Punjab & Sind Bank has reported strong financial results for Q3, demonstrating robust growth in profitability and notable improvements in asset quality metrics. The bank's performance reflects positive momentum across key operational parameters during the quarter.

Financial Performance Highlights

The bank's financial metrics for Q3 showed substantial improvement across multiple parameters:

The bank achieved a net profit of ₹3.36 billion in Q3, marking a significant 20% increase compared to ₹2.80 billion recorded in the same quarter of the previous year. This growth demonstrates the bank's ability to enhance profitability while maintaining operational efficiency.

Revenue Growth and Interest Income

Interest earned by the bank reached ₹30.40 billion in Q3, representing a year-on-year growth of 3.75% from ₹29.30 billion in the corresponding quarter last year. This steady increase in interest income indicates the bank's expanding lending portfolio and effective interest rate management strategies.

Asset Quality Improvement

The bank showed remarkable progress in asset quality parameters during the quarter:

Gross Non-Performing Assets (GNPA) ratio improved to 2.60% in Q3 from 2.92% in the previous quarter, reflecting a decline of 32 basis points. Similarly, the Net Non-Performing Assets (NNPA) ratio decreased to 0.74% from 0.83% quarter-on-quarter, showing a 9 basis points improvement.

Overall Performance Assessment

The Q3 results highlight Punjab & Sind Bank's strong operational performance, with the combination of profit growth and asset quality improvement indicating effective risk management and business expansion strategies. The bank's ability to simultaneously grow profitability while reducing non-performing assets demonstrates sound financial management and operational efficiency during the quarter.

The Central Bureau of Investigation has registered a case against Punjab & Sind Bank branch head Vikas Wadhwa and 18 other individuals for allegedly facilitating money laundering operations worth ₹1,084.00 crore through fraudulent mule accounts. The case emerged following a preliminary enquiry that exposed systematic violations of banking norms and the creation of fictitious accounts used to launder proceeds from cybercrime and other illicit activities.

Fraudulent Account Operations

The investigation revealed that 13 mule accounts were opened in the names of non-existent companies using completely fabricated documentation. These accounts were established at Punjab & Sind Bank's Government Girls Senior Secondary School Branch in Sriganganagar, Rajasthan, under the supervision of branch head Vikas Wadhwa.

Document Forgery and KYC Violations

The CBI's FIR alleges that several individuals systematically arranged forged and fabricated KYC documents, false rent agreements, and other supporting documentation to open the fraudulent accounts. Bank officials allegedly created fake site visit reports and business verification documents to facilitate the opening of current accounts in the names of fictitious firms.

The agency stated that all 13 firms in whose names the current accounts were opened were completely non-existent and created solely for the purpose of operating these mule accounts. The accused persons violated established KYC norms, due diligence requirements, and standard operating procedures through criminal conspiracy with unknown bank officials.

Money Laundering Operations

According to the CBI, these fraudulent accounts were subsequently used to route, layer, and transfer proceeds from cybercrime and other illicit activities. The investigation found that significant transactions worth thousands of crores were processed through these mule accounts using various banking channels and digital platforms.

Mule accounts are typically established using falsified identification documents and serve as conduits for moving or laundering illicit money. In this case, the accounts were used to conceal and layer funds generated from cybercrime and other illegal activities, with the total amount reaching ₹1,084.00 crore.

Impact on Punjab & Sind Bank

The CBI alleges that the accused persons, including branch head Wadhwa, made illicit gains for themselves while causing corresponding wrongful reputational loss to Punjab & Sind Bank. The agency noted that if money laundering allegations are established, the accused have also exposed the bank to significant penalty risks.

The investigation represents a significant case of banking fraud involving systematic violations of regulatory norms and highlights the risks financial institutions face when proper due diligence procedures are not followed.