Punjab & Sind Bank plans to raise ₹3,000 crore through stake sale

Punjab & Sind Bank plans to raise ₹3,000 crore through equity share sale, a top bank official said on Tuesday. It aims to achieve a business of ₹4 lakh crore by the end of fiscal year 2028-29.

“The board has given approval for fund mobilisation of ₹10,000 crore through various instruments. Out of this, ₹5,000 crore is to be raised through infra bonds, ₹3,000 crore is to be raised through equity and ₹2,000 crore through tier 1 & 2 bonds,” Bank’s Managing Director and Chief Executive Officer, Swarup Kumar Saha told businessline.

He explained that the process for raising funds through equity will start soon.. “As our annual results are out, now we will resume our talks with merchant bankers and others, and based on that, a plan will be firmed up for sale of equity,” he said while adding that timing will depend upon market conditions. As on March 31, 2026, government has a shareholding of over 93 per cent, while public holds 6.15 per cent. The bank has over 2.22 lakh shareholders.

Saha said that equity sell will be through qualified institutional placement (QIP) or other means. This will help to lower the promoters’ holding as SEBI norms require minimum public shareholding at 25 per cent.

Saha also mentioned that bank’s previous issuance of infrastructure bonds in December 2024 has been fully deployed. Domestic investors have shown a lot of interest in such bond issuance by banks, and many lenders have exercised this option for raising resources in the recent past.

The advantage of infrastructure bonds is that they are exempt from regulatory reserve requirements such as the cash reserve ratio (CRR) and statutory liquidity ratio (SLR). So, infrastructure bond proceeds can be fully deployed for lending activities. Banks have been preferring infrastructure bonds over AT-1 and tier-2 bonds, as they are better priced.

FY27 guidance

Meanwhile, on business target, Saha said now the bank aims to end the current fiscal with total business of ₹3 lakh crore, and ₹4 lakh crore by FY29. The bank achieved a business of over ₹2.63 lakh crore during FY26. For the deposit and advance growth, the bank has given a guidance for FY27 at 13-14 per cent and 16-18 per cent respectively. It also aims to raise the share of RAM (retail, agriculture and MSME) to more than 60 per cent during current fiscal as against 58.8 per cent last fiscal.

During the fourth quarter ended March 2026, the bank reported a 35 per cent jump in net profit at ₹422 crore as against ₹313 crore in the same period a year ago, helped by a decline in bad loans. Total income moderated to ₹3,457 crore from ₹3,836 crore a year ago. On the asset quality front, the bank’s gross non-performing assets (NPAs) eased to 2.4 per cent of gross advances, as compared to 3.38 per cent by the end of March 2025. Similarly, net NPAs came down to 0.79 per cent from 0.96 per cent earlier.

Published on April 28, 2026