Punjab National Bank Raises Profit 12.8% to 5,532 Crore Rupees in Second Quarter
Key Facts
Punjab National Bank reported on October 16 results for the quarter ended September 30, 2026, posting net profit of 5,532 crore rupees, up 12.8% from 4,904 crore in the year-earlier period. Total income rose 5.4% to 38,185 crore rupees, while interest income increased 8.5% to 34,585 crore. The bank said net interest income was 11,601 crore rupees, up 10.8% year on year. Operating profit also rose 4.2% to 7,532 crore rupees. The announcement reflects results for the second quarter of fiscal 2027, putting growth in core revenue alongside improved asset quality at the center of the bank’s performance.
Global net interest margin improved to 2.58% in the second quarter, compared with 2.50% in the previous quarter, coinciding with an increase in net interest income. Fee-based income rose 16% to 1,954 crore rupees, from 1,685 crore in the year-earlier quarter. By contrast, return on assets remained at 1.05%, the same level recorded in the second quarter of fiscal 2026. These indicators show mixed sources of improvement: growth in interest and fee income, alongside an unchanged return on assets compared with a year earlier. Lower provisions also supported quarterly profitability.
The gross non-performing loan ratio fell to 2.55% in September 2026, from 3.45% in September 2025, while the net ratio declined to 0.25% from 0.36%. The provision coverage ratio, including technical write-offs, rose to 97.32% from 96.91% over the same period. But fresh slippages moved in the opposite direction, reaching 2,233 crore rupees in the quarter, up 23.2% from 1,812 crore in the year-earlier quarter. The fresh slippage ratio also rose to 0.77% from 0.71%. The figures place a decline in the stock of existing non-performing loans alongside an increase in cases that slipped into default during the quarter.
Provisions stood at 97 crore rupees in the second quarter, down 84.9% from 643 crore in the year-earlier period. The decline coincided with improved non-performing loan ratios, but does not offset the increase in fresh slippages recorded during the quarter. On capital, the capital adequacy ratio rose to 17.95% in September 2026, compared with 17.19% a year earlier. These indicators provide a broader picture of the bank’s capacity to absorb credit losses and finance growth, alongside movements in profit and income. The trajectory of fresh slippages remains one of the figures balancing the improvement in existing loan metrics.
The bank’s global business grew 11.9% to 31,18,434 crore rupees in September 2026. Global advances rose 14.7% to 13,41,194 crore rupees, outpacing growth in global deposits of 9.9%, which reached 17,77,240 crore. Retail advances also increased 16.3% year on year, while advances to small and medium-sized enterprises rose 19.8%. The figures highlight lending expansion in the retail and small and medium-sized business segments as part of overall credit growth. Operationally, digital transactions rose to 408 crore in the quarter, from 312 crore a year earlier, an increase of 31%, and accounted for about 95.7% of the bank’s total transactions.
Managing Director and Chief Executive Ashok Chandra said the bank would raise $1 billion under its medium-term note program and was waiting for the right time to mobilize the funds. The statement did not specify a timetable for the issue, while quarterly figures show advances expanding faster than global deposits. The bank is expected to release its third-quarter fiscal 2027 results in January 2027, according to the investor calendar, which describes the date as tentative. The next results will provide a more recent reading on business growth and asset-quality trends following the increase in fresh slippages recorded in the second quarter. Interest and fee income will also remain among the metrics shaping the operating performance trajectory.