Punjab & Sind Bank aims for 4,000 branches, ATMs by March 2026

Punjab & Sind Bank has set its sights on establishing a network of 2,000 branches and an equivalent number of ATMs across the country within the next three years. This ambitious endeavor is a key part of the bank’s strategy to enhance its brand visibility and expand its touch points.

According to Swarup Kumar Saha, Managing Director of Punjab & Sind Bank, the plan is to inaugurate 50 new branches in the ongoing financial year. This initiative would propel the total branch count beyond 1,600, building on the addition of 28 branches during the preceding financial year, which brought the total to 1,555.

Saha stated, “By March 2026, our branch network will surpass 2,000 branches in total. Currently, the bank is present in 319 districts across the nation, and our objective is to have a presence in every district. Our focus will be on Tier II and III cities, aiming to bolster our presence in areas where we are currently less represented.”

The expansion of the branch network will serve a dual purpose: to attract low-cost deposits and to enhance the reach of loan products. Saha elaborated, “Our efforts are directed towards increasing operational efficiency, reducing costs, and augmenting fee income. We are concentrating on expanding our ATM network and enhancing the digital banking experience.”

Saha emphasized that the ATM network itself can be a profitable venture, as external customers typically pay around Rs 17 per transaction when using an ATM.

Furthermore, the bank is in the process of upgrading its core banking solution (CBS), a move that will significantly enhance the digital journey and operational efficiency, Saha noted.

In terms of recovery, Saha expressed the bank’s target for the current financial year to be Rs 1,500 crore, and the bank is diligently working towards achieving this goal. The bank aims to proactively manage recovery efforts and educate borrowers on the benefits of debt servicing.

To closely monitor and manage risk, the bank is vigilant about keeping slippage under control, aiming to maintain it below Rs 900 crore for the year, Saha added.

Meanwhile, credit rating agency Crisil has upgraded the bank’s rating to AA ‘Stable’ from AA ‘Negative.’ This upgrade is attributed to the consistent improvements in earnings, asset quality, and capital position, which are projected to be sustained in the medium term.

The bank’s asset quality has shown improvement, with Gross Non Performing Assets (NPAs) declining from 6.97 percent on March 31, 2023, to 6.80 percent on June 30, 2023, and notably down from 12.17 percent on March 31, 2022.

In terms of capital, the bank’s position has strengthened due to timely capital infusion and internal accrual. This has resulted in the Tier 1 and overall capital adequacy ratios (CAR) rising to 14.5 percent and 17.2 percent, respectively, as of June 30, 2023, compared to 13.1 percent and 16.8 percent a year earlier.

Punjab & Sind Bank

Punjab & Sind Bank is an Indian public sector bank headquartered in New Delhi. As of 18 April 2023, the bank has 1553 branches which are widely spread across India out of which 635 branches are in the state of Punjab, and 25 zonal offices located all over India.