjab & Sind Bank (PSB) posted a fall in its net profit by almost 25 per cent on a year-on-year (YoY) basis in its first quarter (Q1) earnings on Saturday. The public sector bank logged a net profit of Rs 152.6 crore for the June quarter in the current financial year (FY24) against a net profit of Rs 204.7 crore in the first quarter of the previous fiscal year (FY23).


The bank posted an improvement in it’s asset quality. The Gross NPA improved to 6.8 per cent in the reported quarter against 11.3 per cent for the same period a year ago. The bank’s Net NPA ratio fell to 1.95 per cent in Q1FY24, compared to 2.56 per cent in Q1FY23. NPAs are loans or advances issued by the bank which are subject to late repayment or unlikely to be repaid by the borrower in full.


The bank clocked a strong growth of 28 per cent in it’s income from interest in the reported quarter on a YoY basis. It reported the interest income of Rs 2,315.7 crore in Q1FY24, against Rs 1800.4 crore in Q1FY23. Sequentially, the interest earnings increased 10 per cent from Rs 2,104.9 crore in Q4FY23.


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The lender reported a debt-to-equity ratio of 0.28 for the quarter. It’s operating margin fell to 10.3 per cent for the quarter, compared with 13.15 per cent for the same quarter a year earlier. The debt-to-equity ratio represents the debt of a company in comparison to its assets. Further, the net profit margin of the bank also fell to 6.1 per cent, in comparison to 10.6 per cent, on a YoY basis. Net profit margin is one of the most important indicators of a company’s financial health.


The earning per share (EPS) of the bank was at 0.23 , both basic and diluted, for the reported quarter. EPS represents the financial value of earnings per outstanding share of common stock for a company. It helps understand the profitability of the company and is used often to price stocks.