Pun. & Sind Bank Q2 FY27 Results (NSE: PSB)
Signal: Earnings grew
The read
The trajectory improved materially in Q2FY27: PAT growth accelerated to 39.66% from 23.2% in Q1FY27, operating profit grew 22.38% after the prior quarter's roughly 1% growth, and NIM expanded 17bps YoY to 2.77%; the key watchpoint is whether the 19.28% advance growth can be funded as deposits grew 12.97%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,747 Cr | 11.06% | N/A |
| EBIT | ₹618 Cr | 22.38% | |
| Net profit | ₹412 Cr | 39.66% | |
| EBIT margin | 0% |
P&L walk
Standalone Q2FY27 total income was ₹3747 crore, up 11.06% YoY, while operating profit grew faster at 22.38% to ₹618 crore and PAT rose 39.66% to ₹412 crore; NII growth of 22.32%, NIM expansion to 2.77% and lower credit stress supported the improvement.
Key positives
- NII grew 22.32% YoY to ₹1162 crore and NIM expanded 17bps to 2.77%, showing stronger core spread income.
- Operating profit rose 22.38% YoY to ₹618 crore while total income grew 11.06% to ₹3747 crore; cost-to-income improved 268bps to 59.19%.
- Asset quality improved, with GNPA declining 83bps to 2.09%, NNPA declining 22bps to 0.61% and PCR rising 60bps to 92.48%.
- RAM advances grew 31.08% YoY to ₹77276 crore and RAM share increased 553bps to 61.37%, with core fee income up 23.62% to ₹246 crore.
Key concerns
- Total advances grew 19.28% YoY while total deposits grew 12.97%, creating a 6.31 percentage-point funding-growth gap to monitor.
- CRAR declined 64bps YoY to 16.55%, reducing capital headroom despite improving profitability.
- EPS was not disclosed, preventing a PAT-to-per-share earnings cross-check.
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