Punjab & Sind Bank Reports Robust Profit Growth Amid Declining Bad Loans

Punjab & Sind Bank recorded a 19% increase in net profit for the December quarter, reaching Rs 336 crore. The improvement came as bad loans decreased, resulting in lower provisions. The bank's total income and interest income both rose, with significant growth in their capital adequacy ratio.

State-owned Punjab & Sind Bank reported a robust performance in the December quarter, posting a 19% year-on-year increase in net profit, which reached Rs 336 crore. The Delhi-headquartered bank experienced a decline in bad loans, contributing to its improved financial health.

During the quarter, the bank's total income grew to Rs 3,529 crore from Rs 3,269 crore in the corresponding period last year, according to its regulatory filing. Interest income also showed an uptick, rising to Rs 3,042 crore compared to Rs 2,931 crore last year.

Punjab & Sind Bank's gross non-performing assets (NPAs) decreased to 2.6% of gross loans by December 2025, down from 3.83% a year prior. This reduction led to a decrease in provisions for bad loans to Rs 47 crore, bolstering the bank's financial strength with a provision coverage ratio of 92.23% and a capital adequacy ratio rising to 16.83%.

(With inputs from agencies.)