Punjab National Bank Q1 net profit surges over three-fold to ₹5,200 crore

Punjab National Bank posted a net profit rise of more than three times, exceeding ₹5,200 crore in Q1FY27, thanks to stronger operations and better asset quality.
| Photo Credit:
Karma Bhutia

Thanks to reduced tax liability and tighter control of operating costs, Punjab National Bank announced on Saturday that its net profit jumped more than threefold, reaching an all‑time quarterly high of over ₹5,200 crore for the April‑June period (Q1) of FY 2026‑27. In the same quarter a year earlier, the profit was just over ₹1,600 crore.

The bank also said it intends to expand its footprint in South and West India during the ongoing fiscal year.

“Because we shifted from the old tax system to the new one, we set aside a one‑time provision of ₹3,200 crore in Q1 of last fiscal, which pulled the quarter’s profit down to just over ₹1,600 crore. Since that period, profits have hovered around or above ₹5,000 crore, and that trend carried into Q1 of the current fiscal,” said Ashok Chandra, MD & CEO of Punjab National Bank, during a virtual press briefing. Sequentially, profit growth was essentially flat.

The bank said its global net interest margin (NIM) rose to 2.50 % from 2.47 %. PNB’s net interest income (NII) increased just 2.1 % year‑on‑year to ₹10,798 crore, marking the highest level in the last six quarters. Overall business expanded by 10.2 % to ₹29.98 lakh crore, up from ₹27.19 lakh crore. The gross NPA ratio improved by 100 basis points to 2.78 % from 3.78 %, while the net NPA ratio edged down 10 basis points to 0.28 % from 0.38 %.

Provisions edged up sequentially to ₹541 crore from ₹424 crore in March. Fresh slippage for the quarter amounted to ₹2,080 crore, well below the ₹2,758 crore recorded in the March period.

FCNR (B) Deposits

Chandra noted that the bank has so far mobilised $425 million via FCNR (B) deposits. “We anticipate reaching roughly $2.5 billion by September 30, 2026, the deadline for the liberalised scheme,” he added. Earlier this week, Finance Minister Nirmala Sitharaman urged banks to step up outreach to the NRI community, launch new deposit products and keep the momentum going for the rest of the scheme period. On June 5, the RBI said it would cover the full hedging cost until September 30, 2026 for banks that raise fresh 3‑ to 5‑year FCNR (B) deposits.

Branch Expansion

The bank aims to open 250 branches this fiscal year, compared with 180 opened last year. “We intend to boost our footprint in South and West India. A new zonal office has been launched in Bengaluru and a circle office is now operating in Mangaluru,” Chandra stated.

Published on July 18, 2026