Quarterly Financial Results
Punjab National Bank Q1 FY27 Results: Net Profit Jumps 213.6% YoY to ₹5,253 Crore; GNPA Improves to 2.78%
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- Punjab National Bank (PNB) announced its unaudited financial results for the quarter ended 30 June 2026, delivering robust profitability, continued balance sheet expansion, and further improvement in asset quality.
- The bank reported a sharp increase in net profit, double-digit growth in deposits and advances, lower non-performing assets, and stronger capital adequacy, reflecting sustained operational momentum.
PRICE-SENSITIVE TRIGGER
Event: Punjab National Bank released its unaudited (reviewed) financial results for Q1 FY27 along with an analyst presentation.
Type: Quarterly Financial Results
Impact: Positive
Immediate Effect: The results highlight significant earnings growth, healthy business expansion, improving asset quality, and stronger capital buffers, reinforcing the bank’s operating performance during the quarter.
financials:
Financial Highlight:
- Net Profit: ₹5,253 crore (+213.6% YoY)
- Operating Profit: ₹7,519 crore (+6.2% YoY)
- Net Interest Income (NII): ₹10,798 crore
- Return on Assets (ROA): 1.04%
- Return on Equity (ROE – Tangible): 17.33%
- Earnings Per Share (EPS): ₹4.57
- Tangible Book Value Per Share: ₹108.58 (+17.2% YoY)
- Capital Adequacy Ratio (CRAR): 18.13%
- CET-1 Ratio: 14.52%
Asset Quality:
- Gross NPA: 2.78% (improved by 100 bps YoY)
- Net NPA: 0.28% (improved by 10 bps YoY)
- Provision Coverage Ratio (including TWO): 97.23%
- Slippage Ratio: 0.68%
Business Performance:
- Global Business: ₹29.98 lakh crore (+10.2% YoY)
- Global Deposits: ₹17.25 lakh crore (+8.5% YoY)
- Global Advances: ₹12.73 lakh crore (+12.7% YoY)
- RAM Advances: ₹6.88 lakh crore (+12.8% YoY)
Highlight:
- Net Profit increased 213.6% year-on-year to ₹5,253 crore while the bank continued improving asset quality and expanding its loan book.
What Happened ?
Punjab National Bank reported another quarter of improving operating performance, supported by healthy credit growth, stronger profitability, and continued reduction in stressed assets.
The bank’s global business approached ₹30 lakh crore during the quarter, driven by steady expansion in both deposits and advances. Retail, Agriculture and MSME (RAM) lending remained a key growth driver, while overseas advances also registered strong growth.
Asset quality continued to strengthen with further reductions in both gross and net NPAs alongside a higher provision coverage ratio. Capital adequacy also improved, providing additional balance sheet strength.
key details – business performance
Balance Sheet Expansion:
- Global business increased to ₹29.98 lakh crore.
- Global deposits grew 8.5% YoY.
- Global advances increased 12.7% YoY.
- Domestic advances grew 11.6% YoY.
- Overseas advances rose 36.3% YoY.
Deposit Franchise:
- Domestic deposits increased 8.6% YoY.
- CASA deposits grew 7.8% YoY.
- Total term deposits rose 8.9% YoY.
- Domestic CASA ratio stood at 36.7%.
Credit Growth:
- Retail advances (excluding IBPC) increased 17.5% YoY.
- MSME advances grew 19.8% YoY.
- Agriculture Priority Sector advances increased 16.4% YoY.
- Home loan portfolio expanded 11.9% YoY.
- Vehicle loans registered 34.4% YoY growth.
- Education loans increased 6.8% YoY.
- RAM portfolio represented 57.2% of domestic advances.
Profitability:
- Net profit reached a record ₹5,253 crore.
- Operating profit remained above ₹7,500 crore.
- NII improved to ₹10,798 crore.
- ROA remained above 1%.
- Tangible ROE stood at 17.33%.
Asset Quality:
- GNPA declined to 2.78%.
- NNPA reduced to 0.28%.
- Gross NPA amount fell to ₹35,381 crore.
- Net NPA amount declined to ₹3,433 crore.
- Provision Coverage Ratio improved to 97.23%.
- Credit cost remained contained at 0.25% (annualised).
Capital Position:
- CRAR improved to 18.13%.
- CET-1 ratio strengthened to 14.52%.
- Tangible book value per share increased to ₹108.58.
Risk Analysis
Summary:
- While the bank delivered strong operating and financial performance, sustaining profitability will depend on maintaining credit quality, deposit mobilisation, and loan growth amid changing macroeconomic conditions.
Key Risks:
- Pressure on net interest margins if interest rates soften.
- Higher competition for deposits across the banking sector.
- Global economic uncertainty affecting overseas business.
- Credit quality deterioration in unsecured or corporate lending.
- Slower credit demand impacting loan growth.
Worst Case:
- A weaker macroeconomic environment combined with higher credit costs could moderate earnings growth and affect future profitability.
Risk Level: Low
Company Commentary
- Punjab National Bank presented its unaudited reviewed financial results for Q1 FY27.
- Management highlighted continued growth in global business, advances and deposits.
- Asset quality continued improving with lower GNPA and NNPA levels.
- Capital adequacy remained comfortably above regulatory requirements.
- The bank continues to focus on retail, agriculture and MSME lending while maintaining prudent risk management.
Official Exchange Filing: Punjab National Bank Limited
