Punjab & Sind Bank aims to raise $100 million through foreign currency deposits and overseas borrowings to support its expansion goals. The bank intends to use its upcoming GIFT City branch to improve access to international funding. This comes as the lender works toward a target of ₹4 trillion in total business by FY29, supported by a recent rise in profit.
Detailed Coverage
Punjab & Sind Bank is set to tap into international markets to raise $100 million. This move is divided into two parts, with $25 million planned through Foreign Currency Non-Resident deposits and $75 million through external commercial borrowings and other overseas instruments. The bank’s leadership views this as a vital step to increase its foreign currency resources.
GIFT City Branch as a Strategic Lever
A major hurdle for the bank’s overseas fundraising has been its lack of international branches. To bridge this, the lender is establishing a presence in Gujarat International Finance Tec-City (GIFT City). Expected to begin operations in the third quarter of FY27, this branch will act as the primary window for its international borrowing activities. Management expects this facility to contribute significantly to the bank’s reach, with initial business estimates set at ₹10,000 crore in the first year, potentially growing to ₹25,000 crore within three years.
Growth Targets and Business Focus
The bank has set a board-approved goal to reach ₹4 trillion in total business by FY29. To achieve this, it is planning a substantial increase in its physical network, aiming for over 2,000 branches and nearly 6,500 business correspondents. This network expansion is intended to support the bank's shift toward higher-yielding loan categories. Currently, the Retail, Agriculture, and MSME sectors form 60.02% of the bank's total advances, showing a strong growth of 32.66% year-on-year.
Financial Context and Asset Quality
The bank’s recent performance indicates a focus on profitability and asset quality. In the quarter ended June 2026, the bank reported a net profit of ₹331 crore, up 23.05% compared to the same period last year. Its total business reached ₹2.66 trillion, reflecting a 15.27% year-on-year growth. A positive takeaway for investors is the improvement in asset quality, with the gross non-performing asset ratio—a measure of bad loans—dropping to 2.21%. The capital adequacy ratio stands at 17.61%, which provides a cushion for future lending operations.
Monitorables for Investors
While the expansion plans are ambitious, investors may watch how the bank balances its cost of funds. Low-cost deposits, known as CASA, grew by 10.20% to ₹44,225 crore, but mobilizing these remains a competitive challenge in the banking sector. Additionally, the bank is working to improve growth in housing and vehicle loans, which underperformed in the June quarter due to internal operational changes. The upcoming operational launch of the GIFT City branch and the progress toward the ₹4 trillion business target will be key milestones to track in the coming quarters.