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Company Information

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Punjab & Sind Bank

Dec 02, 04:00
16.50 -0.15 ( -0.90 %)
VOLUME : 21664
Prev. Close 16.65
Open Price 16.70
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
Dec 02, 03:59
16.45 -0.10 ( -0.60 %)
VOLUME : 226598
Prev. Close 16.55
Open Price 16.20
Bid PRICE (QTY.) 16.45 (10069)
Offer PRICE (Qty.) 0.00 (0)
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Market Cap. ( ₹ ) 6666.64 Cr. P/BV 0.80 Book Value ( ₹ ) 20.64
52 Week High/Low ( ₹ ) 24/12 FV/ML 10/1 P/E(X) 0.00
Bookclosure 20/07/2021 TTM EPS ( ₹ ) -4.50 Div Yield (%) 0.00
You can view the entire text of Notes to accounts of the company for the latest year
Year End :2018-03 

1 Balancing of Books and Reconciliation

1.1 In certain Branches, the balancing / reconciliation of control accounts with subsidiary ledgers is in progress.

1.2 Initial matching of debit and credit outstanding of old entries in Inter Branch Account (IBR DD), prior to CBS System. Adjustments (including old outstanding entries) has been done up to 31.03.2018 and reconciliation is in progress.

1.3 Reconciliation of Drafts payable, Debit Note Receivable/ Payable, RTGS/NEFT (Suspense) etc. is in progress. Provisions have been made as per RBI norms. Reconciliation of Nostro accounts has been done as on 31.03.2018.

In the opinion of the management, the impact of the above para 1.1 to 1.3, if any, on the Profit & Loss Account and Balance Sheet is not quantifiable.

1.4 In terms of Reserve Bank of India guidelines, segregation of Debit and Credit entries in Inter Branch Accounts pertaining to the period up to 30.09.2017 and remained outstanding as on 31.03.2018 has been done which has resulted in either net Debit in some heads or net credit in other heads. Provision is to be made in respect of Net Debit Entries outstanding for period exceeding 6 months.

In Inter Branch Account there is net credit balance hence no provision is required to be made.

1.5 Aggregate net credit position in respect of outstanding NOSTRO Accounts relating to the period up to 31st March 1996 amounting to Rs. 3.78 crores (previous year Rs 3.70 crores) has been transferred to Blocked Nostro Sundry Creditors Account out of which Rs. 1.77 crores for period prior to 14.11.1989 is being carried at old book value. Credit entries for the period after 1st April 1996 remaining outstanding for more than 3 years amounting to Rs. 5.15 crores (previous year Rs.4.81 crores) have been segregated and kept in Blocked Unclaimed Nostro New Account.

2.1 There is no change in the Accounting Policies in preparation of the financial statements as were followed in the annual financial statements for the year ended 31.03.2017.

3. Capital

3.1 During the year, Bank has issued 16,45,01,257 Equity Shares of Rs.10/ each to Government of India by way of Preferential Issue at a price of Rs.47.72 per share determined as per SEBI ICDR Regulation after taking necessary approval from RBI/ MOF. Accordingly, the Equity Share Capital of the Bank has increased by Rs.164.50 crore to Rs.564.91 crore and Share Premium has increased by Rs.619.51 crore (after adjusting Share Issue Expenses of Rs.0.99 crore) to Rs.1937.55 crore.

4.1 Spreading of MTM losses

RBI vide its circular DBR.No.BP.BC.102/21.04.048/2017-18 dated April 2, 2018 granted an option to spread provisioning for mark to market (MTM) losses on investments held in AFS and HFT for the quarters ended December 31, 2017 and March 31, 2018. Accordingly, the bank has charged Rs.76.49 crore related to quarter ended December 2017 and Rs.15.99 crore for quarter March 2018 and spread the losses to the tune Rs.76.49 crore related to December 2017 quarter and Rs.47.97 crores related to March 31, 2018 to the subsequent quarters of ensuing Financial Year.

4.2 Repo / Reverse Repo Transactions (in face value terms)

4.2.1 Accounting for Repos/Reverse Repo

Repurchase and reverse repurchase transactions - Securities sold under agreements to repurchase (Repos) and securities purchased under agreements to resell (Reverse Repos) are accounted as collateralized borrowing and lending transactions respectively. The difference between the consideration amount of the first leg and the second leg of the repo is recognized as interest income or interest expense over the period of the transaction.

4.3 Derivatives

Bank has not entered into any derivative transactions (Forward rate agreement/interest Rate Swap/ Exchange Traded Interest Rate Derivatives) during the year 2017-18. Accordingly, qualitative and quantitative disclosures under RBI guidelines with respect to derivative transactions are not required.

4.4 During the year, the Bank shifted securities worth Rs. 875 crore (face value) from “Held till Maturity” to “Available for Sale Category”.

4.5.1 The value of shifting/ sales from HTM category(excluding one time transfer and sale under pre-announced OMO auctions and repurchase of Government securities by Government of India) during the year does not exceed 5% of the book value of investments held in HTM category at the beginning of the year.

4.5.2 Gross profit (without nettng ofTaxes) on sale of securities under HTM categories are transferred to Capital Reserve Account.

5.1 DICGC / CGTMSE/ ECGC claim eligible, lodged and re-lodged have been considered as security for provisioning on advances on the basis that such claims are valid / realizable.

5.2.1 As per RBI directions for initiating Insolvency Process-Provisioning Norms vide letter DBR No.BP:15199/21.04.048/2016-17 dated June 23,2017 in respect of 6 borrowal accounts covered under the provision of Insolvency and Bankruptcy Code(IBC),the Bank was required to make additional provision. Similarly, as per RBI direction vide letter DBR.No.BP. 1906/21.04.048/2017-18 dated August 28,2017 in respect of 5 borrowal accounts covered under the process of Insolvency and Bankruptcy Code (IBC),the Bank was required to make additional provision. Further as per RBI communication DBR.BP.8756/21.04.048/2017-18 dated April 2,2018, the provisioning requirement in respect of NCLT account has been reduced from 50% of secured portion to 40% of secured portion as on March 31,2018. The bank has however, not exercised the option of dispensation available in respect of old accounts in which provision of 50% was already held by bank upto Dec 2017 quarter. The Bank has availed the option of provisioning requirement in respect of 2 NCLT accounts admitted during the quarter ending March 2018 by providing 40% Provision in said accounts.

5.2.2 RBI vide circular DBR No. BP.BC.101/21.04.048/2017-18 dated February 12,2018 issued a revised framework for resolution of stressed assets, which supercedes the existing guidelines of SDR ,Change in ownership outside SDR(except projects under implementation) and S4A with immediate effect. However, under the revised framework, there was no account where any of these scheme had been invoked but not yet fully implemented.

5.2.3 RBI vide circular RBI/2017-18/129 DBR.No.BP.BC.100/21.04.048/2017-18 dated February 07, 2018 regarding Relief for MSME Borrowers registered under Goods and Services Tax (GST), the bank has classified the eligible accounts as standard for the purpose of classification and has accordingly made accelerated provision of 5% amounting to Rs.0.59 crore as on 31.03.2018.

5.2.4 In compliance of RBI directions, Bank is maintaining provisions of Rs. 36.42 Crore under Food Credit availed by State Government of Punjab.

5.3 In view of fraud reported during the year in certain banks in respect of one Gems and Jewellery borrower, the Bank has classified the account as Non Performing Assets and provided fully.

6.1 Risk Category wise Country Exposure

The net country-wise funded exposure of the Bank in respect of Foreign Exchange Transactions in respect of each country is within 1% of the total assets of the Bank. Hence, no provision is required as per RBI guidelines.

6.2 Details of Single Borrower Limit (SGL), Group Borrower Limit (GBL) exceeded by the Bank

During the year 2017-18, the Bank has not exceeded the prudential exposure limits set by RBI to single borrower/ group borrower, except in the following case, which has been approved by the Board:

6.3 Inter-Bank-Participation Certificate (IBPC)

In terms of RBI Guidelines DBOD No. BP.BC.57/62-88 dated December 31,1988, Inter-Bank-Participation Certificate (IBPC) of Rs. 2000 crore has been issued on 18.02.2018 on risk sharing basis for maximum period of 180 days.

7 Disclosure as per Accounting Standard (AS)

7.1 AS-5 Net Profit or Loss for the period, prior period items and changes in accounting policies

7.1.1 There are no material prior period items included in Profit & Loss Account required to be disclosed as per AS-5 read with RBI guidelines except those disclosed elsewhere in the notes.

7.1.2 AS-6 Depreciation Accounting

Break-up of total depreciation for each class of assets

7.2 Pursuant to Accounting Standard - 10, (revised 2016) on Property Plant & Equipment, applicable from 1st April 2017, depreciation of Rs.26.26 crore for the year on revalued portion of fixed assets has been transferred from Revaluation Reserve to Revenue Reserve during the current year instead of crediting to Profit and Loss Account resulting decrease in profit by Rs.26.26 crore.

7.3 AS-9 Revenue Recognition

7.3.1 Certain items of income are recognized on realization basis as disclosed at point no. 8 - “Revenue Recognition” of Schedule 17 - Significant Accounting Policies. However, in terms of RBI guidelines, the said income is not considered to be material.

7.4 AS 15 - Employees Benefit

7.4.1 Provisions for Pension, Gratuity, Leave Encashment and Other long term benefits have been made in accordance with the Revised Accounting Standard (AS -15) issued by the ICAI.

RBI vide its letter DBR No. BP.BC. 9730/21.4.018/2017-18 dated April 27,2018 has given the option to Banks to spread additional liability on account of the enhancement of gratuity limits from Rs. 10 Lakh to Rs. 20 Lakh from 29.03.2018 under the Payment of Gratuity Act,1972,over four quarters beginning with the quarter ended March 31,2018.The Bank has excercised the option and charged Rs. 18.00 crore during the quarter ended March 31,2018 and deferred Rs. 54.00 crore to subsequent three quarter of the ensuing financial year.

7.4.2 The summarized position of post employment benefits recognized in the Profit & Loss A/c and Balance Sheet is as under:

7.4.3 An ad-hoc provision of Rs. 50.00 crore has been made to meet the likely liability arising on account of Wage Revision effective from November 2017. In absence of requisite information, liability could not be ascertained and has been provisionally provided for.

Note: For the purpose of segment reporting in terms of AS-17 of ICAI and as prescribed in RBI guidelines, the business of the Bank has been classified into four segments i.e. a) Treasury Operations, b) Corporate/Wholesale Banking, c) Retail Banking and d) Other Banking Operations.

Segmental Revenue, Results, Assets & Liabilities in respect of Corporate / Wholesale and Retail Banking segment have been bifurcated on the basis of exposure to these segments.

Assets & Liabilities wherever directly related to segments have been accordingly allocated to segments and wherever not directly related have been allocated on the basis of pro-rata segment revenue.

Part B : Geographical Segment :

Since the Bank does not have any overseas branch, reporting under Geographic Segment is not applicable.

c) Name of Related Party: Satluj Gramin Bank (An Associate)

Para 9 of AS 18 - Related Party Disclosures exempts state controlled enterprises from making any disclosures pertaining to their transactions with other related parties which are also state controlled. Hence, the transactions with the associated bank have not been disclosed.

7.4 AS 21 - Consolidated Financial Statement

The Bank does not have any subsidiary/associate and as such AS 21 is not applicable.

7.5 AS 22 - Accounting for Taxes on Income

7.6.1 The Bank has accounted for Income Tax in compliance with Accounting Standard-22 ‘Accounting for taxes on Income’ issued by ICAI.

7.6.2 Major components of deferred tax assets/liabilities are as under:

7.6.3 Provision for Income Tax and Deferred Tax held by the Bank is considered adequate taking into account the opinion of legal experts and favorablejudicial pronouncements.

7.6.4 Review made by the bank on reasonable certainty of availability of future taxable income on which timing differences arising on account of provision for bad and doubtful debt, Regulatory provision for performing loan assets, that can be realized and accordingly during the year 2017-18,the Bank has recognized deferred Tax Asset of Rs.365.55 Crore on the above timing differences.

7.6.5 No provision has been considered necessary in respect of disputed demands of Income and Interest Tax aggregating to Rs.84.86 crore (Previous year Rs.84.86 crore) in view of decisions of appellate authorities / judicial pronouncements / opinions of legal experts.

7.6.6 Hitherto, till the assessment year 2017-18, the bank had been claiming deduction under section 36(l)(vii) of the Income Tax Act, 1961 in respect of write off of non-rural advances without adjusting the same with the unexhausted provision outstanding under section 36(l)(viia) of the Income Tax Act, 1961. However, the bank has preferred to revise the returns for the assessment years 2016-17 and 2017-18 and has accordingly provided additional tax liability.

7.7 AS 23-Accounting for Investments in Associates in consolidated Financial Statements

The Bank does not have any subsidiary/associate and as such AS 23 is not applicable.

7.8 AS26-lntangibleAssets

The application software in use in the Bank has been developed in house and has evolved over a period of time. Hence ,the costs of software is essentially part of Bank’s operational expenses like wages etc. and as such are charged to the respective heads of expenditure in the Profit and Loss Account.

7.9 Accounting Standard 28 - Impairment ofAssets

Fixed Assets possessed by Bank are treated as ‘Corporate Assets’ and not ‘Cash Generating Units’ as defined by AS-28. In the opinion of the Management, there is no impairment of the ‘Fixed Assets’ of material amount as of 31.03.2018, requiring recognition in terms of AS-28 issued by the ICAI. The impairment of other assets has been provided for as per Prudential Norms prescribed by the Reserve Bank of India.

7.10 Accounting Standard 29 - Provisions, Contingent Liability and Contingent Assets

7.10.1 As per AS-29 - Provisions, Contingent Liabilities and Contingent Assets, issued by the Institute of Chartered Accountants of India, the Bank recognizes no provision for -

a) Any possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Bank, or

b) Any present obligation from the past events but is not recognized because

- It is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

- A reliable estimate of the amount of obligation cannot be made.

Such obligations are recorded as contingent liabilities. These are assessed continually and only that part of the obligation for which an outflow of resources embodying economic benefits is probable, is provided for, except in the extremely rare circumstances where no reliable estimate can be made.

Contingent Assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.

7.11 There are capital commitments to tune of Rs.76.70 crore as on 31.03.2018 for projects under execution/construction.

7.12 Other significant accounting policies has been disclosed at the appropriate places in the Notes forming part of the accounts.

8.1 Draw down from Reserve

A sum of Rs. NIL lacs (previous year Rs. NIL lacs) has been drawn from the General Reserve on account of payment to the claimant of old entries.

*Banks may also disclose in the format above, sub sectors where the outstanding advances exceeds 10 percent of the outstanding total advances to that sector. For instance, if a bank’s outstanding advances to the mining industry exceed 10 percent of the outstanding total advances to ‘Industry’ sector it should disclose details of its outstanding advances to mining separately in the format above under the ‘Industry’ sector.

Un-Hedged Foreign Currency Exposure

8.2 During the year, in terms of RBI Circular No. DBOD.No. BP.BC.85/21.06.200/2013-14 dt. 15.01.2014, the Bank has provided an amount of Rs.0.30 cr. (Previous Year Rs.0.46 cr.) towards Unhedged Foreign currency Exposure Based on the details furnished by the constituents.

9. In term of RBI circular DBR NO.BP.BC1/21.06.201/2015-15 July 1,2015, banks are required to make pillar 3 disclosures under BASEL III capital regulations. These details are being made available on our website These disclosures have not been subjected to audit by the auditors.

10. The figures of the previous year have been re-grouped / re-arranged wherever necessary except where information was not available.