CRISIL reaffirms Punjab & Sind Bank's AA/stable rating

CRISIL Ratings has reaffirmed its 'Crisil AA/Stable' rating on Punjab & Sind Bank's Infrastructure Bonds and Tier-II Bonds (under Basel III), effective September 10, 2025. This rating applies to Infrastructure Bonds of Rs 3000 crore, Tier II Bond Series XIV of Rs 500 crore, and Tier II Bond Series XVI of Rs 500 crore, all of which maintain a 'Stable' outlook.

The reaffirmation reflects sustained improvements in asset quality and a strengthened capital position, which are expected to continue. As of June 30, 2025, the bank's gross non-performing assets (GNPAs) improved to 3.34%, down from 5.43% on March 31, 2024. Capital adequacy also saw an upward trend, with the Tier 1 and overall Capital Adequacy Ratio (CAR) increasing to 16.0% and 17.9%, respectively, on June 30, 2025, compared to 14.8% and 17.3% a year prior.

The bank reported a profit after tax (PAT) of Rs 1,016 crore for fiscal 2025, an increase from Rs 595 crore in the previous fiscal. For the quarter ended June 30, 2025, net profit stood at Rs 269 crore, up from Rs 182 crore in the corresponding period of the previous fiscal. Liquidity remains strong, with a liquidity coverage ratio of 138% as of June 30, 2025, surpassing regulatory requirements.