New Delhi: Punjab National Bank (PNB), one of India’s leading public sector banks, reported a strong financial performance for the first quarter of FY 2026-27 (Q1 FY27), posting a standalone net profit of ₹5,253.29 crore, compared to ₹1,675.00 crore in the corresponding quarter of the previous financial year. The impressive performance was driven by improved asset quality, healthy business growth, and stable core banking income.
The bank also reported growth in total income, deposits, advances, and shareholder funds while further strengthening its balance sheet through lower non-performing assets (NPAs) and a high provision coverage ratio.
PNB Q1 FY27 Net Profit Surges 214% Year-on-Year
Punjab National Bank recorded a 213.6% year-on-year (YoY) increase in standalone net profit, reaching ₹5,253.29 crore in Q1 FY27, compared to ₹1,675.00 crore in Q1 FY26.
The bank’s total income increased to ₹32,897.26 crore, up from ₹31,963.94 crore in the same quarter last year.
Although operating profit stood at ₹6,978.01 crore, slightly lower than ₹7,080.35 crore in Q1 FY26, the significant rise in profitability was supported by improved recoveries, better asset quality, and a substantial decline in tax expenses.
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Key Financial Highlights of PNB Q1 FY27
- Net Profit: ₹5,253.29 crore (₹1,675.00 crore in Q1 FY26)
- Total Income: ₹32,897.26 crore (₹31,963.94 crore)
- Operating Profit: ₹6,978.01 crore (₹7,080.35 crore)
- Net Interest Income (NII): ₹10,798 crore (up 2.1% YoY from ₹10,578 crore)
- Basic Earnings Per Share (EPS): ₹4.57 (₹1.46 in Q1 FY26)
Asset Quality Continues to Improve
PNB further strengthened its asset quality during the quarter by reducing both Gross and Net Non-Performing Assets.
Asset Quality Highlights
- Gross NPA Ratio: 2.78% (down from 3.78% in Q1 FY26 and 2.95% in the previous quarter)
- Net NPA Ratio: 0.28% (down from 0.38% in Q1 FY26 and 0.29% in the previous quarter)
- Gross NPAs: ₹35,380.80 crore (₹41,322.40 crore in Q1 FY26)
- Net NPAs: ₹3,609.56 crore (₹4,132.24 crore)
- Provision Coverage Ratio (PCR): 97.23%
The consistent decline in NPAs reflects improved recoveries, disciplined lending practices, and effective management of stressed assets.
Capital Position and Key Financial Ratios
Punjab National Bank maintained a strong capital base during Q1 FY27.
- Capital Adequacy Ratio (CAR): 18.13%
- CET-1 Ratio: 14.51%
- Return on Assets (Annualised): 1.04%
- Debt-Equity Ratio: 0.70
- Operating Margin: 20.65%
- Net Profit Margin: 14.39%
The healthy capital ratios provide sufficient cushion for future credit growth and regulatory compliance.
Balance Sheet Registers Healthy Growth
PNB reported strong growth across major balance sheet parameters during the quarter.
Total Assets: ₹19,90,311.73 crore (up from ₹18,33,314.60 crore in Q1 FY26)
Total Deposits: ₹17,24,83,729 crore (up from ₹15,89,37,855 crore in Q1 FY26)
Net Advances: ₹12,41,39,886 crore (up from ₹10,91,98,087 crore in Q1 FY26)
Shareholders’ Funds: ₹1,24,78,648 crore (up from ₹1,06,46,566 crore in Q1 FY26)
The increase in deposits and advances indicates continued business expansion and improved customer confidence.
Key Developments During the Quarter
Punjab National Bank announced several important developments during Q1 FY27:
- Government shareholding stood at 70.08%.
- Investment Fluctuation Reserve (IFR) balance of ₹4,143.55 crore was transferred to the General Reserve.
- Floating provision of ₹390 crore was created during the quarter, taking the total floating provision to ₹2,435 crore.
- Additional provision of ₹2,377.53 crore was maintained under the RBI’s Stressed Assets Resolution Directions.
- Provision Coverage Ratio, including technical write-offs, remained strong at 97.23%.
PNB’s Subsidiaries and Associate Companies
The bank’s consolidated financial results include five subsidiaries and eleven associate entities, including:
- PNB Gilts Ltd.
- PNB Cards and Services Ltd.
- PNB Housing Finance Limited
- PNB MetLife India Insurance Company Ltd.
- Regional Rural Banks operating across Assam, Bihar, Haryana, Himachal Pradesh, Manipur, Punjab, Tripura, and West Bengal.
Board Approves Q1 FY27 Financial Results
The Board of Directors approved the Q1 FY27 financial results during its meeting held on July 18, 2026.
- Meeting Start Time: 10:45 AM
- Meeting End Time: 12:20 PM
What Drove PNB’s Strong Q1 FY27 Performance?
Punjab National Bank’s impressive first-quarter performance was supported by several positive factors:
- A 214% surge in net profit.
- Steady growth in Net Interest Income (NII).
- Continuous improvement in Gross and Net NPAs.
- Higher deposits and loan growth.
- Strong capital adequacy and provisioning levels.
- Significant reduction in tax expenses compared to the previous year.
These factors demonstrate the bank’s improving financial health and its focus on strengthening operational efficiency and asset quality.
About Punjab National Bank (PNB)
Punjab National Bank (PNB) is one of India’s oldest and largest public sector banks, established in 1894. Headquartered in New Delhi, the bank offers a comprehensive range of banking and financial services, including retail banking, corporate banking, MSME financing, agriculture loans, digital banking, treasury operations, and wealth management. With an extensive branch network across India and overseas operations, PNB plays a significant role in supporting the country’s financial system and economic development.
