Credit growth 19-20% for FY27
Management has surpassed the 16-18% guidance in Q1 at 19.35% and now targets 19-20% growth aligned with risk appetite and pipeline visibility.
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Punjab & Sind Bank · forward-looking guidance across the available source record.
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What management said would happen.
growth
RAM advances to reach 64-65% of loan book
Already at 60% (ahead of year-end target), the bank plans to push RAM mix to 64-65% by end FY27 through continued focus on retail, agri, and MSME segments.
NIM guidance of 2.60-2.65%
Current NIM at 2.53%; management expects sequential improvement through repricing of corporate book, gold loan expansion, and mix shift toward higher-yielding RAM assets.
ROA target 0.85-0.90% and ROE ~12%
Return metrics targeted for FY27 based on NIM improvement, controlled credit costs (below 1%), and operating leverage from branch expansion.
Core fee income ₹900-1,000 crore for FY27
Up 13.89% YoY; bank has created a revenue intelligence wing and is rationalizing service charges with system-driven collection to achieve annual target.
Gross NPA to reach 2.25% by March 2026
Management indicated current 2.60% gross NPA will improve beyond the 2.5% target to 2.25% by fiscal year-end, driven by continued recovery and low slippages of 0.16%.
RAM proportion to reach 60% by March 2026, 70% by FY27
Retail, Agriculture, and MSME segments currently at 57.45% of total advances (growth 21.94% YoY) will increase to 60% by March 2026 through continued focus on these higher-yield segments, moving away from competitive corporate book.
ROA of 1% targeted by March 2027
With credit cost already negligible at 0.05%, ROA expansion to 1% will come from NIM improvement through portfolio mix shift, fee income acceleration (core fee up 29% YoY), and supply chain financing/cash management services rollout.
Cost-to-income ratio to decline to 50-55% by March 2027
Bank targets gradual reduction from current 60.84% through income growth (fee, digital, cross-sell), with 3-4 percentage point annual improvements, as branch expansion and HR investments drive efficiency.