New Delhi: State-owned Punjab National Bank (PNB) is aiming to enter the Rs 6,000-crore quarterly profit club after reporting its highest-ever quarterly net profit of Rs 5,532 crore in the September quarter of FY27.
PNB Managing Director and CEO Ashok Chandra said the bank has maintained consistent growth in operating profit, net earnings and other key financial indicators over the past four quarters, strengthening its confidence in sustaining profitability.
Follow The PSUWatch Channel on Whatsapp
In an interview with PTI, Chandra said the bank expects further improvement in operating earnings to support higher net profits over the coming quarters.
PNB reported a 13 percent year-on-year increase in net profit to Rs 5,532 crore for the quarter ended September 2026, supported by stronger core income and a reduction in bad loans.
The performance came despite a sharp decline in treasury income, which fell to Rs 753 crore from Rs 1,769 crore in the corresponding quarter last year.
Chandra said the bank absorbed treasury losses of around Rs 1,000 crore compared with the year-ago period while maintaining growth in operating profit.
"We are already at Rs 5,500 crore, and we are aiming to grow the operating profit, despite the treasury loss of around Rs 1,000 crore in this particular quarter compared to September 2025.
"Still, we have maintained the operating profit growth. I think just wait for a few quarters," he said, when asked about the timeline for achieving Rs 6,000 crore in quarterly net profit.
Highlighting the strength of PNB's underlying banking operations, Chandra said core operating profit, excluding treasury gains and recoveries, increased approximately 29 percent year-on-year during the September quarter.
This followed growth of 32-34 percent in the preceding quarter, indicating sustained momentum in the bank's core business.
According to Chandra, the consistent expansion in core operating earnings provides a stronger foundation for future profitability, reducing dependence on volatile treasury income.
PNB is also accelerating lending across its retail, agriculture and micro, small and medium enterprises (RAM) portfolio, alongside selective expansion in corporate credit.
The bank's retail loan portfolio is growing at more than 16 percent, while MSME advances are increasing by 19-20 percent. Agricultural lending has also registered growth exceeding 18 percent.
Chandra said festive-season demand could provide an additional boost to credit growth, with the bank expecting a further 1-2 percent increase in lending across retail, agriculture, MSME and corporate segments during the December quarter.
Follow PSU Watch on LinkedIN
While corporate loan sanctions are expanding at 17-18 percent, actual growth in the bank's corporate loan book remains lower at approximately 10-11 percent.
Chandra attributed the difference to PNB's strategy of reducing exposure to low-yielding corporate advances rather than pursuing loan growth at the expense of profitability.
The bank intends to continue this selective lending approach during the second half of FY27.
With improving asset quality, strong core earnings and growing demand across key lending segments, PNB is positioning itself for further profit growth, although the timing of achieving the Rs 6,000-crore quarterly milestone remains uncertain.
(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated.)