Punjab & Sind Bank Q2 FY27: Net Profit Soars 40% to ₹412 Crore; Advances Up 19.28%
Punjab & Sind Bank reported a 40% rise in Q2 FY27 net profit to ₹412 crore and a 19.28% increase in advances to ₹1,25,919 crore. Deposits grew 12.97% to ₹1,53,312 crore. NIM improved to 2.77%, and Gross NPA reduced to 2.09%. The bank maintains guidance for 18-20% advance growth and aims for 65% RAM advances by March 2027.
The announcement details robust financial performance, improved asset quality, and positive future guidance, which are material factors for investors and directly impact the bank's valuation and market perception.
The bank reported strong financial results with significant growth in net profit, net interest income, and advances. Asset quality improved, and key profitability ratios like NIM, RoA, and RoE also saw an increase. The management provided positive guidance and highlighted successful implementation of transformational projects, indicating a healthy outlook.
Punjab & Sind Bank (PSB) announced its unaudited reviewed financial results for the quarter ended September 30, 2026, during an earnings call held on October 19, 2026. The bank reported a significant 40% year-on-year increase in net profit, reaching ₹412 crore. Net interest income saw a healthy growth of 22%, contributing to an operating profit increase of 22% to ₹617 crore. Total business grew by over 15.73% to ₹2,79,231 crore, with deposits rising 12.97% to ₹1,53,312 crore and advances growing robustly by 19.28% to ₹1,25,919 crore. The bank's Gross NPA improved to 2.09%, and Net NPA further decreased to 0.61%. The Net Interest Margin (NIM) expanded by 17 basis points year-on-year to 2.77%. Return on Assets (RoA) increased to 0.88%, and Return on Equity (RoE) rose to 13.21%.
The bank reiterated its guidance for deposits to grow between 13% to 14% and advances to grow at 18% to 20% over the next two quarters, maintaining a CD ratio around 82%. Focus remains on Retail, Agri, and MSME (RAM) advances, which grew by over 31% and now constitute 61.37% of gross advances, with a target to reach 65% by March 2027 and 70% by March 2028. The bank is implementing several transformational projects, including digital transformation, collection efficiency improvements, and the upcoming GIFT City branch expected to go live by November end. A forex trade module is also anticipated to be operational in Q3.
During the Q&A session, the management addressed queries on credit growth, digital initiatives, and capital adequacy. The bank has a corporate credit pipeline of approximately ₹20,000 crore and is focused on enhancing its digital offerings, with over 50% of vehicle loans and 40% of housing loans processed through digital platforms. PSB is exploring capital raising options, potentially through the QIP route, to support its growth targets. The bank also provided an update on its written-off accounts (TWO) book, standing at ₹7,344 crore, with a recovery rate of around 10% annually. The bank aims to bring Gross NPA below 2% by the end of March and is investing in technology upgrades, including a new recovery management tool expected within six to nine months. Efforts are also underway to enhance cybersecurity and implement a Resilience Operations Centre.
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