The shares of Indian public sector banks gained up to 12 percent after the company’s net profit and revenue increased by 147 percent and 18 percent YoY respectively in Q2FY25.
With a market capitalization of Rs 33,841.49 crore, the shares of Punjab & Sind Bank were trading at Rs 49.93 per share, increasing around 8 percent as compared to the previous closing price of Rs 46.31 apiece.
Reason for rise
The shares of the company have seen positive movement after Punjab & Sind Bank reported positive results in Q3FY25, revenue increased by 7 percent on a quarter-on-quarter basis from Rs. 2,739 crore in Q2FY25 to Rs.2,931 crore in Q3FY25. Further, revenue increased by 18 percent year on year, from Rs. 2,491 crore in Q3FY24 to Rs. 2,931 crore in Q3FY25.
The company’s net profit increased by 17 percent on a quarter-on-quarter basis, from Rs. 240 crore in Q2FY25 to Rs. 282 crore in Q3FY25. Further, net profit magnified significantly by 147 percent year on year from Rs. 144 crore in Q3FY24 to Rs. 282 crore in Q3FY25.
Business Strategy
The strategy focuses on the RAM segment, targeting over 56% by March 2025 (currently 53.86%), corporate portfolio shifts to high-yielding assets, 9% YoY growth in retail term deposits, and improving the CASA ratio from 30.43%, driving sustainable growth across key areas.
Future Guidance
The company targets a NIM of 2.75%+ by March 2025, with 10-12% credit growth for FY25, potentially higher based on performance. Plans include raising ₹2,000 crores via QIP and ₹8,000 crores through infra and Tier I/II bonds.
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Digital Transformation
The company is advancing digital transformation with upgraded digital banking, improved mobile app ratings, and new value-added services. A corporate business app is being launched to enhance customer experience and drive current account acquisition, alongside a focus on boosting digital lending for retail and MSME segments.
Market Dynamics
Despite challenges like moderating credit growth and competitive pricing in the corporate sector, management remains optimistic about diversifying into higher-yielding assets while emphasizing risk mitigation, aiming to strengthen resilience and drive sustainable growth in a competitive banking landscape.
Company Profile
Punjab & Sind Bank has 1570 branches distributed across India. Punjab has the most branches, with 635 in total. The bank has 25 zonal offices distributed across India.
Written by Abhishek Singh
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