PNB Q3 Results: Profit Jumps 13% To Rs 5,100 Cr, PNB’s Asset Quality Miracle: NNPA At Just 0.32%, PCR Near 97%

Today, Punjab National Bank (PNB) released its financial results for the quarter or nine months that concluded on December 31, 2025.As a result of continued strength in core operations, net profit increased 13.1% YoY to Rs 5,100 crore from Rs 4,508 crore in Q3 FY25. Operating profit, which rose by 13.0% to Rs 7,481 crore from Rs 6,621 crore a year earlier, demonstrated improved cost management and higher revenue generation throughout the quarter.

Return on Assets (RoA) increased to 1.06% in Q3 FY26 from 1.03% in the same quarter the previous year, demonstrating the bank's steadily improving profit ratios. Improved shareholder metrics resulted from higher profitability; earnings per share grew by 13.27% YoY to Rs 4.44 from Rs 3.92. Additionally, book value per share rose significantly to Rs 114.09 from Rs 102.02, a strong 11.83% gain and demonstrating the consistent growth in net worth.

With consistent gains in key metrics, asset quality continued to be a major feature of the quarter. As of December 2025, the Gross NPA ratio decreased by 90 basis points year on year, from 4.09% to 3.19%, indicating better recoveries and lower slippages. Additionally, the Net NPA ratio dropped from 0.41% to 0.32%, indicating the loan book's improving health. Furthermore, the Provision Coverage Ratio-which accounts for technical write-offs-rose from 96.77% to 96.99%, offering a robust hedge against future stress.

Compared to Rs 26,39,991 crore in December 2024, global business increased by 9.5% YoY to Rs 28,91,528 crore as of December 2025. Global deposits rose by 8.5% to Rs 16.60 lakh crore from Rs 15.30 lakh crore, indicating a solid funding profile.
Lending-wise, advances saw strong growth, with global advances growing 10.9% annually to Rs 12.31 lakh crore from Rs 11.10 lakh crore. RAM advances jumped by 11.0% to Rs 6.62 lakh crore from Rs 5.96 lakh crore, demonstrating the bank's emphasis on broad lending.

During the quarter under review, Punjab National Bank's asset quality significantly improved, indicating a persistent recovery and more stringent credit monitoring. From Rs 45,414 crore in December 2024 to Rs 39,314 crore in December 2025, Gross Non-Performing Assets (GNPA) dropped by Rs 6,100 crore as of December '25.

This significant decrease demonstrates superior portfolio management, lower slippages, and higher recoveries. The bank's balance sheet was further strengthened, and the loan book was less stressed as Net Non-Performing Assets (NNPA) saw a respectable drop of Rs 603 crore to Rs 3,834 crore from Rs 4,437 crore a year earlier.

In terms of profitability, the bank performed well in 9MFY26, with operating profit of Rs 21,789 crore and net profit of Rs 11,679 crore. Income during the nine-month period climbed to Rs 1,10,698 crore, while total income for Q3 FY26 jumped to Rs 37,253 crore, indicating year-on-year increases of 7.2% and 9.2%, respectively.

With total interest income for Q3 FY26 at Rs 32,231 crore and Rs 96,066 crore for 9MFY26, representing a rise of 2.8% and 7.0% YoY, interest income continues to underpin earnings momentum. The substantial rise in non-interest income, which reached Rs 5,022 crore in Q3 FY26 and Rs 14,632 crore for the nine-month period with strong growth of 47.2% and 26.2%, respectively, was a noteworthy highlight.

In terms of costs, total interest expenses increased by 6.8% and 11.7% year on year to Rs 21,698 crore for Q3 FY26 and Rs 64,487 crore for 9MFY26. Operating expenses increased slightly to Rs 8,074 crore in Q3 FY26 and Rs 24,422 crore for 9MFY26, representing rises of 3.2% and 3.6% year on year, although they remained mostly under control.

The bank has two international branches and 10,261 domestic branches as of December 31, 2025. 63.3% of the bank's total branches are located in rural and semi-urban regions. As of December 31, 2025, the bank's distribution network included 11,109 ATMs and 32,809 BCs, for a total of 54,179 touch points.