Punjab & Sind Bank Earnings Summary — Q1 FY2027
Punjab & Sind Bank Reports 23.2% Profit Growth in Q1 Amid Improving Asset Quality
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 6.1% sequentially in Q1 FY2027.
- Revenue of ₹3,213 Cr is 10.4% higher year-on-year.
- Revenue has compounded at 12.2% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹332 Cr is 23.2% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 47.0% annualised across the period.
- Operating margin stands at 71.4% in Q1 FY2027.
- Operating margin expanded by 732 bps year-on-year.
- Over the last two years operating margin has expanded by 270 bps.
- PBT margin is 14.1%.
- Expense growth of -12.1% remained below revenue growth of 10.4%.
- Operating profit of ₹2,294 Cr is 23.0% higher year-on-year.
- Operating leverage continues to improve.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 75/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 3,213 | 3,030 | 3,042 | 2,999 | 2,911 | 3,159 | 2,931 | 2,739 | 2,652 | 2,481 |
| Expenses | Stable | 920 | 787 | 1,037 | 967 | 1,046 | 1,356 | 902 | 924 | 831 | 875 |
| Operating Profit | Improving | 2,294 | 2,243 | 2,005 | 2,032 | 1,865 | 1,803 | 2,029 | 1,815 | 1,822 | 1,606 |
| Operating Margin | Stable | 71.4% | 74.0% | 65.9% | 67.8% | 64.1% | 57.1% | 69.2% | 66.3% | 68.7% | 64.7% |
| Other Income | Volatile | 332 | 427 | 507 | 374 | 469 | 677 | 338 | 359 | 194 | 413 |
| Interest | Stable | 2,175 | 2,055 | 2,056 | 2,049 | 2,010 | 2,037 | 1,992 | 1,866 | 1,802 | 1,792 |
| Depreciation | Insufficient data | — | — | — | — | — | — | — | — | — | — |
| Profit Before Tax | Improving | 451 | 615 | 456 | 357 | 323 | 442 | 375 | 307 | 213 | 227 |
| Tax | Volatile | 120 | 194 | 120 | 63 | 54 | 130 | 93 | 68 | 32 | 87 |
| Net Profit | Improving | 332 | 422 | 336 | 295 | 269 | 313 | 282 | 240 | 182 | 139 |
| Net Margin | Improving | 10.3% | 13.9% | 11.1% | 9.8% | 9.3% | 9.9% | 9.6% | 8.8% | 6.8% | 5.6% |
Key Takeaways
- Net Profit rose 23.2% YoY to ₹331.51 crore, though it saw a sequential decline from Q4 FY2026.
- Asset quality showed significant improvement with Gross NPA decreasing to 2.21% from 3.34% YoY.
- Net NPA improved to 0.65%, down from 0.91% in the same quarter last year, indicating better credit monitoring.
- The bank's Networth increased to ₹12,499.57 crore, strengthening the capital base.
- Provision Coverage Ratio (PCR) remains robust at 92.33%, providing a strong buffer against future credit losses.
- Interest Earned grew 10.4% YoY to ₹3,213.37 crore, driven primarily by interest on advances.
- Capital Adequacy Ratio (Basel III) stands healthy at 17.61%, with CET 1 at 16.56%.
- Operating profit remained relatively flat YoY at ₹545.48 crore as higher expenses offset the growth in total income.
Management Guidance
Management remains focused on the 'RAM' (Retail, Agriculture, MSME) lending segments to diversify away from large corporate risks. The bank is emphasizing digitization and improving fee-income generation to support ROA, which currently stands at 0.73% on an annualized basis.
Sentiment Shift
Improving
The bank continues its recovery trajectory with sharp improvements in asset quality (NPA reduction) and a strengthening capital position, despite sequential profit pressure commonly seen in Q1 cycles.
Outlook
The outlook is stable with an emphasis on balancing credit growth with asset quality. The significant reduction in GNPA to 2.21% suggests the bank has successfully navigated the bulk of its legacy stressed assets. Future performance depends on its ability to manage the high cost of deposits and improve its operational efficiency ratios which remain high compared to private peers.
From the Annual Report (Key Quotes)
“The financial results have been arrived at after considering provisions for Non-Performing Assets... in line with the guidelines issued by the Reserve Bank of India.”
“Provision Coverage Ratio (Including T.W.O) as at 30th June, 2026 works out to 92.33%.”
“The Bank has transferred/acquired the following Non-Performing Assets (NPAs) during the quarter... Nil.”
Official Quarterly Documents
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This summary is AI-generated from Punjab & Sind Bank's latest quarterly filing and earnings call. For informational purposes only — not investment advice.