Punjab & Sind Bank gains as Q2 PAT jumps 39.9% YoY
Profit before tax rose 58.2% YoY and 25.2% QoQ to Rs 565.34 crore during the quarter.
Net interest income rose 22.32% YoY to Rs 1,162 crore. Interest earned rose 13.2% YoY and 5.6% QoQ to Rs 3,394.48 crore, while interest expended rose 9.0% YoY and 2.7% QoQ to Rs 2,233.60 crore. Net interest margin improved 17 bps YoY to 2.77% from 2.60%. Core fee income grew 23.62% YoY to Rs 246 crore.
Operating profit before provisions and contingencies rose 22.3% YoY to Rs 617.45 crore from Rs 505.06 crore, and 13.2% from Rs 545.48 crore in Q1 FY27. Provisions and contingencies fell 64.7% YoY and 44.6% QoQ to Rs 52.11 crore in Q2 FY27.
On costs, employee expenses rose 2.0% YoY to Rs 499.11 crore, other operating expenses rose 20.1% YoY to Rs 396.36 crore. Total operating expenses rose 9.3% YoY to Rs 895.47 crore.
The bank's gross non-performing assets (NPAs) stood at Rs 2,636.20 crore as on September 2026, as against Rs 2,636.95 crore as on June 2026 and Rs 3,081.89 crore as on September 2025, a decline of 14.5% YoY. The gross NPA ratio stood at 2.09% as on September 2026, as against 2.21% as on June 2026 and 2.92% as on September 2025.
Net NPAs were Rs 750.80 crore, against Rs 765.86 crore and Rs 854.13 crore, while the net NPA ratio stood at 0.61%, against 0.65% and 0.83%. The provision coverage ratio, including technical write-offs, rose 60 bps YoY to 92.48% during the quarter.
Fresh slippages rose to Rs 237 crore from Rs 164 crore a year ago, taking the slippage ratio to 0.20% (0.80% annualised) from 0.17% last year.
Total business grew 15.73% YoY to Rs 2,79,231 crore as of 30 September 2026, and business per branch rose to Rs 164.20 crore from Rs 148.77 crore. Total deposits grew 12.97% YoY to Rs 1,53,312 crore, with retail term deposits up 9.64% YoY to Rs 67,354 crore.
Total advances grew 19.28% YoY to Rs 1,25,919 crore. Retail, agriculture, MSME (RAM) advances grew 31.08% YoY to Rs 77,276 crore, taking their share of advances up 553 bps YoY to 61.37%. Within RAM, retail advances grew 42.71% YoY, agriculture advances grew 16.01% YoY, and MSME advances grew 28.69% YoY. Total assets rose 15.1% YoY to Rs 1,90,288.04 crore, while borrowings rose 53.4% YoY to Rs 19,229.85 crore.
CASA deposits grew 7.48% YoY to Rs 44,207 crore but were flat QoQ, taking the CASA ratio down 148 bps YoY to 28.83% from 30.31% in Q2 FY26. The credit-deposit ratio rose 434 bps YoY to 82.13%.
Gold loans rose to Rs 9,804 crore from Rs 1,378 crore a year ago and now make up 29.28% of the retail book of Rs 33,478 crore, while corporate advances grew 4.35% YoY to Rs 48,643 crore.
The bank's capital adequacy ratio stood at 16.55% as of 30 September 2026, down 64 bps YoY from 17.19% and from 17.61% in June 2026.
For FY27, the bank guided for deposit growth of 13-14%, advances growth of 16-18%, gross NPA below 2.0%, net NPA below 0.65% and credit cost below 1%. Advances growth of 19.28% is already above that range, and the gross NPA ratio of 2.09% is just above the target.
The bank reported six frauds totalling Rs 719.30 crore to the Reserve Bank of India during the quarter, against Rs 4.27 crore a year ago. The loss to the bank was Rs 5.87 crore, which it has fully provided for. Following RBI directions, the bank also discontinued the Investment Fluctuation Reserve and transferred Rs 354.21 crore to general reserve during the half year.
Punjab & Sind Bank is a Delhi-headquartered public sector bank with a strong presence in northern India. The Government of India holds 93.85% of the bank.
The bank has 1,694 branches, 962 of them in the northern region, along with 1,212 ATMs and 3,405 business correspondents.
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