Stock Performance
Shares of Punjab & Sind Bank (NSE: PSB) slid in early trade on Wednesday after the state-run lender reported a 19% year-on-year rise in third-quarter net profit, though broader banking sector pressures tempered gains.
Punjab & Sind Bank shares were trading at around INR27 on the BSE in early trade, near the lower end of their 52-week range of INR25.22 to INR50.59, after retreating from recent highs.
Q3 Results
Punjab & Sind Bank reported a net profit of INR336 crore for the quarter ended Dec. 31, up from INR282 crore a year earlier. Total income rose to INR3,549 crore from INR3,269 crore in the December quarter of FY25.
Interest income also increased modestly, driven by higher lending volumes, while net interest margin remained under pressure amid competitive deposit costs and macro headwinds.
The bank’s gross non-performing assets (NPAs) declined to about 2.6% of gross loans, from near 3.8% a year earlier, and net NPAs fell to about 0.7%, marking continued improvement in asset quality. Provision coverage also improved.
Total deposits grew around 9% year-on-year to roughly INR1.39 lakh crore, while gross advances rose about 15%, driven by growth in retail and MSME segments.
Context and Trend
Punjab & Sind Bank’s shares have weakened from peaks above INR50 in the past 12 months, pressured by a broader sell-off in public sector bank stocks and concerns over credit costs.
The PSU Bank index has outperformed broader markets in 2025, but selective weakness persists in smaller lenders amid macro uncertainty and mixed asset quality trends.
Broader banking peers have delivered mixed results this earnings season, with lenders such as UCO Bank also reporting profit growth, while larger peers face margin headwinds.
Sector Pressures
Analysts have noted continued margin pressure across Indian lenders, as deposit costs remain elevated and loan yields are constrained by competitive pricing. Rising credit costs in certain segments and regulatory capital targets also weigh on valuations.
Full-Year and Year-on-Year Context
Year-to-date, Punjab & Sind Bank’s performance reflects steady expansion in advances and deposits, with asset quality gains underpinning profit growth from the year-ago quarter. Full-year forecasts remain contingent on macro conditions and credit demand.