Punjab National Bank (PNB) investor relations material

Executive summary

• Delivered broad-based, sustainable performance in FY 2026, meeting or exceeding most guidance parameters except for CASA ratios and margins, which were impacted by liquidity and interest rate dynamics.

• Net profit for Q4 FY26 reached ₹5,225 crore, up 14.4% YoY, with ROA at 1.06% and operating profit at ₹7,500 crore, up 10.7% YoY.

• Global business grew 10.7% YoY to ₹29.7 lakh crore, with advances up 12.7% and deposits up 9.2% YoY.

• Focused on retail, agriculture, and MSME segments, with 144 new branches added and 250 more planned, especially in southern and western regions.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2026 were approved, with a recommended dividend of ₹3.00 per equity share (150% of face value) for FY 2025-26, subject to shareholder approval.

Financial highlights

• Gross global business reached INR 29.7 lakh crore, up 10.7% YoY; advances grew 12.7% YoY to INR 12.59 lakh crore, with core business (excluding IBPC) up 15% YoY.

• Retail book (ex-IBPC) grew 18.2%, MSME 19.9%, and agri priority sector 16.2% YoY.

• Net interest income for Q4 FY26 was ₹10,380 crore, down 3.5% YoY; other income fell 11.7% YoY.

• Operating profit for Q4 was INR 7,500 crore (up 10.7% YoY); net profit for Q4 was INR 5,225 crore (up 14.4% YoY).

• Full-year operating profit grew 9.2%, exceeding guidance.

Outlook and guidance

• NIM expected to improve QoQ, with global NIM guided at 2.6%-2.7% for FY 2027.

• FY27 guidance: credit growth 12–13%, deposit growth 9–10%, GNPA below 3%, NNPA below 0.3%, PCR above 96%.

• Guidance for slippages ratio to remain below 1% in FY 2026 was achieved at 0.60%.

• Conservative NII growth guidance at 7% due to portfolio mix and deposit rate environment, with potential for revision after Q2.

• The Board recommended a dividend of ₹3 per share for FY26, reflecting confidence in sustained profitability.