Public sector bank Punjab and Sind Bank expects its net profit to be around Rs 1,100 crore in the current financial year. The bank has told that the reason behind this is that recovery has been seen in the bed loan of the bank.
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State-run bank Punjab and Sind Bank expects its net profit It will be around Rs 1,100 crore. The bank has told that the reason behind this is that bank Recovery has been seen in K bed loans. Swaroop Kumar Saha, Managing Director, Punjab and Sind Bank said that the bank has set a target of Rs 2,000 crore for the current financial year. NPA Recovery is targeted. Out of this, Rs 700 crore has been recovered. He further told that in the coming quarter some big resolutions like Syntax Industries and Meenakshi Energy are going to happen.
Profits increased in the first six months
Apart from this, the MD of the bank said that some IL&FS group accounts are also expected to be resolved in the current quarter. With the help of strong recovery, they are expected to make a profit of Rs 1100 to 1200 crores in FY2023. During the first six months of the financial year, the bank posted a profit of Rs 483 crore as against Rs 392 crore in the same period last year.
The bank has gone through some difficult times as well, but has historically made a comeback. And in the financial year 2022, the government bank had an annual profit of Rs 1,039 crore, which was the highest in the bank’s 114-year history.
Bank is also considering raising money
Saha further informed that the bank will decide on raising equity capital through Qualified Institutional Placement (QIP). Before this, the government bank will take into consideration the figures of the third quarter and the pace of growth. As far as the capital adequacy ratio is concerned, the bank is in a better position with 15.68 per cent. The MD of the bank says that in the current situation it can easily handle business growth this year.
The holding of the Government of India in the bank is 98.25 per cent at the end of September 2022. If the bank raises capital by way of sale of shares, the government’s holding will reduce based on the quantum. During the last two years (2020-21 and 2021-22), the government had infused Rs 5,500 crore and Rs 4,600 crore in Punjab and Sindh Bank. This amount was infused by the central government through non-interest bearing recapitalization bonds.