PSB - Pun. & Sind Bank

📊 NSE: PSB 🏢 Banks - Public Sector 📅 Last Updated: 12/14/2025 11:22

💰 Financial Performance

Revenue Growth by Segment

Total business grew 12.19% YoY to INR 2,41,272 Cr in Q2 FY26. RAM (Retail, Agri, MSME) advances grew 20.23% YoY. Total advances grew 15.97% YoY to INR 1,05,566 Cr, while deposits grew 9.42% YoY to INR 1,35,706 Cr.

Geographic Revenue Split

Highly concentrated in Northern India, with 962 branches (59.8% of the total 1,607 pan-India network) located in Punjab and New Delhi as of June 30, 2025.

Profitability Margins

Net profit for Q2 FY26 stood at INR 295 Cr, up 22.92% YoY. Annualized ROTA for Q1 FY26 was 0.67%. Profitability is constrained by high interest expenses and a large share of non-earning assets (INR 10,100 Cr in zero-coupon recapitalization bonds).

EBITDA Margin

Operating profit increased by 10.26% YoY in Q2 FY26. Net Interest Income (NII) increased by 8.82% YoY, driven by healthy credit growth in the RAM segment.

Capital Expenditure

Capital adequacy ratio (CAR) stood at 17.19% in Q2 FY26, down from 17.90% in Q1 FY26. The bank raised INR 1,219 Cr via Qualified Institutional Placement (QIP) in FY25 to support credit growth.

Credit Rating & Borrowing

Ratings revised upward by CARE and CRISIL due to improved profitability and asset quality. Borrowing costs are relatively high due to a lower CASA ratio of 30.59% compared to peer public sector banks.

⚙️ Operational Drivers

Raw Materials

Deposits (Cost of Funds) represent the primary 'raw material' cost, with CASA deposits at 30.59% and term deposits making up the remainder.

Import Sources

Not applicable as a financial services provider.

Key Suppliers

Majority ownership by the Government of India (93.85% stake) provides critical capital support and stability.

Capacity Expansion

Current network includes 1,607 branches and 1,053 ATMs as of June 30, 2025. Expansion is focused on digital channels and the 'PSB Alliance' for shared services.

Raw Material Costs

Interest expenses are high due to a reliance on term deposits; advances reprice quickly while deposits reprice with a lag, creating margin pressure.

Manufacturing Efficiency

Not applicable; service-oriented model focuses on credit delivery and recovery efficiency (recovery and upgradations increased 14.37% in Q2 FY26).

Logistics & Distribution

Distribution is managed through 1,607 physical branches and 1,053 ATMs, with a focus on expanding digital transaction security.

📈 Strategic Growth

Expected Growth Rate

12.19%

Growth Strategy

Focusing on the high-yield RAM segment (20.23% growth), launching Supply Chain Finance products through PSB Alliance, and expanding green financing via the 'PSB GO-GREEN' and 'PSB e-Vahan' schemes.

Products & Services

Savings and current accounts, term deposits, retail loans (housing, auto), agricultural credit, MSME loans, and Supply Chain Finance.

Brand Portfolio

PSB, PSB Alliance, PSB GO-GREEN, PSB e-Vahan, Green Earth Deposit Scheme.

New Products/Services

Supply Chain Finance management (advanced stage), PSB e-Vahan (INR 174.55 Cr sanctioned), and Green Earth Deposit Scheme (INR 346.71 Cr financed).

Market Expansion

Targeting unbanked populations under PMJDY (79,919 persons reached in Q2 FY26) and expanding the SHG portfolio (INR 15.30 Cr financed in Q2 FY26).

Market Share & Ranking

Identified as a 'relatively small' public sector bank with a pan-India presence.

Strategic Alliances

PSB Alliance, a company floated by all public sector banks to facilitate technological collaboration and product development.

🌍 External Factors

Industry Trends

The industry is shifting toward digital banking and ESG-linked financing. PSB is positioning itself through 'GO-GREEN' financing and digital security upgrades.