New Delhi: Punjab National Bank (PNB) reported a strong financial performance for the second quarter of the financial year 2026-27 (Q2 FY27), ended September 30, 2026. The public sector lender recorded a 12.8% year-on-year (YoY) increase in net profit to ₹5,532 crore, compared with ₹4,904 crore in the corresponding quarter of the previous financial year.
The bank also reported growth in net interest income and operating profit, alongside improvements in its non-performing asset (NPA) ratios. Its global business expanded, while the capital adequacy ratio strengthened to 17.95%, reflecting its continued focus on growth, financial stability and asset quality.
PNB Q2 FY27 Results: Key Financial Highlights
PNB recorded growth across several key financial indicators during the September quarter. Its net profit increased alongside higher net interest income and operating profit.
The key financial highlights for Q2 FY27 are as follows:
- Net Profit: ₹5,532 crore, up 12.8% YoY from ₹4,904 crore.
- Operating Profit: ₹7,532 crore, up 4.2% YoY from ₹7,227 crore.
- Net Interest Income (NII): ₹11,601 crore, up 10.8% YoY from ₹10,469 crore.
- Global Net Interest Margin (NIM): 2.58%, compared with 2.50% in Q1 FY27.
- Return on Assets (RoA): 1.05%.
The increase in net interest income contributed to the bank’s improved profitability, while the rise in operating profit reflected growth in its core banking operations.
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PNB Net Interest Income Rises 10.8% in Q2 FY27
Punjab National Bank’s net interest income increased by 10.8% year-on-year to ₹11,601 crore in Q2 FY27, compared with ₹10,469 crore in the corresponding quarter last year.
Operating profit rose 4.2% to ₹7,532 crore from ₹7,227 crore in Q2 FY26. The bank’s global net interest margin also improved sequentially to 2.58% from 2.50% in the preceding quarter.
Return on assets remained steady at 1.05%, indicating that the bank maintained its profitability relative to its asset base.
PNB Asset Quality Improves as GNPA Falls to 2.55%
PNB continued to report an improvement in asset quality during the September quarter, with both gross and net non-performing asset ratios declining.
The gross NPA (GNPA) ratio improved to 2.55% from 3.45% a year earlier and 2.78% in the previous quarter. This represents a year-on-year reduction of 90 basis points.
The net NPA (NNPA) ratio declined to 0.25% from 0.36% a year earlier and 0.28% in Q1 FY27, indicating a reduction in the proportion of stressed assets after provisions.
Other key asset quality indicators included:
- Gross NPA: ₹34,190 crore, down ₹6,153 crore year-on-year.
- Net NPA: ₹3,313 crore, down ₹713 crore year-on-year.
- Provision Coverage Ratio (including Technical Write-Offs): 97.32%.
The improvement in these indicators highlights the bank’s progress in managing stressed assets and strengthening its loan portfolio.
PNB Provisions Decline, but Fresh Slippages Increase
Punjab National Bank reported a sharp decline in provisions during Q2 FY27. Provisions fell to ₹97 crore, compared with ₹643 crore in the corresponding quarter of the previous financial year and ₹541 crore in Q1 FY27.
However, fresh slippages increased during the quarter. Slippages rose to ₹2,233 crore from ₹1,812 crore in Q2 FY26. They were also higher than the ₹1,996 crore reported in the preceding quarter.
Fresh slippages represent loans that newly move into non-performing asset categories. While the overall GNPA and NNPA ratios improved, the increase in fresh slippages remains an important indicator to monitor in the coming quarters.
PNB Global Business Grows 11.9% to ₹31.18 Lakh Crore
Punjab National Bank recorded growth in its overall business during Q2 FY27, supported by an expansion in both deposits and advances.
The bank’s global business increased 11.9% year-on-year to ₹31.18 lakh crore. Global deposits rose 9.9% to ₹17.77 lakh crore, while global advances grew 14.7% to ₹13.41 lakh crore.
The bank’s credit-deposit (CD) ratio improved to 75.5%, reflecting the relationship between its lending and deposit mobilisation.
The growth in advances indicates continued expansion across the bank’s lending operations, while deposit growth supports its funding base.
Retail, Housing, Vehicle and MSME Advances Record Growth
PNB reported growth across several major lending segments, including retail, agriculture and micro, small and medium enterprises (MSMEs).
The segment-wise year-on-year growth in advances was as follows:
- Retail Advances (excluding IBPC): 16.3%.
- Housing Loans: 14.3%.
- Vehicle Loans: 29.6%.
- Agriculture Priority Sector Advances: 18.1%.
- MSME Advances: 19.8%.
Vehicle loans recorded the highest growth among the listed segments, followed by MSME and agriculture priority sector advances.
The expansion across these categories reflects the bank’s focus on diversifying its loan portfolio and meeting credit demand from individuals, farmers and businesses.
PNB Capital Adequacy Ratio Strengthens to 17.95%
Punjab National Bank strengthened its capital position during the quarter. Its capital-to-risk-weighted assets ratio (CRAR) increased to 17.95% from 17.19% a year earlier.
The bank’s tangible book value per share also improved to ₹111.94, compared with ₹95.92 in the corresponding period of the previous financial year.
A stronger capital adequacy ratio provides a buffer against potential financial risks and supports a bank’s ability to sustain lending and business expansion.
PNB Digital Transactions Rise 31% to 408 Crore
Digital banking continued to gain traction at PNB during Q2 FY27. The bank recorded 408 crore digital transactions during the quarter, representing year-on-year growth of 31%.
Digital transactions accounted for 95.7% of the bank’s total transactions, highlighting the growing role of digital channels in its banking operations.
The PNB One retail banking application had 2.85 crore users during the reported period.
The bank’s distribution network comprised 53,672 total touchpoints, including 10,481 domestic branches. This combination of digital platforms and physical banking infrastructure supports customer access to banking services across different regions.
PNB Q2 FY27 Results: What the Numbers Indicate
PNB’s second-quarter performance reflected higher profitability, growth in core interest income, expansion in overall business and improvement in asset quality ratios.
The decline in gross and net NPAs, along with a higher capital adequacy ratio, indicates progress in strengthening the bank’s financial position. At the same time, the increase in fresh slippages highlights an area that will require continued monitoring.
The bank’s performance in subsequent quarters will depend on its ability to sustain income growth, manage credit risks, maintain asset quality and expand its digital and lending operations.
About Punjab National Bank
Punjab National Bank (PNB) is a major public sector bank in India, providing a wide range of banking and financial services to retail customers, businesses, farmers and corporate clients. Its services include deposits, loans, digital banking, trade finance and other financial products. The bank operates through an extensive branch network and digital platforms, supporting financial inclusion and economic activity across the country.
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