Punjab National Bank (PNB) Q1 25/26 earnings summary

Executive summary

• Global gross business reached INR 27.19 trillion as of June 2025, up 11.6% YoY, with deposits at INR 15.89 trillion (+12.9% YoY) and advances at INR 11.30 trillion (+9.8% YoY).

• Operating profit for Q1 FY26 hit INR 7,081 crore, up 7.6% YoY; profit before tax was INR 6,758 crore (+28.3% YoY).

• Net profit declined to INR 1,675 crore, impacted by a one-time tax provision from migration to the new tax regime.

• Asset quality improved, with GNPA at 3.78% (down from 4.98% YoY) and net NPA at 0.38% (down from 0.60% YoY); PCR at 96.88%.

• Unaudited standalone and consolidated results for Q1 FY26 were approved, reflecting group performance and recent RRB amalgamations.

Financial highlights

• Net interest income was INR 10,578 crore (+1% YoY), with total income at INR 37,232 crore (+15.7% YoY) and total expenses at INR 30,150 crore (+17.8% YoY).

• Domestic NIM at 2.84% and global NIM at 2.70%, below guidance but expected to improve from Q3.

• CASA ratio at 37%, with 3.6% YoY growth in CASA deposits; CASA share expected to remain above 38%.

• Earnings per share (not annualized) was INR 1.46; tangible book value per share rose to 92.64 from 73.11 YoY.

• Treasury profits and other income surged, with segment income at INR 3,415 crore and other income up 45.9% YoY.

Outlook and guidance

• NIM guidance maintained at 2.8%-2.9%, with improvement expected from Q3 as deposit repricing takes effect.

• Credit growth guidance remains at 11%-12%, with a strong pipeline of sanctioned but undisbursed loans.

• Recovery target for FY26 is INR 16,000 crore, with Q1 recovery at INR 3,356 crore.

• Credit cost expected to remain well below 0.5% for the year.

• Migration to the new tax regime will save about INR 700 crore per quarter in tax, boosting net profit and ROE.