Punjab & Sind Bank, which posted a 22.92% year-on-year rise in net profit to Rs 295 crore for the fiscal second-quarter, has got approval from its board to raise up to Rs 5,000 crore in one or more tranches by March 2027.

While Rs 3,000 crore will be through QIP, FPO or rights issue, Rs 2,000 crore will be by way of bonds.

The board in its meeting on Thursday also approved raising funds of Rs 3,000 crore in the form of long-term infrastructure bonds in one or more tranches by March 2027.

The lender’s operating profit grew 10.26% YoY to Rs 505 crore for the quarter ended 30 September 2025.

Total income rose 8.91% to Rs 3,374 crore, while interest income rose to Rs 2,999 crore in the September quarter from Rs 2,739 crore a year ago.

Net interest income (NII) grew 8.82% YoY to Rs 950 crore amid loan growth and stable margins.

Bad loans

Gross non-performing assets (NPA) improved to 2.92% in Q2 of FY26, from 4.21% in Q2 of FY25 and 3.34% in the previous quarter. 

Net NPA also improved to 0.83% from 1.46% a year ago and 0.91% in the previous quarter.

Fresh slippage fell 28.70% to Rs 164 crore. Recovery and upgradation in the quarter was up 14.37% to Rs 374 crore.

Provision coverage ratio, including write-offs, stood at 91.88% as on 30 September 2025, up from 88.56% in the same quarter last year. 

Total biz at Rs 2.41 lakh cr

The bank’s total business rose 12.19% to Rs 2.41 lakh crore in the September quarter compared to Rs 2.15 lakh crore in the same period last year.

Loan growth at Rs 1.05 lakh crore

The loan book grew 15.97% to Rs 1.05 lakh crore as of 30 September 2025, from Rs 91,032 crore a year ago.

The RAM (retail, agriculture, MSME) loans grew 20.23% to Rs 58,953 crore compared to Rs 49,033 crore in the September quarter of FY25. This segment constituted 55.84% of the bank’s total loans, up from 53.86% a year ago and 54% a quarter ago.

Within RAM, retail loans grew 21.09% YoY to Rs 23,458 crore, agri by 12.90% to Rs 14,839 crore and MSME by 25.05% to Rs 20,656 crore.

Corporate credit stood at Rs 46,614 crore, up 10.99% YoY.

Deposits at Rs 1.36 lakh crore

Total deposits grew 9.42% to Rs 1.36 lakh crore as on 30 September compared to Rs 1.24 lakh crore a year ago.

The low-cost CASA (current account savings account)  accounted for 30.31% of  total deposits, down from 30.43% a year ago and 30.59% in the preceding June quarter.

CD ratio

The credit-to-deposit (CD) ratio stood at 77.79% from 73.40% in September 2024.