Punjab & Sind Bank profit up 23%, bad loans shrink
Net profit rises to ₹331 crore. Gross NPAs drop to 2.21% from 3.34%. The numbers are solid but widely expected.
— 2 earlier stories on Punjab & Sind Bank →What's new
- Net profit up 23% YoY to ₹331 crore; NII grows 15.33% to ₹1,038 crore.
- Gross NPA ratio eases to 2.21% from 3.34%; net NPA falls to 0.65%.
- Advances jump 19.35%, total business reaches ₹2,66,420 crore.
Why this matters
The numbers are solid – double-digit loan growth and a sharp reduction in bad loans. But this is a routine quarterly release. The board had already flagged the numbers earlier in the day, so no surprise.
What we're watching
- Slippage trends as loan growth accelerates.
- Net interest margin trajectory in a rising deposit cost environment.
- Capital adequacy of 17.61% provides headroom for expansion.
The full read
Punjab & Sind Bank's Q1 was solid. Net profit rose 23% to ₹331 crore. Net interest income grew 15.33% to ₹1,038 crore. Asset quality improved: gross NPAs fell to 2.21% from 3.34%, and net NPAs to 0.65% from 0.91%. Advances grew 19.35%, more than deposits at 12.16%. Total business hit ₹2,66,420 crore. The capital adequacy ratio of 17.61% leaves room for expansion. Hardly a surprise, though — the board had already flagged the numbers earlier in the day. What changes from here is the trajectory of slippages and margins as the bank chases growth.
Questions answered
- Why did Punjab & Sind Bank's net profit rise in Q1?
- Higher net interest income, up 15.33% to ₹1,038 crore, and lower provisions from improved asset quality drove net profit to ₹331 crore from ₹269 crore.
- How much did asset quality improve?
- Gross NPAs fell to 2.21% of advances from 3.34% a year ago; net NPAs declined to 0.65% from 0.91%.
- What is the bank's capital adequacy ratio?
- The capital adequacy ratio stood at 17.61% as of June 30, 2026, well above the regulatory minimum.
- How did the bank's business grow?
- Total business expanded 15.27% to ₹2,66,420 crore, driven by a 19.35% rise in advances and a 12.16% increase in deposits.
- Were these results better than market expectations?
- The results were in line with expectations. The numbers were already known from the earlier board meeting outcome, so there was no incremental surprise.
- What is the bank's outlook for the rest of FY27?
- The bank has not provided explicit guidance. With a capital adequacy of 17.61% and improving asset quality, it is positioned to sustain loan growth.
Punjab & Sind Bank
Latest quarter · Jun 2026
Returns & growth
Story so far
All notes on PSB →- 18 Jul 2026 · 6:11 PM IST Punjab & Sind Bank profit up 23%, bad loans shrink
- 1d ago PSB targets Rs 4 lakh crore business by FY29, guides for 19-20% credit growth
- 3d ago PSB Q1 profit up 23% to ₹331 cr, but market already knew