Punjab & Sind Bank FY26 Net Profit Soars to ₹1,322 Cr, Business at ₹2.63 Lakh Cr
Punjab & Sind Bank reported its highest-ever net profit of ₹1,322 crore in FY26, driven by robust business growth of 14.94% to ₹2.63 lakh crore. Asset quality improved with GNPA falling to 2.40%, and the bank targets ₹4 lakh crore business by FY29.
*this image is generated using AI for illustrative purposes only.
Punjab & Sind Bank reported its highest-ever annual net profit of ₹1,322 crore for the financial year ended March 31, 2026, marking a growth of 30.12% year-on-year. The bank's management shared these results during an earnings conference call held on April 28, 2026. The total business reached ₹2,63,652 crore in FY26, described by management as a historic growth of 14.94%.
Record Financial Performance in FY26
Gross Advances grew at 18.29%—surpassing the bank's own guidance of 15% to 16%—while deposits recorded a robust growth of 12.37%. Retail term deposits grew at 19.58%, and CASA grew at over 10%. The operating profit for the year grew by 5.16% to stand at ₹2,182 crore. Net Interest Income (NII) grew by 0.74% to ₹3,812 crore; however, management noted that excluding a one-off interest income of over ₹200 crore in Q4 of the previous year, NII growth would have been above 8%.
| Metric: | FY26 Performance |
|---|---|
| Total Business: | ₹2,63,652 crore (growth: 14.94%) |
| Net Profit (Annual): | ₹1,322 crore (growth: 30.12%) |
| Net Profit (Q4): | ₹422 crore (growth: 34.82%) |
| Net Interest Income (Annual): | ₹3,812 crore (growth: 0.74%) |
| Core Fee Income (Annual): | ₹759 crore (growth: 22%+) |
| Gross Advances Growth: | 18.29% |
| Net Interest Margin (Annual): | 2.55% |
| Return on Assets (Mar 2026): | 0.79% |
Asset Quality and RAM Segment Performance
Asset quality showed consistent improvement across the year. Gross NPA declined from 3.38% to 2.40%, and Net NPA fell from 0.96% to 0.79%. The Provision Coverage Ratio (PCR) stood at 90.91%. Recovery and upgradation for the year stood at nearly ₹1,500 crore, while slippages reduced from ₹801 crore to ₹678 crore over the year. The RAM (Retail, Agriculture, MSME) segment now constitutes nearly 59% of total advances, with retail growing over 24%, agriculture over 23%, and MSME over 29%.
| Asset Quality Metric: | FY26 | FY25 |
|---|---|---|
| Gross NPA: | 2.40% | 3.38% |
| Net NPA: | 0.79% | 0.96% |
| PCR: | 90.91% | — |
| Slippages (₹ crore): | ₹678 crore | ₹801 crore |
Strategic Initiatives and Future Guidance
The bank provided guidance for FY27, targeting deposit growth of 13% to 14% and advances growth of 16% to 18%. Management aims to cross ₹3,00,000 crore in total business in the current financial year and has a board-approved target of ₹4,00,000 crore by FY29. The bank received RBI approval for a GIFT City branch, targeted for launch by October 2026. Regarding the RBI's new ECL framework, the Chief Risk Officer indicated the estimated impact is expected to be in the range of ₹600 crore to ₹800 crore, absorbable through the capital buffer over a five-year glide path ending in 2031.
Historical Stock Returns for Punjab & Sind Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.65% | +0.52% | +8.96% | -19.19% | -9.43% | +32.59% |
How might Punjab & Sind Bank's planned GIFT City branch expansion influence its ability to attract foreign currency deposits and compete with larger PSU banks in international trade finance?
Given the MSME segment's residual stress driving Q4 slippage uptick, could deteriorating macroeconomic conditions or GST compliance pressures push the bank's Gross NPA above its sub-2% FY27 target?
With the ECL framework impact estimated at ₹600–800 crore absorbed over a five-year glide path, how might simultaneous capital demands from the 200-branch expansion and 2x IT budget increase strain the bank's capital adequacy ratios?
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