Punjab & Sind Bank Q2FY27 Results: Net profit up 40% on lower provisions
- Net profit rose 39.66% YoY to ₹411.97 crore in Q2FY27
- Net Interest Income grew 22.32% YoY to ₹1,162 crore
- Gross NPA improved to 2.09% from 2.92% a year earlier
- Total business grew 15.73% to ₹2,79,231 crore
*this image is generated using AI for illustrative purposes only.
Punjab & Sind Bank reported a net profit of ₹411.97 crore for the quarter ended September 30, 2026 (Q2FY27), marking a 39.66% increase from ₹294.52 crore in the corresponding period last year. The growth was primarily supported by a significant reduction in credit costs and robust expansion in interest earned.
The bank's net interest income (NII) stood at ₹1,162 crore for the quarter, growing 22.32% year-on-year. Total income rose to ₹3,747 crore, an 11.06% increase from the previous year. Operating profit before provisions and contingencies expanded to ₹618 crore, up 22.38% from ₹505 crore in Q2FY26. The Cost to Income ratio improved significantly, reducing by 268 bps to 59.19% from 61.87% a year ago.
Asset quality improvements
The bank witnessed a marked improvement in asset quality metrics during the quarter. Provisions and contingencies dropped sharply, directly boosting the bottom line despite a higher tax expense. Gross non-performing assets (GNPA) improved to 2.09% from 2.92% a year earlier and 2.21% in the previous quarter (QoQ). Net NPAs declined to 0.61% from 0.83% YoY and 0.65% QoQ. The provision coverage ratio, including technical write-offs, strengthened to 92.48% as of September 30, 2026, up from 91.88% in the previous year.
| Metric | Q2FY27 | Q2FY26 | Change (YoY) |
|---|---|---|---|
| Net Profit | ₹411.97 crore | ₹294.52 crore | +39.66% |
| Net Interest Income | ₹1,162 crore | - | +22.32% |
| Total Income | ₹3,747 crore | - | +11.06% |
| Operating Profit | ₹618 crore | ₹505 crore | +22.38% |
| GNPA | 2.09% | 2.92% | -83 bps |
| NNPA | 0.61% | 0.83% | -22 bps |
Business growth and segment performance
Total business registered growth of 15.73%, standing at ₹2,79,231 crore. Total deposits increased by 12.97% to ₹1,53,312 crore, while total advances grew by 19.28% to ₹1,25,919 crore. Retail banking continued to be a key driver, with retail advances registering a robust growth of 42.71%. Priority sector lending saw strong momentum, with RAM advances growing 31.08% and the RAM ratio increasing by 553 bps to 61.37%.
Core fee income grew by 23.62% to ₹246 crore, indicating healthy non-interest revenue streams. Return on Equity (RoE) improved by 280 bps to 13.21%, while Return on Assets (RoA) rose by 16 bps to 0.88%. The Net Interest Margin (NIM) expanded by 17 bps to 2.77% on a year-on-year basis.
What the numbers show
A key divergence is visible between the surge in operating profit and the decline in other income relative to total income growth. While operating profit before provisions grew by 22.38% YoY, other income fell to ₹35.20 crore from ₹37.44 crore in Q2FY26. This indicates that the profit growth was not driven by fee-based or treasury gains but rather by core lending spread expansion and aggressive cleanup of legacy bad loans, evidenced by the sharp drop in NPA provisions. The sequential improvement in GNPA from 2.21% to 2.09% further confirms that asset quality recovery is ongoing on a quarterly basis, not just annually.
Historical Stock Returns for Punjab & Sind Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.24% | +2.36% | -4.87% | -14.39% | -29.39% | 0.0% |
How will the RBI's potential interest rate cuts in FY27 impact Punjab & Sind Bank's net interest margin expansion given its current 2.77% NIM?
Can the bank sustain its 42.71% retail loan growth without compromising asset quality as competition intensifies in the consumer lending segment?
What specific strategies is the bank implementing to reverse the decline in other income and diversify revenue beyond core lending spreads?
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