Forward View
PNB expects NIM to stay at current level in Q4 despite Dec rate cut, says MD
This story was originally published at 17:56 IST on 19 January 2026
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--Punjab National Bank MD: No fincl impact from new labour codes
--Punjab National Bank MD: Not expecting a rate cut in Q4
--Punjab National Bank: Expect deposits to grow between 8.5% to 9% in Q4
--Punjab National Bank: Expect advances to grow more than 11% in Q4
--Punjab National Bank: Hold INR 360 bln excess SLR bonds
--PNB: Have INR 3 bln exposure to Vodafone Idea; not looking at more
--PNB: Remain mindful of rising cost-to-income ratio
--PNB: Expect NIM to stay at current level in Q4 despite Dec rate cut
--PNB:INR 3.12 tln loans sanctioned Apr-Dec; INR 1.02 tln yet to be disbursed
--CONTEXT: Comments from PNB mgmt in post Q3 earnings press conference
--Punjab National Bank: Plan to open 100 branches in the next six months
MUMBAI – Punjab National Bank expects its net interest margin to remain broadly at the current level in the Jan-Mar quarter, despite the full impact of the December policy rate cut, the bank's management said on Monday. PNB's annualised global net interest margin fell 41 basis points on year to 2.52% in the December quarter.
"I think the NIM, which we have projected this quarter, we will be more or less on the same line in Q4 also," the bank's managing director said at the post–third quarter earnings press conference, adding that the guidance assumes no further rate cuts in the ongoing quarter.
The management said it was "not expecting that any rate cut will happen in this particular quarter," noting that deposit repricing has already begun selectively, while lending yields have absorbed the December rate reduction.
During the reporting quarter PNB's net profit rose to INR 51 billion from INR 45.08 billion in the same quarter a year ago, up 13%. Sequentially, it rose 4%.
Punjab National Bank expects deposit growth to remain in the range of 8.5% to 9.0% in the fourth quarter, while advances are likely to grow at over 11%. "Definitely in the March quarter, we will be crossing 11%," the MD said on credit growth, reiterating the bank's full-year guidance of 11–12%.
The bank said it holds excess statutory liquidity ratio bonds of around INR 360 billion, equivalent to about 2.26?ove the regulatory requirement. "In the amount, it is around 36,000 crore," the MD said, adding that the bank was in no hurry to monetise these holdings. "Not now. We will be holding it and will see how the yield and G-sec rates behave."
On labour reforms, the management said the new labour codes will not have any financial impact on the bank. "Labour code impact on our bank is nil because all the guidance which has come, banks are already implementing it," the MD said, adding that PNB's wage and settlement structures are already "well above the law which has come out through the labour code."
The bank also said it has a limited exposure of around INR 3 billion to Vodafone Idea and was not looking to increase it. "We have only 300 crore (INR 3 billion) of exposure and as of now, we have not explored any further exposure in this particular company," the MD said.
PNB said it remains cautious on costs even as profitability improves. "We are very mindful of improving our cost-to-income ratio," the management said, noting that efficiency metrics will remain a focus area.
On growth visibility, the bank said it has sanctioned loans worth INR 3.12 trln during Apr–Dec, of which around INR 1.02 trillion was yet to be disbursed. "We have pending disbursement to the tune of around 1 lakh crore (INR 1 trillion), which will favour the overall credit growth of the bank," the MD said.
As part of its expansion strategy, Punjab National Bank plans to open around 100 branches over the next six months. "We are expecting to open another 100 branches in the next six months," the management said, adding that more than half of these branches will be in rural and semi-urban areas. End
Reported by Kabir Sharma and Cassandra Carvalho
Edited by Akul Nishant Akhoury
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