Punjab National Bank (PNB) — Financial Results | 5 August 2025

PNB reported net profit of Rs.1,675 crores in Q1 FY26, down from previous periods due to one-time tax provisions under the new tax regime, despite strong revenue growth and improved asset quality. Global gross business rose 11.6% YoY to Rs.27.19 trillion, with deposits up 12.9% and advances up 9.8%. Operating profit reached Rs.7,081 crores (+7.6% YoY), and profit before tax grew 28.3% YoY to Rs.6,758 crores. GNPA ratio improved to 3.78% from 4.98%, and net NPA stood at 0.38%. The bank added 26.31 lakh new CASA accounts, targeting a CD ratio of 73% by year-end. Treasury income grew significantly, and digital transactions now account for over 95% of total activity. Management expects NIM to stabilize at 2.80%-2.90% for the fiscal year, with credit growth on track at 11%-12%. Operating expenses are projected at Rs.8,000-8,200 crores annually, excluding a one-time Rs.850 crore PSLC cost. The shift to the new tax regime is expected to enhance ROA by ~16 bps and sustainably improve profitability. Key investor concerns around elevated OPEX and slippages in MSME lending — largely due to Mudra loans with 75% government guarantee — were addressed with confidence in recovery trends and stable margins.