Punjab & Sind Bank on Saturday reported a 40 per cent jump in net profit to ₹412 crore for the second quarter ended September 30, helped by improved core income and reduction in bad assets.

The public sector lender posted a net profit of ₹295 crore in the same period of the previous fiscal.

The bank's total income increased to ₹3,747 crore in the second quarter from ₹3,373 crore a year ago, Punjab & Sind Bank said in a regulatory filing.

Interest income rose to ₹3,394 crore in the September quarter of FY27 from ₹2,999 crore in the year-ago period.

During the quarter, net interest income rose 22 per cent to ₹1,162 crore against ₹950 crore in the second quarter of the last financial year.

Net Interest Income of the bank improved to 2.65 per cent from 2.56 per cent at the end of September 2025.

Cost-to-income ratio reduced to 29.19 per cent compared to 61.87 per cent in the year-ago period.

The bank's operating profit also increased to ₹617 crore from ₹505 crore a year ago.

As regards asset quality, the bank's gross non-performing assets (NPAs) moderated to 2.09 per cent of gross advances at the end of September 2026 compared to 2.92 per cent a year ago.

Similarly, net NPAs or bad loans came down to 0.61 per cent at the end of September 2026 against 0.83 per cent a year ago.

The Provision Coverage Ratio (PCR) rose to 92.48 per cent as on September 30, 2026, registering a growth of 60 bps, from 91.88 per cent at the end of September 2025.

The Capital to Risk-Weighted Assets Ratio (CRAR) improved to 17.19 per cent from 16.55 per cent at the end of the second quarter of the previous financial year.