Punjab National Bank (PNB) reported a robust financial performance for the quarter and half-year ended 30 September 2025 (Q2/H1 FY26), with notable improvement in profitability, asset quality, and business expansion. The following highlights provide a detailed summary of key metrics across performance segments.
Profitability
- Net profit rose to ₹4,904 crore in Q2 FY26, a 14.0% YoY increase, with Return on Assets at 1.05% for the quarter.
- Net Interest Income for H1 FY26 was ₹21,047 crore, marginally higher YoY; total income in Q2 stood at ₹36,214 crore, up 5.1% YoY.
- Operating profit was ₹7,227 crore in Q2 and ₹14,308 crore in H1, up 5.5% and 6.5% YoY respectively; cost-to-income improved to 51.20% in Q2.
Asset Quality
- GNPA ratio improved 103 bps YoY to 3.45% as of 30 Sep 2025; NNPA improved to 0.36% (down 10 bps YoY).
- Provision Coverage Ratio (including write-offs) rose to 96.91%, while fresh slippages for Q2 were ₹1,812 crore with a slippage ratio of 0.71%.
- Gross NPAs reduced to ₹40,343 crore from ₹47,582 crore YoY; net NPAs declined to ₹4,026 crore from ₹4,674 crore YoY.
Business Growth
- Global business reached ₹27,86,673 crore, up 10.6% YoY; global deposits grew 10.9% YoY to ₹16,17,080 crore; global advances increased 10.1% YoY to ₹11,69,592 crore.
- Credit-deposit ratio improved to 72.33% in Q2 FY26 versus 71.09% in Q1 FY26; domestic CASA share stood at 37.29% with ₹5,83,178 crore CASA deposits.
- RAM advances rose 12.7% YoY to ₹6,35,417 crore; within retail (ex-IBPC), housing loans grew 12.9% YoY to ₹1,24,099 crore and vehicle loans grew 30.9% YoY to ₹29,512 crore.
Capital and Liquidity
- CRAR improved to 17.19% (Tier 1: 14.41%; CET-1: 12.75%), reflecting comfortable capitalization; bank has a FY26 plan to raise up to ₹8,000 crore (₹4,000 crore AT-1 and ₹4,000 crore Tier-2).
- Yield on advances was 7.90% in Q2 FY26 (global) and cost of deposits at 5.18% (global), with global NIM at 2.60% for Q2 and 2.65% for H1 FY26.
Segment and PSL Performance
- Retail advances grew 8.8% YoY to ₹2,72,210 crore; agriculture at ₹1,83,987 crore (up 13.0% YoY); MSME at ₹1,79,220 crore (up 18.6% YoY).
- The bank exceeded all mandated PSL sub-targets: Priority Sector at 42.29% of ANBC, Agriculture at 18.04%, Small & Marginal Farmers at 10.56%, Weaker Sections at 13.82%, and Micro Enterprises at 10.01%.
Digital and Operational Metrics
- Digital transactions reached 313 crore in Q2 (up 31% YoY), constituting ~95% of total transactions; PNB One active users were 223 lakh with rising UPI volumes.
- Business per employee improved to ₹27.62 crore; business per branch to ₹263.06 crore; net profit per employee rose to ₹19.97 lakh in Q2.
Noteworthy Disclosures
- H1 FY26 total income was ₹73,445 crore (up 10.3% YoY) and total interest income in Q2 was ₹31,872 crore (up 6.7% YoY), while operating expenses in Q2 declined 7.9% YoY to ₹7,584 crore.
- The bank’s NCLT-exposed book had a provision coverage of ~99.84%, and PCR (incl. write-offs) at the bank level stood at 96.91%.
Independent Corroboration
Media reports align on Q2 FY26 net profit of ~₹4,904 crore, operating profit of ~₹7,227 crore, GNPA at 3.45%, and total income at ~₹36,214 crore, reflecting improved asset quality and stable profitability trends.
Sources: PNB press release for Q2/H1 FY26, analyst presentation, and major financial media coverage.
