Punjab & Sind Bank

To Our Valued Stakeholders,

The Board of Directors present ils mport on I he performance of Punjab & Sind Bank for the Financial Year 2024-25. This report provides an overview of the global and domestic economic conditions, the Bank's financial achievements, and key strategic initiatives undertaken.

The global economic outlook remains uncertain amid the changes of administration in the US, ongoing wars and escalated trade tensions that have intensified risks to growth and inflation.

The global economic outlook has been shifting rapidly in recent months. Recent trade tariff-related actions have intensified uncertainties, casting a shadow over economic prospects across regions and introducing fresh challenges to global growth and inflation. Amid this volatility, the ITS* dollar has weakened significantly, equity markets have seen notable corrections, and crude oil prices have declined to their lowest levels in recent, limes.

Despite these headw inds, the global economy grew by 33% in 2024, slightly down from 3.5% in 2023. The 1Mb projects global growth at 2.8% in 2025 and 3% in 2020. Inflation is expected to ease lrorn4.9% in 2024 to 4% in 2025 and 3.4% in 2026.

The domestic economy is gaining momentum, supported by easing inflation and robust sectoral performance. CPI-based headline inflation stood at 2.8% in May 2025. a six year low. Market volatility has eased in the recent period with equity markets staging a recovery, dollar index and crude oil softening though gold prices remain high. Consumer Price Index (CPI) inflation for 2025 26 is projected at 3.7 per cent with quarterly estimates at 2.9 per cent in Ql. 3.4 percent in Q2.3.9 per cent inQ3. and 4.4 per cent in Q4.

The Reserve Bank of India has maintained ils real GDP growth projection at 6.5% for 2025 26, with quarterly forecasts of 6.5% in Q1,6.7% in Q2. 6.6% in Q3, and 6.3% in Q4. This includes a downward revision of20 basis points from earlier estimates due to global volatility.

Economic growth is expected lobe driven by a strong agricultural sector, supported by promising Rabi crop prospects and a projected normal monsoon. Industrial activity in India is set to rebound, while the service prospers and a projected normal monsoon. Industrial activity in India is sol to rebound, while the service sector remains the primary engine of growth. Overall, India is poised to maintain ils status as the world's last esl- grow ing econ umj.

The financial soundness of the banking sootor remains strong, with liquidity buffers well above regulatory requirements and healthy profitability indicators refleeting operational efficiency. Non-Banking Financial Companies iNBFCs} also exhibit stable system-level parameters. While hanks are in a stable position, revenue models face pressure amid modest organic growth, poliey shift and limited capital availability, prompting a search for alternative value sources. Rapid technological advancements, particularly in Ai. machine learning, open data, and digital currencies are reshaping banking operations. Institutions are responding by strengthening Lheir digital capabilities and risk management frameworks to adapt to those evolving dynamics.

In FY 2024-25, global uncertainties intensified due to the change in administration in the U.S., ongoing conflicts, and escalating trade tensions. While the Indian economy felt Lhe impact, it displayed resilience in the lace of these global challenges. 1 he hanking industry also experienced moderation, with credit growth slowing as hanks grappled with liquidity constraints and managed their high Credit Deposit ratios. Despite these pressures, Indian hanks remained profitable and well capitalized. To sustain healthy credit growth without compromising liquidity, banks must strengthen their deposit mobilization efforts. As the RBI persists with its rate easing cycle, banks are expected to lace pressure on their Net Interest Margins. Since advances are tied to the External Eienchmark, they will be repriced at lower rales immediately, additionally. Banks will continue to face severe competition in attracting deposits.

T he following key performance indicators reflect Lhe Bank's performance during the linanciat year2024-25:

The Total Business increased by IJ .69%(Yb Y) and stood at Rs.229379 croreas on 31.03.2025 as compared to Rs.205374crore as on 31.03.2024.

The Total Deposits increased by 8.68% (YoY) and stood at Rs. 129774 crore as on 31.03.2025 as compared to Rs. 119410 crore as on 31.03.2024.

I CASA deposits increased by 5.38% (YoY) and sLood at Rs.40790 crore as on 31.03.2025, as compared lo Rs.38708 crore as on 31.03,2024.

iii. Advances

* The Tolul Advances increased by 15.87% l YoY) and stood at Rs.99605 crore as on 31.03.2025 as compared lo Rs.85964 crore as on 3 i .03.2024.

* The Advances Mix as on 31.03.2025 comprised of RAM (Retail, Agri and MSME) advances of55.15% and Corporate Ad van ees of44.85%.

tv. Priority Sector Advances: During F Y 2024 25. the Bank reinforced its commitment to inclusive growth by significantly scaling up credit deployment in priority sec tors, especially agriculture. MSMEs. and weaker sections. Focused outreach programs and partnerships w ere undertaken to ensure timely and adequate credit delivery to underserved segments. We are proud to declare that our total Priority Sector Advances increased by 6.51% and stood at Rs.41666 crore as on 31.03.2025 as compared lo Rs.39120 crore as on 3 1.03.2024, The detailed performance in the RAM segment is as under

* Retail: The Retail Advances increased by 37.65% (YoY) and stood at Rs.2207Q crore as on 31.03.2025 as compared to Rs. 16034 crore as on 31,03,2024. Hie percentage of Retail credit (Rs.22070 crore) lo Gross Advances (Rs.99605 done) was 22.16% as on 31.03.2025 as compared lo 18.65% as on 31.03.2024.

* Agri: The Agri Advances increased by 7.44% (YoY) and stood at Rs. 13456 crore as on 31.03.2025 as compared to Rs. 12524 crore as on 31.03.2024,

* MSME: The MSME advances grew by 21.98% (YoY) and stood a! Rs. 19406 crore as on 31.03.2025 as compared to Rs. 15909 crore as on 31.03.2024. I he share of MSME Credit to Gross Advances was 19.48% as on 31.03.2025.

* MUDRA: Bank surpassed MUDRAloan target for F Y 2024-25 achieving 103% by disbursing Rs. 2571 CY. against the target ol'Rs. 2500 Cr.

* Stand-Lp India: Bank sanctioned4257 loans under Stand-Dp India in FY 2024-25 against the target oT 3060 loans thus achieving 139% of the allocated Largel.

v. Profit ability

The Bank pursued a calibrated strategy lo enhance profitability through asset quality improvement, cost optimisation, and a sharper focus on high-yielding advances. Below is a glimpse of the k.ey Performance Indicators that reflects our operational efficiency, prudent risk management, and effective strategy execution:

• I he Operating profits stood at Rs.2075 erone u.s on 3 t.03.2025 as compared to Rs. 1131 crore as oti 31.03.2 024 regis leri ng a grow th o f83.47 % (Yo Y)

* Net pmlit stood at Rs. 101 fi crore as on 31.03.2025 as compared to Rs. 595 crore as on 31.03.2024 registering a growth of70.76% (YoY).

• Return on Assets [ROA) stood at 0.07 % in FY 2024-25 as compared to 0.41% in FY 2023-24.

• The Framings per share stood at Rs. 1.50 per share t'orf Y' 2024-25 as compared to Rs. 0.8 8 per equity share for FY 2023-24,The Net Interest Income stood at Rs.3784 crore us on 31.03.2025 as compared to R.s.2841 crore as on 3! .03.2024.

* i he Net Interest Margin stood at 2.85% as on 3 1.03.2025 as compared to 2.45% as on 31.03.2024

5. Dividend

T he Board of the Bank has declared a dividend of Rs.0.07/- per equity share lor the Financial Year ended March 31,2025 subject to the approval of the shareholders at the ensuing AGM.

6. Net Worth and Capital Adequacy: Our Bank maintained a strong capital position during FY' 2024 25. with healthy capital adequacy ratios well above regulatory thresholds. To further strengthen its stability, the Bank raised FquiLy Share t apilal (including premium) of Rs. 1219 crore in Q-4 of FY 2024-25. I he Bank also issued Infrastructure Bonds of Rs. 3000 crore in Q-3 of FY' 2024-25. Glimpse of the Bank's capital strength is as follows;

• The Net Worth stood at Rs. 10945 crore as on 31.03.2025 as com pared to Rs. 7836 crore as on 31.03.2024.

* Total Capital Adequacy Ratio stood at 17.41% ason 3 1.03.2025 as com pared to 17.16% as on 31.03.2024

* TheC?T-l Ratio stood at 15.59% as on 31.03,2025 as compared to 14.74% as on 31.03.2024.

7. Asset Quality

High quality asset portfolio, is the cornerstone lor long-term financial stability. We arc pleased to present a promising highlightofour Asset Qua lily maintained in the Financial Year2024-25.

i. Performance

? Gross NBAs of the Bank stood at Rs.3370 crore (3.3 H %) as on 31.03.2025 as compared to Rs. 4665 crore (5.43%) as on 3 i ,03.2024.

* Net NBAs of the Bank stood at Rs.937 crore (0.96%) as on 31.03.2025 as compared to Rs. 1350 crore (1.63%) as on 31.03.2024.

* Provision Coverage Ratio of the Bank improved to 91.38 % as on 31.03.2025 as compared to 88.69 % as on 31.03.2024

* Slippage Ratio of the Bank stood at 0.99% as on 3 l .03,2025 as compared to 1.28% as on 31.03.2024.

ii. Recovery Strategy

* Specialized Recovery I earn: Bank has specially dedirated team in the nairi' of War mum officials at every Zonal Office which looks after the Recovery of that particular Zone.

* Asset Recovery Branches: Hank has 7 specialized Recovery' Branches which specially focuses on Non Performing Suit filed assets portfolio pending before DRT.

* SAM VERT (Stressed Asset Management Vertical): Bank has separate vertical at Head office which looks after recovery in NPA-'TWO accounts with Hook outstanding of Rs. 25 Crore and above.

• Transfer of accounts to AKCs/NARCL: Transfer of NPA accounts to AKCs/NARCL is being utilized when all other recovery tools failed. During F.Y. 2024-25 bunk has transferred 3 accounts to ARC/NARCL forT491.86 Crore.

* Special Short term Settlement Scheme (RlN ML¹ Ki t Ml): Hank launched special short term Non- discrelionary settlement scheme in Ihe name of RlN MUKTI-1I1 in FY 2024-25 to facilitate debt resolution to eligible borrowers, in which bank settled 3332 accounts with Settlement amount of Rs. 67.79 Crore.

• Hank successfully launched e-OTS (Nidaan) portal for OTS calculation, sanction and monitoring in month of J uly 2024.

* Hank has also implemented Credit Mid Office lor ensuring compliance of pre and post disbursement terms and conditions in new/cnhancemenl sanctions.

8. Business Initiatives: During the financial year 2024^25, the Hank implemented a range of initiatives aimed at enhancing customer convenience and strengthening its competitive position. Key initiatives include:

i. Digitization of Loan:

A key iireaulTocus remained digitization of lending processes across RAM (Retail, Agriculture, and MSM E) segments. The Bank introduced paperless, end-to-end digital loan journeys that enhanced turnaround time, improved customer experience, and reduced operational risks. Following digital Loan products were launched for our e uslom e rs:

* PSH e-Apna Char: As the economy continues to grow, the hank has launched e-Apna Ghar to meet the evolving housing finance needs. The product provides end-to-end digital journey simplifying loan process for loan amounts above ?1Q lakh and up to -t I OP lakh.

* I'SH e-Apna Vahan: I he Bank introduced PSH e-Apna Vahan, a new digital initiative designed to oiTera folly online experience for 2 wheeler and 4 w heeler loans wilh financing available up to Rs. 25 lakh.

* c- Shtshu IMudra : Moving a step ahead in participating in country's financial inclusion mission, the Hank launched e-Shishu Mudra which provides fully digital loans up to 3 50,000 for micro entrepreneurs.

* e- KCC: Hank has launched hassle-free facility of e-KCC up to Rs, 2.00 lakh (New applications) with minimal paperwork and eligibility check using digital land records available with the stale Revenue department.

!n alignment with evolving customer preferences. the Bank introduced a bouquet of innovative. need-based products tailored for various customer segments, including youth, women, farmers, small businesses, and

sa I aried i ndi vid u als.

Someoflhe products launched Lo facilitate services that align wi th customer needs are mentioned below:

* I'M KUSLUVl IP radium Munli t Kisan Urjja Suraksha warn Utthaan Mahabhivan): This scheme aims to increase the farmer's income by providing reliable source of irrigation and de-dieselize the farm sector by financing solar power projects,

* PSB Sami addli MahilEa Loan Scheme: The product aims to uplift women entrepreneurs through accessible finance, skill development and business grow th opportunities, creating a one stop solution for women looking lo start, scale or sustain their bus in ess.

* PSB Lakhpati Didt: To provide financial assistance to enable the women members of Self-Help Group (SI LG) lo generate income and become Lakhpati Didi.

* PSB Business Loan Scheme for Young India: This product is designed to provide financial assistance lo young entrepreneurs between the ages of 18-35 years. Tins product aims to support the growth and innovation of youth led businesses by ottering flexible, accessible and competitive financing options.

* e- BG: Our Bank has introduced an e-Bank Guarantee (e-BG) faeility in collaboration with National e- Govemance Services l.td (NeSL) on November 03, 2024. This new system replaces traditional paper- based bank guarantees with e-stamping and e-sign a lures. This initiative is designed Lo enhance security and transparency while saving time and effort Tor beneficiaries by eliminating the need for physical verification of bank guarantees.

* Lease Rental Discounting for Corporate Burruwcrs: Lease Rental Discounting(LRD) is essentially a loan facility availed by a company/firm against the rental from commercial properties earning a specified amount of rentals at scheduled intervals,

* PSB Shuhli Arambh CA Product: A new C urrent Account tailored specially for startups to support their business gruwlh. This Product offers Current Deposit Account for new business/ entrepreneurs started within a year.

* PSB KLELA Plus Current Account: A Special Currenl Account lo meet the requirements of promolers/realily set. lor/bui Idem lo meet the provisions of R.ERAAct 2fll f>.

* 101.26% target achieved in PradEian Manlri Jeevan Jyoli Bima Yojana \ PMJJBY) Impolicy year ended 31.05.2025

* 100.20% target achieved in Pradhan Manlri Suraksha Bima Yojana (PMSBY) Tor policy vear ended 31,05.2025.

* 105% target achieved inAtal Pension Yojana (APY) Active Enrolment for financial year ended 2024-25.

With a view to promote gender diversity in the Bunk following women centric initiatives have been taken by the Bank:

* Webinar on presiding ‘Post Maternity Counselling and supports' to women employees.

* Special Training I'mgram on Leadership for Woman from Apex Institutions like Muni pal Academy of BFS1. CAB Pune etc.

ii. Other HR initiatives

* New Stall" Training College: Establishment of New Staff Training College at Chandigarh has been approved. This will help to cater more than 4000 employees of pur Bank which are posted in /.ones under PGM Chandigarh.

* Foreign training programs: Senior officials of the Bank attended foreign trainings like S1BOS Conference, Aarohan Leadership Development Program, Board Leadership Program for FIs, EE1DAI Annual Conference in FY 2024-25.

90% of the fees of courses opted by the employees is home by the Bank on successful completion of the course. 658 employees have been approved for enrollment of courses amounting to fee value of Rs. 142.44 Lacs.

* Leadership development programs from renowned institution such as JIM Ahmedubad, Slate Bank Institute of Leadership-Kolkala. MDl Gurguon etc.

\ he physical presence of branches remains a crucial pillar of trust, accessibility and personalised service, particularly in Lhe diverse Indian market. To enhance accessibility and deepen market penetration, Lhe Bank expanded its branch network across aspirational districts and underserved regions. Emphasis was placed on rural and semi-urban locations in alignment with business potential and tinancial inclusion goals.

11 igh lights of the expansion of branches and /ones are mentioned below:

* Zonal Offices: Abiding by the Bank's strategy to reach the remote areas, the Bank opened 4 new Zonal offices in Moga, Pal mi. Agra and Varanasi, i he opening of Zonal Offices aim at increasing Bank's Branch footprint in the unreached areas and belter control mechanism.

* Our Bank continued to focus on branch expansion and considering the skewed geographical conditions. 52 branches were opened during the FY 2024-25 aligning with the government vision of

* Financial Inclusion. Hie total branches of Lhe Bank stood at 16I0ason 31,03.2025.

* MlD Corporate Branches: Our Bank hits increased Lhe total mid-corporate branches (MCRs) From 4 to 15, to ensure a faster turnaround time in the credit decision-making process and focused approach towards mid-corporate customers.

Banking compliance is an intricate and essential aspect of the banking industry, intertwining adherence to a diverse array oTrules, regulations, and standards. In order to achieve the highest industry standards in compliance Function, our Bank has taken various steps ami initiatives:

t. Automation of the Compliance Function: For end to end digitizing the enterprise wide compliance Function, Bank has procured Compliance Solution ECG (Empow ering Compliance ft Governance), l he solution has capability For comprehensive monitoring, tracking For implementing regulatory compliance along with interactive dashboards and reporting.

ti. Placement of Dedicated Compliance Officer (DCO): Bank has placed Dedicated Compliance Officers in Zones For exclusively dealing with the compliance related obligations, thereby improving the oversight and effective decision making at the corporate level through the independent information and Feedbacks received From DCOs. Presently Bank has 15 DCO covering all Zones.

iii. Development of Data Quality Index (DQ1) based on Data Integrity Rules (DIR): A Framework based on the Data Integrity Rules fDIR) has been approved to assess the Data Quality Index (DQi).

Bank has set up a dedicated Call Centre to cater to its customers' queries, complaints, customer acquisition and lead generation. We are in process oTrevamping the Call-Centre to further improve the quality oFservices.

* Bank was awarded ‘Second Prize' under Region 'A' in the review meeting held at Chandigaih by the Department of Financial Services. Ministry of Finance For the best execution of Official Language Policy during the year 2023-24

* Delhi Bank Town Official Language Implementation Committee awarded 'Second Prize' to the Bank's Head Office for outstanding Official Language Implementation in the Financial year 2023-24 and the 'Third Prize¹ to the Bank's Hindi quarterly magazine Rajbhasha Ankur under Lhe House-Journal category.

* The Bank's Zonal Offices Chandigarh, kolkala and Bareilly were awarded the Official Language Awards in the category oTAdministrative Offices by Lhe respective Town Official Language Implementation Committee.

15. EASE Reforms: Enhanced Access and Service Excellence is a government reform Tor public Sector banks to facilitate customer-centric banking focusing on digital customer experience, managing operational risks effectively and catalysing new age capability building. EASE 7,1) reforms was launched on 25th April 2024 with an emphasis on customer service excellence, adoption of new technology and banking tow ards Viksil Bharat¹.

* Bank received Winner award for creating awareness for MSMEs & Runner-up award in promoting Government Schemes by CIMSME.

* Bank received Best lech latent A: Organisation Award in Lhe category of Small Banks at 20th Banking Technology Conference organized by 1BA.

* Bank was honoured with the "Highest DQI Improvement Award'* in the PSU Commercial Segment for Fy25.

The Directors confirm that in the preparation oTthe annual accounts for Lhe year ended March 31. 2025:

* The applicable accounting standards have been followed along with proper explanation relating to material departures. iTany.

* The accounting policies were framed in accordance with the guidelines of the Reserve Bank oflndia and were consistently applied. Reasonable and prudent judgments and estimates were made to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of its profit and loss for the year ended March 31.2025.

* Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions oTapplicable laws governing banks in India for safeguarding the assets of the Bank and far preventing and detecting fraud and other irregulanlies.

* Annual accounts have been prepared on a going concern basis.

* The Internal financial controls system, to bo followed by the Bank was kid down and such internal financial controls are adequate and are operating effectively,

* Proper systems have been devised to ensure compliance with ihe provisions oT all applicable laws and such systems are adequate and operating effectively.

We extend our gratitude to Dr C'haran Singh. Non -Executive Chairman; Sh Ram Juss Yadav Executive Director Sh. fC.R Patimik, RBI Nominee Director; Sh. S.L. Agarwal, Non Official Director; Sh. T.U. Mendirullu, Shareholder Director; and all the members of the Board, both past and present for their valuable insight, support, guidance, and contributions to the management in all endeavours. Furthermore, we express our sincere appreciation to all stakeholders and customers for their continued support and trust in our Bank. Finally, we would also like to lake this opportunity to thunk the Reserve Bank of India and the Government of India for theirsupport and guidance.