Earnings Review
PNB Q4 net profit growth highest in 4 qtrs, beats view
This story was originally published at 14:50 IST on 5 May 2026
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--PNB Jan-Mar net profit INR 52.25 bln
--Analysts saw PNB Jan-Mar net profit at INR 49.67 bln
--PNB Jan-Mar net profit INR 52.25 bln vs INR 45.67 bln year ago
--PNB Jan-Mar total income INR 363.19 bln vs INR 367.05 bln year ago
--PNB to pay INR 3 per share dividend
--PNB Jan-Mar provisions INR 4.24 bln vs INR 3.60 bln year ago
--PNB Jan-Mar NPA provisions INR 9.06 bln vs INR 5.88 bln year ago
--PNB gross NPA ratio 2.95% on Mar 31 vs 3.19% qtr ago, 3.95% year ago
--PNB net NPA ratio 0.29% on Mar 31 vs 0.32% qtr ago, 0.40% year ago
--PNB FY26 net profit INR 169.03 bln vs INR 166.30 bln year ago
--PNB FY26 total income INR 1.47 tln vs INR 1.38 tln year ago
--PNB: Hold additional provision of INR 1.07 bln on Mar 31
--PNB: Made floating provision of INR 20.45 bln as on Mar 31
--PNB: Provision Coverage Ratio at 97.14% on Mar 31
--PNB global advances at INR 12.59 tln on Mar 31, up 12.7% on year
--PNB global deposits at INR 17.11 tln on Mar 31, up 9.2% on year
--PNB Jan-Mar global net interest margin 2.47% vs 2.52% qtr ago
--PNB Jan-Mar global cost of deposit 5.05% vs 5.09% quarter ago
--PNB Jan-Mar global yield of advances 7.51% vs 7.69% qtr ago
--PNB Jan-Mar net interest income INR 103.80 bln vs INR 107.57 bln yr ago
--PNB Jan-Mar annualised credit cost 0.30% vs 0.46% qtr ago
--PNB Jan-Mar fresh slippages INR 26.74 bln vs INR 18.24 bln qtr ago
--PNB Jan-Mar cash recoveries INR 10.03 bln vs INR 10.54 bln qtr ago
--PNB Jan-Mar upgrades INR 6.87 bln vs INR 6.39 bln qtr ago
--PNB Jan-Mar loan write-offs INR 32.58 bln vs INR 12.37 bln qtr ago
--PNB: Expect FY27 credit growth at 12-13% YoY
--PNB: Expect FY27 deposit growth at 9-10% YoY
--PNB: Expect FY27 NIM at 2.6%-2.7% vs 2.57% reported in FY26
--PNB: Expect credit cost to be below 0.4% in FY27
--PNB: Expect net interest income to rise 7% in FY27
--PNB: Expect operating profit to rise 9-10% in FY27
By Shubham Rana
NEW DELHI – Punjab National Bank's net profit for the March quarter grew at the highest pace in four quarters, aided by an improvement in asset quality and lower employee costs. The public-sector bank's net profit for the quarter was also higher than Street expectations.
For the March quarter, the bank's net profit rose 14% on year to INR 52.25 billion. This was higher than the INR 49.67 billion estimated by analysts. Sequentially, the bottom line rose 2.5%.
At 1331 IST, shares of the bank were traded 0.3% higher at INR 109.06 on the National Stock Exchange. The bank will pay a dividend of INR 3 per share for 2025-26 (Apr-Mar), it said.
The lender's total income fell on year for the first time in 15 quarters, pulled down by a decline in other income and a modest rise in interest earned. Total income fell 1% on year to INR 363.19 billion for the March quarter, the first on year fall since Apr-Jun 2022.
Interest earned was INR 321.57 billion, up just 0.5% on year and the weakest growth in 15 quarters. Other income fell 12% on year to INR 41.62 billion for the March quarter.
Total expenditure fell year-on-year for the first time in 15 quarters, down 3.7% on year at INR 288.18 billion. Expenditure was pulled down by the largest on year fall in operating expenses in seven years. Operating expenses were down 19% on year at INR 70.42 billion, dragged down by a 35% fall in employee expenses.
The bank's net interest income fell 3.5% on year to INR 103.80 billion in the March quarter. The net interest income was below analysts' expectations of INR 108.69 billion. PNB's global net interest margin fell to 2.47% in the March quarter from 2.52% a quarter ago and 2.81% a year ago.
The Delhi-based lender saw an improvement in asset quality in the March quarter. The gross non-performing assets ratio improved to 2.95% on Mar. 31 from 3.19% a quarter ago and 3.95% a year ago. The net NPA ratio also improved to 0.29% on Mar. 31 from 0.32% a quarter ago and 0.40% a year ago.
The bank's annualised credit cost was 0.30% in the March quarter, lower than 0.46% in the December quarter. The bank saw fresh slippages of INR 26.74 billion in the March quarter against INR 18.24 billion a quarter ago.
Cash recoveries stood at INR 10.03 billion in the March quarter, similar to INR 10.54 billion a quarter ago. Upgrades were INR 6.87 billion in Jan-Mar, higher than INR 6.39 billion a quarter ago. Write-offs in the March quarter rose to INR 32.58 billion from INR 12.37 billion a quarter ago.
Punjab National Bank's provisions rose to INR 4.24 billion in the March quarter from INR 3.60 billion a year ago. NPA provisions jumped to INR 9.06 billion in the reporting quarter from INR 5.88 billion a year ago.
The bank's provision coverage ratio was 97.14% on Mar. 31. The lender held additional provision of INR 1.07 bln as of Mar. 31 and made floating provision of INR 20.45 bln.
BUSINESS AND GUIDANCE
The bank's global advances rose 12.7% on year to INR 12.59 trillion as on Mar. 31. Credit growth in FY26 was higher than the bank's guidance of 11-12% for the year. For FY27, the bank has guided for a 12-13% credit growth.
Global deposits stood at INR 17.11 trillion as of Mar. 31, up 9.2% on year. Deposit growth in FY26 was in line with the 9-10% guidance given by the bank. The lender expects deposit growth to stay 9-10% in FY27.
The bank's global cost of deposit was 5.05% in Jan-Mar, a tad lower than 5.09% a quarter ago. Global yield on advances was 7.51% in the March quarter, lower than 7.69% a quarter ago.
The lender expects net interest income to rise 7% in FY27 after falling 1.9% in FY26. Net interest margin is seen at 2.6-2.7% in FY27, against 2.57% reported for FY26. Credit cost this year is seen below 0.4% in FY27, higher than 0.18% seen in FY26.
For FY26, the state-owned bank reported a net profit INR 169.04 billion, higher than INR 166.30 billion in FY25. Total income rose to INR 1.47 trillion in FY26 from INR 1.38 trillion a year ago.
The bank's operating profit rose 9% in FY26 to INR 292.90 billion. The bank expects operating profit to rise 9-10% in FY27. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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