Punjab & Sind Bank has submitted to the Exchange, the financial results for the period ended Jun 30, 2025.
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Punjab & Sind Bank reported a sharp drop in quarterly profit for Q1 FY26. Net profit fell to about Rs. 135 crore from Rs. 586 crore in Q1 FY25, a decline of roughly 77% year-on-year. Total business remained healthy, with advances rising to Rs. 97,622 crore and deposits growing to Rs. 1,31,182 crore compared to Rs. 85,046 crore and Rs. 1,20,593 crore a year ago. Asset quality improved, with gross NPA ratio falling to 7.96% from 8.15% and net NPA ratio easing to 0.91% from 0.96%, while provision coverage ratio rose to 91.77% from 88.08%. Capital adequacy under Basel III stood at 15.98% (CET1 at 11.12%). The auditor's report includes an Emphasis of Matter on the ongoing amortisation of the Rs. 236.84 crore additional family pension liability, of which Rs. 12 crore was charged this quarter. Fraud cases dropped sharply to 15 in Q1 FY26 from 129 in Q1 FY25. The Government of India continues to hold 93.85% of the bank's equity.
Despite steady business growth and improving asset quality, the steep year-on-year fall in net profit is a negative signal for shareholders and could weigh on the stock in the short term. The profit dip is partly cushioned by the pension amortisation and high provisioning, but returns remain very thin (ROA of 0.04%), suggesting limited near-term re-rating potential.