Punjab & Sind Bank eyes ₹3L crore business this year
What's the story
Punjab & Sind Bank, a state-owned lender, has set an ambitious target to achieve a total business of ₹3 lakh crore by the end of the current financial year. The bank's MD and CEO, Swarup Kumar Saha, said they have already achieved a total business of ₹2.63 lakh crore in FY26, marking a 15% growth. He hopes to exceed the ₹3 lakh crore mark this fiscal year with expected loan growth and deposit expansion.
Growth plan
Bank's credit and deposit growth expectations
Punjab & Sind Bank is expecting a credit growth of 16-18% and a deposit expansion of 13-14% in the current fiscal year. Saha said, "With this kind of credit and deposit growth, the bank can surpass ₹3 lakh crore business mix." To support this expansion, the bank plans to raise funds through both equity and debt issuances.
Share sale
Punjab & Sind Bank to raise ₹3,000 crore via QIP
Punjab & Sind Bank plans to raise up to ₹3,000 crore through a private placement share sale. The move is aimed at meeting the minimum public shareholding (MPS) norms of the market regulator SEBI. Currently, the Government of India holds a whopping 93.85% stake in Punjab & Sind Bank.
Fund approval
Timing, amount of stake dilution depends on market conditions
Saha said the bank's board has approved raising up to ₹3,000 crore from Qualified Institutional Placement (QIP) or other means in FY27. He added they are in talks with merchant bankers and will soon start roadshows to engage investors for the proposed stake dilution. However, he clarified that the timing and exact amount would depend on market conditions, which aren't very favorable at present.
Bond issuance
Infrastructure bonds to fund credit growth
Apart from share sale, Punjab & Sind Bank's board has also approved ₹3,000 crore infrastructure bonds and ₹2,000 crore from Tier I and Tier II bonds to fund credit growth. The bank had made its maiden issuance of infrastructure bonds in December 2024. Saha said they have fully deployed the funds raised from their first infra bonds, as domestic investors have shown great interest in such bond issuances by banks.