• Event Type: Q1 FY27 Earnings Conference Call hosted by Elara Securities Private Limited
  • Event Date and Time: Held on July 18, 2026 (time not specified in transcript)
  • Purpose: Discussion of unaudited/reviewed financial results for quarter ended June 30, 2026
  • Management Participants: Mr. Ashok Chandra (MD and CEO), Mr. Paramasivam (Executive Director), Mr. Amit Kumar Srivastava (Executive Director), Mr. Sunil Kumar Goyal (Chief General Manager, Strategic Management and Economic Advisory Division)
  • Presentation Availability: Transcript available at https://pnb.bank.in/financials-current.html
  • Financial Period Discussed: Q1 FY27 (quarter ended June 30, 2026)

Financial Performance Highlights

Business Growth Metrics:

  • Gross global business: INR29.98 lakh crores (10.2% YoY growth)
  • Advances: INR12.73 lakh crores (12.7% YoY growth)
  • Core advances (excluding INR22,411 crores IBPC reduction): 15.4% YoY growth
  • RAM segment growth: Retail (ex-IBPC) 17.5%, MSME 19.8%, Agri priority sector 16.4%
  • Q1 FY27 credit sanctions: INR95,500 crores
  • Pending disbursement: INR1.38 lakh crores
  • Global deposits: INR17.25 lakh crores (8.5% YoY growth)
  • CASA strategy: Individual saving account balance grew 9.3% YoY
  • Credit-deposit ratio: 73.8%

Profitability Metrics:

  • Domestic NIM: 2.64% (vs 2.61% previous quarter)
  • Global NIM: 2.50% (vs 2.47% previous quarter)
  • NII: INR10,798 crores (4% sequential growth)
  • Operating profit: INR7,519 crores (vs INR7,081 crores Q1 FY26, 6.2% growth)
  • Core operating profit (ex-recovery and treasury): 35.7% YoY growth
  • Net profit: INR5,253 crores
  • Return on assets: 1.04%
  • Return on equity: 17.33%
  • EPS: 4.57 (not annualized)
  • Tangible book value per share: INR108.58 (vs INR92.64 June 2025)
  • Cost-to-income ratio: 50.31% (vs 55.31% Q1 FY26)

Asset Quality Metrics:

  • Gross NPA: 2.78% (vs 3.78% June 2025, 100 bps decline)
  • Net NPA: 0.28% (vs 0.38% June 2025, 10 bps improvement)
  • PCR: 97.23% (above guidance of >96%)
  • Fresh slippages: INR2,080 crores (vs INR1,886 crores Q1 FY26)
  • Slippages ratio: 0.68% (below guidance of <0.9%)
  • Recovery: INR2,789 crores (1.34x of slippages)
  • Floating provision: INR390 crores added in Q1, total INR2,435 crores
  • SMA total: 2.9% of loan book (SMA 0: 1.55%, SMA 1: 0.62%, SMA 2: 0.73%)
  • SMA 1 amount: INR7,942 crores

Credit Underwriting Performance (July 2020-June 2026):

  • Sanctions: INR14.74 lakh crores
  • Disbursements: INR12.92 lakh crores
  • Outstanding: INR8.94 lakh crores (70% of total book)
  • NPA in this book: INR5,486 crores (0.42% of disbursed amount)

Capital Structure:

  • Capital adequacy: 18.13% (vs 17.50% June 2025, regulatory requirement 11.50%)
  • CET1 capital: 14.52% (regulatory requirement 8%)
  • Tier 1 capital: 16.03% (regulatory requirement 9.5%)
  • Tier 2 capital: 2.10%
  • Rated advances >INR25 crores: 86% above A rated, 52% AAA rated

Digital Initiatives:

  • Digital loan sanctions target: Additional INR1 lakh crores in FY27
  • Q1 digital credit sanctions: >INR19,000 crores
  • Digital adoption: Every second loan sanctioned digitally (vs every third in previous quarter)
  • Digital transactions: 95% of customer transactions
  • AI deployments: PIHU (customer chatbot), RAHI (employee chatbot), GenAI for credit notes
  • Quantum technology: Quantum-safe encryption deployed in 86 customer-facing applications

Branch Expansion & HR Initiatives:

  • Planned new branches: 250 in FY27 with focus on southern and western regions
  • Partnerships: 29 professors of practice, 4 premier institutions (ISB Hyderabad, MDI Gurugram, IPE Hyderabad, U-Next Learning)
  • Training: AR/VR-based models in 8 languages, AI training with Microsoft

Additional Business Updates:

  • FCNR deposit mobilization: Target USD2.5 billion, already mobilized USD425 million
  • Gold loan portfolio: INR31,888 crores (103% growth from INR15,694 crores June 2025)
  • Target gold loan portfolio: INR59,000-60,000 crores by FY27 end
  • PSLC cost: INR360 crores Q1 FY27 vs INR893 crores Q1 FY26
  • Treasury outlook: INR900-1,000 crores quarterly income expected
  • Digital spend: INR3,400 crores budget for FY27
  • TWO recovery guidance: INR4,000 crores expected through written-off accounts
  • ECL implementation: INR9,500-10,000 crores one-time provision expected, 10-12 bps quarterly impact
  • Processing fee: INR938 crores (29% YoY growth from INR728 crores)
  • AS 15 provision: INR490 crores
  • Bulk term deposits: 18% of deposits
  • LCR: 135%
  • ECLGS: Eligible INR40,000 crores, sanctioned INR15,856 crores, disbursed INR12,335 crores

Sector-wise Corporate Exposure:

  • Infrastructure: 9%
  • Energy: 4%
  • Metal and metal products: 1.8%
  • Roads and port: 4%
  • Food processing: 2%
  • Iron and steel: 2%
  • Personal loan portfolio: INR23,727 crores (salaried-only)

Additional Notes Section

  • The document contains the full transcript of the earnings call with analyst Q&A session
  • Management emphasized no unpublished price sensitive information (UPSI) was shared
  • The bank provided FY27 guidance: gross NPA <2.5%, net NPA <0.3%
  • No financial data was disclosed beyond what was presented in the earnings call