Punjab & Sind Bank reported a 23% year-on-year rise in net profit to Rs 331 crore for the quarter ended June 2026, driven by healthy growth in interest income and a sharp improvement in asset quality.
The state-owned lender posted a net profit of Rs 269 crore in the corresponding quarter last year, according to a regulatory filing on Saturday.
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Total income rose to Rs 3,546 crore during the quarter from Rs 3,379 crore a year earlier, while interest earned increased to Rs 3,213 crore from Rs 2,911 crore.
The net interest income, a key measure of a bank's core earnings, climbed 15% to Rs 1,038 crore from Rs 900 crore in the year-ago period. The net interest margin stood at 2.53%.
Operating profit remained largely steady at Rs 545 crore compared with Rs 540 crore in the same quarter last year. The lender also reported an improvement in asset quality. Gross non-performing assets eclined to 2.21% of gross advances at the end of June from 3.34% a year ago, while the net NPAs fell to 0.65% from 0.91%.
Reflecting the improvement in bad loans, provisions and contingencies dropped sharply to Rs 94 crore from Rs 217 crore in the year-ago quarter.
The bank's provision coverage ratio improved to 92.33% from 91.77%. Gross advances grew 19% year-on-year to Rs 1,19,290 crore, helping total business expand 15% to Rs 2,66,420 crore.
Return on assets improved to 0.73% from 0.67%, while the capital adequacy ratio moderated slightly to 17.61% from 17.9% a year earlier.
(With PTI inputs)
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