Punjab National Bank Performance Analyzed

Punjab National Bank (PNB) showed a strong recovery in its financial results for Q2 FY26. The bank’s profits increased significantly, signaling a positive trend. This growth is driven by increased income and improved asset quality.

Key Points

• PNB’s profits jumped 13.95% due to higher total income growth.
• Net interest income decreased slightly, but operating profit rose considerably.
• Asset quality improved with lower bad loans and better loan recovery.
• Global and domestic deposits both increased substantially, boosting funding.
• Loan growth accelerated, indicating increased lending activity by PNB.
• Stronger financial health reflected in an improved capital adequacy ratio.

Specifically, the bank’s net profit rose to Rs 4,903.73 crore, a 13.95% increase compared to the same period last year. This improvement was fueled by a 5.13% rise in total income, reaching Rs 36,213.62 crore. Operating profit also saw a healthy increase of 5.5% to Rs 7,227 crore.

Beyond overall profits, key metrics demonstrated strength. The bank’s global deposits grew by 10.9% to Rs 16,17,080 crore and domestic deposits increased by 10.4% to Rs 15,63,982 crore. Loan growth was also notable, with global advances climbing 10.1% to Rs 11,69,592 crore and domestic advances up 10.5% to Rs 11,17,885 crore.

Crucially, PNB improved its asset quality. The gross non-performing assets (GNPA) ratio decreased to 3.45% from 4.48%, and the net non-performing assets (NNPA) ratio fell to 0.36% from 0.46%. This indicates better management of bad debts.

The bank’s capital adequacy ratio, measured as CRAR, also increased to 17.19% from 16.36%, demonstrating improved financial stability. Furthermore, the provision coverage ratio, a measure of how well banks cover potential losses, rose to 96.91%.

Punjab National Bank operates across various sectors, including treasury operations, corporate banking, retail banking, and digital banking. As of September 30, 2025, it has 10,228 domestic branches and 2 international branches, with a significant focus on rural and semi-urban areas – 63.3% of its branches are located in these regions. The bank’s stock price reached a 52-week high today.

“PNB’s strong financial performance signals a revitalized and strategically positioned bank ready for future growth.”