PNB Q1 FY26 Earnings Results: Profit Drops 49% to ₹1,675 Crore Due to Higher Taxes

Punjab National Bank (PNB) reported a net profit of ₹1,675 crore for the quarter ending June 2025, which is 49% lower than ₹3,251 crore in the same quarter last year. The drop in profit was mainly due to a sharp rise in tax expenses, which increased to ₹5,083 crore from ₹2,017 crore a year ago. In the previous quarter (Q4FY25), the bank had posted a profit of ₹4,567 crore.

PNB Q1 FY26 Earnings: Income and Interest Earnings Improve

Despite the fall in net profit, PNB’s total income rose 15.7% year-on-year (YoY) to ₹37,231 crore. Net interest income (NII), which is the difference between interest earned and interest paid, rose slightly by 1% to ₹10,578 crore compared to ₹10,468 crore in Q1FY25. Operating profit stood at ₹7,081 crore.

Strong Improvement in Asset Quality

PNB’s asset quality showed good improvement. Gross Non-Performing Assets (GNPA) fell to ₹42,673 crore, bringing the GNPA ratio down to 3.78% from 4.98% last year. Net NPAs dropped to ₹4,132 crore, with the Net NPA ratio improving to 0.38% from 0.60%. Provisions also declined to ₹396 crore from ₹792 crore in the same quarter last year.

Capital Adequacy Remains Strong

The bank maintained a healthy capital position with a Capital Adequacy Ratio of 17.50% under Basel-III norms and a Common Equity Tier-1 (CET-1) ratio of 12.95%.

About Punjab National Bank (PNB)

Punjab National Bank (PNB) is a public sector bank owned by the Government of India and headquartered in New Delhi. Established in May 1894, the bank had a widespread network of 10,189 branches and 11,822 ATMs across the country as of March 2025. PNB also has an international presence with a banking subsidiary in the United Kingdom and branches located in Hong Kong, Kowloon, Dubai, and Kabul.

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Punjab National Bank Share Price Movement

As of 2:46 PM IST on July 30, 2025, Punjab National Bank share price (NSE: PNB) was trading at ₹108.60, down ₹0.69 or 0.63% from the previous close. The stock opened at ₹109.55 and touched an intraday high of ₹111.15 and a low of ₹107.61. The market capitalisation of the bank stood at ₹1.25 lakh crore. It is trading at a price-to-earnings (P/E) ratio of 6.61 and offers a dividend yield of 2.67%. The stock’s 52-week high is ₹127.70, while the 52-week low is ₹85.46. The bank has declared a quarterly dividend amount of ₹0.72 per share.

Conclusion

While high tax expenses impacted PNB’s net profit in Q1FY26, the overall performance remains steady. Improved asset quality, stable margins, and strong capital position point to a positive outlook in the coming quarters.

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