Punjab & Sind Bank Q1FY26 Results: Net Profit Soars 47.8% YoY to ₹269 Cr; Asset Quality Strengthens
By Shishta Dutta | Updated at: Jan 9, 2026 01:50 PM IST
New Delhi, July 21, 2025: Punjab & Sind Bank (NSE: PSB, BSE: 533295) has announced a robust financial performance for the quarter ended 30 June 2025 (Q1 FY26). The bank reported a significant 47.8% year-on-year (YoY) growth in net profit, reaching ₹269 crore, up from ₹182 crore in Q1 FY25. This strong profit growth was complemented by a substantial 70.35% surge in operating profit to ₹540 crore, driven by healthy increases in both interest and non-interest income.
Key Financial Highlights (YoY Comparison: Q1FY25 vs Q1FY26)
| Particulars | Q1FY25 | Q1FY26 | YoY Change |
|---|---|---|---|
| Net Profit (₹ Cr) | 182 | 269 | +47.8% |
| Operating Profit (₹ Cr) | 317 | 540 | +70.35% |
| Total Income (₹ Cr) | – | 3379 | +18.73% |
| Net Interest Income (₹ Cr) | – | 900 | +5.88% |
| Non-Interest Income (₹ Cr) | – | 469 | +141.75% |
| Return on Assets (%) | 0.50 | 0.67 | +17 bps |
| CRAR (%) | 17.30 | 17.90 | +60 bps |
| Cost to Income Ratio (%) | 69.67 | 60.55 | -912 bps |
Business Performance
| Metric | Q1FY25 | Q1FY26 | YoY Growth (%) |
|---|---|---|---|
| Total Business (₹ Cr) | 2,08,331 | 2,31,132 | 10.94% |
| Total Deposits (₹ Cr) | 1,20,593 | 1,31,182 | 8.78% |
| Retail Term Deposits (₹ Cr) | 51,346 | 57,214 | 11.43% |
| Total Advances (₹ Cr) | 87,738 | 99,950 | 13.92% |
| RAM Advances (₹ Cr) | 46,056 | 53,970 | 17.18% |
Retail Loan Growth
- Retail Advances: +29.00% YoY
- MSME Advances: +14.53%
- Vehicle Loans: +40.60%
- Gold Loans: +39.56%
- Home Loans: +23.95%
Asset Quality Improves
A key highlight of the results is the significant improvement in asset quality, reflecting the bank’s effective management of non-performing assets.
| Asset Quality Metrics | Q1FY25 | Q1FY26 | Change |
|---|---|---|---|
| Gross NPA (₹ Cr) | 4,145 | 3,339 | -19.45% |
| Gross NPA (%) | 4.72 | 3.34 | -138 bps |
| Net NPA (₹ Cr) | 1,350 | 883 | -34.59% |
| Net NPA (%) | 1.59 | 0.91 | -68 bps |
| Provision Coverage Ratio (%) | 88.08 | 91.77 | +369 bps |
Awards & Recognition
Punjab & Sind Bank received recognition from the Department of Financial Services, Ministry of Finance, for its excellence in implementing the official language policy under the ‘Ka’ zone. The ‘Ka’ zone refers to states and union territories where Hindi is the primary official language, indicating strong adherence to government directives regarding Hindi usage in official communications.
The bank was also declared a ‘Top Improver’ in the EASE 7.0 Reforms Index, an initiative by the Department of Financial Services to enhance access and service excellence in Public Sector Banks, underscoring its continuous efforts in operational efficiencies and digital transformation.
Share Price Performance
On July 18, the shares of Punjab & Sindh Bank closed at ₹32.28, down by 0.25% or ₹0.08. It remains to be seen at what price the shares open at the start of today’s market session.
What’s Ahead?
Punjab & Sind Bank is expected to sustain its positive momentum backed by improving asset quality, strong growth in retail and RAM (Retail, Agriculture, MSME) advances, and continued focus on operational efficiency. The sharp fall in NPAs and rising provision coverage ratio reflect strengthening fundamentals. Investors will watch for further traction in loan growth, especially in retail and MSME segments, along with digital initiatives under the EASE framework. With healthy capital adequacy and expanding margins, the bank is well-positioned to navigate a competitive public sector banking landscape in FY26.
About Punjab & Sind Bank
Punjab & Sind Bank is a Government of India undertaking, listed on both NSE and BSE, with a strong presence across retail, MSME, and agricultural lending. The bank is focused on expanding its retail footprint while improving asset quality and profitability through sustained reforms.
REF:
https://nsearchives.nseindia.com/corporate/PSB_19072025162629_bsense19072025.pdf
https://nsearchives.nseindia.com/corporate/PSB_19072025171947_bsense19072025pr.pdf
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