Punjab National Bank (PNB) Q2 25/26 earnings summary

Executive summary

• Gross business reached INR 27.8 trillion as of September 2025, up 10.6% year-over-year, with deposits at INR 16.17 trillion (+10.9%) and advances at INR 11.7 trillion (+10.1%).

• Net profit for Q2 FY26 rose 14% year-over-year to ₹4,904 crore, with operating profit up 5.46% YoY at ₹7,227 crore.

• CASA ratio improved to 37.29%, with 2.76 million new CASA accounts and INR 18,200 crore in balances added in H1 FY26.

• RAM advances (retail, agriculture, MSME) now comprise 56.8% of domestic advances, up from 55.8% a year ago.

• Digital transactions account for 95% of total, with significant growth in UPI and WhatsApp banking users.

Financial highlights

• Standalone net profit for Q2 FY26 was ₹4,903.73 crore, up from ₹4,303.46 crore in Q2 FY25.

• Operating profit for Q2 FY26 was INR 7,227 crore, up 5.46% year-over-year.

• EPS (not annualized) for Q2 FY26 was 4.27, up from 3.90 in Q2 FY25.

• Cost-to-income ratio improved to 51.20% from 54.58% year-over-year.

• Treasury income remained strong at around INR 1,800 crore per quarter.

Outlook and guidance

• Credit growth guidance maintained at 11–12% for FY26, with a strong sanction pipeline of INR 1.78 trillion.

• NIM expected to improve by 5 bps in Q3 and 10+ bps in Q4 as deposit repricing benefits materialize.

• ROA target for FY26 is around 1.10%, with further improvement expected in FY27.

• Gross NPA guidance for FY26 is below 3%, and net NPA below 0.35%.

• Recovery guidance for FY26 is INR 16,000 crore, with Q3 expected at INR 4,500 crore.