Punjab National Bank has reported 14% growth in net profit at Rs 4903.73 crore for the quarter ended September 2025 (Q2FY2026). The bank has posted flat net interest income (NII), while the core fee income of the bank improved 7% in Q2FY2026. The Net Interest Margin (NIM) of the bank declined to 2.60% in Q2FY2026 compared to 2.92% in the corresponding quarter of previous year.
On business front, the bank as has posted 11% growth in business with 10% surge in loan book. The asset quality of the bank has continued to improve in Q2FY2026. Bank has reduced the credit to deposit ratio to 72.3% at end September 2025 from 72.8% at end September 2024. However, the CASA ratio of the bank has declined to 36.1% at end September 2025 from 38.2% at end September 2024.
Asset quality improves: The bank has continued to improve asset quality in Q2FY2026.
The fresh slippages of loans stood at Rs 1955 crore in Q2FY2026 compared with 1886 crore in previous quarter and Rs 2181 crore in the corresponding quarter last year. The recoveries of NPAs stood at Rs 1125 crore, upgradations at Rs 1591 crore and the write-off of loans was at Rs 1568 crore in Q2FY2026. The standard restructured loan book of the bank stood at Rs 6047 crore end September 2025. Provision coverage ratio was strong at 96.91% at end September 2025 compared to 96.88% a quarter ago and 96.67% a year ago. The capital adequacy ratio of the bank stood at 17.2% with Tier I ratio at 14.4% at end September 2025. The risk weighted assets of the bank has increased 12% YoY to Rs 856879 crore end September 2025,
| Asset Quality Indicators: Punjab National Bank |
| ' | Sep-25 | Jun-25 | Mar-25 | Dec-24 | Sep-24 | Variation | ' |
| QoQ | YTD | YoY | ' |
| Gross NPA (Rs Crore) | 40343.33 | 42672.97 | 44081.60 | 45413.98 | 47582.25 | -5 | -8 | -15 | ' |
| Net NPA (Rs Crore) | 4025.75 | 4132.24 | 4290.55 | 4437.43 | 4674.24 | -3 | -6 | -14 | ' |
| % Gross NPA | 3.45 | 3.78 | 3.95 | 4.09 | 4.48 | -33 | -50 | -103 | ' |
| % Net NPA | 0.36 | 0.38 | 0.40 | 0.41 | 0.46 | -2 | -4 | -10 | ' |
| % PCR | 96.91 | 96.88 | 96.82 | 96.77 | 96.67 | 3 | 9 | 24 | ' |
| % CRAR - Basel III | 17.19 | 17.50 | 17.01 | 15.41 | 16.36 | -31 | 18 | 83 | ' |
| % CRAR - Tier I - Basel III | 14.41 | 14.62 | 14.05 | 12.53 | 13.63 | -21 | 36 | 78 | ' |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore |
'
Business Highlights:
Healthy business growth: The business of the bank has increased 11% YoY to Rs 2786672 crore end September 2025, driven by 10% rise in advances to Rs 1169592 crore. Deposits rose 11% to Rs 1617080 crore at end September 2025.
CASA deposits ratio improves qoq, declines on yoy basis: The CASA deposits of the bank increased 5% YoY to Rs 583179 crore at end September 2025. The current account deposits increased 9% to Rs 74215 crore, while saving account deposits rose 4% to Rs 508964 crore end September 2025. The CASA ratio declined to 36.1% at end September 2025 compared to 38.2% at end September 2024, while improved from 35.8% a quarter ago. The term deposits have increased 15% to Rs 1033901 crore end September 2025. Overseas deposits have increased 27% to Rs 53098 crore end September 2025.
Strong loan growth: Advances growth was driven by retail loans rising 9% YoY to Rs 272210 crore at end September 2025, while credit to agriculture increased 13% to Rs 183987 crore and MSME 19% to Rs 179220 crore at end September 2025. The corporate credit has also moved up 8% to Rs 482468 crore end September 2025. The overseas credit rose 2% to Rs 51707 crore end September 2025.
Investment book of the bank increased 6% YoY to Rs 505432 crore at end September 2025. The SLR book moved up 5% to Rs 367617 crore, while non SLR book gained 6% to Rs 128833 crore at end September 2025. The AFS book fell 1% to Rs 108875 crore, while HTM book rose 8% to Rs 360125 crore at end September 2025. The duration of the AFS investment portfolio stood at 3.55 years end September 2025 compared with 3.93 years at end September 2024.
Margins decline: The cost of deposits was flat yoy at 5.18%, while yield on advances declined 41 bps YoY to 7.90% in Q2FY2026. Thus, the NIM has declined 32 bps YoY to 2.60%, while fell 10 bps qoq to 2.60% in Q2FY2026.
Branch expansion: The bank has added 19 branches and reduced 53 ATMs in Q2FY2026, taking overall tally to 10228 branches and 11187 ATM`s end September 2025.
Book value of the bank stood at Rs 110.9 per share at end September 2025, while the adjusted book value (net of NNPA and 25% of restructured advances) was Rs 106.1 per share at end September 2025.
Quarterly Performance
NII flat as NIM declines: Bank has recorded 7% increase in the interest earned at Rs 31871.53 crore, while interest expenses increased 11% to Rs 21402.73 crore in Q2FY2026. NII was flat at Rs 10468.80 crore in the quarter ended September 2025.
Core fee income up: Bank has posted 7% growth in core fee income to Rs 1685 crore, while forex income increased 77% to Rs 156 crore and the treasury income improved 8% to Rs 1614 crore, other income 617% to Rs 43 crore. However, the recoveries income dipped 40% to Rs 844 crore leading to 5% decline in the overall non-interest income to Rs 4342.09 crore in Q2FY2026.
Expenses ratio improves: The operating expenses of the bank declined 8% to Rs 7583.83 crore, as employee expenses dipped 17% to Rs 4746.99 crore in Q2FY2026. Other expenses moved up 14% to Rs 2836.84 crore. Cost to income ratio improved to 51.2% in Q2FY2026 compared with 54.6% in Q2FY2025, helping the Operating Profit to increase 5% to Rs 7227.06 crore.
Provisions and contingencies rises: The bank has shown 123% surge in provisions to Rs 643.08 crore. The bank has reversed loan loss provisions amounting to Rs 639 crore and investment provisions of Rs 668 crore. However, the standard asset provisions jumped 377% to Rs 396 crore and other provisions zoomed 3989% to Rs 1554 crore.
Effective tax rate declined to 25.5% in Q2FY2026 from 34.5% in Q2FY2025. Net Profit rose by 14% YoY to Rs 4903.73 crore during quarter ended September 2025.
Financial Performance H1FY2026:
Bank has posted 13% decline in net profit to Rs 6578.73 crore in the half year ended September 2025 (H1FY2026). The net interest income was flat at Rs 21046.89 crore, while non-interest income moved up 17% to Rs 9609.91 crore, pushing up net total income by 5% to Rs 30656.80 crore in H1FY2026. The operating expenses increased 4% to Rs 16348.39 crore, while provision and contingencies declined 40% to Rs 966.18 crore, allowing profit before tax to increase 13% to Rs 13342.23 crore in H1FY2026. The cost-to-income ratio improved to 53.3% in H1FY2026 compared to 54.0% in H1FY2025. An effective tax rate increased to 50.7% in H1FY2026 compared to 36.2% in H1FY2025. The net profit has declined 13% to Rs 6578.73 crore in H1FY2026.
| Punjab National Bank: Results |
| Particulars | 2509 (3) | 2409 (3) | Var % | 2509 (6) | 2409 (6) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 31871.53 | 29875.01 | 7 | 63835.47 | 58431.44 | 9 | 121760.73 | 106901.62 | 14 |
| Interest Expended | 21402.73 | 19358.32 | 11 | 42788.58 | 37438.50 | 14 | 78978.56 | 66818.55 | 18 |
| Net Interest Income | 10468.80 | 10516.69 | 0 | 21046.89 | 20992.94 | 0 | 42782.17 | 40083.07 | 7 |
| Other Income | 4342.09 | 4572.09 | -5 | 9609.91 | 8181.61 | 17 | 16309.37 | 13383.54 | 22 |
| Net Total Income | 14810.89 | 15088.78 | -2 | 30656.80 | 29174.55 | 5 | 59091.54 | 53466.61 | 11 |
| Operating Expenses | 7583.83 | 8235.47 | -8 | 16348.39 | 15740.08 | 4 | 32260.87 | 28535.80 | 13 |
| Operating Profits | 7227.06 | 6853.31 | 5 | 14308.41 | 13434.47 | 7 | 26830.67 | 24930.81 | 8 |
| Provisions & Contingencies | 643.08 | 288.01 | 123 | 966.18 | 1600.33 | -40 | 1674.60 | 11736.60 | -86 |
| Profit Before Tax | 6583.98 | 6565.30 | 0 | 13342.23 | 11834.14 | 13 | 25156.07 | 13194.21 | 91 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 6583.98 | 6565.30 | 0 | 13342.23 | 11834.14 | 13 | 25156.07 | 13194.21 | 91 |
| Provision for tax | 1680.25 | 2261.84 | -26 | 6763.50 | 4279.15 | 58 | 8525.87 | 4949.59 | 72 |
| PAT | 4903.73 | 4303.46 | 14 | 6578.73 | 7554.99 | -13 | 16630.20 | 8244.62 | 102 |
| EPS*(Rs) | 17.1 | 15.0 | ' | 11.4 | 13.1 | ' | 14.5 | 7.2 | ' |
| Equity | 2298.6 | 2298.6 | ' | 2298.6 | 2298.6 | ' | 2298.6 | 2202.2 | ' |
| Adj BV (Rs) | 106.1 | 93.0 | ' | 106.1 | 93.0 | ' | 98.5 | 81.2 | ' |
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 2, Figures in Rs crore |
| Source: Capitaline Corporate Database |
'
Powered by Capital Market - Live News