PNB Q1 profit triples to ₹5,253 crore even as provisions double; NII rises 2%

State-owned Punjab National Bank (PNB) reported a significant 213.6% year-on-year (YoY) jump in net profit to ₹5,253 crore for the quarter ended June 30, 2026, as improved asset quality and lower credit costs offset a sharp increase in provisions. The lender had reported a net profit of ₹1,675 crore in the corresponding quarter last year.

During the quarter under review, the lender's operating profit rose 6.2% YoY to ₹7,519 crore, supported by healthy growth in core income and non-interest revenue, the bank said in an exchange filing on Friday.

Net interest income (NII), which reflects the difference between interest earned and interest paid, increased 2.1% YoY to ₹10,798 crore, driven by higher lending volumes despite pressure on margins. Interest income from advances rose 6.4% YoY to ₹23,061 crore.

Meanwhile, fee-based income, a key component of non-interest revenue, jumped 19.6% quarter-on-quarter to ₹2,339 crore, aided by higher income from third-party product distribution, transaction banking and other fee-generating services. Total interest income stood at ₹32,897 crore, up 2.3% sequentially.

The bank also reported a steady improvement in asset quality. Gross non-performing assets (GNPA) declined by ₹7,292 crore to ₹35,381 crore, while net NPAs fell by ₹699 crore to ₹3,433 crore. Provisions, however, doubled to ₹792 crore from ₹396 crore in the year-ago period.

The gross NPA ratio improved by 100 basis points YoY to 2.78% from 3.78%, while the net NPA ratio declined to 0.28% from 0.38%. On a sequential basis, the GNPA ratio improved by 17 basis points and the NNPA ratio by 1 basis point. The slippage ratio also moderated to 0.68% from 0.71% a year earlier.

Loan growth remained broad-based across key segments. Core retail advances grew 17.5% YoY, led by a 34.4% jump in vehicle loans to ₹36,599 crore and an 11.9% increase in housing loans to ₹1.33 lakh crore. Agriculture advances rose 16.4% to ₹1.62 lakh crore, while MSME advances increased 19.8% to ₹2.03 lakh crore.

On the liabilities side, savings deposits grew 7.2% YoY to ₹5.34 lakh crore, while current deposits increased 12.3% to ₹79,318 crore. CASA deposits rose 7.8% to ₹6.13 lakh crore, with the CASA ratio standing at 36.7% as of June-end.

Operational efficiency also improved during the quarter. Business per employee increased to ₹29.71 crore from ₹27.30 crore a year ago, while business per branch rose to ₹278.28 crore from ₹257.39 crore.

As of June 30, 2026, PNB had a distribution network of 10,359 domestic branches, two international branches and 54,248 customer touchpoints.

Ahead of the earnings announcement, PNB shares ended 0.57% higher at ₹105.80 on the BSE on Friday, valuing the state-owned lender at ₹1.21 lakh crore.