CRISIL Ratings has reaffirmed its ‘Crisil AAA/Crisil AA+/Stable/Crisil A1+’ ratings for Punjab National Bank’s (PNB) existing debt instruments. The ratings reflect PNB’s strong government support, established market position, adequate capitalisation, and healthy resource profile, offset by moderate asset quality and profitability. CRISIL has also withdrawn ratings on redeemed Tier II and infrastructure bonds aggregating Rs. 5,294 crore.
CRISIL Reaffirms Ratings
CRISIL Ratings has reaffirmed the ratings of Punjab National Bank (PNB) at ‘Crisil AAA/Crisil AA+/Stable/Crisil A1+’ on December 12, 2025. This decision reflects PNB’s key strengths and its strategic importance to the Indian financial system. The agency also withdrew ratings on specific redeemed debt instruments as per its policy.
Key Rating Drivers
The reaffirmed ratings continue to factor in the expectation of strong support from the majority owner, the Government of India (Gol). PNB’s established market position, adequate capitalisation, and healthy resource profile are also considered key strengths. Partially offsetting these strengths are modest, but improving, asset quality and profitability.
Capitalization and Market Position
PNB’s consolidated net worth stood at Rs 1,42,905 crore as of September 30, 2025, which includes capital, reserves & surplus and minority interest. The Tier I and overall CAR (under Basel III) were 14.41% and 17.19% respectively as of September 30, 2025. The bank is the third-largest public sector bank with gross advances of Rs 11,69,592 crore as of September 30, 2025 and deposits of Rs 16,17,080 crore.
Asset Quality and Profitability
PNB reported an improved asset quality with gross non-performing assets (GNPA) improving to 3.4% as of September 30, 2025, down from 3.9% as of March 31, 2025. Consolidated return on average total assets (RoA) was 1.0% in fiscal 2025.
ESG Focus
CRISIL Ratings acknowledges PNB’s Environment, Social, and Governance (ESG) profile, supporting its credit risk profile. The ESG profile factors in governance as a key differentiator, given the financial sector’s substantial employee and customer base and its role in promoting financial inclusion.
Rating Outlook
The outlook for PNB is stable, based on expectations that PNB will maintain its market position and will continue to receive support from Gol.
Source: BSE