Punjab National Bank’s (PNB) net profit has surged three-fold in the quarter ended June 30, 2026, to Rs 5,253 crore from Rs 1,675 crore a year ago on back of lower tax expense and consistent performance in core parameters.

“We have been consistently posting a net profit of around Rs 5,000 crore for the last few quarters. But in the first quarter of the previous fiscal, we had an outgo of Rs 3,200 crore as we migrated to the new income-tax regime,” said Ashok Chandra, MD & CEO, Punjab National Bank.

In Q3 and Q4 of the previous fiscal, the bank had posted a net profit of Rs 5,100 crore and Rs 5,225 crore, respectively. 

The bank’s tax expense at the end of the June quarter was Rs 1,725 crore compared to Rs 5,083 crore a year ago.

The state-run lender’s net interest income (NII) rose grew 2.1% y-o-y to Rs 10,798 crore during the quarter.

Domestic net interest margin (NIM) declined by 20 basis points (bps) to 2.64% from 2.84% in the earlier year, but improved by 3 bps from the preceding quarter. 

During the period, the bank’s operating profit grew 6.2% y-o-y to Rs 7,519 crore.

Global advances rose 12.7% y-o-y to Rs 12.73 lakh crore in the June quarter.

The domestic loan book grew 11.6% to Rs 12.04 lakh crore as on June 30, 2026. The RAM (retail, agriculture and MSME) segment grew 12.8% y-o-y to Rs 6.88 lakh crore, while corporate loans rose 10% to Rs 5.15 lakh crore. The RAM segment accounted for 57.2% of the bank’s domestic credit mix, up from 56.6% a year ago. Corporate loans made up the remaining 42.8%.

Total deposits stood at Rs 17.25 lakh crore as on June 30, 2026, up 8.5% y-o-y. Out of this, domestic deposits stood at Rs 16.70 lakh crore, up 8.6%. The low-cost CASA (current account savings account) fell to 36.7% as on June-end 2026, from 37% in the same period last year.

The credit-to-deposit (CD) ratio was at 73.8% from 71.1%.

The bank’s asset quality improved, with gross non-performing assets (NPAs) declining to 2.78% of gross advances, from 3.78% a year ago and 2.95% in the preceding quarter. Net NPAs declined by 10 bps y-o-y to 0.28%.

In absolute terms, gross non-performing assets (NPA) declined by Rs 7,292 crore to Rs 35,381 crore from Rs 42,673 crore. Net NPAs reduced by Rs 699 crore to Rs 3,433 crore from Rs 4,132 crore as on June 2025.

The slippage ratio declined to 0.68% from 0.71%. Fresh slippages increased to Rs 2,080 crore during the quarter compared to Rs 1,886 crore in the same period last year.

Provisions for bad loans rose to Rs 792 crore in June 2026, up from Rs 396 crore a year ago.

The bank’s return on assets increased by 67 bps to 1.04%.

Capital adequacy ratio improved to 18.13% from 17.5% during this period.