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 10-year financial track record.

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

Punjab & Sind Bank appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

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

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 Total Asset growth of Punjab & Sind Bank?

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

Q.7 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 lower its historical 5-year median of 63.2%, indicating deteriorated cost management.

Q.8 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.9 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

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)

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 8.05%, 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 3.99%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NIM%	2.47	2.67
PPOP%	170.57	8.75
RoA%	0.7	0.55

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 (60.75); 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	2.67
PPOP%	170.57	8.75
RoA%	0.7	0.55
Cost to Income%	61.2	60.75
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 -3.6% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-3.6%	6.4%	-12.6%	-15%

Q.3 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	13.37	19.14	10.62
Price to Book	1.35	1.58	1.12
Price to Sales	1.48	1.98	1.15
EV to EBITDA	10.59	12.34	5.03

Q.4 Valuation ratios of Punjab & Sind Bankvs historical and industry averages?

The current Price to book ratio (P/B) 1.35% is lower than its historical median of 1.58%, indicating that at the current price the stock is undervalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 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.

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