Punjab National Bank submitted an analyst presentation detailing its unaudited financial results for the quarter ended June 30, 2026, pursuant to SEBI LODR Regulations.
Financial Performance Highlights
- Net Profit: ₹5,253 crore in Q1 FY27, showing a 213.6% year-on-year increase from ₹1,675 crore in Q1 FY26 and a 0.5% quarter-on-quarter increase from ₹5,225 crore in Q4 FY26.
- Net Interest Income: ₹10,798 crore in Q1 FY27, up 2.1% YoY from ₹10,578 crore and 4.0% QoQ from ₹10,380 crore.
- Other Income: ₹4,333 crore in Q1 FY27, down 17.7% YoY from ₹5,268 crore but up 4.1% QoQ from ₹4,162 crore.
- Operating Profit: ₹7,519 crore in Q1 FY27, increased 6.2% YoY from ₹7,081 crore and 0.3% QoQ from ₹7,500 crore.
- Provisions: ₹541 crore in Q1 FY27 (including ₹792 crore for NPAs), increased 67.6% YoY from ₹323 crore and 27.6% QoQ from ₹424 crore.
- Cost to Income Ratio: 50.31% in Q1 FY27, improved from 55.31% in June 2025 but higher than 48.42% in March 2026.
- Return on Assets: 1.04% as of June 2026, improved from 0.28% in June 2025.
Business Growth Metrics
- Global Business: ₹29,97,970 crore as of June 2026, up 10.2% YoY.
- Global Deposits: ₹17,24,837 crore as of June 2026, up 8.5% YoY with domestic deposits at ₹16,70,177 crore (up 8.6% YoY).
- Global Advances: ₹12,73,132 crore as of June 2026, up 12.7% YoY with domestic advances at ₹12,03,859 crore (up 11.6% YoY).
- RAM Advances: ₹6,88,487 crore as of June 2026, up 12.8% YoY with 57.2% share of domestic advances.
- CASA Ratio: 36.7% as of June 2026, compared to 37.0% in both June 2025 and March 2026.
Asset Quality Indicators
- Gross NPA: ₹35,381 crore (2.78%) as of June 2026, improved from ₹42,673 crore (3.78%) in June 2025 and ₹37,124 crore (2.95%) in March 2026.
- Net NPA: ₹3,433 crore (0.28%) as of June 2026, improved from ₹4,132 crore (0.38%) in June 2025 and ₹3,610 crore (0.29%) in March 2026.
- Provision Coverage Ratio: 97.23% (including TWO) as of June 2026, improved from 92.64% in June 2025.
- Slippage Ratio: 0.68% (annualized) in Q1 FY27, improved from 0.71% in Q1 FY26 and 0.94% in Q4 FY26.
- Recovery vs Slippage: Net recovery of ₹2,789 crore against net slippage of ₹2,080 crore (1.3x coverage).
Capital Adequacy
- CRAR: 18.13% as of June 2026 (Tier 1: 16.03%, CET-1: 14.52%), improved from 17.50% in June 2025 and 17.74% in March 2026.
- Risk Weighted Assets: ₹9,17,780 crore as of June 2026, increased from ₹8,51,723 crore in June 2025.
Subsidiaries and Associates Performance
- PNB Housing Finance Ltd: Net profit of ₹279 crore for 12M ending March 2026.
- PNB Gilts Ltd: Net profit of ₹108 crore for 3M ending June 2026.
- PNB MetLife India Insurance: Total income of ₹15,917 crore for 12M ending March 2026.
- Regional Rural Banks: Consolidated net profit of ₹866 crore for 3M ending June 2026, up 77.7% YoY.
Digital Initiatives and ESG Highlights
- CBDC: 17.22 lakh users with 153.06 lakh transactions.
- Digital Lending: Progress under major digital offerings including PNB One enhancements.
- Green Initiatives: ₹8,362 crore sanctioned in renewable energy sector during Q1 FY27; target to achieve Net Zero by 2060.
- ESG: Introduced PNB Harit Niwas scheme with preferential rates; raised ₹610 crore in green deposits.
Guidance for FY27
- Credit Growth: 12-13% (Actual June 2026: 12.7%)
- Deposit Growth: 9-10% (Actual: 8.5%)
- CASA Share: 38% (Actual: 36.7%)
- Gross NPA: <2.50% (Actual: 2.78%)
- Net NPA: <0.30% (Actual: 0.28%)
- RoA: Above 1% (Actual: 1.04%)
- NIM: 2.60%-2.70% (Actual: 2.50%)