State-owned Punjab National Bank (PNB) reported a healthy improvement in profitability during the third quarter of FY26, supported by steady growth in interest income, higher operating profit, and a continued decline in stressed assets.
According to a regulatory filing, PNB’s consolidated net profit rose 11.6% year-on-year to ₹5,189.79 crore in Q3FY26, compared to ₹4,648.60 crore in the corresponding quarter last year. On a sequential basis, profit increased 7.04% from ₹4,848.64 crore in Q2FY26.
Interest income and operating profit trend higher
PNB’s interest income grew 3.12% year-on-year to ₹32,889.23 crore in Q3FY26 from ₹31,894.80 crore in Q3FY25. Sequentially, interest income edged up from ₹32,512.76 crore in the previous quarter.
Operating profit before provisions and contingencies rose 13.8% year-on-year and 5.8% quarter-on-quarter to ₹7,570.32 crore, reflecting improved core operating performance and cost discipline.
Asset quality strengthens further
The bank reported a notable improvement in asset quality during the quarter. Net non-performing assets (NNPA) declined by ₹603 crore, or 13.6%, to ₹3,834 crore as of December 2025, compared with ₹4,437 crore a year earlier.
As a result, the NNPA ratio improved by 9 basis points year-on-year to 0.32% as of December 2025, from 0.41% in December 2024, indicating sustained stress resolution and better recoveries.
Deposits and advances register double-digit growth
PNB’s balance sheet continued to expand steadily. Global deposits increased 8.5% year-on-year to ₹16.60 trillion as of December 2025, compared with ₹15.30 trillion a year earlier.
Global advances rose 10.9% year-on-year to ₹12.31 trillion from ₹11.10 trillion over the same period. This pushed the bank’s credit-to-deposit (CD) ratio to 74.2%, up from 72.6% in December 2024, reflecting stronger credit deployment.
Outlook
With improving profitability, stable interest income growth, and a sustained decline in bad loans, PNB’s Q3FY26 performance underscores the broader recovery underway across public sector banks. The focus going forward will remain on maintaining asset quality gains while sustaining credit growth amid a competitive lending environment.
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