PNB Q1 net profit soars 214% to Rs 5,253 crore on lower provision for income tax

PSU lender Punjab National Bank (PNB) on Saturday reported a 213.60 per cent YoY jump in net profit to Rs 5,253 crore for the June quarter, compared with Rs 1,675 crore in the corresponding quarter last year. The sharp increase was largely due to a lower income tax provision. The lender 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 tax provision following its transition to the new tax regime.

The state-run bank, which has 10,359 domestic branches and two international branches, said its Net Interest Income (NII) rose 2.1 per cent YoY to Rs 10,798 crore for the quarter, with net interest margin for the quarter improving sequentially to 2.50 per cent in the June quarter from 2.47 per cent in the March quarter.
The gross non performing asset (NPA) ratio improved 17 basis points sequentially to 2.78 per cent. It was down 100 basis points from 3.78 per cent in the year-ago quarter.

PNB said its interest income on advances rose 6.4 per cent to Rs 23,061 Crore in the June quarter from Rs 21,664 crore in the year-ago quarter. Fee based income of the bank came in at Rs 2,339 crore for the quarter, up 19.6 per cent sequentially, but down on YoY basis.

In a filing to BSE, PNB said its net profit per employee stands at Rs 21.71 lakhs while its profit per branch stands at Rs 203.37 lakhs (Rs 2.03 crore). 

PNB said its global net interest margin (NIM) improved QoQ to 2.50 per cent in the June quarter from 2.47 per cent in Q4FY26. The bank's Capital to Risk-Weighted Assets Ratio (CRAR) rose to 18.13 per cent as on June 30, 2026, from 17.50 per cent a year earlier, while tangible book value per share increased to Rs 108.58 from Rs 92.64.

Global business grew 10.2 per cent YoY to Rs 29.98 lakh crore as on June 30, 2026, driven by an 8.5 per cent YoY rise in global deposits to Rs 17.24 lakh crore and a 12.7 per cent YoY increase in global advances to Rs 12,73,132 crore. The credit-deposit (CD) ratio improved to 73.8 per cent from 71.1 per cent a year earlier.