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Informist, Saturday, Oct. 18, 2025

 

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--PNB annualised global cost of deposit 5.18% on Sept 30 vs 5.33% qtr ago 
--PNB annualised global net interest margin 2.60% on Sept 30 vs 2.70% qtr ago 
--PNB Jul-Sept net interest income INR 104.69 bln vs 105.17 bln year ago 
--PNB Jul-Sept fresh slippages INR 19.55 bln vs INR 21.81 bln year ago 
--PNB provision coverage ratio 96.91% as on Sept 30 
--PNB Apr-Sept total income INR 734.45 bln vs INR 666.13 bln year ago 
--PNB Apr-Sept net profit INR 65.79 bln vs INR 75.55 bln year ago 
--PNB net NPA ratio 0.36% as on Sept 30 vs 0.38% qtr ago, 0.46% year ago 
--PNB gross NPA ratio 3.45% as on Sept 30 vs 3.78% qtr ago, 4.48% year ago 
--PNB reversed NPA provisions worth INR 6.39 bln in Jul-Sept 
--PNB Jul-Sept provisions INR 6.43 bln vs INR 2.88 bln year ago 
--PNB Jul-Sept total income INR 362.14 bln vs INR 344.47 bln year ago 
--PNB Jul-Sept net profit INR 49.04 bln vs INR 43.03 bln year ago 
--Analysts saw PNB Jul-Sept net profit at INR 44.74 bln 
--PNB Jul-Sept net profit INR 49.04 bln 
 

 

By Priyasmita Dutta

 

NEW DELHI – Steady rise in income and boost from shift in tax regime helped Punjab National Bank beat Street estimates for its September quarter net profit. The support from lower tax outgo was a blessing given the bank's provisions during the quarter rose sharply.

 

India's second largest public sector bank by deposits posted a net profit of INR 49.04 billion for Jul-Sept, higher than analysts' expectation of INR 44.74 billion. Its net profit for the quarter rose 14% on year and over eight times on quarter. The tax outgo for the quarter was INR 16.80 billion, 26% lower from the year ago figure. Sequentially, it fell 67%.

 

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, leading to a decline in profit for the first time in 10 quarters. PNB expects to save around INR 7 billion in each of the remaining quarters of 2025-26 (Apr-Mar), the bank's management had said in July.

 

Under the Income Tax Act, domestic companies can opt for the concessional tax regime with a lower tax rate of 22%, against the normal tax of 30%. The lower tax regime does not allow the company to claim deductions and exemptions. 

 

PNB's provisions for the quarter were INR 6.43 billion, more than double from a year ago and exactly double of the preceding quarter. The provisions surged as the bank made floating provision of INR 700 million in line with the board approved policy. As on Sept. 30, the bank's holding floating provision was INR 8.20 billion, PNB informed exchanges. On Friday, shares of the bank closed at INR 113.70 on the National Stock Exchange, down over 2% from the previous close.

 

The net non-performing assets ratio of the bank improved during the quarter, with gross NPA ratio falling by 103 basis points on-year to 3.45% at September end. Sequentially, the gross NPA improved by 33 bps. Net NPA ratio improved by 10 bps year-on-year to 0.36% at the end of September. It was almost flat sequentially. The bank's provision coverage ratio rose by 24 bps year on year to 96.91% as on Sept. 30.

 

A fall in operating expenditure contributed to rise in bank's net profit. The bank's operating expenses fell nearly 8% on year to INR 75.84 billion. Within the operating expenditure, employees cost fell 17.45% on year to INR 47.47 billion. It fell over 8% on quarter. The bank's other operating expenditure was 28.37 billion, up over 14% on year. However, it was down over 21% sequentially. Total expenses rose 5% on year to INR 289.87 billion in Jul-Sept.

 

A slight fall in other income weighed on the bank's bottom line. The bank's other income fell 5% year-on-year to INR 43.42 billion in the September quarter. It also fell sequentially by over 17%. Total income of the bank rose over 5% on year to INR 362.14 billion in Jul-Sept, while it fell nearly 3% on quarter. The bank's income from investments rose nearly 11% on year to INR 85.41 billion.

 

The bank's net interest income remained broadly unchanged at INR 104.69 billion from a quarter ago. The bank's global net interest margin was 2.60% in the September quarter, down from 2.70% in the June quarter. The bank's domestic NIM was 2.72%, down from 2.84% a quarter ago.

 

On the business front, the bank's global advances stood at INR 11.70 trillion as of Sept. 30, up 10% on year. Of these, retail advances were INR 2.72 trillion, up almost 9% on year. Corporate and other advances were at INR 4.82 trillion, up nearly 8% on year. Loans to micro, small and medium enterprises were at INR 1.79 trillion, up 18.6% on year.

 

The current account savings account deposits of Punjab National Bank rose almost 5% on year to INR 5.83 trillion as of Sept. 30. Global deposits of the bank rose 11% on year to INR 16.17 trillion as of Sept. 30, with term deposits rising 14.7% on year to INR 10.34 trillion. The current account savings account deposits ratio as a percentage of total deposits rose 30 basis point to 37.29%.

 

The bank's global cost of funds in Jul-Sept fell to 4.58% from 4.70% a quarter ago but was up from 4.57% a year ago. Global cost of deposits fell to 5.18% in the September quarter from 5.33% in the previous quarter and was unchanged from a year ago.

 

Punjab National Bank's net profit for Apr-Sept fell by nearly 13% on year to INR 65.79 billion. The bank's total income for the period rose over 10% on year to INR 734.45 billion. The public sector bank announced its results Saturday. On Friday, shares of the bank ended at INR 113.70 on the National Stock Exchange, down 2.1% from the previous close.  End

 

Edited by Ashish Shirke

 

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