PNB Q1FY27 Results: Profit Climbs To ₹5,253 Crore As Bad Loan Ratio Falls Further, Share Rises

There was little change in the direction of Punjab National Bank's (PNB) financial performance during the June quarter, but the numbers were considerably stronger than a year ago.

The public sector undertaking (PSU) lender posted a net profit of ₹5,253 crore compared with ₹1,675 crore last year, while its asset quality continued to improve with another reduction in bad loans.

The bank also recorded steady business growth during the quarter, with both advances and deposits expanding compared with the same period last year.

PNB shares gained nearly 5% in early trade on Monday after the state-owned lender reported a strong rise in June quarter profit.

The stock climbed as much as 4.83% during the session. At around 10:40 am, it was trading 5.33% higher at ₹110.15 on the NSE. In the previous session, it had closed at ₹105.77.

Interest Income Improves Sequentially

During the April-June quarter, PNB’s total interest income came in at ₹37,231 crore, slightly higher than ₹36,319 crore reported in the March quarter.

Compared with the year-ago period, however, the figure remained almost unchanged. In the June quarter of FY26, the bank had reported interest income of ₹37,232 crore.

PNB's domestic net interest margin (NIM) stood at 2.64%. Although this was below the 2.84% recorded a year earlier, it edged up from 2.61% in the preceding quarter.

Asset Quality Continues To Improve

The lender reported another quarter of improvement in asset quality.

PNB’s gross non-performing asset rate (GNPA) at June 2026 quarter-end was 2.78%. This was an improvement over a year ago when it was as high as 3.78%. Further, this was a reduction of 17 basis points from the previous quarter, i.e., the March quarter.

The latest numbers indicate that the bank has continued to bring down stressed assets while maintaining better recoveries.

Loan Book And Deposits Grow

PNB's lending business maintained healthy momentum during the quarter.

Global advances increased 12.7% from a year ago to ₹12.73 lakh crore, compared with ₹11.29 lakh crore in the corresponding quarter last year.

On the liabilities side, the bank's deposit base rose 8.5% year-on-year to ₹17.24 lakh crore, reflecting continued growth in customer deposits.

RoA Moves Above 1%

The bank's return on assets (RoA) improved to 1.04% in the June quarter, up by 67 basis points from the same period last year.

PNB did not announce any dividend while releasing its first-quarter earnings.

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