Punjab National Bank Q1 Earnings Preview: Net Profit Seen Rising 10% YoY Despite Margin Pressure; Steady NII

On Wednesday, July 30, Punjab National Bank (PNB) will release its financial results for the quarter that ended on June 30, 2025. Despite margin constraints, Punjab National Bank (PNB) is anticipated to achieve a stable performance in its Q1FY26 results, powered by strong credit growth.

Punjab National Bank (PNB) is anticipated to have a stable performance in its Q1FY26 earnings, with Net Interest Income (NII) forecast at Rs 10,500 crore, flat YoY and down 2% QoQ, according to a study from InCred Equities-InCred Group. The anticipated Pre-Provision Operating Profit (PPOP) is Rs 6,600 crore, which is 2.9% QoQ and 0.1% YoY lower.

PNB's profit after tax (PAT) is anticipated to reach Rs 3,600 crore, representing a sequential fall of 21.5% but a 10.2% YoY gain. Considering the pressure on yields, margins are predicted to contract to 2.70%, down 37 basis points YoY and 11 basis points QoQ.

Credit costs are projected to rise to 42 bps from 20 bps in the previous quarter. As a sign of sustained credit growth momentum, advances are predicted to climb 10.9% YoY and 1.3% quarter on quarter to reach Rs 10.91 lakh crore.

As for the Punjab National Bank, Shri. D. Anandan has recently been appointed as a Government of India Nominee Director on the Board, effective July 24, 2025. As an Additional Secretary in the Department of Expenditure, Ministry of Finance, Government of India, Shri. D. Anandan is a 2000 batch Indian Administrative Service (IAS) officer from the Sikkim Cadre.

In addition to having a Master's degree in Commerce, Shri. D. Anandan is a certified cost and management accountant with extensive expertise in both policymaking and implementing government schemes and programs.

PNB Target Price

"PNB has shown renewed interest after consolidating in a range between ₹105 and ₹112. The stock is now near the upper end of this zone, with immediate resistance at ₹112.50; a breakout here may push it toward ₹118 in the short term. Key support rests near ₹105, and a breakdown could result in a retest of ₹100. Price action reflects improving momentum and potential base formation. Traders might consider accumulating on dips toward ₹107 with a stop-loss below ₹105, while a sustained close above ₹112.50 could trigger bullish momentum in the short term," commented Riyank Arora, technical analyst at Mehta Equities.

Disclaimer

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