Punjab & Sind Bank delivered robust financial performance in Q4 FY26, with net profit rising 35% year-on-year to ₹421.8 crore from ₹312.5 crore in the corresponding period last year. According to reports from CNBC TV18 and The Economic Times, the bank's steady March quarter performance was supported by business growth and improving asset quality metrics, reflecting better operational efficiency and improved recoveries during the quarter. For the full fiscal year FY26, the bank reported net profit rising by over 30% to ₹1,322 crore, demonstrating sustained momentum across the year.
The bank demonstrated significant improvement in asset quality during the quarter. Gross non-performing assets (NPA) improved sequentially to 2.40% from 2.60% in the previous quarter, while net NPA slightly increased to 0.79% from 0.74% in the previous quarter, indicating some stress at the net level. In absolute terms, gross NPAs declined to ₹2,830.7 crore from ₹2,870.8 crore, while net NPAs rose to ₹919.19 crore from ₹795.93 crore. The performance reflects a mixed trend with strong earnings growth on one side and margin compression on the other, making future quarters crucial for sustained momentum. For the full year FY26, gross NPA declined by 98 basis points to 2.4% from 3.38%, while net NPA reduced by 17 basis points to 0.79% from 0.96%.
Despite strong profit growth, the bank faced some pressure on core margins. Net interest income (NII) declined 13% to ₹974.8 crore compared with ₹1,122 crore in the year-ago period, indicating pressure on core lending margins which remains a key concern for investors tracking the bank's performance. According to The Hindu BusinessLine, the bank's board has recommended a final dividend of 3.90% or 39 paise per equity share of face value ₹10 each for FY26, subject to shareholder approval at the upcoming annual general meeting. The dividend recommendation reflects the bank's confidence in its improved financial position despite margin pressures.
The bank reported steady growth across key business parameters. Total deposits increased 12.37% year-on-year to ₹1.46 lakh crore, while gross advances grew at a faster pace of 18.39% to ₹1.18 lakh crore. As reported by CNBC TV18 and The Economic Times, CASA deposits rose 10.01% to ₹44,873 crore, though the CASA ratio eased slightly to 30.77% from 31.43% a year ago. Overall business, comprising deposits and advances, rose 14.98% year-on-year to ₹2.64 lakh crore. The bank had earlier reported steady growth in its business update, with these figures aligning with the quarterly performance.
Ahead of the earnings announcement, shares of the bank closed at ₹25.65 on BSE, higher by 3.3% on Monday, according to The Hindu BusinessLine. The positive market response reflects investor confidence in the bank's improved asset quality and steady business growth trajectory, despite the mixed performance with strong earnings growth offset by margin compression concerns. The share price movement indicates market optimism about the bank's sustained improvement in asset quality metrics and overall financial performance.
