Punjab & Sind Bank Reports Strong Q2 FY26 Results, Plans ₹5,000 Crore Capital Raise & Expansion
Punjab & Sind Bank reported strong Q2 FY26 results with significant growth in business, advances, and profits, alongside improved asset quality. The bank plans to raise ₹5,000 crore capital and expand digitally and physically.
The announcement details robust financial performance for Q2 FY26, including strong growth and improved asset quality. The approval to raise ₹5,000 crore in capital and strategic initiatives like opening 200 new branches, expanding digital lending, and opening a Gift City branch are significant developments that could substantially impact the bank's future growth, profitability, and market position.
The bank reported strong year-on-year growth in total business, deposits, advances, operating profit, and net profit. Asset quality showed significant improvement with reduced NPAs and slippages. Additionally, the board's approval for a substantial capital raise and ambitious plans for digital transformation and branch expansion indicate a positive outlook and strategic growth.
* Punjab & Sind Bank (PSB) released the transcript of its earnings call held on October 17, 2025, discussing the Reviewed Unaudited Financial Results for Quarter (Q2) / Half Year ended September 30, 2025. * Q2 FY26 Performance Highlights (Y-o-Y): * Total business grew by 12.19% to ₹2,41,272 crore. * Deposits increased by 9.42% to ₹1,35,706 crore. * Total Advances rose by 15.97% to ₹1,05,566 crore. * RAM (Retail, Agri, MSME) advances grew by a healthy 20.23%. * Gross NPA improved sequentially to 2.92% as of September 30, while Net NPA improved by 63 bps Y-o-Y to 0.83%. * Provision Coverage Ratio (PCR) improved by 332 bps Y-o-Y to 91.88%. * Slippages were contained to ₹164 crore in the September quarter. * Operating profit increased by 10.26%, and Net Interest Income (NII) increased by 8.82%. * Net profit stood at ₹295 crore, an increase of 22.92%. * Capital adequacy remained strong at 17.19%. * Half Year Performance Highlights (Y-o-Y): * Operating Profit increased from ₹775 crore to ₹1,045 crore. * Net Profit increased from ₹421 crore to ₹564 crore. * Cost-to-income ratio improved from 65.96% to 61.20%. * Strategic Initiatives & Future Plans: * The Board approved a plan to raise ₹5,000 crore over one year, comprising ₹3,000 crore through equity and ₹2,000 crore through bonds, to be raised in tranches based on market conditions. An additional ₹3,000 crore approval for infra funds was also secured. * The bank aims to open 200 new branches in the next one to two years, with traction expected from Q3 onwards, focusing on expanding into new geographies and MSME clusters. * Digital lending for vehicle loans (up to ₹50 lakh), housing loans (up to ₹1 crore), and MSME loans (increased to ₹1 crore) is showing good traction, with 60% of vehicle loans and 35% of home loans now sanctioned digitally. Plans include increasing MSME digital lending to ₹5 crore shortly. * Tab banking has been fully implemented for paperless savings account acquisition in metro and urban branches and will soon be extended to current accounts. * An upgraded call center is enhancing collection efficiency and customer grievance redressal, leveraging AI tools. * The
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