Punjab & Sind Bank Q1 Net Profit Soars 48% to ₹269 Crore on Strong Treasury Gains

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Punjab & Sind Bank on Friday reported a 48% year-on-year rise in its net profit for the April-June quarter of FY2025-26, reaching ₹269 crore. The surge in profit was largely driven by robust treasury gains and improved asset quality.

The state-owned lender’s pre-provision operating profit jumped 70% to ₹540 crore compared to ₹317 crore in the same period last year. Non-interest income more than doubled, rising 142% to ₹469 crore, with treasury gains accounting for ₹334 crore, an increase from ₹192 crore a year ago.

Net interest income (NII), which is the difference between interest earned and interest paid, grew modestly by 6% to ₹900 crore. The bank’s total advances increased by 14% to ₹99,950 crore, while deposits rose 8.8% to ₹1.21 lakh crore.

Improved asset quality also contributed to the strong performance. The gross non-performing asset (NPA) ratio improved significantly to 3.34%, down from 4.72% in the previous year. The provision coverage ratio (PCR) rose to 92% from 88%, indicating better risk management.

Provisions and contingencies increased to ₹217 crore in Q1 FY26, compared to ₹103 crore in the same quarter last year. This included a one-time provision write-back of ₹336 crore.

The bank’s capital adequacy ratio (CAR) strengthened to 17.9% from 17.3%, providing a comfortable buffer above regulatory requirements. Return on assets (RoA) also improved, rising to 0.67% from 0.50% in the year-ago quarter.

Speaking on the results, Punjab & Sind Bank said the strong quarterly performance reflected its focus on maintaining asset quality and improving operating efficiencies, while capitalizing on favorable treasury conditions.

The bank’s performance in Q1 sets a positive tone for the rest of the fiscal year, although analysts note that sustaining such momentum will require continued growth in core income and prudent credit expansion.