Punjab National Bank (PNB) reported a strong Q2 FY26, showcasing improvements in asset quality and profitability. The bank’s global gross business reached INR27.87 trillion, a 10.6% year-on-year increase. Domestic NIM stood at 2.72%, and the bank anticipates further improvements. GNPA decreased to 3.45% and Net NPA improved to 0.36%. Digital transactions are robust at close to 95%. The bank aims to improve ROA to 1.10%.
Financial Performance Highlights
Punjab National Bank’s Q2 FY26 earnings call highlighted significant financial achievements:
- Global gross business reached INR27.87 trillion, showing a year-on-year growth of 10.6%.
- Global deposits stood at INR16.17 trillion, with a yearly growth rate of 10.9%.
- Global advances were at INR11.7 trillion, growing at a rate of 10.1% year-on-year.
The bank’s CD ratio is comfortably placed at 72.33%. The CASA ratio improved to 37.29%.
Asset Quality
PNB demonstrated considerable improvement in asset quality:
- Gross NPA reduced to 3.45%, a notable decrease from 4.48% in September 2024.
- Net NPA improved to 0.36% from 0.46% in the previous year.
- PCR stands at 96.91% as of September 30, 2025.
The bank’s slippage ratio is at 0.71% on an annualized basis for Q2 FY26.
Profitability and Efficiency
Key profitability metrics include:
- Operating profit for Q2 reached INR7,227 crores.
- Net profit for Q2 stood at INR4,904 crores, reflecting a 14% year-on-year growth.
- ROA is at 1.05% for Q2.
- Return on equity stands at 17.95%.
The bank’s efficiency ratios continue to improve, with the cost-to-income ratio reducing to 51.20%.
Digital Initiatives
PNB is making significant strides in the digital realm:
- A 53% increase in UPI transactions via the PNB One mobile application was recorded.
- WhatsApp banking users have grown by 92%.
- Digital transactions account for close to 95% of all transactions.
Strategic Outlook
The bank aims to increase its CASA share and enhance its RAM portfolio to improve net interest margins and overall profitability. PNB is focused on strengthening its core business fundamentals and is well-positioned for sustainable growth, driven by digital and HR transformation initiatives. The bank anticipates domestic NIM percentage will be at 2.72% for Q2 FY26.
Source: BSE