Punjab & Sind Bank Posts Rs.412 Crore Net Profit, Advances Rise 19.28% in Q2 FY27

The bank’s overall business size increased over 15.73% to Rs.2,79,231 crores in Q2 FY27. The credit-deposit (CD) ratio stood at 82.13%, with guidance expecting deposits and advances to grow 13%-14% and 18%-20% respectively in the coming two quarters, keeping CD ratio around 82%.

CASA deposits grew 7.5% year-over-year but their share slipped slightly to 28.83%. The bank focused on RAM (Retail, Agriculture, and MSME) advances, which grew over 31% and now represent 61.37% of total advances, aiming to reach 65% by FY27-end and 70% by March 2028.

In sectoral growth, retail advances rose 42%, agriculture 16%, and MSME 28.69%. Net interest income grew 22%, leading to an operating profit increase of 22% to Rs.617 crores and rising net profit over 39% to Rs.412 crores. Core fee income growth of 23.6% contributed to profitability alongside muted treasury performance.

Asset quality improved with gross NPA at 2.09%, net NPA at 0.61%, and provision coverage ratio increasing. Capital adequacy ratio was healthy at 16.55%, with CET-1 at 15.49%. Efficiency metrics also showed improvement, including a net interest margin increase to 2.77%, return on assets of 0.88%, and return on equity at 13.21%.

The bank highlighted progress in digital transformation projects, plans for deposit mobilization campaigns, and the upcoming launch of a GIFT City branch and forex trade module in Q3 FY27. Recovery and upgradation targets remain on track with Rs.622 crores achieved against a Rs.1,000 crore-plus goal.