Punjab National Bank (PNB) reported its Q1 FY26 results with a sharp decline in net profit, posting ₹1,675 crore for the quarter ended June 30, 2025, down 49% year-on-year (YoY) from ₹3,252 crore in the corresponding quarter last year. The decline was largely due to lower exceptional gains and higher provisioning base in Q1 FY25.
Despite the bottom-line drop, PNB’s operational metrics remained solid, with net interest income (NII) and asset quality showing notable improvement.
Key Highlights – Q1 FY26 (Standalone)
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Net Profit: ₹1,675 crore vs ₹3,252 crore YoY (▼49%)
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Net Interest Income (NII): ₹10,578 crore — slightly above street estimates
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Total Income: ₹37,232 crore vs ₹32,166 crore YoY
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Operating Profit (Pre-Provision): ₹7,081 crore vs ₹6,581 crore YoY
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Provisions: ₹3,231 crore vs ₹13,122 crore YoY
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Tax Expense: ₹5,083 crore vs ₹2,017 crore YoY
Asset Quality (QoQ Improvement)
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Gross NPA (GNPA): 3.78% vs 3.95% (Q4 FY25)
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Net NPA (NNPA): 0.38% vs 0.40% (Q4 FY25)
PNB’s interest earned rose to ₹31,963 crore in the June quarter, and total income expanded by 15.7% YoY, reflecting growth in core lending activities. Operating expenses, including employee costs of ₹5,164 crore and other operating costs of ₹3,600 crore, were largely stable.
The sequential improvement in asset quality metrics underlines the bank’s strengthening credit recovery and risk containment efforts.
Looking ahead, PNB’s focus remains on improving its return ratios, maintaining cost discipline, and strengthening its digital infrastructure to boost future growth.
