Punjab & Sind Bank, which posted a record profit of ₹1,322 crore in fiscal 2025-26 (announced on 27 April), said it was keeping a close watch on its MSME loan book as a prolonged West Asia crisis could affect borrower cashflows, while the bank maintained a target to build a ₹4 lakh crore business by fiscal 2028-29.
MANAGEMENT RESPONSE AND RISK FOCUS
The bank's management signalled heightened vigilance on micro, small and medium enterprise exposures some six weeks after reporting the annual result on 27 April. Managing Director and CEO Swarup Kumar Saha said the bank was monitoring its MSME accounts much more closely, as some MSMEs dependent on larger corporates could see their cash flows hit if the West Asia crisis lingers, though he said there was currently no alarming situation and MSME collection efficiency was around 92 percent.
The bank has also set strategic targets, including growing overall business to ₹4 lakh crore by fiscal 2028-29.
EXPOSURE AND GROWTH PLANS
Saha said the bank has relatively limited exposure to foreign exchange-linked business and is therefore somewhat insulated from direct external shocks.
Net profit rose 30.12 percent in FY26, while total business grew 14.94 percent to ₹2.64 lakh crore.
The bank also plans to expand its branch network from 1,654 to 2,000 by fiscal 2028-29.
Sources: The Hindu Business Line Banking