Check Before You Invest : Punjab & Sind Bank

Q: Which industry/sub-sector does Punjab & Sind Bank belong to?

Punjab & Sind Bank belongs to the BFSI sector, operating specifically within the Bank - Public segment.

Q: Is Punjab & Sind Bank a good quality company?

Punjab & Sind Bank is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is Punjab & Sind Bank undervalued or overvalued?

Punjab & Sind Bank appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 12.71, Historic Median: 17.31. Price to Book, Current: 1.29, Historic Median: 1.58. Price to Sales, Current: 1.4, Historic Median: 1.98. EV to EBITDA, Current: 10.19, Historic Median: 12.18

Q: Is Punjab & Sind Bank a good buy now?

Punjab & Sind Bank is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Total Income growth of Punjab & Sind Bank?

Punjab & Sind Bank Total Income growth is 19.55% for FY-2025, which is above its 5-year CAGR of 8.13%, indicating faster growth.

Q: Return on Assets of Punjab & Sind Bank?

Punjab & Sind Bank Return on Asset is 0.7%, which is in line with its 5-year historical median of 0.7%, indicating stable earnings on assets. Efficiency & Key Metrics. NIM (%), Current: 2.47, Historic Median: 2.32. PPOP (%), Current: 170.57, Historic Median: 3.11. RoA (%), Current: 0.7, Historic Median: 0.7

Q: Return on Equity (ROE) of Punjab & Sind Bank?

Punjab & Sind Bank Return on Equity is 7.6% for FY-2025, which is in line with its 5-year historical median of 7.6%, indicating the business is making similar use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Punjab & Sind Bank?

Punjab & Sind Bank Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 170.57% for FY-2025, which is above its 5-year median(3.11%), indicating increasing margins.

Q: Net Interest Margin of Punjab & Sind Bank?

Punjab & Sind Bank Net Interest Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 2.47% for FY-2025, which is above its 5-year median( 2.32%), indicating increasing margins.

Q: Does its ROIC exceed its WACC?

Punjab & Sind Bank return on invested capital (ROIC) is 24.22% for FY-2025, is higher than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Punjab & Sind Bank

BSE: 533295 NSE: PSB ISIN: INE608A01012

| Sector: BFSI | Industry: Bank - Public

Snapshot

Q.1 Which industry/sub-sector does Punjab & Sind Bank belong to?

Punjab & Sind Bank belongs to the BFSI sector, operating specifically within the Bank - Public segment.

Q.2 Is Punjab & Sind Bank a good quality company?

Punjab & Sind Bank is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Punjab & Sind Bank undervalued or overvalued?

Punjab & Sind Bank appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	12.71	17.31
Price to Book	1.29	1.58
Price to Sales	1.4	1.98
EV to EBITDA	10.19	12.18

Q.4 Is Punjab & Sind Bank a good buy now?

Punjab & Sind Bank is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NIM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth and Cost-to-Income ratio.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Punjab & Sind Bank?

Punjab & Sind Bank Total Income growth is 19.55% for FY-2025, which is above its 5-year CAGR of 8.13%, indicating faster growth.

Q.2 Return on Assets of Punjab & Sind Bank?

Punjab & Sind Bank Return on Asset is 0.7%, which is in line with its 5-year historical median of 0.7%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NIM (%)	2.47	2.32
PPOP (%)	170.57	3.11
RoA (%)	0.7	0.7

Q.3 Return on Equity (ROE) of Punjab & Sind Bank?

Punjab & Sind Bank Return on Equity is 7.6% for FY-2025, which is in line with its 5-year historical median of 7.6%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Punjab & Sind Bank?

Punjab & Sind Bank Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 170.57% for FY-2025, which is above its 5-year median(3.11%), indicating increasing margins.

Q.5 Net Interest Margin of Punjab & Sind Bank?

Punjab & Sind Bank Net Interest Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 2.47% for FY-2025, which is above its 5-year median( 2.32%), indicating increasing margins.

Q.6 Does its ROIC exceed its WACC?

Punjab & Sind Bank return on invested capital (ROIC) is 24.22% for FY-2025, is higher than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of Punjab & Sind Bank?

Punjab & Sind Bank Total Asset growth is 9.59% for FY-2025, which is in line with its 5-year CAGR of 9.99%, indicating stable growth.

Q.8 Cost to Income ratio of Punjab & Sind Bank?

Punjab & Sind Bank Cost to Income ratio which represents the cost incurred for every Rs.100 earned is 61.2% for FY-2025, is in line with its historical 5-year median of 63.2%, indicating stable cost management.

C: How strong is the bank’s capital position and asset quality?

Q.9 Capital Adequacy ratio of Punjab & Sind Bank?

Punjab & Sind Bank Capital Adequacy ratio (CAR) is 17.4% for FY-2025, which is above the regulatory requirement of 12%, indicating strong capital position.

Q.10 Asset Quality of Punjab & Sind Bank?

Punjab & Sind Bank Gross Non-Performing Assets, which are loans overdue by more than 90 days, is 3.38% for FY-2025, which is below its 5-year median 6.97%, while Net Non-Performing Assets, which is GNPA minus provisions made for bad loans is 0.96% which is below its 5-year median( 1.84%), indicating improving asset quality.

Ownership & governance

D: Promoter shareholding and pledge status of Punjab & Sind Bank?

Q.1 Promoter shareholding and pledge status of Punjab & Sind Bank?

Promoters hold 93.85% of the Punjab & Sind Bank, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Punjab & Sind Bank performance compare with that of its Peers?

Q.1 AUM Growth of Punjab & Sind Bank vs Industry Peers?

Punjab & Sind Bank AUM CAGR is 9.99%, compared to the 5-year industry median CAGR of 8.97%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NIM, PPOP, RoA) of Punjab & Sind Bank vs industry peers

Punjab & Sind Bank profit metrics are in line with the industry median level of 2.08%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NIM (%)	2.47	2.63
PPOP (%)	170.57	3.11
RoA (%)	0.7	0.5

Q.3 Operating efficiency of Punjab & Sind Bank vs industry peers?

Punjab & Sind Bank Cost to Income (62.05) is above the industry median of (58.3); while the current ROE (7.6) are above than the 5-year average Industry ROE (7). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NIM (%)	2.47	2.63
PPOP (%)	170.57	3.11
RoA (%)	0.7	0.5
Cost to Income (%)	61.2	58.3
ROE (%)	7.6	7

Valuation & price assessment

Q.1 Stock return of Punjab & Sind Bank over the last decade?

Over the last 9 years, the stock has delivered a CAGR of -4.6% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-4.6%	2.8%	-8.7%	-22.9%

Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	12.71	17.31	10.61
Price to Book	1.29	1.58	1.12
Price to Sales	1.4	1.98	1.15
EV to EBITDA	10.19	12.18	5.06

Q.3 Valuation ratios of Punjab & Sind Bank vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 1.29 is lower than its historical median of 1.58, indicating that the stock is trading below its historical average valuation.

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Check Before You Invest : Punjab & Sind Bank

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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