PNB Q2 FY26 Earnings Results: Profit Jumps 14% to ₹4,903 Crore on NPA Provision Write-Back

Punjab National Bank (PNB) posted a 14% year-on-year increase in net profit for Q2 FY26, reaching ₹4,903 crore. The growth was primarily due to a ₹639 crore write-back in Non-Performing Asset (NPA) provisions. Analysts had expected a profit of ₹4,419 crore, so the results exceeded estimates.

Interest Income and Margins

PNB’s net interest income (NII) slightly dipped 0.5% to ₹10,469 crore from ₹10,517 crore a year ago. The domestic net interest margin (NIM) fell to 2.72% from 3.06%, while the global NIM dropped to 2.60% from 2.92%. The bank expects margins to improve from Q3 FY26 onwards, following deposit repricing and CRR adjustments.

Asset Quality Improves

Gross NPAs reduced to 3.45% from 4.48% YoY, and net NPAs declined to 0.36% from 0.46%. The bank’s return on assets (RoA) improved to 1.05% from 1.02%.

PNB Q2 FY26 Earnings: Retail, Agriculture, and MSME (RAM) Growth

PNB’s CASA deposits grew 4.7% YoY to ₹5.83 lakh crore. Total retail credit rose 8.8% YoY to ₹2.72 lakh crore. Housing loans increased 13%, vehicle loans 31%, agriculture advances 13%, and MSME loans 18.6%. Overall RAM advances grew 12.7% to ₹6.35 lakh crore. The credit-deposit ratio improved to 72.33% from 71.09%.

Capital Adequacy and Tier-1 Ratios

The bank’s CRAR improved to 17.19% from 16.36%, Tier-1 capital increased to 14.41%, and CET-1 ratio stood at 12.75% as of September 2025.

Digital Banking Gains Momentum

Digital transactions surged 31% YoY to 3.13 billion. WhatsApp Banking users nearly doubled to 8.34 million. 95% of transactions are now digital, with every fifth loan disbursed via digital channels, strengthening customer experience and financial inclusion.

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PNB Share Price Movement

As of 20 October 2025, Punjab National Bank (NSE: PNB) share price were trading at ₹118.92, up ₹5.22 or 4.59% for the day. The stock opened at ₹114.30, touched a high of ₹119.09, and a low of ₹114.25. PNB has a market capitalisation of ₹1.37 lakh crore and a P/E ratio of 8.13. Its 52-week high is ₹119.09, while the 52-week low is ₹85.46. The bank offers a dividend yield of 2.44%, with a quarterly dividend of ₹0.73 per share.

Conclusion

PNB’s Q2 performance highlights strong recovery in asset quality, robust growth in retail and RAM loans, and significant progress in digital banking. The bank remains well-positioned to sustain growth and improve margins in the coming quarters.

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