Punjab & Sind Bank Plans Rs 3,000-Crore Share Sale This Fiscal

Punjab & Sind Bank Seeks to Raise Up to Rs 3,000 Crore via Share Sale

Punjab & Sind Bank, a public sector lender, is planning to mobilise up to Rs 3,000 crore through a share sale on a private placement basis. The move is aimed at complying with the minimum public shareholding (MPS) norms set by market regulator Sebi. According to Sebi norms, listed entities are required to have at least 25 per cent public shareholding.

The government of India currently holds a significant stake in Punjab & Sind Bank, with a shareholding of 93.85 per cent. To meet the MPS norms, the bank is seeking to dilute its stake through the share sale. However, the exact timing and quantum of the share sale will depend on market conditions, which are not conducive at present.

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In addition to the share sale, the bank's board has approved the issuance of Rs 5,000 crore infrastructure bonds and Rs 2,000 crore from Tier I and Tier II bonds to fund credit growth. The bank had successfully issued its maiden infrastructure bonds in December 2024, and has fully deployed the funds raised from the issuance.

Infrastructure bonds offer several advantages, including exemption from regulatory reserve requirements such as the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). This allows the bank to fully deploy the proceeds from infrastructure bond issuance for lending activities. Many lenders have exercised this option in recent times, with domestic investors showing significant interest in such bond issuance.

Punjab & Sind Bank reported a 35 per cent jump in net profit to Rs 422 crore during the fourth quarter ended March 2026, compared to Rs 313 crore in the same period a year ago. The bank's total income moderated to Rs 3,457 crore from Rs 3,836 crore a year ago. On the asset quality front, the bank's gross Non-Performing Assets (NPAs) eased to 2.4 per cent of gross advances, while net NPAs came down to 0.79 per cent.

The bank's capital adequacy ratio improved marginally to 17.42 per cent, from 17.41 per cent at the end of the previous financial year. For the entire financial year 2025-26, the bank reported a 30 per cent increase in profit, while total income rose to Rs 13,759 crore from Rs 13,049 crore. The bank's board has recommended a dividend of 39 paise per equity share of face value of Rs 10 each for 2025-26, subject to shareholders' approval.

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