Punjab National Bank
NII declines as NIM dip: Interest income increased 1% to Rs 32156.72 crore, while interest expenses moved up 3% to Rs 21776.42 crore in Q4FY2026. NII declined 4% to Rs 10380.30 crore in Q4FY2026.
Margins declines: The bank has shown 31 bps YoY decline in cost of deposits to 5.05%, while yield on advances dipped 85 bps YoY to 7.51% in Q4FY2026. Thus, the NIM has eased 34 bps YoY to 2.47%, while fell 5 bps qoq to 2.47% in Q4FY2026.
Healthy growth in the core fee income: The non-interest income of the bank declined 12% to Rs 4161.98 crore in Q4FY2026. Bank has posted 9% growth in core fee income to Rs 1956 crore, while the recoveries income improved 6% to Rs 1942 crore and other income galloped 9% to Rs 12 crore. However, the treasury income eased 82% to Rs 163 crore and forex income fell 45% to Rs 90 crore in Q4FY2026.
Expense ratio improves: The operating expenses of the bank declined 19% to Rs 7041.93 crore, as employee expenses dipped 35% to Rs 3747.16 crore, while other expenses moved up 13% to Rs 3294.77 crore in Q4FY2026. Cost to income ratio improved to 48.4% in Q4FY2026 compared with 56.2% in Q4FY2025. Operating Profit moved up 11% to Rs 7500.35 crore.
Provisions and contingencies increase: The bank has shown 18% increase in provisions to Rs 424 crore. The loan loss provisions moved up 54% to Rs 906 crore, while investment provisions rebounded to Rs 119 crore. However. the bank has written back standard asset provisions of Rs 673 crore and other provisions fell 27% to Rs 71 crore in Q4FY2026.
PBT increased 10% to Rs 7076.64 crore in Q4FY2026. Effective tax rate declined to 26.2% in Q4FY2026 from 28.8% in Q4FY2025. Net Profit increased 14% YoY to Rs 5225.11 crore in Q4FY2026.
Asset quality improves: The bank has improved asset quality in Q4FY2026.
The fresh slippages of loans increased to Rs 2758 crore in Q4FY2026 compared with Rs 1901 crore in previous quarter and Rs 3001 crore in the corresponding quarter last year. The recoveries and upgradations of NPAs stood at Rs 687 crore, while the write-off of loans was at Rs 3258 crore in Q4FY2026. The standard restructured loan book of the bank declined to Rs 5450 crore end March 2026 compared to Rs 5615 crore a quarter ago. Provision coverage ratio improved slightly to 97.14% at end March 2026 compared to 96.99% a quarter ago and 96.82% a year ago. The capital adequacy ratio of the bank stood at 17.7% with Tier I ratio at 15.2% at end March 2026. The risk weighted assets of the bank has increased 9% YoY to Rs 901547 crore end March 2026. ?| Asset Quality Indicators: Punjab National Bank | |||||||
| ? | Mar-26 | Dec-25 | Sep-25 | Jun-25 | Mar-25 | Variation | |
| QoQ | YoY | ||||||
| Gross NPA (Rs Crore) | 37124.12 | 39314.21 | 40343.33 | 42672.97 | 44081.60 | -6 | -16 |
| Net NPA (Rs Crore) | 3609.56 | 3833.70 | 4025.75 | 4132.24 | 4290.55 | -6 | -16 |
| % Gross NPA | 2.95 | 3.19 | 3.45 | 3.78 | 3.95 | -24 | -100 |
| % Net NPA | 0.29 | 0.32 | 0.36 | 0.38 | 0.40 | -3 | -11 |
| % PCR | 97.14 | 96.99 | 96.91 | 96.88 | 96.82 | 15 | 32 |
| % CRAR - Basel III | 17.74 | 16.77 | 17.19 | 17.50 | 17.01 | 97 | 73 |
| % CRAR - Tier I - Basel III | 15.15 | 14.13 | 14.41 | 14.62 | 14.05 | 102 | 110 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | |||||||
?
?Business Highlights:
Business growth improves: The business of the bank has increased at an accelerated pace of 11% YoY to Rs 2969685 crore end March 2026, as advances growth improved to 13% to Rs 1258559 crore and deposits growth improved to 9% to Rs 1711126 crore at end March 2026. With the faster growth in advances, the credit to deposit ratio rose to 73.6% at end March 2026 from 71.3% at end March 2025.
CASA deposits ratio declines: The CASA deposits of the bank increased 6% YoY to Rs 609615 crore at end March 2026. The current account deposits moved up 6% to Rs 76377 crore, while saving account deposits increased 6% to Rs 515799 crore end March 2026. The CASA ratio eased to 35.6% at end March 2026 compared to 36.6% at end March 2025, while declined from 35.7% at end December 2025. The term deposits have increased 11% to Rs 1101511 crore end March 2026.
Healthy loan growth: Within the loan book, the retail loans increased 8% YoY to Rs 280779 crore at end March 2026, while credit to agriculture increased 11% to Rs 199919 crore and MSME credit jumped 20% to Rs 195027 crore. The corporate credit has also increased 12% to Rs 517225 crore end March 2026. The overseas credit has increased 30% to Rs 65609 crore end March 2026. The share of retail, agriculture and MSME (RAM) eased to 53.7% at end March 2026 compared to 54.0% at end March 2025.
Investment book of the bank declined 1% YoY to Rs 497383 crore at end March 2026. The SLR book slipped 4% to Rs 350825 crore, while non SLR book moved up 7% to Rs 137617 crore at end March 2026. The AFS book dipped 2% to Rs 112688 crore, while HTM book rose declined 1% to Rs 346526 crore at end March 2026. The duration of the AFS investment portfolio stood at 3.23 years end March 2026 compared with 3.71 years at end March 2025.
Branch expansion: The bank has added 63 branches and reduced 44 ATMs in Q4FY2026, taking overall tally to 10324 branches and 11065 ATM`s end March 2026.
Book value of the bank stood at Rs 115.1 per share at end March 2026, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 110.8 per share at end March 2026.
Financial Performance FY2026:
Bank has posted 2% increase in net profit to Rs 16903.99 crore in the year ended March 2026 (FY2026). The net interest income declined 2% to Rs 41959.77 crore, while non-interest income moved up 10% to Rs 17881.97 crore, leading net total income to increase 1% to Rs 59841.74 crore in FY2026. The operating expenses declined 2% to Rs 31464.11 crore, while provision and contingencies jumped 52% to Rs 2539.93 crore. PBT increased 3% to Rs 25837.70 crore in FY2026. The cost-to-income ratio improved to 52.6% in FY2026 compared to 54.6% in FY2025. An effective tax rate rose to 36.8% in FY2026 compared to 33.9% in FY2025. The net profit has increased 2% to Rs 16903.99 crore in FY2026. ?| Punjab National Bank: Results | ||||||
| Particulars | 2603 (3) | 2503 (3) | Var % | 2603 (12) | 2503 (12) | Var % |
| Interest Earned | 32156.72 | 31989.46 | 1 | 128223.19 | 121760.73 | 5 |
| Interest Expended | 21776.42 | 21232.48 | 3 | 86263.42 | 78978.56 | 9 |
| Net Interest Income | 10380.30 | 10756.98 | -4 | 41959.77 | 42782.17 | -2 |
| Other Income | 4161.98 | 4715.89 | -12 | 17881.97 | 16309.37 | 10 |
| Net Total Income | 14542.28 | 15472.87 | -6 | 59841.74 | 59091.54 | 1 |
| Operating Expenses | 7041.93 | 8697.22 | -19 | 31464.11 | 32260.87 | -2 |
| Operating Profits | 7500.35 | 6775.65 | 11 | 28377.63 | 26830.67 | 6 |
| Provisions & Contingencies | 423.71 | 359.67 | 18 | 2539.93 | 1674.60 | 52 |
| Profit Before Tax | 7076.64 | 6415.98 | 10 | 25837.70 | 25156.07 | 3 |
| EO | 0.00 | 0.00 | - | 912.00 | 0.00 | - |
| PBT after EO | 7076.64 | 6415.98 | 10 | 26749.70 | 25156.07 | 6 |
| Provision for tax | 1851.53 | 1848.98 | 0 | 9845.71 | 8525.87 | 15 |
| PAT | 5225.11 | 4567.00 | 14 | 16903.99 | 16630.20 | 2 |
| EPS*(Rs) | 18.2 | 15.9 | ? | 14.2 | 14.5 | ? |
| Equity | 2298.6 | 2298.6 | ? | 2298.6 | 2298.6 | ? |
| Adj BV (Rs) | 110.8 | 98.5 | ? | 110.8 | 98.5 | ? |
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 2, Figures in Rs crore | ||||||
| Source: Capitaline Corporate Database | ||||||
Powered by Capital Market - Live News
