Punjab & Sind Bank has announced an Extraordinary General Meeting (EGM) scheduled for January 21, 2026, to seek shareholder approval for raising equity capital up to ₹3,000.00 crores through Qualified Institutional Placement (QIP). The meeting represents a significant step in the bank's capital enhancement strategy to meet regulatory requirements and support business growth.

Meeting Details and Schedule

The EGM will be conducted through Video Conferencing (VC) and Other Audio Visual Means (OAVM) on Wednesday, January 21, 2026, at 11:00 AM. The bank has established comprehensive timelines for shareholder participation and voting processes.

Business Agenda and Capital Raising Proposal

The primary agenda involves seeking shareholder approval for creating, offering, issuing, and allotting fresh equity shares with a face value of ₹10.00 each, up to an amount of ₹3,000.00 crores (including premium) through QIP. The proposal will be presented as a Special Resolution requiring shareholder consent.

The equity capital raising initiative aims to address multiple strategic objectives:

• Meeting growing capital requirements under Basel III Capital Regulations
• Complying with minimum public shareholding requirements
• Supporting general lending purposes and business expansion
• Improving the bank's Capital Adequacy ratio
• Funding general business needs in the evolving banking landscape

Regulatory Framework and Compliance

The proposed QIP will be conducted under Chapter VI of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. The initiative requires compliance with various regulatory frameworks including the Banking Companies (Acquisition and Transfer of Undertakings) Act 1980, Banking Regulation Act 1949, and Punjab & Sind Bank (Shares and Meetings) Regulations 2008.

The bank has appointed M/s S. N. Ananthasubramanian & Co, Company Secretaries, as the scrutinizer to ensure fair and transparent e-voting processes. The scrutinizer will submit a consolidated report within 48 hours of the EGM conclusion.

Shareholder Participation and E-voting Process

Shareholders can participate through multiple channels, with the bank providing comprehensive e-voting facilities through Central Depository Services Limited (CDSL). The remote e-voting period spans from 10:00 AM on Saturday, January 17, 2026, to 5:00 PM on Tuesday, January 20, 2026.

Key participation guidelines include:

• Shareholders present during the EGM through VC/OAVM who haven't cast remote e-votes remain eligible for meeting-time voting
• Those who have already voted remotely can attend the meeting but cannot vote again
• The VC/OAVM facility will accommodate at least 1,000 members on a first-come, first-served basis
• Large shareholders, promoters, institutional investors, and key personnel have unrestricted meeting access

Strategic Rationale and Market Context

The capital raising initiative reflects Punjab & Sind Bank's proactive approach to strengthening its financial position amid evolving regulatory requirements and competitive market dynamics. The bank emphasizes the need for additional capital to support its growing business operations while maintaining compliance with Basel III norms and minimum public shareholding requirements.

The detailed terms and conditions for equity share issuance will be determined by the Board of Directors in consultation with merchant bankers, lead managers, and advisors, considering prevailing market conditions and relevant factors. The Board recommends shareholder approval for the Special Resolution, noting that no directors or key managerial personnel have interests beyond their existing shareholding in the bank.

Punjab & Sind Bank has reported a robust performance for the second quarter, with a significant increase in net profit and approval for a substantial capital raising plan. The bank's strategic initiatives and focus on digital transformation are showing positive results, positioning it for continued growth.

Key Financial Highlights

• Net Profit: Punjab & Sind Bank reported a net profit of Rs 294.5 crore for Q2, marking a 22.92% increase year-on-year.
• Total Business: The bank's total business grew by 12.19% year-on-year to Rs 2,41,272 crore.
• Deposits: Deposits rose by 9.42% to Rs 1,35,706 crore.
• Advances: The bank saw a significant 15.97% year-on-year increase in advances to Rs 1,05,566 crore.
• Asset Quality: Gross Non-Performing Assets (NPA) improved to 2.92%, while Net NPA stood at 0.83%.
• Operating Profit: The bank's operating profit increased by 10.26% compared to the previous year.

Capital Raising and Expansion Plans

The board of Punjab & Sind Bank has approved an ambitious capital raising plan of Rs 5,000 crore, comprising:

• Rs 3,000 crore through equity
• Rs 2,000 crore through bonds

This capital infusion is planned over a one-year period and aims to support the bank's growth initiatives and strengthen its capital base.

Digital Transformation and Business Expansion

Punjab & Sind Bank is making significant strides in its digital transformation journey:

• 60% of vehicle loans and 35% of home loans are now processed digitally.
• The bank plans to open 200 new branches over the next two years.
• Received board approval for establishing a branch in GIFT City, enhancing its presence in international financial services.

Business Targets and Portfolio Management

• The bank is targeting 15-16% advance growth.
• Aims to increase the Retail, Agriculture, and MSME (RAM) portfolio to 57-58% by the end of the fiscal year.
• Slippages were contained at Rs 164 crore for the quarter.

Financial Performance Analysis

Punjab & Sind Bank's performance in Q2 demonstrates a strong growth trajectory, with improvements across key financial metrics. The significant increase in net profit and advances, coupled with improved asset quality, reflects the bank's effective strategies and risk management practices.

The approval of the Rs 5,000 crore capital raising plan indicates the bank's commitment to fueling future growth and maintaining a strong capital position. This infusion is expected to support the bank's expansion plans and digital initiatives, potentially leading to enhanced market presence and operational efficiency.

The bank's focus on digital lending, particularly in vehicle and home loans, showcases its adaptation to changing customer preferences and technological advancements in the banking sector. The planned expansion of 200 new branches over the next two years, along with the approval for a GIFT City branch, signals the bank's intent to expand its geographical footprint and tap into new market opportunities.

As Punjab & Sind Bank continues to implement its growth strategies and digital transformation initiatives, it appears well-positioned to capitalize on the evolving banking landscape and meet its targeted growth objectives.