PNB Q2 Results: Net Profit Jumps 14% YoY To Rs 4,904 Cr, Asset Quality Strengthens

Today, Punjab National Bank (PNB) released its financial results for the September 2025 quarter. According to the bank, its net profit climbed 14.0% YoY to Rs 4,904 crore in Q2 FY'26 from Rs 4,303 crore in Q2 FY'25. Operating Profit for Q2 FY'26 was Rs 7,227 Crore, while for HY1FY'26 it was Rs 14,308 Crore, indicating YoY growths of 5.46% and 6.51%, respectively. For HY1FY'26, PNB's net interest income was Rs 21,047 crore, representing a 0.26% YoY growth.

PNB reported that its total income for the second quarter of FY'26 was Rs 36,214 Crore and Rs 73,445 Crore for HY1FY'26, representing growth of 5.1% and 10.3%, respectively, on a year-on-year basis. Meanwhile, its total interest income for the second quarter of FY'26 was Rs 31,872 Crore and Rs 63,835 Crore for HY1FY'26, representing growth of 6.7% and 9.2%, respectively.

According to the bank, its total interest expenses for the second quarter of FY'26 were Rs 21,403 crore, while for the first quarter of FY'26, they were Rs 42,789 crore. These figures represented YoY growth of 10.6% and 14.3%, respectively. Compared to Rs 8,235 Crore for Q2 FY'25, operating expenses dropped 7.9% YoY to Rs 7,584 Crore for Q2 FY'26.
In Q2 FY'26, PNB reported that its Return on Equity (RoE) was 17.95%, up from 12.63% in HY1FY'26, and that its Return on Assets (RoA) had increased to 1.05% from 1.02% in Q2 FY'25.

While PNB's Net Non-Performing Assets (NNPA) declined by Rs 648 Crore to Rs 4,026 Crore as of September 25 from Rs 4,674 Crore as of September 24, its Gross Non-Performing Assets (GNPA) dropped by Rs 7,239 Crore to Rs 40,343 Crore as of September 25 from Rs 47,582 Crore as of September 24.

PNB said that its current deposits grew to Rs 74,215 Crore in Q2FY26, representing a Y-o-Y rise of 9.0%, while its savings deposits climbed to Rs 5,08,964 Crore, representing a Y-o-Y growth of 4.2%. CASA deposits climbed to Rs 5,83,178 Crore, representing a 4.7% year-on-year rise, while the bank's CASA share was at 37.29% as of September 25, representing a 30 basis point improvement over June 25. During the quarter under review, total term deposits increased 14.7% year on year to Rs 10,33,902 crore.
In terms of advances, PNB's total retail credit increased by 8.8% Y-o-Y to Rs 2,72,210 Crore as on September'25.

The bank has two international branches and 10,228 domestic branches as of September 30, 2025. The bank has 63.3% of its branches in rural and semi-urban regions out of its total number. As of September 30, 2025, the bank's distribution network included 32,278 BCs and 11,187 ATMs, for a total of 53,693 touch points.