Punjab & Sind Bank

Punjab and Sind Bank is a leading public sector bank in India. It has pan-India operations with a significant presence in northern states. It was one of the six banks that were nationalised during the second wave of nationalisation in 1980.

Punjab and Sind Bank was established in June 1908 by Bhai Vir Singh, Sir Sunder Singh Majitha and Sardar Tarlochan Singh to provide banking and financial services to the weaker sections of the society in Punjab. In April 1980, the bank was reconstituted as a public sector lender under the Section 2(b) of the Bank Acquisition Act.

The government holds 98.25% stake in the bank, as of September 30, 2023.

In 2000, the bank launched bullion trading. In 2004, it launched a co-branded credit card in collaboration with ICICI Bank. It also tied up with Aviva Life to offer insurance products. In 2019, Punjab Gramin Bank, Malwa Gramin Bank, and Sutlej Gramin Bank were amalgamated into Punjab and Sind Bank. PSB also partnered with Bajaj Health Insurance Co Ltd. for its life insurance business in 2023.

The bank launched its initial public offering (IPO) in 2010 and subsequently it was listed on the stock exchanges. The market capitalisation of Punjab and Sind Bank Limited stood at over ₹49,000 crore as of February 6, 2024. Punjab Sind Bank share price has surged 400% in the last three years.

Business Operations

Punjab and Sind Bank is a full-service commercial bank providing multiple products and services in different customer segments. The lender’s pan-India service network includes 1,559 branches.

The bank offers omni-channel digital banking services through WhatsApp banking, mobile banking, Tab Banking and online services. In FY23, it underwent specialised mid-corporate branch expansion and entered into partnerships with fin-tech firms and NBFCs. It offers online and mobile making services through its PSB UnIC app.

PSB operates in three major segments like treasury operations, retail banking and wholesale banking. It offers various products and services like current accounts, savings accounts, recurring deposits, fixed deposits and term deposits.

Its credit services include home, auto, education, business, gold and vehicle loans. Some of its non-fund-based products include general insurance, locker facility, letter of credit, bank guarantee and solvency certificates. It also provides forex treasury, export/import services, and financial services for NRIs.

The bank also caters to the financing needs of priority sectors like agriculture, small and medium enterprises, economically weaker sections and women entrepreneurship.

Under its corporate banking division the bank offers a wide range of loan products like term loans for capital expenditure, short-term loans for businesses, cash and export credit and financing for working capital needs of enterprises.

Financials

• The bank’s total business increased 10.5% year-on-year to ₹1,90,647.22 crore in FY23 compared to ₹1,72,524.10 crore in FY22.
• The bank’s Net Profit stood at ₹1,313 crore in FY23 as against ₹1,039 crore in FY22.
• The lender’s Net Interest Income (NII) stood at ₹2,973.38 crore in FY23.
• The bank's operating profit stood at ₹1,450 crore in FY23 compared to ₹1,330 crore in FY22.
• Net NPA of the bank dropped to ₹1,411.50 crore in FY23 compared to ₹1,742.27 crore in FY22.
• Net NPA ratio improved to 1.84% in FY23 from 2.74% in FY22.