Punjab National Bank Q3 FY26 results show improving profitability and asset quality

Pun­jab National Bank reported steady gains in profitability and asset quality for Q3 FY26 and 9MFY26, with higher net profit, better return ratios and a cleaner loan book. The lender also expanded its global business and lending portfolio, supported by stable funding, while keeping operating costs relatively contained during the period ended 31 December 2025.

Net profit for Q3 FY26 rose 13.1% year on year to Rs 5,100 crore, compared with Rs 4,508 crore in Q3 FY25, driven by stronger core operations. Operating profit for the quarter increased 13.0% to Rs 7,481 crore from Rs 6,621 crore, reflecting improved income generation and controlled expenditure across key business segments.

Return on Assets during Q3 FY26 improved to 1.06%, versus 1.03% in the same quarter of the previous financial year, indicating better utilisation of the balance sheet. Earnings per share climbed 13.27% year on year to Rs 4.44, compared with Rs 3.92, while book value per share advanced 11.83% to Rs 114.09 from Rs 102.02.

For the first nine months of FY26, Punjab National Bank posted operating profit of Rs 21,789 crore and net profit of Rs 11,679 crore. Total income for 9MFY26 stood at Rs 1,10,698 crore, while income for Q3 FY26 reached Rs 37,253 crore, marking year-on-year growth of 7.2% and 9.2% respectively.

Interest income remained the core earnings driver for Punjab National Bank in the financial results period. Total interest income in Q3 FY26 rose 2.8% year on year to Rs 32,231 crore, while for 9MFY26 it increased 7.0% to Rs 96,066 crore. Non-interest income showed stronger momentum, supporting overall revenue expansion.

Metric	Q3 FY26	Q3 FY25	9MFY26
Net Profit (Rs crore)	5,100	4,508	11,679
Operating Profit (Rs crore)	7,481	6,621	21,789
Total Income (Rs crore)	37,253	34,119	1,10,698

Non-interest income for Punjab National Bank in Q3 FY26 reached Rs 5,022 crore, up 47.2% year on year, providing a strong boost to the financial results. For 9MFY26, non-interest income stood at Rs 14,632 crore, reflecting 26.2% growth, helped by higher fee-based income and other non-core revenue streams.

Total interest expenses increased but remained manageable for Punjab National Bank during the financial results period. Interest costs for Q3 FY26 rose 6.8% year on year to Rs 21,698 crore, while for 9MFY26 they grew 11.7% to Rs 64,487 crore. Operating expenses increased modestly, indicating some efficiency gains despite business expansion.

Operating expenses for Q3 FY26 stood at Rs 8,074 crore, an increase of 3.2% year on year, while for 9MFY26 they were Rs 24,422 crore, up 3.6%. Despite these rises, Punjab National Bank maintained reasonable cost discipline, as operating profit grew faster than expenses, reflecting better cost-to-income dynamics across the financial results.

Asset quality metrics showed clear improvement as of December 2025. Gross Non-Performing Assets fell by Rs 6,100 crore year on year, from Rs 45,414 crore in December 2024 to Rs 39,314 crore in December 2025. This decline pointed to lower fresh slippages, stronger recoveries and more stringent monitoring of stressed accounts.

Asset Quality Indicator	December 2025	December 2024
Gross NPA Amount (Rs crore)	39,314	45,414
Net NPA Amount (Rs crore)	3,834	4,437
Gross NPA Ratio (%)	3.19	4.09
Net NPA Ratio (%)	0.32	0.41

The Gross NPA ratio of Punjab National Bank declined to 3.19% in December 2025 from 4.09% a year earlier, a reduction of 90 basis points, signalling healthier asset quality in the financial results. Net NPA ratio improved to 0.32% from 0.41%, while Net NPAs in value terms dropped by Rs 603 crore to Rs 3,834 crore.

The Provision Coverage Ratio, including technical write-offs, increased slightly to 96.99% in December 2025 from 96.77% in December 2024. This high coverage level provides a substantial buffer against potential loan losses, reflecting a conservative provisioning stance and further reinforcing the balance sheet position of Punjab National Bank in the financial results period.

Business growth, advances and network reach in Punjab National Bank financial results

Global business of Punjab National Bank expanded 9.5% year on year to Rs 28,91,528 crore as of December 2025, compared with Rs 26,39,991 crore in December 2024, underscoring broader franchise growth in the financial results. Global deposits increased 8.5% to Rs 16.60 lakh crore from Rs 15.30 lakh crore, supporting lending activity through a stable liability base.

Global advances of Punjab National Bank grew 10.9% year on year to Rs 12.31 lakh crore in December 2025, from Rs 11.10 lakh crore. Within this, RAM advances reached Rs 6.62 lakh crore, up 11.0% from Rs 5.96 lakh crore, highlighting sustained focus on retail, agriculture and MSME segments during the financial results period.

The branch and delivery network remained extensive. Punjab National Bank operated 10,261 domestic branches and two international branches as of 31 December 2025, with 63.3% of branches located in rural and semi-urban areas. The distribution network included 11,109 ATMs and 32,809 BCs, giving a total of 54,179 touch points in the financial results snapshot.

Pun­jab National Bank entered the final quarter of FY26 with higher earnings, stronger capital accretion through an improved book value, and better asset quality indicators. Growth in advances and deposits, alongside stable operating metrics, suggests that the bank maintained a balanced approach between expansion, profitability and risk management over the reported financial results period.