Punjab National Bank (PNB) reported a strong financial performance in the second quarter of the 2026-27 fiscal year, with net profit rising by 12.8% year-on-year to ₹5,532 crore. This growth was supported by an improved net interest margin (NIM) and stable asset quality, which helped boost investor confidence and led to an 8% gain in the bank's shares.
- PNB's net interest margin improved by 8 basis points sequentially to 2.58%
- Standalone net profit increased to ₹5,532 crore in Q2 FY27
- Global loan advances grew 14.7% year-on-year and 5.3% quarter-on-quarter
- Asset quality remained stable with a gross slippage ratio of 0.8%
- Management expects further improvement in NIM and loan growth of 12–13%
What contributed to Punjab National Bank's profit increase in Q2 FY27?
PNB's net profit rose by 12.8% compared to the same quarter last year, reaching ₹5,532 crore. This was mainly due to a 10.8% year-on-year increase in net interest income (NII), which grew to ₹11,601 crore. The improvement in NII was driven by better loan yields and lower deposit costs, which helped increase the net interest margin to 2.58% from 2.5% in the previous quarter.
How did the bank's asset quality perform during this period?
Analysts from CLSA highlighted that PNB's asset quality remained stable, with a gross slippage ratio of 0.8%. Credit costs were near zero because the bank released standard asset provisioning that offset non-performing assets and floating-provision buffers. This stability contributed to maintaining a return on assets (RoA) above 1%.
What were the trends in loan growth and advances?
PNB's global advances increased by 14.7% year-on-year and 5.3% quarter-on-quarter, surpassing the bank's guided loan growth range of 12% to 13% for the fiscal year. This growth was supported by foreign currency non-resident (FCNR) funded overseas exposure, which made up 1.5% of the loan book. The bank's management reaffirmed their guidance for loan growth between 12% and 13% for FY27.
What is the outlook for Punjab National Bank according to analysts?
Analysts expect further improvement in PNB's net interest margin, projecting it to reach 2.6% to 2.7%. They also anticipate credit costs to remain below 40 basis points and the return on assets to stay above 1%. The bank's management has guided for continued loan growth and stable asset quality, which supports a positive outlook.
How did the stock perform in the market following the results?
Following the announcement, PNB's shares rose by 4.76% to ₹121.84 per equity share at around 2:59 PM on October 19, 2026. The stock has gained 5% over the past week and 4% over the past month, although it has declined by 2% year-to-date. The shares reached a 52-week high of ₹135.15 in January 2026 and a low of ₹98.50 in May 2026.
What is Punjab National Bank's market position as of October 2026?
As of October 19, 2026, Punjab National Bank has a total market capitalization of ₹1.40 lakh crore, reflecting its significant presence in the Indian banking sector.
