PNB Q2 net profit rises 13% to Rs 5,532 crore as asset quality strengthens

Punjab National Bank reported a 12.8 per cent year-on-year increase in net profit for the second quarter ended September 2026, reaching Rs 5,532 crore compared with Rs 4,904 crore in the same period last year.

The public sector lender recorded sustained top-line momentum, with total income rising to Rs 38,185 crore in the September quarter from Rs 36,214 crore a year earlier. Interest income expanded to Rs 34,585 crore from Rs 31,872 crore, while operating profit reached Rs 7,532 crore, reflecting disciplined operational efficiency and robust credit demand across the national economy.

Sustained business expansion and asset strength

PNB’s total global business grew 11.9 per cent year-on-year to hit Rs 31.18 lakh crore at the end of September 2026. Global deposits grew 9.9 per cent to Rs 17.77 lakh crore, while global advances surged 14.7 per cent to Rs 13.41 lakh crore, underscoring strong credit uptake supporting national economic activities.

Asset quality showed significant improvement during the quarter. The bank’s gross non-performing asset (GNPA) ratio fell to 2.55 per cent of gross advances as of September 30, 2026, down from 3.45 per cent a year earlier. Net NPAs reduced to 0.25 per cent from 0.36 per cent over the same period, confirming effective recovery mechanisms and strengthened risk management.

Lower provisions boost capital buffer

Provisions and contingencies fell sharply to Rs 97 crore during the quarter from Rs 643 crore in the corresponding period last year, reflecting healthier balance sheet fundamentals across the public sector banking framework. The provision coverage ratio, including technical write-offs, moved higher to 97.32 per cent from 96.91 per cent.

The bank's capital ratio strengthened further, with the capital to risk-weighted assets ratio (CRAR) expanding to 17.95 per cent as of September 2026 compared with 17.19 per cent a year ago. Tangible book value per share rose to Rs 111.94 from Rs 95.92.

PNB's global net interest margin improved to 2.58 per cent from 2.50 per cent in the preceding June quarter, while its credit-deposit ratio moved up to 75.5 per cent from 72.3 per cent a year earlier. Shares of Punjab National Bank ended Friday at Rs 116.10 on the BSE, up 0.78 per cent.