Punjab & Sind Bank

Instruments & Rating

• Tier II Bond Series XIV (₹500 crore): CARE AA; Stable (Reaffirmed)
• Tier II Bond Series XV (₹237.30 crore): CARE AA; Stable (Reaffirmed)
• Tier II Bond Series XVI (₹500 crore): CARE AA; Stable (Reaffirmed)

Rationale & Drivers

• Asset quality improved in FY26 due to recoveries and lower slippages.
• GOI ownership at 93.85% supports capital infusions.
• CAR 17.61% and CET I 16.56% as of 30-Jun-2026.
• NIM expected to improve as RAM lending grows.
• Profitability remains moderate due to high cost of funds and non-earning assets.
• NNPA to net worth remains elevated; stressed assets sizable.
• Liquidity adequate; LCR 133.45%, NSFR 127.67%; excess SLR ₹8,762 crore.
• Tier II PONV trigger exists; RBI to determine PONV.

Outlook

• Stable outlook assigned by CARE Ratings.

Material Changes

• Rating reaffirmed; no change in rating or outlook.

Financial Highlights

• Total income FY26 ₹13,759 crore; NIM 2.25%; GNPA 2.40%.
• CAR 17.61%, PAT ₹1,322 crore (FY26).

Appointment of Part-Time Non-Official Director

• Shri Kristam Subba Raju Guptha appointed as Part-Time Non-Official Director, effective 12 Aug 2026, for 3 years.
• Reason: Central Government nomination for a 3-year term, or till further orders.
• Brief profile to be submitted separately.
• Relationship between Directors: Nil.

AGM Details

• Date and time: 28 July 2026 at 11:00 AM; VC/OAVM mode.
• Record date for dividend: 21 July 2026.
• Meeting ended: 12:30 PM.

Resolutions & Outcomes

• Item 1: Adopt Audited Balance Sheet, P&L, Board report; ordinary; passed 99.9% assent.
• Item 2: Declare dividend of Rs 0.39 per share; ordinary; passed 99.93% assent.

Dividend Details

• Dividend proposed/approved: Rs 0.39 per equity share; payment within 30 days.

Governance & Voting Process

• Scrutinizer appointed for remote e-voting and AGM voting.

Meeting Details

• Date: July 20, 2026.
• Mode: Virtual group earnings con-call via WebEx.
• Event: Punjab & Sind Bank Q1 FY27 Earnings Con-call.
• Recording: Conference recorded; transcript and presentation available on bank's website.

Participants

• Managing Director & Chief Executive Officer
• Executive Directors
• Chief Financial Officer

Purpose

• Purpose: Post-results earnings con-call to discuss Q1 FY27 performance.
• Format: Interactive Q&A with analysts and investors.

Meeting Details

• Date: July 20, 2026; Analyst Meet on Q1 FY2026-27 results.
• Mode: Audio recording of the Analyst Meet is available.
• Purpose: Discuss Q1 FY2026-27 financial results.

Business Overview

• Core focus on Retail, Agriculture, and MSME lending.
• Digital journey advanced via PSB UniC platform.
• Renewable energy financing and green initiatives highlighted.
• Emphasis on financial inclusion and digital banking adoption.

Key Operational Highlights

• Total deposits ₹147,130 Cr; gross advances ₹119,290 Cr; robust growth.
• RAM advances ₹71,596 Cr (60.02% of total advances).
• GNPA 2.21%; NNPA 0.65%; PCR 92.33% (with TWO).
• Total business ₹266,420 Cr; YoY growth 15.27%.
• NIM 7.09% for Jun-26; net interest income ₹1,038 Cr.

Financial Performance

• Net profit ₹331 Cr; YoY +23.05%; operating profit ₹545 Cr.
• Net interest income ₹1,038 Cr; YoY +15.33%; interest income ₹3,213 Cr.
• Non-interest income ₹332 Cr; cost-to-income 60.21%.
• Return on assets 0.73%; CRAR 17.61%; CET I 16.56%.
• Book value per share ₹17.62; net worth ₹12,500 Cr.
• Deposits up 12.16% YoY; advances up 19.35% YoY.

Capital Structure & Liquidity

• CRAR 17.61%; CET I 16.56%; Tier II 1.05%.
• Govt of India stake 93.85%; net worth ₹12,500 Cr.
• Total deposits ₹147,130 Cr; borrowings ₹16,881 Cr.
• Cash & balances with RBI ₹6,065 Cr; investments ₹50,226 Cr.

Strategic Priorities & Outlook

• FY27 guidance: deposits growth 13–14%; advances growth 16–18%.
• RAM share to total advances >60%.
• GNPA target <2%; NNPA <0.65%; PCR 92–93%.
• Recovery & Upgradation target >₹1,000 Cr; credit cost <1%; slippage <1%.
• Digital initiatives: UniC growth; UPI/QR adoption and e-loan features.

Risks & Mitigation

• Cyber security and fraud risk management measures in place.
• Governance: board committees, policies, and whistleblower policy.
• Collections improvement: dedicated recovery committee and KRAs.
• Recovery performance target remains >₹1,000 Cr.

Governance & Leadership

• Board-level committees and policies in place for governance.
• Whistleblower policy to enhance transparency.
• MD & CEO Shri Swarup Kumar Saha awarded APY Excellence Award.

Key financial highlights

• Net Profit ₹331 cr, up 23.05% YoY from ₹269 cr.
• Net Interest Income ₹1,038 cr, up 15.33% YoY from ₹900 cr.
• RAM 60.02%, up 602 bps from 54.00%.
• GNPA 2.21% (₹2,637 cr) vs 3.34% (₹3,339 cr).
• NNPA 0.65% (₹766 cr) vs 0.91% (₹883 cr).
• PCR 92.33% vs 91.77%.
• Total Income ₹3,545 cr, up 4.91%.
• ROA 0.73%; ROE 10.85%.
• Cost to Income 60.21% vs 60.55%.

Business highlights

• Total Business ₹266,420 cr, up 15.27% YoY.
• Total Deposits ₹147,130 cr, up 12.16%.
• Retail Term Deposits ₹65,764 cr, up 14.94%.
• Total Advances ₹119,290 cr, up 19.35%.
• RAM Advances ₹71,597 cr, up 32.66%.
• RAM percentage 60.02%.
• Retail Advances growth 36.44%.
• Agriculture Advances growth 25.85%.
• MSME Advances growth 32.71%.
• Operating Profit ₹545 cr, up 0.93%.
• Capital Adequacy Ratio 17.61%.
• ROA 0.73%; ROE 10.85%.

Board approval & reporting

• Board approved Reviewed Unaudited Financial Results for quarter ended 30 June 2026.
• Limited Review conducted; no material deviation in utilisation of funds raised.
• Security Cover Certificate as on 30 June 2026 submitted.

Capital, risk & liquidity

• Basel III CAR 17.61%; CET1 16.56%; Additional Tier-1 0.00%.
• Provisioning Coverage Ratio (including TWOs) 92.33% as of 30 June 2026.

Funding & debt

• Outstanding listed non-convertible debt securities totaling Rs 4237.30 crore; unsecured.

Bank structure & operations

• Digital Banking is a sub-segment of Retail Banking; no overseas subsidiary; standalone results.

Meeting Details

• Date and time: July 20, 2026, 04:00 PM onwards.
• Type and mode: Earnings call with analysts/investors; virtual WebEx.
• Organizer: Punjab & Sind Bank.
• Purpose: Discuss Q1 FY 2026-27 unaudited results for quarter ended June 30, 2026.
• Key participants: Managing Director & CEO; Executive Directors; Chief Financial Officer.
• Access: WebEx link provided; join by 03:00 PM to avoid login issues.