PNB Projects Net Interest Margin Rise of 15 BPS by March 2026

Punjab National Bank (PNB) is optimistic about its financial trajectory, forecasting a 15 BPS increase in its net interest margin (NIM) by March 2026. The projection follows the bank’s steady performance in the second quarter and signals a stronger profitability outlook in the coming months.

PNB’s Margin Expansion Outlook Through March 2026

PNB anticipates its NIM will improve by 15 BPS over the next 2 quarters. The bank attributed this expected margin growth to enhanced credit offtake, better asset quality, and a minor shift in its loan mix favouring high-yield segments. The focus on repricing loans and controlling deposit costs will also contribute to margin improvement.

Loan Growth and Asset Quality Management

PNB continues to see consistent expansion in its loan book, particularly in the retail and MSME sectors. The bank is also experiencing lower slippages and improved recovery from non-performing assets, which should help preserve earnings and support better margins moving forward.

Cost Management and Deposit Strategy

Efforts to reduce the cost of funds are expected to support NIM growth. PNB’s deposit growth strategy is shifting towards lower-cost CASA (current account savings account) deposits to improve average yields. This change in composition aims to cushion the impact of any interest rate fluctuations in the future.

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Technological Upgrades and Business Optimisation

The bank has intensified its digital initiatives to streamline processes and enhance customer acquisition. The improved efficiency across its retail and digital channels is expected to bring operational benefits that will reflect in the NIM figures over time.

Punjab National Bank Share Price Performance

On October 20, 2025, Punjab National Bank share price opened at ₹114.30 on NSE, above the previous close of ₹113.70. During the day, it surged to ₹115.70 and dipped to ₹114.25. The stock is trading at ₹114.85 as of 9:38 AM. The stock registered a moderate gain of 1.01%.

Over the past week, it has declined by 0.36%, over the past month, it has moved up by 1.37%, and over the past 3 months, it has moved up by 2.00%.

Conclusion

With an expected 15 BPS rise in its NIM by March 2026, PNB demonstrates a positive outlook on its core profitability. Continued focus on quality credit growth, deposit management, and cost efficiency will be key factors supporting this trajectory.

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