Gross non-performing assets improved substantially to 2.95% from 3.95% a year ago, while net NPAs declined to 0.29%, reflecting continued balance sheet strengthening. The reduction in provisions to ₹424 crore from ₹1,150 crore in the previous quarter played a key role in boosting profitability.
| Photo Credit:
Karma Bhutia
Punjab National Bank on Tuesday reported a net profit of ₹5,225 crore during three month period (Q4 of FY26) ending March 31, 2026. It is 14 per cent higher than ₹4,567 crore of corresponding quarter of FY25.
The bank has recommended dividend of ₹3 per equity share. This is 150 per cent of face value of ₹2 each for FY26. The record date for this would be June 13. Meanwhile, share of the bank closed at ₹107.90, down nearly 1 per cent on Tuesday.
According to the Bank’s regulatory filing, Net Interest Income (NII for the quarter declined 3.5 per cent to ₹10,380 crore as compared to ₹10,757 crore. In terms of asset quality, Gross Non Performing Assets (GNPA) stood at 2.95 per cent as against 3.95 per cent while net NPAs stood at 0.29 per cent from 0.4 per cent in corresponding quarter of FY25.
Provisions for the quarter saw a significant decline to ₹424 crore from ₹1,150 crore during the previous quarter and this seems to have contributed in net profit despite fall in NII or core income which declined 3.5 per cent to ₹10,380 crore compared to ₹10,757 crore during the same quarter last year.
PNB’s total global business increased 10.79 per cent from the previous year to ₹29.72 lakh crore. Its total global deposits were up 9.25 per cent from the previous year to ₹17.1 lakh crore while its gross advances increased 12.97 per cent to ₹12.61 lakh crore.
On the domestic front, PNB’s total business increased 10.39 per cent to ₹28.45 lakh crore. Domestic deposits were up 9.14 per cent at ₹16.49 lakh crore while gross advances jumped 12.17 per cent to ₹11.95 lakh crore.
The lender’s CASA ratio improved to 73.7 per cent in the fourth quarter from 71.28 per cent in the year-ago period.
Management’s speech
Addressing a virtual press conference, Managing Director (MD) and Chief Executive Officer (CEO) of PNB, Ashok Chandra said that bank achieved all the guidance for FY26 except those for CASA (Current Account-Saving Account) and Net Interest Margin. “We gave a guidance of 11-12 per cent for credit growth and 9-10 per cent for deposit growth, while actuals have been 12.7 per cent and 9.2 per cent respectively. Now for FY27, the guidance for advances is 12-13 per cent, while for deposit it is same as of FY26, ”he said.
When asked about plan for fund raising during current fiscal, he answered in negative as capital position is strong. He also highlighted that for FY26, there was approval for raising ₹4,000 crore each through tier I and tier II bonds, however, it was not required.
Chandra informed that during the current fiscal, there is plan to open 250 branches mainly in southern and western part of the country. As on 31st March 2026, the Bank has 10,324 domestic branches and two international branches. Out of the total number of branches, 63.4 per cent are in Rural & Semi-Urban areas.
Published on May 5, 2026
