Punjab & Sind Bank Q2 Results: Net Profit Grows 40% YoY to ₹412 Cr as Net NPA Hits 0.61%

Key numbers

Market Cap	₹15,107 CrMid-cap Bank
P/E TTM	10.91xSector: 21.6x
Promoter Holding	93.85%Government of India
RSI	42.41Neutral Zone

Key highlights

• Net profit increased 39.9% YoY to ₹412 crore from ₹294 crore in the year-ago period
• Revenue from operations grew 13.2% YoY to ₹3,394 crore, supported by retail banking growth
• Net NPA ratio improved significantly to 0.61% from 0.83% in Q2 FY26
• Operating margin expanded to 15.1% in Q2-27 compared to 10.6% in Q2-26
• Capital Adequacy Ratio (Basel III) remains healthy at 16.55% as of September 30, 2026
• Provision Coverage Ratio (including TWO) stood at 92.48% for the quarter

Profitability and Margin Expansion

Punjab & Sind Bank demonstrated robust bottom-line growth in Q2 FY27, reporting a net profit of ₹412 crore, a 24.3% increase over the preceding June quarter. This growth was underpinned by a steady rise in total income, which reached ₹3,746 crore. A key driver for the profitability was the expansion of operating margins, which climbed to 15.1% from 10.6% a year ago.

The bank's basic and diluted earnings per share (EPS) for the half-year ended September 30, 2026, stood at ₹1.05, up from ₹0.79 in the corresponding period of the previous financial year.

Asset Quality and Fraud Provisioning

• Gross Non-Performing Assets (NPA) ratio fell to 2.09% from 2.92% YoY.
• Net NPA ratio stands at 0.61%, surpassing the management's FY27 guidance of less than 0.65%.
• The bank reported frauds involving ₹719.30 crore during the quarter, primarily consisting of five borrowal accounts.
• Management confirmed that full provisions have already been made for the reported fraud amounts.
• The Provision Coverage Ratio remains high at 92.48%, providing a significant buffer against potential credit losses.
• Recovery and upgradation efforts remain central to the bank's strategy to maintain asset quality below the 2% Gross NPA threshold.

Capital Strength and Segmental Performance

The bank's capital position remains resilient with a Basel III Capital Adequacy Ratio of 16.55%. Segmental data indicates that Retail Banking continues to be the largest revenue contributor, generating ₹1,791 crore in Q2 FY27, followed by Corporate/Wholesale banking at ₹1,070 crore. In line with revised RBI directions, the bank discontinued the maintenance of the Investment Fluctuation Reserve (IFR) during the half-year, transferring the existing balance of ₹354.21 crore to the General Reserve.

This strategic accounting shift aligns the bank with updated regulatory frameworks for investment portfolios.

Management Observations on Frauds

During the Quarter ended 30th September, 2026, Bank has reported 1 case of Non-borrowal fraud and 5 cases of Borrowal frauds to Reserve Bank of India. The total amount reported... is Rs. 719.30 Crore, out of which Rs. 5.87 Crore is extent of Loss to the Bank. Bank has made full provision for the same.

What to watch next

• Progress toward the ₹4,00,000 crore total business target set for FY29
• Execution of the ₹1,000 crore recovery and upgradation target for FY27
• Further improvement in the Gross NPA ratio toward the sub-2% management target
• Market reaction to the valuation gap, with the current P/E at 10.91x vs sector average of 21.6x

“The Bank has reported 1 case of Non-borrowal fraud and 5 cases of Borrowal frauds to Reserve Bank of India. The total amount reported to Reserve Bank of India during the Quarter ended 30th September, 2026 is Rs. 719.30 Crore... Bank has made full provision for the same.”

Punjab & Sind Bank · financial snapshot

Share price	₹21.29
Market capitalisation	₹15,106.50 Cr
Revenue (annual)	₹11,981.50 Cr
Net profit (annual)	₹1,321.93 Cr
Revenue (latest quarter)	₹3,213.37 Cr+6.05% vs previous quarter
Net profit (latest quarter)	₹331.51 Cr-21.41% vs previous quarter
P/E (TTM)	10.91×Sector 21.6×
Promoter holding	93.85%0.00% QoQ
FII holding	0.12%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.