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Informist, Saturday, Jul. 18, 2026

 

By Priyasmita Dutta 

 

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* Apr-Jun net profit INR 52.53 bln
* Analysts saw PNB Apr-Jun net profit at INR 47.24 bln
* Apr-Jun total income INR 372.31 bln
* Apr-Jun net profit INR 52.53 bln vs INR 16.75 bln year ago
* Apr-Jun total income INR 372.31 bln vs INR 372.32 bln year ago
* Apr-Jun provisions INR 5.41 bln vs INR 3.23 bln year ago
* Apr-Jun NPA provisions INR 7.92 bln vs INR 3.96 bln year ago
* Gross NPA ratio 2.78% on Jun 30 vs 2.95% qtr ago, 3.78% year ago
* Net NPA ratio 0.28% on Jun 30 vs 0.29% qtr ago, 0.38% year ago
* Hold additional provision of INR 23.78 bln on Jun 30
* Made floating provision of INR 3.90 bln in Apr-Jun
* Provision coverage ratio 97.23% as on Jun 30
* Basel-III capital adequacy ratio 18.13% on Jun 30
* Apr-Jun annualised global net interest margin 2.50% vs 2.47% qtr ago
* Apr-Jun net interest income INR 107.98 bln, up 2.1% on year
* Apr-Jun annualised global cost of deposit 4.99% vs 5.05% qtr ago
* Apr-Jun annualised global yield of advances 7.53% vs 7.51% qtr ago
* Apr-Jun fresh slippages INR 19.96 bln vs INR 17.92 bln year ago
* Apr-Jun cash recoveries INR 8.43 bln vs INR 10.68 bln year ago
* Apr-Jun upgrades INR 7.46 bln vs INR 5.94 bln year ago
* Apr-Jun loan write-offs INR 22.35 bln vs INR 16.33 bln year ago
* Apr-Jun NIM of 2.5% lower than its FY27 guidance of 2.6%-2.7%
* Apr-Jun annualised credit cost 0.25% vs 0.30% qtr ago
* Retail domestic advances at INR 2.86 tln on Jun 30, up 9% on year
* Corporate, other advances at INR 5.15 tln on Jun 30, up 10% on year

 

NEW DELHI – Punjab National Bank beat the Street's estimates and reported a massive on-year jump in its net profit for the June quarter, thanks to an extraordinarily low base. However, a sharp rise in provisions and a steady fall in other income during the quarter limited the overall jump in profit. Sequentially, the net profit was maintained at the same level.

 

The public sector bank's net profit jumped 214% on year in the reporting quarter to INR 52.53 billion, beating analysts' estimate of INR 47.24 billion. This was the highest pace of growth in net profit in 10 quarters, data available with Informist showed. Sequentially, the net profit was up 0.5%.

 

In the June quarter of financial year 2025-26 (Apr-Mar), PNB shifted to a lower tax regime, resulting in a one-time charge of INR 33.24 billion. Following this, its net profit for Apr-Jun last year tanked to INR 16.75 billion. 

 

In the quarter under review, the country's second-largest public sector bank by deposits reported a 3% on-year rise in interest income, but a fall in other income dragged the total income to the same level as a year ago. At INR 372.31 billion, the total income was, however, higher by 2.5% on quarter. The bank's other income fell to INR 43.34 billion, down 18% on year, the sharpest on-year fall in 10 quarters, data showed. In the June quarter last year, the bank's other income had risen 46% to INR 52.68 billion due to healthy treasury operations. 

 

As such, the bank's credit and deposit growth during the quarter were below the systemic average. Its global advances grew nearly 13% on year to INR 12.73 trillion, while global deposits grew nearly 9% on year to INR 17.25 trillion. The Reserve Bank of India's latest data showed loans of all scheduled commercial banks were up nearly 19% on year as on Jun. 30, and deposits rose over 13%.

 

While the bank's credit and deposit growth during the quarter were lower than the industry average, they were in line with its projection for FY27. The bank's management had said in April that PNB's advances were seen growing 12-13% in FY27, while deposits were seen rising 9-10%.

 

Within advances, the bank's retail loans grew 9% on year to INR 2.86 trillion, agricultural loans grew 12% on year to INR 2 trillion, and micro, small and medium enterprises loans jumped 20% on year to INR 2.03 trillion. 

 

The bank's global cost of deposit was 4.99% in Apr-Jun, a tad lower than 5.05% a quarter ago. Global yield on advances was 7.53% in the June quarter, slightly higher than 7.51% a quarter ago.

 

The Delhi-based lender's net interest income during the June quarter was INR 107.98 billion, up 2.1% on year and 4% on quarter. It beat the Street's view for net interest income by over INR 1 billion. The lender has guided for its net interest income to rise 7% in FY27 after falling 1.9% in FY26. Punjab National Bank's net interest margin was 2.5% in the June quarter, higher than the 2.47% in the trailing quarter but lower than 2.70% in the June quarter last year. The net interest margin was also slightly lower than the guidance of 2.6-2.7% for FY27.

 

PROVISIONS, ASSET QUALITY

Punjab National Bank's provisions during the quarter jumped 68% on year to INR 5.41 billion, capping the rise in net profit. The bank also made a floating provision of INR 3.90 billion during Apr-Jun. As of Jun. 30, the bank held a floating provision of INR 24.35 billion, it said in a statement. 

 

Within total provisions, however, the bank's provisions for bad loans declined to INR 7.92 billion from INR 9.06 billion a quarter ago, but almost doubled from the INR 3.96 billion a year ago. 

 

The fall in its provisions for bad loans coincided with an improvement in asset quality. The bank's gross non-performing asset ratio improved to 2.78% at the end of the June quarter from 2.95% at the end of March and 3.78% at the end of June last year. The net NPA ratio also improved to 0.28% at the end of June from 0.29% at the end of March and 0.38% at the end of June last year. 

 

The bank's slippage ratio was 0.68% in the June quarter, lower than 0.94% at the end of March and 0.71% at the end of June last year. Although the slippage ratio fell, fresh slippages rose to INR 19.96 billion during Apr-Jun from 17.92 billion in Apr-Jun last year. It, however, fell sharply from the trailing quarter when fresh slippages totalled INR 26.74 billion. 

 

Punjab National Bank's cash recoveries during the quarter totalled INR 8.43 billion, down on year and on quarter, while upgrades were to the tune of INR 7.46 billion, up both on year and on quarter. The state-owned bank's loan write-offs rose on year to INR 22.35 billion in the reporting quarter, but fell on quarter. 

 

The bank's annualised credit cost was 0.25% at the end of June, lower than 0.3% at the end of March but higher than 0.14% at the end of June last year. For FY27, the credit cost is seen below 0.4%, higher than 0.18% in FY26. The provision coverage ratio rose to 97.23% at the end of the June quarter from 97.14% at the end of March and 96.88% at the end of June 2025.

 

The bank's capital adequacy ratio improved, rising to 18.13% at the end of June from 17.74% at the end of March and 17.50% at the end of June last year. On Friday, shares of the bank closed at INR 105.77 on the National Stock Exchange, up 0.5% from the previous close.  End

 

Edited by Avishek Dutta

 

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