By THE NEWSMAN OF INDIA.COM|State-owned Punjab & Sind Bank is aiming to cross the significant milestone of ₹3 lakh crore in total business during FY27, supported by steady loan growth, deposit expansion, and planned capital mobilisation initiatives.

Managing Director and CEO Swarup Kumar Saha said the bank concluded FY26 with a total business of ₹2.63 lakh crore, reflecting a growth of 15 per cent over the previous financial year.

“We have achieved total business of ₹2.63 lakh crore in FY26, registering a growth of 15 per cent and hope to cross ₹3 lakh crore during the current financial year,” Saha told PTI.

The lender is projecting credit growth of 16–18 per cent and deposit growth of 13–14 per cent in the ongoing fiscal. According to the bank, maintaining this trajectory in both advances and deposits would help it comfortably surpass the ₹3 lakh crore business threshold.

To support its growth ambitions, Punjab & Sind Bank is preparing to strengthen its capital base through a combination of equity and debt fundraising measures.

The bank has received board approval to raise up to ₹3,000 crore through Qualified Institutional Placement (QIP) or other approved routes during FY27. The proposed fundraise is also aimed at complying with the minimum public shareholding (MPS) norms mandated by Securities and Exchange Board of India.

Under SEBI regulations, listed companies must maintain at least 25 per cent public shareholding, while the Government of India currently holds 93.85 per cent stake in the bank.

Saha said the bank is currently in discussions with merchant bankers and is expected to begin investor roadshows shortly for the proposed stake dilution. However, he noted that the timing and final quantum of fundraising would depend on prevailing market conditions.

In addition, the bank’s board has approved ₹3,000 crore via infrastructure bonds and another ₹2,000 crore through Tier-I and Tier-II bonds to support credit growth.

Punjab & Sind Bank had made its maiden infrastructure bond issuance in December 2024, with the CEO confirming that the proceeds have already been fully deployed.

Infrastructure bonds continue to attract lenders due to their regulatory advantages, including exemption from reserve requirements such as CRR and SLR, enabling full deployment toward lending. As a result, banks have increasingly preferred infrastructure bonds over AT-1 and Tier-2 instruments owing to more competitive pricing.