PNB Q1 FY27 Net Profit Surges 214% to ₹5,253 Crore; Gross NPA Ratio Falls to 2.78%

Punjab National Bank (PNB) reported a substantial improvement in its financial performance for the quarter ended June 2026, supported by higher advances, stronger operating earnings and continued moderation in stressed assets.

The public-sector lender’s standalone net profit increased 213.6% year-on-year to ₹5,253 crore in Q1 FY27, compared with ₹1,675 crore in the corresponding quarter of the previous financial year. Operating profit grew 6.2% to ₹7,519 crore, while net interest income recorded a moderate 2.1% rise to ₹10,798 crore.

PNB’s global advances expanded 12.7% year-on-year to ₹12.73 lakh crore as of June 2026. Global deposits increased 8.5% to ₹17.24 lakh crore. With credit growth exceeding deposit growth, the credit-deposit ratio improved to 73.8% from 71.1% a year earlier.

The bank’s total global business reached ₹29.98 lakh crore, representing annual growth of 10.2%.

Asset-quality indicators registered further improvement during the quarter. The gross non-performing asset ratio declined by 100 basis points to 2.78%, while the net NPA ratio improved to 0.28% from 0.38% in the year-ago period.

In absolute terms, gross NPAs decreased by ₹7,292 crore to ₹35,381 crore. Net NPAs fell by ₹699 crore to ₹3,433 crore.

PNB’s return on assets rose by 67 basis points year-on-year to 1.04%. Its global net interest margin stood at 2.50%, marginally higher than 2.47% in the preceding quarter.

The capital-to-risk-weighted assets ratio strengthened to 18.13% at the end of June 2026, compared with 17.50% a year earlier, improving the bank’s capital cushion.

On the deposit front, current account savings account deposits grew 7.8% to ₹6.13 lakh crore, with the CASA ratio recorded at 36.7%. Savings deposits increased 7.2%, while current account deposits advanced 12.3%.

Fee-based income rose 19.6% sequentially to ₹2,339 crore. Operational productivity also improved, with business per employee reaching ₹29.71 crore and business per branch increasing to ₹278.28 crore. CA Sansaar CA Sansaar