Punjab & Sind Bank Plans to Raise ₹5,000 Crore via Equity and Bonds by 2027

State-owned Punjab & Sind Bank has announced plans to raise up to ₹5,000 crore in one or more tranches by March 2027 through a mix of equity and bond issuances. The proposal is set to be discussed at the bank's board meeting scheduled for October 16, 2025, in New Delhi. This move aims to strengthen the bank’s capital base and support its growth initiatives in the coming years.

Equity and Bond Components

According to the bank’s filing, up to ₹3,000 crore will be raised through the issue of equity shares, which may include Qualified Institutional Placement (QIP), Follow-on Public Offer (FPO), or a rights issue. 

In addition, ₹2,000 crore is planned to be mobilised through Basel III-compliant Additional Tier I or Tier II bonds, or a combination of both. The bank is also considering raising ₹3,000 crore via long-term infrastructure bonds in one or more tranches by March 2027.

First Quarter Financial Performance

Punjab & Sind Bank reported its financial results for the first quarter of FY26, showing a net profit of ₹269.2 crore, marking a 48.3% year-on-year increase from ₹182 crore in Q1FY25. Net interest income (NII) grew by 5.9% to ₹900.4 crore, compared to ₹850 crore in the same period last year. 

The bank also recorded a marginal improvement in asset quality, with gross non-performing assets (GNPA) slightly declining to 3.34% from 3.38% sequentially, and net NPA improving to 0.91% from 0.96%.

Punjab & Sind Bank share price Update

Punjab & Sind Bank share price traded at ₹29.22 on NSE, down 2.11% as of 11:34 am on October 14, 2025. The stock opened at ₹30.00 and recorded a day’s low of ₹29.17 and a high of ₹30.15. The previous close was ₹29.85, with a trading volume of 12,65,253 shares. 

Over the past 52 weeks, Punjab & Sind Bank share price has moved within a range of ₹25.22 to ₹56.30, giving the bank a market capitalisation of ₹21,194 crore.

Read more: Stallion Share Price in Focus; Reports Revenue Up 55.57% YoY in Q2 FY26 Results

Conclusion

The planned capital raising will provide the bank with additional funds to support its lending operations, infrastructure financing, and growth strategies. The combination of equity, bond issuances, and long-term infrastructure bonds reflects the bank’s approach to maintaining a diversified funding structure.

Punjab & Sind Bank share price movements, combined with the upcoming board meeting and financial results, are expected to attract attention from investors and market participants tracking the bank’s capital expansion and performance trends.

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