Punjab & Sind Bank (PSB) has reported a remarkable financial performance for the fourth quarter and fiscal year 2024-25, showcasing significant improvements across key metrics.

Impressive Profit Growth

The bank's net profit for Q4 FY25 surged by 125.18% year-over-year, reaching ₹313.00 crore compared to ₹139.00 crore in Q4 FY24. For the full fiscal year 2024-25, PSB's net profit grew by 70.76% to ₹1,016.00 crore, up from ₹595.00 crore in FY24.

Robust Operating Performance

Operating profit for Q4 FY25 witnessed a substantial increase of 142.86%, amounting to ₹816.00 crore, compared to ₹336.00 crore in the same quarter last year. The full-year operating profit for FY25 grew by 83.47% to ₹2,075.00 crore.

Improved Net Interest Income and Margin

Net Interest Income (NII) for Q4 FY25 rose by 62.84% to ₹1,122.00 crore, while the Net Interest Margin (NIM) improved by 87 basis points to 3.19%. For the full year, NII increased by 33.19% to ₹3,784.00 crore. Total income rose to ₹3,836.00 crore in Q4 FY25.

Enhanced Asset Quality

The bank reported significant improvements in asset quality:

• Gross Non-Performing Assets (GNPA) ratio decreased to 3.38% as of March 31, 2025, down from 5.43% a year ago.
• Net Non-Performing Assets (NNPA) ratio reduced to 0.96%, compared to 1.63% as of March 31, 2024.
• Provision Coverage Ratio (PCR) improved to 91.38%, up from 88.69% in the previous year.

Business Growth

Total business of the bank grew by 11.69% year-over-year to ₹229,379.00 crore. Deposits increased by 8.68% to ₹129,774.00 crore, while advances saw a robust growth of 15.87%, reaching ₹99,605.00 crore.

Improved Efficiency

The Cost to Income Ratio for Q4 FY25 improved significantly to 54.61%, down from 69.49% in Q4 FY24. For the full year, it stood at 61.23%, showing a substantial improvement from 72.16% in FY24.

Capital Adequacy

As of March 31, 2025, the bank's Capital Adequacy Ratio stood at a healthy 17.41%, well above the regulatory requirements.

Dividend Announcement

The Board of Directors has recommended a dividend of ₹0.07 per equity share (0.70%) for FY 2024-25, subject to shareholders' approval.

Swarup Kumar Saha, Managing Director & CEO of Punjab & Sind Bank, commented on the results, "Our strong performance in Q4 and throughout FY25 reflects the successful implementation of our strategic initiatives and the dedication of our team. We remain committed to sustaining this growth momentum and delivering value to our stakeholders."

The bank's focus on improving asset quality, expanding its retail and MSME portfolio, and enhancing operational efficiency has contributed to its robust financial performance. As Punjab & Sind Bank continues to strengthen its position in the banking sector, it remains well-positioned for sustained growth in the coming years.

Punjab & Sind Bank , a prominent public sector lender, has announced impressive financial results for the fourth quarter of fiscal year 2024-25, showcasing significant growth across key metrics and improved asset quality.

Stellar Profit Growth

The bank reported a remarkable 125.18% year-over-year increase in net profit for Q4 FY25, reaching ₹313.00 crore compared to ₹139.00 crore in the same quarter last year. This substantial growth in profitability underscores the bank's improved operational efficiency and strategic initiatives.

Robust Operating Performance

Operating profit for Q4 FY25 saw an even more impressive surge, growing by 142.86% to reach ₹816.00 crore. This significant increase reflects the bank's ability to enhance its core banking operations and manage costs effectively.

Key Financial Metrics

Improved Efficiency

The bank's Cost to Income ratio showed significant improvement, decreasing by 1,488 basis points to 54.61% in Q4 FY25. This substantial reduction indicates enhanced operational efficiency and better cost management.

Business Growth

Punjab & Sind Bank reported solid growth in its business volumes:

• Total Business grew by 11.69% to ₹229,379.00 crore.
• Total Deposits increased by 8.68%, with Retail Term Deposits rising by 9.81%.
• Total Advances expanded by 15.87%, with RAM (Retail, Agriculture, and MSME) Advances showing strong growth of 23.53%.

Asset Quality Improvement

The bank made significant strides in improving its asset quality:

Notably, the Gross Non-Performing Assets (GNPA) ratio decreased to 3.38% from 3.83% in the previous quarter, while the Net Non-Performing Assets (NNPA) ratio improved to 0.96% from 1.25%. However, provisions increased significantly to ₹374.00 crore, up from ₹109.00 crore in the previous quarter.

Capital Raising and Dividend

Punjab & Sind Bank successfully raised equity capital of ₹1,219.39 crore through Qualified Institutional Placements on March 27, 2025. This capital infusion will support the bank's growth plans and strengthen its balance sheet.

The Board of Directors has recommended a dividend of ₹0.07 per equity share (0.70%) for FY 2024-25, subject to shareholder approval.

Management Commentary

Swarup Kumar Saha, Managing Director & CEO of Punjab & Sind Bank, commented on the results, stating, "Our Q4 performance demonstrates the bank's resilience and ability to deliver strong growth across key parameters. The significant improvements in profitability, asset quality, and business growth position us well for sustained performance in the coming years."

With these robust financial results and improved asset quality, Punjab & Sind Bank has demonstrated its ability to navigate challenges and capitalize on growth opportunities in the banking sector.