State-owned Punjab & Sind Bank aims to cross the Rs 3 lakh crore business milestone by the end of the current financial year, driven by strong loan growth and steady deposit expansion. The lender, which reported total business of Rs 2.63 lakh crore in FY26, is targeting growth that could help it achieve this landmark figure in FY27.
Managing Director and CEO Swarup Kumar Saha said the bank is optimistic about maintaining momentum, supported by robust demand across lending segments and improved deposit mobilisation.
Growth Backed by Credit and Deposits
The bank expects credit growth in the range of 16 to 18 per cent during the ongoing financial year, alongside deposit growth of 13 to 14 per cent. This balanced expansion in advances and deposits is expected to drive overall business growth beyond the Rs 3 lakh crore mark.
According to Saha, the combination of consistent lending activity and a stable deposit base positions the bank well to achieve its target. The total business figure comprises both advances and deposits, reflecting the bank’s overall operational scale.
Fundraising Plans to Support Expansion
To sustain credit growth, Punjab & Sind Bank plans to raise capital through both equity and debt instruments. The board has approved raising to Rs 3,000 crore via share sale, including Qualified Institutional Placement, to comply with the Securities and Exchange Board of India’s minimum public shareholding norms.
At present, the Government of India holds a 93.85 per cent stake in the bank, significantly higher than the mandated 25 per cent public shareholding requirement. The lender is in discussions with merchant bankers and is expected to initiate investor roadshows, although the timing will depend on market conditions.
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Focus on Bonds and Infrastructure Financing
In addition to equity fundraising, the bank has approved raising Rs 3,000 crore through infrastructure bonds and Rs 2,000 crore via Tier I and Tier II bonds. These instruments are expected to support lending activities, particularly in infrastructure financing.
Infrastructure bonds have emerged as an attractive option for banks, as they are exempt from reserve requirements such as CRR and SLR, allowing full deployment of funds. With growing investor interest and favourable pricing, such instruments are increasingly preferred over traditional capital raising routes.
With a clear growth strategy and diversified funding plans, Punjab & Sind Bank is positioning itself to strengthen its balance sheet and expand its footprint in the coming financial year.
