Punjab & Sind Bank, owned by the State, has said that care ratings have upgraded the ratings on Tier-II bonds by a notch, stating an improvement in profitability and decrease in poor loans.
The rating has been upgraded from care provider with positive prospects to provide AA with stable prospects, the bank said in a regulating submission.
The bank has protected the ratingup grades for Tier II bonds worth £ 1,237 crore.
The rating revision of the debt instruments of Punjab and Sind Bank (PSB) regards the improvement of profitability in FY25 and better activa quality helped by recovery and lower incremental slip, said healthcare provider in a statement.
The rating remains a favorable factors in the majority of ownership of and demonstrated support from the Indian government (GOI), comfortable capitalization levels supported by several stock infusions and growth of profit, and the established presence in the northern states of India, it said.
PSB is expected to maintain the growth of the business community while maintaining adequate capitalization and improving the power quality, said it.
The rating is limited by moderate, albeit improvement, profitability with high interest costs and operating costs and a large share of non-earning assets in the form of zero-coupon re-capitalization bonds, it said.
In the future it said that the bank is expected to have some pressure on the margins, since the claims will be repeated quickly and the deposits will be reproduced with a delay.
The rating factors also in the relatively lower share of PSBs relatively lower share on the deposits ratio of the low-coost risk account account (CASA) and the relatively higher geographical concentration in North India states with a large presence in New Delhi and Punjab.
Care assessments noted that despite improving potential weak assets (SMA 1 and 2) in FY25, Netto stressed assets of PSB remain high in relation to his assets compared to banks in the public sector, it added.
Published on August 24, 2025
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