Punjab National Bank has revised its FY26 guidance, projecting slower operating profit growth and a marginal uptick in credit costs. The state-run lender now expects operating profit growth at 8–9% in FY26 compared to 10–12% YoY growth in FY25. Credit cost is projected to remain below 0.5%, higher than the 0.19% recorded in FY25, while the slippage ratio is expected to stay below 1% compared to 0.73% in FY25.
Despite the moderation in guidance, the bank delivered strong Q4 results. Net profit surged 52% year-on-year to ₹4,567 crore, up from ₹3,010 crore in Q4 FY24. Net Interest Income (NII) rose 3.8% to ₹10,757 crore from ₹10,363 crore. Other income stood at ₹4,716 crore compared to ₹4,248 crore a year ago.
Asset quality improved notably, with Gross NPA falling to 3.85% from 4.09% sequentially, and Net NPA easing to 0.40% from 0.41%.
The bank’s board has also approved a fundraise of up to ₹8,000 crore through the issuance of Basel III-compliant bonds, signaling a strengthening of its capital position for future growth.
Highlights:
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Net Profit: ₹4,567 crore in Q4 FY25, up 52% YoY from ₹3,010 crore
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NII: ₹10,757 crore vs ₹10,363 crore YoY
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Other Income: ₹4,716 crore vs ₹4,248 crore YoY
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Gross NPA: 3.85% vs 4.09% QoQ
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Net NPA: 0.40% vs 0.41% QoQ
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Board Approval: Fundraise of up to ₹8,000 crore via Basel III bonds
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FY26 Guidance:
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Operating profit growth at 8–9% vs 10–12% YoY
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Credit cost below 0.5% vs 0.19% in FY25
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Slippage ratio below 1% vs 0.73% in FY25
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