🚀 Punjab & Sind Bank (PSB) delivered a robust performance for the March 2025 quarter and full FY25, reporting a sharp jump in net profits and considerable improvement in asset quality. This article covers all the key highlights you need to know if you’re tracking PSU banking stocks.
🏦 About the Company
- Name: Punjab & Sind Bank
- Stock Symbol (NSE): PSB
- Current Price: ₹44 (as of April 29, 2025)
- Estimated Market Cap: ₹31,600 Cr
- Price-to-Earnings Ratio: ~10.6
- Book Value Per Share: ₹19.03
- Dividend Announced: ₹0.07/share (yield ~0.15%)
- Sector: Public Sector Banking
📈 Q4 FY25 & Full-Year Performance Overview
| Metric | Q4 FY25 | Q4 FY24 | FY25 | FY24 |
|---|---|---|---|---|
| Net Profit | ₹312.7 Cr | ₹139.3 Cr | ₹1,015.8 Cr | ₹595.4 Cr |
| Total Revenue | ₹3,823 Cr | ₹3,094 Cr | ₹13,049 Cr | ₹10,915 Cr |
| Net Interest Income (NII) | ₹816.6 Cr | ₹694.2 Cr | ₹3,225 Cr | ₹2,656 Cr |
| Operating Profit | ₹483.9 Cr | ₹207.5 Cr | ₹1,130.9 Cr | ₹737.3 Cr |
| Earnings Per Share (EPS) | ₹4.15 | ₹2.95 | — | — |
📌 Key Growth Points:
- Full-year profit rose by 70.5%
- Net interest earnings saw healthy double-digit growth
- Operating profits more than doubled year-over-year
✅ Improvements in Asset Quality
| NPA Metric | March 2025 | March 2024 |
|---|---|---|
| Gross NPA Ratio | 5.43% | 8.16% |
| Net NPA Ratio | 0.96% | 1.75% |
| Provision Coverage | 91.38% | 85.64% |
🔍 These numbers indicate that PSB has significantly improved its asset management strategy, reducing the burden of non-performing assets and increasing risk coverage.
🧑💼 Shareholding Structure (as of March 2025)
| Shareholder Type | Percentage |
|---|---|
| Government of India | 93.85% |
| Public Shareholding | 6.15% |
| Pledged Shares | Nil |
🧾 The bank recently raised over ₹1,200 Cr through Qualified Institutional Placement (QIP), improving capital reserves and marginally reducing the government’s holding.
💡 Should You Consider Investing?
👍 Positive Indicators:
- Strong annual growth in profits
- Substantial reduction in NPAs
- Strengthened capital base after QIP
- Government backing ensures financial support
⚠️ Risk Factors:
- Very low free float may limit stock liquidity
- Dividend yield remains minimal
- Still catching up to larger PSU peers in size and market visibility
📊 Analyst Perspective
Punjab & Sind Bank appears to be executing a turnaround strategy effectively. If the trend continues, the stock could potentially reach ₹52–₹55 in the medium term. Long-term investors who are optimistic about PSU bank reforms may find this stock attractive.
Indian Stock Results 