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Informist, Wednesday, Jul. 30, 2025

--PNB: To save around INR 7 bln every qtr FY26 on shift to lower tax regime 

--CONTEXT: Comments by PNB management in post-earnings analyst call 

By Shubham Rana and Krity Ambey

NEW DELHI – Punjab National Bank expects to save around INR 7 billion every quarter in the current financial year from the shift to the lower tax regime, the bank's Managing Director and Chief Executive Officer Ashok Chandra said on a conference call with analysts Wednesday.

The New Delhi-based lender migrated to the new tax regime in the June quarter, which led to a one-time charge of INR 33.24 billion. This led to the bank's net profit declining on year for the first time in 10 quarters. 

Punjab National Bank's net profit for the June quarter fell 49% on year and 63% on quarter to INR 16.75 billion. The bottom line was lower than analysts' estimate of INR 40.87 billion. The bank's tax outgo for the June quarter was INR 50.83 billion, sharply up from INR 20.17 billion a year ago. Shares of Punjab National Bank closed 1.1% lower Wednesday at INR 108.10 on the National Stock Exchange.

"Since in this quarter we have migrated from the old tax regime to the new tax regime, that is the reason (for) the impact which we are seeing on the net profit," Chandra said. "With the lower tax regime, we are going to save 10% tax. With that itself we are going to generate INR 700 crore (7 billion) every quarter."  End

Edited by Rajeev Pai

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