Punjab & Sind Bank Q2 FY27: PAT up 40% YoY to ₹412 Cr as NPAs shrink, margins expand

Punjab & Sind Bank's standalone net profit rose 39.9% YoY to ₹411.97 Cr (₹294.52 Cr in Q2 FY26) and 24.3% QoQ (₹331.51 Cr in Q1 FY27), on interest income of ₹3,394.48 Cr (+13.2% YoY, +5.6% QoQ). The YoY profit growth outpacing revenue growth by a wide margin is the headline, not the QoQ jump — for a bank the QoQ move is not a seasonality artifact the way it would be for a consumer business, but the YoY print is still the one that matters for trend. No exceptional items sit in either the current or year-ago quarter, so the reported and underlying growth rates are the same. The gap between profit and revenue growth is explained on the credit-cost line: provisions & contingencies fell to ₹52.11 Cr from ₹93.99 Cr QoQ and ₹147.67 Cr YoY, as gross NPA improved to 2.09% (from 2.21% QoQ, 2.92% YoY) and net NPA to 0.61% (from 0.65% QoQ, 0.83% YoY). Net profit margin expanded to 11.00% of total income from 9.35% QoQ and 8.73% YoY, and the operating margin (operating profit/interest income) rose to 18.19% from 16.98% QoQ and 16.84% YoY — both lines point the same direction, with lower credit costs doing more work than the topline. Street consensus for this specific print could not be located (brokerage Q2 FY27 previews for the stock did not turn up in search), so vsStreet is unknown rather than assumed. Against management's own June-quarter guidance, the picture is mixed: advances grew ~19.9% YoY to ₹1,24,033.71 Cr, near the top of the 18-20% guided band (corroborated by the bank's own Oct 1 provisional update citing 19.37% gross-advance growth); deposits grew 12.97% YoY to ₹1,53,311.97 Cr, just under the 13-14% band for a second straight quarter; and the cost-to-income ratio came in near 59.2%, inside management's sub-60% aspiration (vs. 60.21% as of Q1). NIM, guided at 2.60-2.65%, is not disclosed in this release and could not be checked. The quarter's other corporate action — board approval of a $1B MTN programme on Sep 29 and bond details as of Sep 30 — points to continued capital-markets borrowing even as the Capital Adequacy Ratio eased to 16.55% from 17.61% QoQ and 17.19% YoY, still comfortably above regulatory minimums but a line worth tracking as advances keep outgrowing deposits. Going into Q3, the bank's own account for improved NPAs and provisioning sets the bar for whether credit costs stay this low, while the deposit shortfall versus guidance — now a two-quarter pattern — is the clearest unresolved thread from management's own targets.