PNB Q2 earnings: Net profit rises 13% to ₹5,532 crore; asset quality improves

Punjab National Bank (PNB), the country's second-largest public sector lender, reported a 12.8% year-on-year rise in net profit to ₹5,532 crore for the second quarter ended September 2026, compared with ₹4,904 crore in the corresponding period last year. 

The bank's total income increased to ₹38,185 crore in the September quarter of FY27 from ₹36,214 crore a year earlier, PNB said in a regulatory filing on Friday. Interest income rose to ₹34,585 crore from ₹31,872 crore, while operating profit increased to ₹7,532 crore from ₹7,227 crore. 

PNB's global business grew 11.9% year-on-year to ₹31.18 lakh crore as of September 2026, compared with ₹27.87 lakh crore a year earlier. Global deposits rose 9.9% to ₹17.77 lakh crore from ₹16.17 lakh crore, while global advances increased 14.7% to ₹13.41 lakh crore from ₹11.70 lakh crore. 

The bank's global net interest margin improved to 2.58% in the September quarter from 2.50% in the preceding quarter. Its return on assets remained unchanged at 1.05% year-on-year. 

Asset quality improves 

PNB reported an improvement in asset quality, with its gross non-performing asset (GNPA) ratio declining to 2.55% of gross advances as of September 30, 2026, from 3.45% a year earlier. The net NPA ratio fell to 0.25% from 0.36% over the same period. 

Provisions and contingencies declined sharply to ₹97 crore in the September quarter from ₹643 crore in the year-ago period. The provision coverage ratio, including technical write-offs, improved to 97.32% from 96.91%. 

However, the slippage ratio, which measures fresh additions to bad loans, increased to 0.77% in Q2 FY27 from 0.71% in the corresponding quarter last year. 

Capital adequacy strengthens 

PNB's capital to risk-weighted assets ratio (CRAR) rose to 17.95% as of September 2026 from 17.19% a year earlier. Its tangible book value per share increased to ₹111.94 from ₹95.92 over the same period. 

The bank's credit-deposit ratio rose to 75.5% at the end of September 2026 from 72.3% a year earlier. 

Shares of PNB closed at ₹116.10 on the BSE on Friday, up 0.78%.