New Delhi: State-owned Punjab National Bank (PNB) on Friday reported a 13 percent year-on-year rise in standalone net profit to Rs 5,532 crore for the second quarter ended September 30, 2026, aided by higher interest income, improved asset quality and a sharp decline in provisions.
The country’s second-largest public sector bank had posted a net profit of Rs 4,904 crore in the corresponding quarter of the previous financial year.
Follow The PSUWatch Channel on Whatsapp
According to its regulatory filing, PNB’s total income increased to Rs 38,185 crore during the July-September quarter of FY27, compared with Rs 36,214 crore a year earlier.
Interest income grew 8.5 percent to Rs 34,585 crore from Rs 31,872 crore in the year-ago quarter. Operating profit rose 4.2 percent to Rs 7,532 crore against Rs 7,227 crore in the corresponding period last year.
The bank reported a further improvement in asset quality, with gross non-performing assets (NPAs) declining to 2.55 percent of gross advances as of September 30, 2026, from 3.45 percent a year earlier.
Net NPAs also eased to 0.25 percent from 0.36 percent during the same period, reflecting a reduction in stressed assets.
Provisions and contingencies dropped sharply to Rs 97 crore from Rs 643 crore in the September quarter of FY26, providing additional support to the bank’s bottom line.
PNB’s provision coverage ratio improved to 97.32 percent at the end of September 2026, compared with 96.91 percent a year ago.
The bank’s capital adequacy position also strengthened, with its Capital to Risk-Weighted Assets Ratio (CRAR) rising to 17.95 percent from 17.19 percent at the end of September 2025.
Follow PSU Watch on LinkedIN
The quarterly performance indicates continued improvement in PNB’s balance sheet, although operating profit growth remained relatively modest compared with the increase in net profit, highlighting the significant contribution of lower provisions to overall earnings.
(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.)