Punjab & Sind Bank to raise up to ₹5,000 crore by March 2027 through equity and bonds

State-owned Punjab & Sind Bank on Monday (October 13) said it plans to raise up to ₹5,000 crore in one or more tranches by March 2027 through a mix of equity and bond issuances. The proposal will be taken up at the bank's board meeting scheduled for October 16, 2025, in New Delhi.

According to the bank’s filing, the capital raise includes up to ₹3,000 crore through the issue of equity shares via Qualified Institutional Placement (QIP), Follow-on Public Offer (FPO), or rights issue. An additional ₹2,000

crore will be mobilised through Basel III-compliant Additional Tier I or Tier II bonds, or a combination thereof.

The board will also consider a separate plan to raise ₹3,000 crore through long-term infrastructure bonds, in one or more tranches, by March 2027. At the same meeting, the Board will review and approve the unaudited financial results for the quarter and half-year ended September 30, 2025.

Also Read: Punjab & Sind Bank Q2 Update: Total business rises 12% to ₹2.41 lakh crore

First Quarter Results

Punjab & Sind Bank reported a strong set of numbers for the first quarter of FY26, with net profit rising 48.3% year-on-year to ₹269.2 crore, up from ₹182 crore in the same period last year.

Net interest income (NII) for the quarter grew 5.9% to ₹900.4 crore, compared to ₹850 crore in Q1FY25. The bank also saw a marginal improvement in asset quality. Gross non-performing assets (GNPA) declined slightly to 3.34% from 3.38% in the previous quarter, while net NPA improved to 0.91% from 0.96% sequentially.

Shares of Punjab & Sind Bank ended at ₹29.88, down by ₹0.32, or 1.06%, on the BSE.