Mumbai: Punjab National Bank (PNB), one of India’s leading public sector banks, announced its unaudited financial results for the third quarter (Q3) and nine months ended December 31, 2025, reflecting steady growth in profitability, improved asset quality, and robust business expansion.
Strong Profitability Growth
PNB recorded a net profit of ₹5,100 crore in Q3 FY26, up 13.1% from ₹4,508 crore in Q3 FY25. Operating profit rose 13% to ₹7,481 crore. The bank’s net interest income (NII) stood at ₹10,533 crore, reflecting its growing core banking operations. Return on Assets (RoA) improved to 1.06%, while Return on Equity (RoE) was reported at 17.80% (annualized).
Book value per share increased to ₹114.09, up 11.83% from ₹102.02 in Q3 FY25, and earnings per share rose to ₹4.44, up 13.27%.
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Improved Asset Quality
PNB has made notable strides in strengthening its balance sheet:
- Gross NPA Ratio: Declined sharply to 3.19% from 4.09%, a drop of 90 basis points (bps).
- Net NPA Ratio: Improved to 0.32% from 0.41%, down 9 bps.
- Provision Coverage Ratio (PCR): Remained robust at 96.99%, up from 96.77%.
- Slippage Ratio: Contained at 0.67% (annualized).
These improvements reflect PNB’s focused strategies on recoveries, resolution, and risk management.
Robust Business Expansion
The bank’s global business grew 9.5% YoY to ₹28.91 lakh crore. Key highlights include:
- Global Deposits: Increased 8.5% to ₹16.60 lakh crore.
- Global Advances: Rose 10.9% to ₹12.31 lakh crore.
- RAM Advances (Retail, Agriculture, MSME): Expanded 11% YoY to ₹6.62 lakh crore, accounting for 56.7% of domestic advances.
- Domestic CASA Ratio: Stable at 37.1%, with savings deposits of ₹5.16 lakh crore.
These numbers reflect healthy business growth and strong customer engagement across segments.
Digital Banking and Innovation
PNB continues to leverage technology to enhance customer experience:
- PNB One Mobile Banking: Over 2.5 crore activated users.
- Digital Transactions: 344 crore transactions in Q3 FY26, with digital channels contributing 94.86% of total transactions.
- Digital Lending: ₹12,672 crore sanctioned and disbursed through paperless journeys in Agri, MSME, and Retail segments.
- CBDC (e-Rupee) Adoption: Over 5.96 lakh users and 98.42 lakh transactions, showcasing PNB’s leadership in digital finance innovation.
These efforts highlight the bank’s commitment to modern, technology-driven banking solutions.
Strong Capital Position
PNB maintained a strong capital adequacy ratio (CRAR) of 16.77%, with CET-1 at 12.52% as of December 31, 2025, up from 15.41% in December 2024. The Government of India continues to be the largest shareholder with a 70.08% stake, ensuring stability and strategic direction.
Management Commentary
A PNB spokesperson stated, “The consistent performance in profitability and the continued improvement in asset quality reflect the success of our focused strategies. We remain committed to driving responsible growth, enhancing customer experience through digital innovation, and contributing to the nation’s economic development while maintaining strong governance standards.”
About Punjab National Bank
Punjab National Bank, with a legacy spanning over 130 years, is one of India’s largest public sector banks. Operating through over 10,000 domestic branches, 11,000+ ATMs, and a strong international presence, PNB offers a wide range of financial products and services. True to its motto, “…the name you can BANK upon!”, the bank continues to focus on sustainable growth, technological innovation, and customer-centric solutions.
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