Punjab & Sind Bank Q3 Profit Soars 19% Amid Asset Quality Gains

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AuthorVihaan Mehta|Published at:
Punjab & Sind Bank Q3 Profit Soars 19% Amid Asset Quality Gains
Overview

Punjab & Sind Bank posted a robust Q3 FY26, with net profit surging 19.3% year-on-year to ₹336.4 crore. The lender also saw significant improvements in asset quality, as gross non-performing assets (NPAs) fell to 2.60% and net NPAs eased to 0.74%. Total business expanded over 11% year-on-year, signaling a healthy operational momentum.

Profit Surge and Operational Growth

Punjab & Sind Bank (PSB) delivered a strong financial performance for the third quarter of fiscal year 2026, reporting a 19.3% year-on-year increase in net profit. The bank's earnings reached ₹336.4 crore, up from ₹282 crore in the same period last year. This growth was underpinned by a 5% rise in net interest income (NII) to ₹986.2 crore, reflecting improved business momentum.

Asset Quality Reinforces Strength

The bank's asset quality continued its positive trajectory. Gross non-performing assets (NPAs) saw a reduction, falling to 2.60% from 2.92% in the previous quarter and 3.02% a year ago. Sequentially, gross NPAs declined in value from ₹3,082 crore to ₹2,870.8 crore. Net NPAs also improved, easing to 0.74% from 0.83% in Q2 FY26 and 0.98% in Q3 FY25. Net NPA value decreased to ₹795.9 crore from ₹854.1 crore quarter-on-quarter.

Business Expansion and Deposit Growth

PSB's total business expanded significantly, reaching ₹2,49,691 crore as of December 31, 2025. This represents an 11.84% year-on-year increase and a 3.49% sequential rise. Total deposits grew by 9.27% year-on-year to ₹1,39,203 crore. Current Account Savings Account (CASA) deposits showed healthy growth, increasing by 4.99% sequentially to ₹43,182 crore, maintaining a CASA ratio of 31.02%.

Lending Activity and Credit Growth

On the lending front, gross advances saw robust growth, rising 15.25% year-on-year to ₹1,10,488 crore. Quarter-on-quarter, gross advances increased by 4.66%. The credit-deposit ratio improved to 79.37%, indicating efficient utilization of deposits for lending activities and healthier credit growth.

Market Reaction

Ahead of the earnings announcement, shares of Punjab & Sind Bank closed Friday's trading session on the NSE at ₹28.91, marking a 2.05% gain.

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