Mumbai, Aug. 23 -- CARE Ratings stated that the rating revision to the debt instruments of Punjab and Sind Bank (PSB) considers the improvement in profitability in FY25 and better asset quality aided by recoveries and lower incremental slippages.

The rating continues to favourably factor in majority ownership of and demonstrated support from Government of India (GoI), comfortable capitalisation levels supported by multiple equity infusions and accretion of profits, and established presence in northern states of India.

PSB is expected to sustain growth in business while maintaining adequate capitalisation and improving asset quality.

The rating continues to be constrained by moderate, albeit improving, profitability with high interest e...