New Delhi: State-owned Punjab & Sind Bank (PSB) on Thursday announced a 29.5 percent year-on-year rise in net profit to ₹295 crore for the quarter ended September 30, 2025. The bank had reported a net profit of ₹240 crore in the corresponding quarter of the previous fiscal year.
Capital Raising Plan of ₹5,000 Crore Approved
In a regulatory filing, Punjab & Sind Bank stated that its Board of Directors has approved raising capital up to ₹5,000 crore by March 2027.
The capital infusion will be structured as follows:
- ₹3,000 crore through QIP, FPO, or rights issue.
- ₹2,000 crore through issuance of bonds.
This move is aimed at strengthening the bank’s capital base, supporting its growth ambitions, and meeting regulatory capital requirements.
Additional ₹3,000 Crore Through Infrastructure Bonds
Alongside the capital raising plan, the board also approved raising ₹3,000 crore via long-term infrastructure bonds in one or more tranches by March 2027. These funds will help the bank finance long-term infrastructure projects and support lending expansion in priority and infrastructure sectors.
Strong Growth in Interest Income
According to the quarterly results approved by the board, interest income increased to ₹2,999 crore in Q2 FY26, compared to ₹2,739 crore in Q2 FY25. The growth reflects improved credit offtake and healthy performance of the bank’s loan book during the quarter.
Asset Quality Strengthens with Lower GNPA
The bank reported a significant improvement in asset quality, with Gross Non-Performing Assets (GNPA) declining to 2.92% of total loans in Q2 FY26, compared to 4.21% in Q2 FY25.
This improvement highlights PSB’s focused efforts on recovery, resolution, and risk management strategies to reduce stressed assets.
Stock Performance
Following the earnings announcement, shares of Punjab & Sind Bank closed at ₹30.22 apiece, up 0.23% on the BSE from the previous close. The bank’s performance has been closely watched by investors due to its turnaround in profitability and steady improvement in asset quality metrics.
About Punjab & Sind Bank
Punjab & Sind Bank (PSB) is a public sector bank headquartered in New Delhi. Established in 1908, the bank has a strong presence across India with a wide network of branches, particularly in the northern region. As a state-owned lender, PSB plays a key role in financial inclusion, MSME lending, and supporting agriculture and priority sector credit.
Read also: Result: Punjab & Sind Bank Reports 16% Loan Growth in Q2 FY26, Business Crosses ₹2.4 Lakh Crore
