Punjab & Sind Bank eyes ₹3,000 Cr capital raise

Punjab & Sind Bank aims to raise ₹3,000 crore through a private placement, likely a Qualified Institutional Placement (QIP), to comply with the Securities and Exchange Board of India's (SEBI) minimum public shareholding (MPS) requirement of 25%. The government of India currently holds a substantial 93.85% stake in the public sector lender.

Managing Director and CEO Swarup Kumar Saha indicated that discussions with merchant bankers are underway and roadshows will commence soon to engage potential investors for the stake dilution. The final timing and amount will be contingent on favorable market conditions.

In addition to the capital raise for MPS compliance, the bank's board has approved plans to issue ₹5,000 crore in infrastructure bonds and ₹2,000 crore in Tier I and Tier II bonds to support credit growth. The bank successfully deployed funds from its maiden infrastructure bond issuance in December 2024, benefiting from their exemption from CRR and SLR requirements.

For the fourth quarter ending March 2026, Punjab & Sind Bank reported a significant 35% year-on-year increase in net profit, reaching ₹422 crore, attributed to a decrease in non-performing assets. Gross NPAs improved to 2.4% from 3.38%, and net NPAs fell to 0.79% from 0.96% compared to the previous year. Overall, the bank posted a 30% profit increase for the full financial year 2025-26, earning ₹1,322 crore.