Punjab & Sind Bank reported a 23% year-on-year rise in net profit to ₹331 crore for the quarter ended June 30, 2026. The lender’s net interest income grew by 15% to ₹1,038 crore, supported by an expansion in total advances by 19.35% to ₹1.19 lakh crore.

The bank submitted its corporate presentation and quarterly results to stock exchanges on September 1, 2026. The filing highlights improved asset quality, with gross non-performing assets (GNPA) declining by 113 basis points (bps) to 2.21% from 3.34% in the previous quarter. Net NPAs also fell by 26 bps to 0.65%.

Financial Performance

Total income for the quarter stood at ₹3,545 crore, up from ₹3,379 crore in Q1FY26. Interest earned increased to ₹3,213 crore from ₹2,910 crore, while other income contracted to ₹332 crore from ₹469 crore. Total expenses rose modestly to ₹3,214 crore from ₹3,110 crore.

Return on assets (RoA) improved by 6 bps to 0.73%, while return on equity (RoE) expanded by 118 bps to 10.85%. The net interest margin (NIM) remained stable at 2.53%, compared to 2.52% in the prior quarter.

Asset Quality & Capital Adequacy

Asset quality metrics showed significant improvement. Fresh slippages were contained at ₹207 crore, slightly up from ₹203 crore in the previous quarter but well below the ₹678 crore recorded in FY26. The provision coverage ratio (PCR) rose by 56 bps to 92.33%.

Capital adequacy remained robust. The Capital to Risk-Weighted Assets Ratio (CRAR) stood at 17.61%, down 29 bps from 17.90% in the previous quarter. Tier 1 capital increased by 54 bps to 16.56%. The bank’s net worth grew by 10.47% year-on-year to ₹12,500 crore.

Business Growth & Deposit Franchise

Total business expanded by 15.27% to ₹2.66 lakh crore. Total deposits grew by 12.16% to ₹1.47 lakh crore. The CASA ratio declined slightly to 30.06% from 30.59% in the previous quarter, though retail term deposits saw strong growth of 14.94% to ₹65,764 crore.

The credit-to-deposit ratio expanded by 489 bps to 81.08%, indicating aggressive loan deployment relative to deposit growth. The Retail, Agriculture, and MSME (RAM) segment’s share of the loan book increased to 60.02% from 58.80% in March 2026.

What the Numbers Show

While net profit surged 23% YoY, operating profit growth was muted at less than 1%. This divergence suggests that the bottom-line improvement was partly supported by factors beyond core operational efficiency, such as lower credit costs or favorable tax/other income dynamics, rather than pure top-line leverage. Additionally, the sharp rise in the credit-to-deposit ratio to over 81% signals a shift toward more aggressive lending, which may pressure future deposit mobilization efforts if not matched by liability growth.

Punjab & Sind Bank has appointed Shri Kristam Subba Raju Guptha as a Part-Time Non-Official Director on its Board. The Central Government issued the notification on August 12, 2026, exercising powers conferred by clause (h) of sub-section (3) of section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.

The appointment is valid for a period of three years from the date of notification or until further orders, whichever is earlier. The bank disclosed that there are no relationships between the newly appointed director and existing board members.

Appointment Details

The bank filed the disclosure with the stock exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. A detailed profile of the appointee will be submitted separately.