Punjab & Sind Bank Hopes To Surpass Rs 1,000 Crore Recovery Target in FY27

New Delhi: Bouyed by better-than-expected recovery in the first quarter, Punjab & Sind Bank expects to surpass the target of Rs 1,000 crore in the current fiscal.

During the first quarter, total recovery was Rs 366 crore compared to Rs 350 crore in the same period a year ago.

“We will be able to do much better than our guidance on recovery for the current financial year given our huge focus on NPAs reduction,” Punjab & Sind Bank MD and CEO Swarup Kumar Saha told PTI in an interview.

There are a lot of inventories on which the bank can depend for recovery, he said.

Besides, he said, the bank has given a lot of focus on upgradation of old non-performing assets (NPAs) accounts.

The bank is undertaking various actions, including One Time Settlement, action under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, and Insolvency and Bankruptcy Code, he said.

“So, overall we created a mechanism so that not a single rupee goes to waste for the bank without exploring all avenues for recovery,” he said.

In a bid to establish an international banking business presence, the public sector lender is all set to operationalise an IFSC Banking Unit (IBU) at GIFT City in Gandhinagar by November this year.

The bank has received regulatory approvals from both the Reserve Bank of India and the International Financial Services Centres Authority (IFSCA) to set up an IBU, Saha said.

“The IBU is going to act as a foreign branch, and this will provide a lot of scope for expanding business in terms of mobilisation of Foreign Currency Non-Resident (Bank) and External Commercial Borrowings. This branch will help expand our balance sheet size and we also intend to bring in foreign exchange business,” he said.

The public sector lender has already put the staff in place and an IT vendor has also been selected, he said, adding, “IT integration has also started. So, we intend to operationalise IBU by November.” Last week, Punjab & Sind Bank reported a 23 per cent rise in net profit to Rs 331 crore during the June quarter, aided by improvement in core income and decline in bad debts.

The public sector lender had earned a net profit of Rs 269 crore in the same quarter of the previous fiscal year.

The total income increased to Rs 3,546 crore during the June quarter from Rs 3,379 crore in the same quarter of the previous fiscal year.

Interest earned by the bank increased to Rs 3,213 crore compared to Rs 2,911 crore in the June quarter of FY26.

The bank’s net interest income also increased 15 per cent to Rs 1,038 crore from Rs 900 crore in the same quarter of the previous financial year. Net interest margin stood at 2.53 per cent at the end of the quarter under review.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)