Punjab & Sind Bank (PSB)
₹21.29 +0.24% last close, 16 Oct
Q2 FY27 results
📅 Next results: 17 Oct 2026 (board meeting)Punjab & Sind Bank's board meets on 17 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Punjab & Sind's net interest income was ₹1,039 Cr (+15.4% year on year, +6.5% on the previous quarter), and net profit ₹332 Cr (+23.2% year on year).
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Net interest income | ₹1,039 | +15.4% | +6.5% |
| Operating profit | ₹545 | +1.0% | — |
| Net profit | ₹332 | +23.2% | -21.4% |
| EPS (₹) | 0.47 | +23.7% | -20.3% |
| Gross NPA | 2.21% | — | — |
PSB delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 41.34% of the PSB shares traded on NSE were taken to delivery, against the stock's own 20-session average of 50.79%. That is lower than usual for this stock.
Delivery in the last 5 sessions: 40.8% · 38.5% · 41.4% · 51.9% · 41.3%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Punjab & Sind Bank submitted its semi-annual regulatory statement of outstanding bonds as on September 30, 2026, pursuant to SEBI circulars. The bank reported four outstanding bond series totaling Rs 4,237.30 crore, which represents approximately 30.0% of its net worth of Rs 14,133 crore. Notably, the nearest maturing bond is an 7.99% Rs 500.00 crore tranche maturing on October 19, 2026. The largest outstanding issuance is a Rs 3,000.00 crore bond maturing in December 2034 with a coupon rate of 7.74%.
- Total outstanding bonds across four series stand at Rs 4,237.30 crore as of September 30, 2026
- Upcoming redemption: Rs 500.00 crore bond (ISIN INE608A08017) at 7.99% maturing on October 19, 2026
- Largest single issue is Rs 3,000.00 crore (ISIN INE608A08058) at 7.74% maturing on December 20, 2034
- Other tranches include Rs 237.30 crore at 9.50% (due Oct 2029) and Rs 500.00 crore at 8.67% (due Dec 2029)
India Ratings and Research has reaffirmed Punjab & Sind Bank's Infrastructure Bonds rating of ₹3,000 crore at 'IND AA' with a Stable outlook on October 6, 2026. The affirmation is driven by sovereign support given the Government of India's 93.85% stake and the bank's improving capital metrics, including a CET-1 ratio of 16.56% and CRAR of 17.61% in 1QFY27. Asset quality continues to trend positively with Gross NPA declining to 2.21% and Net NPA to 0.65% in 1QFY27. However, the agency highlighted weak CASA deposits at 30.05% and declining NIMs (2.55% in FY26) amid deposit competition as key challenges.
- India Ratings reaffirmed ₹3,000 crore Infrastructure Bonds rating at 'IND AA/Stable'
- Capital position remains comfortable with 1QFY27 CET-1 at 16.56% and CRAR at 17.61%
- Asset quality improved with Gross NPA falling to 2.21% and Net NPA to 0.65% in 1QFY27
- Net interest margin compressed to 2.55% in FY26 (FY25: 2.85%) alongside a low CASA ratio of 30.05% in 1QFY27
- Gross advances grew 18.29% YoY in FY26 to ₹1,178.23 billion with FY27 guidance of 16%-18%
Fitch Ratings has assigned a first-time Long-Term Issuer Default Rating (IDR) of 'BBB-' with a Stable Outlook to Punjab & Sind Bank, equalised with India's sovereign rating. The agency also assigned a Short-Term IDR of 'F3', a Viability Rating (VR) of 'bb', and a Government Support Rating of 'bbb-'. Fitch cited the bank's ~94% government ownership and improving operating environment as primary anchors, alongside a declining impaired loan ratio of 2.2% in FY26 and an adequate CET1 ratio of 15.9%.
- Assigned first-time Long-Term IDR of 'BBB-' (Stable Outlook) and Short-Term IDR of 'F3'
- Government Support Rating assigned at 'bbb-', driven by ~94% Government of India shareholding
- Viability Rating assigned at 'bb', supported by CET1 ratio of 15.9% and declining impaired loan ratio to 2.2% in FY26
- Loan growth reached 18.1% in FY26, with RAM loans comprising 59% of total advances
- Liquidity coverage ratio stood at 130% and net stable funding ratio at 127% for FY26
Punjab & Sind Bank reported its provisional business updates as of September 30, 2026, showing total business expansion of 15.77% YoY to ₹2,79,328 crore from ₹2,41,272 crore. Gross advances grew strongly by 19.37% YoY to reach ₹1,26,011 crore compared to ₹1,05,566 crore a year ago. Total deposits rose 12.98% YoY to ₹1,53,317 crore against ₹1,35,706 crore. Consequently, the bank's Credit-Deposit (CD) ratio increased to 82.19% from 77.79% as of September 30, 2025.
- Gross advances rose 19.37% YoY to ₹1,26,011 crore as of September 30, 2026
- Total deposits grew 12.98% YoY to ₹1,53,317 crore
- Total business expanded 15.77% YoY to ₹2,79,328 crore
- Credit-Deposit (CD) ratio increased by 440 bps YoY to 82.19% from 77.79%
Punjab & Sind Bank's Board of Directors has approved raising foreign currency funds through the establishment of a Medium-Term Note (MTN) Programme up to USD 1 billion, along with the issuance of bonds thereunder. At current typical exchange rates, USD 1 billion represents ~₹8,300-8,400 crore, which is substantial relative to the bank's net worth of ₹14,133 crore (approx. ~59%) and market cap of ₹14,988 crore (approx. ~55%). The MTN programme sets the framework for the bank to issue overseas debt in tranches depending on market conditions and capital needs.
- Board approved foreign currency fundraise via a Medium-Term Note (MTN) Programme up to USD 1 billion.
- Bonds will be issued in tranches under the approved MTN programme.
- The board meeting took place on September 29, 2026, between 02:30 p.m. and 04:30 p.m.
Punjab & Sind Bank announced that the Department of Financial Services, Ministry of Finance, has extended the tenure of Executive Director Sh Ravi Mehra. His term, which was originally ending on October 08, 2026, has been extended till his superannuation date of December 31, 2026, or until further orders. This administrative extension ensures leadership continuity at the Executive Director level for an additional period of under three months.
- Tenure of Executive Director Sh Ravi Mehra extended beyond original term ending October 08, 2026
- Extension granted till date of superannuation, i.e., December 31, 2026, or until further orders
- Decision approved by Department of Financial Services vide notification dated September 23, 2026
CRISIL Ratings has reaffirmed its 'CRISIL AA/Stable' rating on Punjab & Sind Bank's ₹4,000 crore bond instruments, comprising ₹3,000 crore Infrastructure Bonds and two tranches of ₹500 crore Tier II Bonds. The affirmation factors in strong expected support from the Government of India, which holds a 93.85% stake. Capital adequacy remains sound with overall CAR at 17.61% and Tier 1 at 16.56% as of June 30, 2026. Asset quality also reflects improvement, with Gross NPAs dropping to 2.21% as of June 30, 2026, compared to 3.38% as of March 31, 2025.
- Reaffirmed 'CRISIL AA/Stable' rating across ₹3,000 crore Infrastructure Bonds and two ₹500 crore Tier II Basel III bonds
- Overall Capital Adequacy Ratio (CAR) reported at 17.61% with Tier 1 at 16.56% as of June 30, 2026
- Gross NPA declined to 2.21% as of June 30, 2026, down from 2.40% in March 2026 and 3.38% in March 2025
- Total deposits grew to ₹1,47,130 crore as of June 30, 2026, while CASA ratio stood at 30.1%
- Bank has board approval to raise up to ₹3,000 crore via Qualified Institutional Placement (QIP)
Punjab & Sind Bank has received a notice of an All India Strike scheduled for September 11, 2026, called by the United Forum of Bank Unions (UFBU). The bank stated it is taking necessary measures for smooth operations, although branch and office functioning may be temporarily affected if the strike materializes. Given that this is an industry-wide 1-day strike notice, the financial impact is expected to be minimal relative to its TTM revenue of ₹13,925 Cr. Digital banking channels and ATM operations are likely to continue functioning normally.
- UFBU served notice proposing an All India Strike on 11.09.2026
- Participating unions include AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF, and INBOC
- Bank taking steps to ensure smooth functioning of branches and offices on the day of the strike
Punjab & Sind Bank has submitted its updated corporate presentation highlighting its financial position and operational roadmap. As of June 30, 2026, total business stood on a deposit base of ₹1,47,130 Cr and gross advances of ₹1,17,419 Cr, with total assets reaching ₹1,81,701 Cr. For the quarter ended June 30, 2026, the bank posted a net profit of ₹331 Cr compared to ₹269 Cr in the year-ago period. Asset quality improved year-on-year, with GNPA reducing to 2.21% from 3.34% and NNPA at 0.65% with a provision coverage ratio of 92.33%.
- Net profit for Q1 ended June 30, 2026 was ₹331 Cr compared to ₹269 Cr in June 30, 2025
- Asset quality improved with GNPA at 2.21% and NNPA at 0.65% as of June 30, 2026 (vs 3.34% and 0.91% in June 2025)
- Deposits increased to ₹1,47,130 Cr while gross advances grew to ₹1,17,419 Cr as of June 30, 2026
- Capital Adequacy Ratio (CRAR) remained sound at 17.61% with Tier 1 capital at 16.56%
- Provision Coverage Ratio (with technical write-offs) stood at 92.33%
CARE Ratings has reaffirmed the rating of 'CARE AA; Stable' for Punjab & Sind Bank's Tier-II Bonds totalling ₹1,237.30 crore across three series (Series XIV, XV, and XVI). The reaffirmation factors in majority Government of India (GoI) ownership of 93.85%, comfortable capital adequacy (CAR of 17.61% as of June 30, 2026), and continuing improvement in asset quality with GNPA at 2.40% in FY26. However, ratings remain constrained by moderate profitability, high non-earning recapitalisation bond assets, and geographical concentration in northern India.
- CARE reaffirmed 'CARE AA; Stable' rating across Tier-II Bond Series XIV (₹500 Cr), Series XV (₹237.30 Cr), and Series XVI (₹500 Cr).
- Capital adequacy ratio (CAR) stood comfortable at 17.61% with CET-I at 16.56% as of June 30, 2026.
- Gross NPA improved to 2.40% as of March 31, 2026 (down from 3.38% in FY25), and Net NPA reduced to 0.65% as of June 30, 2026.
- Bank holds board approval to raise up to ₹3,000 Cr via equity QIP and ~₹2,000 Cr via Tier-I/II bonds to meet minimum public shareholding requirements.
Punjab & Sind Bank (PSB) has announced the appointment of Shri Kristam Subba Raju Guptha as a Part-Time Non-Official Director on its Board. The appointment follows a Central Government notification dated August 12, 2026, and is for a fixed tenure of three years. As a Public Sector Bank with 93.85% government ownership, such appointments are routine regulatory procedures. The bank continues to focus on its high-yield RAM segment, which recently saw 20.23% growth, while managing a TTM PAT of Rs 1,322 Cr.
- Nomination of Shri Kristam Subba Raju Guptha as Part-Time Non-Official Director effective August 12, 2026.
- Tenure fixed for a period of 3 years or until further orders from the Central Government.
- Appointment made under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.
- Bank maintains a high promoter (Government of India) stake of 93.85% as of March 2026.
Punjab & Sind Bank (PSB) concluded its 16th Annual General Meeting on July 28, 2026, where shareholders approved the audited financial statements for FY26 and a dividend of Rs 0.39 per equity share. The dividend, representing 3.90% of the face value, will be paid within 30 days to shareholders who were on record as of July 21, 2026. Voting results showed overwhelming support, with over 99.9% of votes cast in favor of both the adoption of accounts and the dividend declaration. The bank continues to operate with a high promoter (Government of India) holding of 93.85%.
- Approved a dividend of Rs 0.39 per equity share for the financial year 2025-26
- Dividend resolution passed with 99.92% majority (676.51 Cr votes in favor)
- Record date for dividend eligibility was fixed as July 21, 2026
- Adoption of FY26 Audited Balance Sheet and P&L passed with 99.90% majority
- Dividend payment to be completed within 30 days from the AGM date (by August 27, 2026)
Punjab & Sind Bank reported a 23.05% YoY increase in net profit to ₹331 crore for Q1 FY27, supported by a 15.33% growth in Net Interest Income. Credit growth was robust at 19.35% YoY, significantly outperforming deposit growth of 12.16%. The bank has successfully shifted its portfolio towards the high-yield RAM (Retail, Agri, MSME) segment, which now accounts for 60.02% of total advances. Asset quality continues to improve with Net NPA dropping to 0.65% and a high Provision Coverage Ratio of 92.33%.
- Net Profit increased by 23.05% YoY to ₹331 crore for the quarter ended June 2026.
- Credit growth stood at 19.35% YoY, driven by Retail (36%), MSME (32%), and Agri (25%) segments.
- RAM advances reached 60.02% of the total book, meeting the bank's long-term strategic target early.
- Asset quality improved with Gross NPA at 2.21% and Net NPA at 0.65% as of June 30, 2026.
- Management set a long-term target to reach ₹4,00,000 crore in total business by FY29.
Punjab & Sind Bank (PSB) has disclosed the audio recording link for its Analyst Meet held on July 20, 2026, regarding the Q1 FY27 financial results. The bank continues to operate with a high promoter (Government of India) holding of 93.85%, which provides sovereign support but limits public float. Key focus areas for the bank include managing its ₹10,100 Cr non-earning recapitalization bonds and expanding its high-yield RAM segment, which previously saw 20.23% growth. The recording provides management's perspective on margin pressures and digital expansion through the PSB Alliance.
- Analyst meet conducted on July 20, 2026, to discuss Q1 FY27 performance.
- Government of India maintains a high promoter stake of 93.85% as of March 2026.
- Bank manages ₹10,100 Cr in zero-coupon recapitalization bonds which remain non-earning assets.
- Operational network includes 1,607 branches and 1,053 ATMs as of the last reported period.
- Recent quarterly net profit for March 2026 stood at ₹422 Cr.
Punjab & Sind Bank (PSB) reported a strong start to FY27 with a 23.05% YoY increase in Net Profit to ₹331 Cr. Credit growth was robust at 19.35% YoY, reaching ₹1,19,290 Cr, primarily driven by the RAM (Retail, Agri, MSME) segment which grew 32.66% YoY. Asset quality improved significantly with Gross NPA declining to 2.21% from 3.34% a year ago. However, the CASA ratio saw a slight compression of 53 bps YoY to 30.06%, reflecting the industry-wide challenge in low-cost deposit mobilization.
- Gross Advances grew 19.35% YoY to ₹1,19,290 Cr, outperforming the bank's own FY27 guidance of 16-18%
- Gross NPA ratio improved by 113 bps YoY to 2.21%, while Net NPA dropped to 0.65%
- RAM segment now constitutes 60.02% of total advances, up from 54.00% in June 2025
- Net Interest Income (NII) increased 15.33% YoY to ₹1,038 Cr, supporting the bottom line
- Capital Adequacy Ratio (CRAR) remains healthy at 17.61% with CET-1 at 16.56%
Financial Performance
Revenue Growth by Segment
Total business grew 12.19% YoY to INR 2,41,272 Cr in Q2 FY26. RAM (Retail, Agri, MSME) advances grew 20.23% YoY. Total advances grew 15.97% YoY to INR 1,05,566 Cr, while deposits grew 9.42% YoY to INR 1,35,706 Cr.
Geographic Revenue Split
Highly concentrated in Northern India, with 962 branches (59.8% of the total 1,607 pan-India network) located in Punjab and New Delhi as of June 30, 2025.
Profitability Margins
Net profit for Q2 FY26 stood at INR 295 Cr, up 22.92% YoY. Annualized ROTA for Q1 FY26 was 0.67%. Profitability is constrained by high interest expenses and a large share of non-earning assets (INR 10,100 Cr in zero-coupon recapitalization bonds).
EBITDA Margin
Operating profit increased by 10.26% YoY in Q2 FY26. Net Interest Income (NII) increased by 8.82% YoY, driven by healthy credit growth in the RAM segment.
Capital Expenditure
Capital adequacy ratio (CAR) stood at 17.19% in Q2 FY26, down from 17.90% in Q1 FY26. The bank raised INR 1,219 Cr via Qualified Institutional Placement (QIP) in FY25 to support credit growth.
Credit Rating & Borrowing
Ratings revised upward by CARE and CRISIL due to improved profitability and asset quality. Borrowing costs are relatively high due to a lower CASA ratio of 30.59% compared to peer public sector banks.
Operational Drivers
Raw Materials
Deposits (Cost of Funds) represent the primary 'raw material' cost, with CASA deposits at 30.59% and term deposits making up the remainder.
Key Suppliers
Majority ownership by the Government of India (93.85% stake) provides critical capital support and stability.
Capacity Expansion
Current network includes 1,607 branches and 1,053 ATMs as of June 30, 2025. Expansion is focused on digital channels and the 'PSB Alliance' for shared services.
Raw Material Costs
Interest expenses are high due to a reliance on term deposits; advances reprice quickly while deposits reprice with a lag, creating margin pressure.
Manufacturing Efficiency
Not applicable; service-oriented model focuses on credit delivery and recovery efficiency (recovery and upgradations increased 14.37% in Q2 FY26).
Logistics & Distribution
Distribution is managed through 1,607 physical branches and 1,053 ATMs, with a focus on expanding digital transaction security.
Strategic Growth
Expected Growth Rate
12.19%
Growth Strategy
Focusing on the high-yield RAM segment (20.23% growth), launching Supply Chain Finance products through PSB Alliance, and expanding green financing via the 'PSB GO-GREEN' and 'PSB e-Vahan' schemes.
Products & Services
Savings and current accounts, term deposits, retail loans (housing, auto), agricultural credit, MSME loans, and Supply Chain Finance.
Brand Portfolio
PSB, PSB Alliance, PSB GO-GREEN, PSB e-Vahan, Green Earth Deposit Scheme.
New Products/Services
Supply Chain Finance management (advanced stage), PSB e-Vahan (INR 174.55 Cr sanctioned), and Green Earth Deposit Scheme (INR 346.71 Cr financed).
Market Expansion
Targeting unbanked populations under PMJDY (79,919 persons reached in Q2 FY26) and expanding the SHG portfolio (INR 15.30 Cr financed in Q2 FY26).
Market Share & Ranking
Identified as a 'relatively small' public sector bank with a pan-India presence.
Strategic Alliances
PSB Alliance, a company floated by all public sector banks to facilitate technological collaboration and product development.
External Factors
Industry Trends
The industry is shifting toward digital banking and ESG-linked financing. PSB is positioning itself through 'GO-GREEN' financing and digital security upgrades.
Competitive Landscape
Competes with larger public sector banks and private banks, particularly in the Northern Indian market.
Competitive Moat
Moat is derived from 93.85% Government of India ownership, which ensures sovereign support and high investor confidence despite modest profitability.
Macro Economic Sensitivity
Sensitive to interest rate cycles; margins are squeezed when deposit rates rise faster than loan yields can be adjusted.
Consumer Behavior
Increasing demand for digital banking and green finance products like electric vehicle loans.
Geopolitical Risks
Indirect exposure through credit risk if environmental or geopolitical factors impact the operations of asset classes in the portfolio.
Regulatory & Governance
Industry Regulations
Complies with RBI Master Directions on investment portfolios and Basel III capital requirements (Tier I 16.02% vs 9.5% regulatory minimum).
Environmental Compliance
Integrating ESG through the Climate Risk & Green Deposit Policy and financing renewable energy (INR 346.71 Cr).
Legal Contingencies
Not disclosed; however, the bank maintains a Board-level committee to monitor recovery and a strong vigilance mechanism.
Risk Analysis
Key Uncertainties
Potential weak assets (SMA 1 and 2) stood at 3.42% of gross advances as of June 2025, which is high relative to net worth compared to peers.
Geographic Concentration Risk
59.8% of branches are in Northern India, making the bank vulnerable to regional economic downturns in Punjab and Delhi.
Third Party Dependencies
High dependency on the Government of India for capital infusions (INR 10,100 Cr received in FY21-22).
Technology Obsolescence Risk
Risk of falling behind in digital banking; mitigated by revamping IT and cybersecurity through the PSB Alliance.
Credit & Counterparty Risk
Gross NPA improved to 2.92% in Q2 FY26 from 3.38% in March 2025. Net NPA is 0.83% with a Provision Coverage Ratio (PCR) of 91.88%.
