1. Opening Hook
Public sector banks were supposed to be boring, slow, and allergic to growth. Then Punjab & Sind Bank walked into Q3 FY26 with a ₹336 crore profit and politely ruined that stereotype. While peers are still explaining CASA pressure like it’s a weather event, PSB casually reported double-digit credit growth, sub-1% NNPA, and a PCR north of 92%.
Even more impressive? This isn’t a one-quarter fluke powered by treasury jugaad. Management kept hammering RAM growth, fee income, and capital efficiency like it’s part of a long-term plan—imagine that.
Yes, NIMs are still slim. Yes, ROA hasn’t crossed the magical 1% yet. But the tone has changed. This call felt less like damage control and more like quiet chest-thumping.
Stick around. The real spice is in asset churn, deposit math gymnastics, and a bold GNPA claim that raised eyebrows for all the right reasons.
2. At a Glance
- Net Profit ₹336 crore (+19% YoY) – Not a treasury miracle, just steady grind.
- Advances up 15.05% YoY – RAM doing the heavy lifting while corporates behave.
- Deposits up 9.27% YoY – CASA still sulking, retail term deposits picked up the slack.
- GNPA at 2.60% – Down 123 bps YoY, PSU banks taking notes nervously.
- NNPA at 0.74% – Guidance met, box ticked, management smiling.
- PCR at 92.23% (72.28% ex-TWO) – Over-provisioning is the new flex.
- ROA at
- 0.79% – Close to 0.8%, still not invited to the 1% party.
3. Management’s Key Commentary
“Total business stood at ₹2.49 lakh crore with 11.75% YoY growth.”
(PSU bank saying ‘growth’ without clearing throat first.) 😏
“Retail term deposits grew at 18.34%.”
(CASA refused to cooperate, so we bribed fixed deposit customers.)
“Core fee income grew 28.97% YoY.”
(Less treasury luck, more actual banking.)
“Gross NPA is now 2.60%, net NPA 0.74%.”
(Legacy sins mostly forgiven, balance sheet feels lighter.)
“Provision coverage ratio increased to 92.23%.”
(Even hypothetical stress is getting provisioned.)
“We shed ₹3,000 crore of low-yield corporate loans.”
(Margin discipline > volume addiction.) 😌
“RAM share will reach 60% by March 2026 and 70% next year.”
(Corporate loans politely shown the exit door.)
4. Numbers Decoded
| Metric | Q3 FY26 | What It Really Means |
|---|---|---|
| Net Profit | ₹336 cr | Sustainable, not flashy |
| NIM | 2.59% | Likely bottoming out |
| GNPA | 2.60% | PSU gold standard |
| NNPA | 0.74% | Below self-guided target |
| Credit Cost | 0.05% | Almost suspiciously low |
| RAM Share | 57.45% | Strategy finally visible |
| CRAR | 16.83% (18.01% incl. profits) | Growth without begging GoI |
