Punjab & Sind Bank's board has approved raising foreign currency funds through the establishment of a Medium-Term Note (MTN) programme of up to $1 billion, according to a regulatory filing. The state-owned lender also approved the issuance of bonds under the MTN programme as part of its expansion strategy. This fundraising initiative comes as the bank continues to expand its balance sheet operations, with advances growing faster than deposits in the quarter ended June 30.
The bank demonstrated robust business expansion in the June quarter, with total business rising 15.33% year-on-year to ₹2.67 lakh crore from ₹2.31 lakh crore in the previous year. Gross advances grew 19.5% to ₹1.19 lakh crore from ₹99,950 crore, indicating stronger growth in the bank's lending portfolio. However, the bank's Current Account Savings Account (CASA) ratio declined to 76.19% as of June 30, compared with 81.18% a year earlier, reflecting a shift in deposit composition. The lower CASA ratio indicates a change in the deposit mix, although the ratio remained relatively strong at 76.19%.
Total deposits increased 12.16% to ₹1.47 lakh crore from ₹1.31 lakh crore in the year-ago period, showing steady deposit growth. The bank's advances grew faster than deposits during the quarter, indicating successful loan portfolio expansion. This growth pattern suggests the bank is actively increasing its lending activities while maintaining adequate deposit mobilization to support its business expansion strategy.
Shares of Punjab & Sind Bank closed at ₹21.18 on September 29, down 0.61% from the previous session. The stock movement occurred despite the bank's strong business growth and foreign fundraising approval, suggesting market reaction may have been influenced by other factors or broader market conditions rather than the specific announcements. The fundraising plan comes as the bank continues to expand its balance sheet, with advances growing faster than deposits in the quarter ended June 30.
