PNB Q1FY27 Results: Profit Triples To Rs 5,253 Crore On Lower Tax Provision; Asset Quality Strengthens

Profit and Core Earnings

PNB's net profit for the April-June 2026 quarter spiked to 213.6% YoY to Rs 5,253 crore, compared with Rs 1,675 crore in the same period last year.

According to the company, the sharp jump was mainly because of the lower tax outgo the bank provided Rs 1,725 crore towards income tax in Q1FY27, against Rs 5,083 crore in the year-ago quarter, when it had booked a one-time provision after its transition to the new tax regime.

Operating profit rose 6.2% YoY to Rs 7,519 crore. Net interest income (NII) increased just 2.1% YoY to Rs 10,798 crore, which means that while core interest income growth was flat, the bank's overall earnings were lifted mainly by the tax benefit and improved operating efficiency rather than balance sheet expansion alone.

PNB's Asset Quality

The banks' asset quality fairly improved during the quarter. The gross non-performing asset (GNPA) ratio improved to 2.78%, down 17 basis points sequentially from the March quarter and a sharp 100 basis points lower than 3.78% in the year-ago period.

Balance Sheet and Capital Position

As per the exchange filing, the Global advances grew 12.7% YoY to Rs 12.73 lakh crore and the bank's capital adequacy ratio improved to 18.13%, up from 17.50% a year earlier.

The bank has over 10,359 domestic branches and two international branches.

Ahead of the results, PNB had also flagged a shift in credit focus toward the RAM segment which is the Retail, Agriculture and MSME, which now constitutes over 54% of domestic advances, alongside board approval for a Rs 7,500 crore capital raise via QIP/FPO route to further improve its balance sheet.

PNB Share Price

Punjab National Bank shares on Friday closed 0.75% higher at Rs. 106.01 per share. However over the last six months the stock has fallen 17.21%