PNB Q1 Results: PAT Drops 48.5% To Rs 1,675 Cr, Reports Record Operating Profit; NII Up 1% To Rs 10,578 Cr

The financial results for the quarter ending June 30, 2025, were released by Punjab National Bank (PNB) on Wednesday, June 30. In Q1 FY26, Punjab National Bank reported a net profit of Rs 1,675 crore, down 48.5% YoY from Rs 3,252 crore in Q1 FY25. In spite of this, the bank's profit before tax increased by 28.3% YoY to Rs 6,758 crore, helped by a substantial decline in provisioning expenses, which fell by 75.4% YoY to Rs 323 crore.

Earnings per share for the quarter were Rs 1.46, and the net profit performance translated into a return on equity of 6.59% and a return on assets of 0.37%.

In Q1 FY26, Punjab National Bank recorded an operating profit of Rs 7,081 crore, up 4.5% sequentially from Q4 FY25 and 7.6% YoY from Rs 6,581 crore in the same period the previous year. With interest income of Rs 31,964 crore and a strong other income component of Rs 5,268 crore, which grew 45.9% YoY due to higher treasury gains and fee-based income, Punjab National Bank reported total income of Rs 37,232 crore in Q1 FY26, representing a 15.7% YoY growth. In Q1 of FY'25, net interest income was Rs 10,578 crore, up 1% YoY from Rs 10,476 crore.

With global business increasing 11.6% YoY to Rs 27.19 lakh crore, Punjab National Bank reported a stable performance in Q1 FY26. This growth was driven by global deposits of Rs 15.89 lakh crore surging 12.9% YoY and global advances of Rs 11.29 lakh crore zooming 9.8% YoY, with RAM (Retail, Agriculture, MSME) advances accounting for 56.6% of total lending.

The cost-to-income ratio of 55.31%, ROE of 6.59%, and ROA of 0.37% all demonstrated cautious operations in terms of profitability and productivity ratios. Additionally, business per employee increased to Rs 27.30 crore, and book value per share climbed to Rs 105.23.

Regarding asset quality, PNB's balance sheet remained strong, with net and gross non-performing assets (NPAs) falling to 0.38% and 3.78%, respectively, and a strong provision coverage ratio (including TWO) of 96.88%. Fresh slippages were modest at Rs 1,886 crore, while credit costs were maintained at 0.14%.

Both deposits and advances at Punjab National Bank grew well in the first quarter of FY26, with global deposits increasing 12.9% YoY to Rs 15.89 lakh crore and global advances expanding 9.8% YoY to Rs 11.29 lakh crore. A broad liability base was reflected in the Rs 15.37 lakh crore in domestic deposits and the Rs 51,924 crore in overseas deposits. While CASA deposits were at Rs 5.69 lakh crore, accounting for 36.99% of domestic deposits, term deposits had a robust 18.8% YoY growth to Rs 10.21 lakh crore.

There is a mixed trend across PNB's key parameters between the guidance for FY26 and the actual performance for June 2025.