Analyst Meet Transcript

Ref No: PSB/HO/Shares Cell / 39 /2026-27 July 27, 2026 BSE Limited, National Stock Exchange of India Ltd., Department of Corporate Services, Exchange Plaza, C – 1, Block – G, 25th floor, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (East), Dalal Street, Fort, Mumbai – 400 051. Mumbai – 400 001. SYMBOL: PSB SERIES: EQ SCRIP ID : PSB SCRIP CODE : 533295 Dear Sir, Reg: Transcript of the Earnings Call with Analysts/Investors on Unaudited Reviewed Financial Results for Quarter ended 30th June, 2026 With reference to above and pursuant to the applicable provisions of SEBI (LODR) Regulations, 2015, we enclose the transcript of post results Earnings conference call for the Quarter ended June 30, 2026 held on July 20, 2026. The transcript of the Earnings conference call is uploaded on Bank's website and the same can be accessed through below link: https://punjabandsind.bank.in/system/uploads/document/7803_202607271906014698 3.pdf This is for your information and records. Yours faithfully Saket Mehrotra Company Secretary Head Office: 21, Rajendra Place, New Delhi-110008 Corporate Office: NBCC Office Complex, Block 3, East Kidwai Nagar, New Delhi – 110023 Email: complianceofficer@psb.bank.in “Punjab & Sind Bank Q1 FY27 Earnings Con-call” July 20th, 2026 MANAGEMENT: 1. Shri Swarup Kumar Saha – Managing Director and Chief Executive Officer 2. Shri Ravi Mehra – Executive Director 3. Shri Rajeeva – Executive Director 4. Shri Arnab Goswamy – Chief Financial Officer Moderator: Mr. Ganesh Shankanawar Moderator: Good afternoon, everyone. My name is Ganesh Shankanawar, the moderator for today's earnings call. I welcome and thank each one of you for joining us today for the Punjab & Sind bank earnings call for Q1 FY27. Please note that this conference is being recorded and all participant lines will be in the listen only mode. There will be an opportunity for you to ask questions after the opening remarks by the management. Should you need any assistance during the conference call, please raise your hand on the WebEx panel or press *3# on your phone. I would now like to introduce the management of Punjab & Sind Bank. We have with us today Shri Swarup Kumar Saha, Managing Director and Chief Executive Officer, Shri Ravi Mehra, Executive Director, Shri Rajeeva, Executive Director and Shri Arnab Goswamy, Chief Financial Officer. I would now like to hand over the conference to Shri Swarup Kumar Saha, MD & CEO of the Punjab & Sind Bank for the opening remarks after which, we will have the forum open for the interactive Q & A session. Thank you and over to you sir. Mr. Swarup Kumar Saha: Thank you. Good evening, all. Welcome to this analyst Con- call on the Q1 FY 27 performance of Punjab & Sind Bank. The Board adopted the Q1 results on Saturday, the 18th and the presentation and the press release has already been uploaded. I'm sure many of you must have gone through the Bank’s figures, but just to set the context, I'll just mention a few of the highlights of the bank's performance of Q1 and then we'll open up the discussion for the Q&A. So overall business grew by 15.27% and stands at Rs 2,66,420 crores and it was spread between deposit growth of over 12.16% and advances of 19.35%. The bank has been able to grow consistently over the last few quarters, and this quarter also the bank has registered 19.35% growth in credit. This has been uniform across all segments: Retail grew at 36%, Agri grew at 25% plus and MSME over 32%. The RAM advances have now touched 60% of the total book as we have been talking on this subject. In terms of the deposits, CASA grew at 10.2% and the retail term deposit grew at around 14.94%. The core fee income grew at 13.89%. One factor which has been very positive in the Q1 results this time has been the increase in the net interest income by 15.33% YoY. I think that's a sign that, after the adjustments of the repo rate etc., the bank has now been moving forward on the net interest income front. The operating profit was flat at Rs.545 crores, but important point is that the operating profit has been maintained despite the fluctuations in the treasury gains, based on the obvious reasons that have been playing out in the market. So, if we compare ourselves in that way to the previous quarter of June 25, then we'll find that the contribution of the operating profit in Q1 last year, was to a large extent supported by treasury income of around Rs.200 crores and recovery in written-off accounts of Rs.109 crores. Against that, in this quarter which we just concluded, the contribution from the treasury came at Rs.80 crores and the recovery in written-off was slightly less than Q1 of last year. So, in spite of this lesser non-interest income in Q1, the bank was able to maintain the operating profit of Q1 last year and also Q4 last year. So that is a point that we would like to make. The net profit grew at 23.05% and stood at Rs.331 crores. The asset quality continues to improve: we are now at 2.21% of Gross NPA and 0.65% of Net NPA. PCR also has shown improvement at 92.33%. The Slippage Ratio has been broadly contained, and the cost to income ratio has dipped slightly to 60.21%. Overall, the advances mix continues to be spread across all the three segments. We have been always saying that RAM advances would be our key focus going forward. In terms of retail, our portfolio now stands at 25.82%, Agri portfolio stands at 13.38% and the MSME portfolio at 20.82%. In MSME, we have been showing good growth continuously; this quarter also we grew at over 32% in the MSME segment. Overall, in terms of the rating profiles of our corporate accounts, in NBFCs nearly the entire portfolio is A and above with AA and AAA constituting about 92% of the total portfolio. In terms of the external rating of the other corporate borrowers, BBB and above is 67.83% and government guaranteed is at 14.88%, so nearly 82% is covered by government guaranteed or BBB and above. So, the health of the credit portfolio continues to be robust, and the capital adequacy now stands at a healthy level of 17.61%. As I said, we have given a lot of focus on core fee income and it is continuing to rise. This time also the core fee income has increased by 13.89% and we have taken various steps to work on this direction. We have set up a target of Rs.900 crore to Rs.1000 crores of core fee income for the current year. Our collection efficiencies continued to improve, we are now at 95%. Slippages are broadly in line with the previous quarters, this time these slippages are at Rs.207 crores and the slippage ratio is at 0.18% for the quarter, so overall it will be annualised around 0.70%. So, we are on track there. The overall SMA 1 & SMA 2 has also shown improvement, and our endeavour is to bring down the total SMA percentage to less than 3% going forward. We have one or two state government guaranteed accounts which fluctuates, but this time they are out of SMA 1 and 2. Apart from that, overall if we take out the two state government guaranteed accounts, we are broadly in line with the other normal accounts of SMA. That is an area where we are working on, and we continue to give focus on branch expansion, network expansion through business correspondents, also covering more districts as we go along. Various initiatives are mentioned in the presentation on digital and various new areas of where we are, bringing more and more digital initiatives in the bank. Whether it is the payment gateway or online PAN generation. In PAN generation, we are the first public sector bank to provide this facility. Digi Gold loans and CBDC will get launched shortly. We have an excellent salary product for the central government and the state government employees in terms of Bharat connect Vista and Bharat Connect OMNI. Finally, as far as the guidance is concerned, we are broadly in line with whatever guidance we gave initially after the close of last year. Deposit growth was guided at the 13-14% range and was slight [Showing first 8,000 characters — download PDF for full document]