Punjab National Bank (PNB) saw a significant rise in its net profit for the second quarter of the financial year 2027, with a 13% increase compared to the same period last year. The bank's net interest income (NII) grew to ₹11,601 crore year-on-year, reflecting strong financial performance and improved operational efficiency.
- Net interest margin (NIM) improved to 2.58% in Q2 FY27 from 2.5% in the previous quarter.
- Net interest income rose 11% year-on-year to ₹11,601 crore.
- Operating profit increased 4.2% year-on-year to ₹7,532 crore.
- Gross non-performing assets (NPA) ratio improved to 2.55% from 2.78% sequentially.
- Net NPA ratio decreased to 0.25% from 0.28% quarter-on-quarter.
- Provision coverage ratio increased to 97.32% year-on-year.
- Deposits and advances showed healthy growth across segments.
What was Punjab National Bank's net interest margin in Q2 FY27?
PNB reported a net interest margin (NIM) of 2.58% for the second quarter of FY27. This was an improvement from 2.5% in the previous quarter, indicating better profitability from the bank's lending and investment activities.
How did the bank's net interest income perform?
The net interest income for Q2 FY27 rose by 11% year-on-year, reaching ₹11,601 crore compared to ₹10,469 crore in the same quarter of the previous fiscal year. This increase reflects higher earnings from the bank's core lending operations.
What changes occurred in Punjab National Bank's asset quality?
PNB's asset quality showed improvement during the quarter. The gross non-performing assets (NPA) ratio decreased to 2.55% from 2.78% on a sequential basis. Similarly, the net NPA ratio improved marginally to 0.25% from 0.28% quarter-on-quarter. These changes suggest better management of loan defaults and recoveries.
How did provisions and slippage ratios change?
The provision coverage ratio, including technical write-offs, improved by 41 basis points year-on-year to 97.32%. This indicates that the bank has set aside sufficient funds to cover potential loan losses. The slippage ratio, which measures new NPAs during the quarter, was 0.77%, slightly higher than 0.71% in the previous year.
What growth was seen in deposits and advances?
PNB's savings deposits increased by 6.7% annually to ₹5,42,893 crore, while current deposits rose 12% to ₹83,053 crore as of September 2026. The current account savings account (CASA) deposits grew 7.3% year-on-year to ₹6,25,945 crore, accounting for 36.6% of total deposits.
Retail advances, excluding inter-bank participation certificates, grew 16.3% annually. Housing loans increased 14.3% to ₹1,41,836 crore, and vehicle loans surged 29.6% to ₹38,234 crore. Advances in agriculture, a priority sector, rose 18.1% to ₹1,71,156 crore, while loans to micro, small, and medium enterprises (MSME) grew 19.8% to ₹2,14,619 crore.
How did Punjab National Bank's overall business perform?
The bank's global net interest margin improved to 2.58% quarter-on-quarter. Its global business grew 11.9% year-on-year to ₹31,18,434 crore as of September 2026. Global deposits increased 9.9% to ₹17,77,240 crore, and global advances surged 14.7% to ₹13,41,194 crore compared to the previous year.
What was the market response to PNB's Q2 FY27 results?
Following the earnings announcement, Punjab National Bank's shares closed at ₹116.30 on the National Stock Exchange, up 1.09%. The bank's total market capitalization stood at ₹1.34 lakh crore as of October 16, 2026.
