Punjab National Bank (PNB) on Wednesday reported a sharp 48 per cent drop in its standalone net profit for the quarter ended June 30, 2025. The state-owned bank posted a net profit of Rs 1,675 crore, down from Rs 3,252 crore in the same quarter last year.
Despite the decline in profit, total income rose to Rs 37,232 crore, up 15.75 per cent compared to Rs 32,166 crore in the corresponding period a year ago. Interest income also saw an increase, climbing to Rs 31,964 crore compared to Rs 28,556 crore in the same quarter last year.
Here are key highlights from the Q1FY26
Tax expenses more than double; operating profit rises
PNB’s operating profit improved to Rs 7,081 crore in Q1 FY26, up from Rs 6,581 crore in the year-ago period indicating a better performance in the bank’s core operations. One of the major factors behind the profit fall was the sharp jump in tax expenses. The bank reported tax outgo of Rs 5,083 crore in the quarter, more than double the Rs 2,017 crore it paid in the same period last year.
PNB’s Asset quality improves
The bank’s asset quality showed improvement in Q1FY26, as gross non-performing assets (NPAs) declined to 3.78 per cent of gross advances at the end of the June quarter, from 4.98 per cent a year ago. Net NPAs also fell to 0.38 per cent from 0.6 per cent during the same period last year.
Provisions and contingencies dropped significantly to Rs 323 crore during the June quarter. This is a steep fall compared to Rs 1,312 crore in the corresponding quarter last year.