Financial Results for the Q2 & HY1 FY’26
Punjab National Bank, nation’s leading public sector bank, announced their Financial Results for the Q2 & HY1 FY’26.
The Bank’s Gross Global Business surpassed ₹ 27.86 Lakh Crore. Net Profit increased Y-o-Y by 14.0% to ₹4,904 Crore in Q2 FY’26 as against ₹4,303 Crore in Q2 FY’25. Operating Profit for Q2 FY’26 increased to ₹7,227 Crore and to ₹14,308 Crore for HY1FY’26 recording growth of 5.5% and 6.5%, respectively on YoY basis.
Return on Assets (RoA) improved to 1.05% in Q2 FY’26 from 1.02% in Q2 FY’25. Net Interest Income (NII) increased to ₹21,047 Crore in HY1FY’26 from ₹20,993 Crore in HY1FY’25 showing an improvement of 0.26% on Y-o-Y basis. Global Net Interest Margin (NIM) stands at 2.65% in HY1FY’26 and 2.60% in Q2 FY’26. GNPA ratio improved by 103 bps on Y-o-Y basis to 3.45% as on September’25 from 4.48% as on September’24. NNPA ratio improved by 10 bps on Y-o-Y basis to 0.36% as on September’25 from 0.46% as on September’24. Provision Coverage Ratio (including TWO) improved by 24 bps on Y-o-Y basis to 96.91% as on September’25 from 96.67% as on September’24. Global Business grew by 10.6% on Y-o-Y basis to ₹ 27,86,673 Crore as on September’25 from ₹25,20,246 Crore as on September’24.
Global Deposits registered a growth of 10.9% on Y-o-Y basis to ₹16,17,080 Crore as on September’25 from ₹14,58,342 Crore as on September’24. Global Advances increased by 10.1% on Y-o-Y basis to ₹ 11,69,592 Crore as on September’25 from ₹10,61,904 Crore as on September’24. RAM Advances grew by 12.7% on Y-o-Y basis to ₹ 6,35,417 Crore as on September’25 from ₹5,64,049 Crore as on September’24. CD Ratio improved by 124 bps to reach 72.33% in Q2 FY’26 as against 71.09% in Q1 FY’26. CRAR increased to 17.19% as on September’25 from 16.36% as on September’24 registering an improvement of 83 bps.
In terms of Business Performance in Key Parameters, Savings Deposits increased to ₹ 5,08,964 Crore registering a Y-o-Y growth of 4.2%. Current Deposits increased to ₹ 74,215 Crore registering a Y-o-Y growth of 9.0%. CASA Deposits increased to ₹ 5,83,178 Crore recording a Y-o-Y growth of 4.7%. CASA Share of the bank stands at 37.29% as on September’25 registering an improvement of 30 bps over June’25. Total Term Deposit witnessed a growth of 14.7% on Y-o-Y basis to ₹ 10,33,902 Crore as on September’25.
In terms of Advances, Total Retail credit increased by 8.8% Y-o-Y to ₹ 2,72,210 Crore as on September’25. The bank grew under Retail Advances excluding IBPC recording a Y-o-Y growth of 18.1%. Within Retail Advances excluding IBPC - Housing Loan grew by 12.9% Y-o-Y to ₹ 1,24,099 Crore and Vehicle loan posted a growth of 30.9% Y-o-Y to reach ₹ 29,512 Crore. Agriculture Advances grew by 13.0% on Y-o-Y basis to ₹1,83,987 Crore. MSME Advances increased Y-o-Y by 18.6% to ₹ 1,79,220 Crore.
As for Asset Quality, Gross Non-Performing Assets (GNPA) declined by ₹7,239 Crore to ₹40,343 Crore as on September’25 from ₹47,582 Crore as on September’24. Net Non-Performing Assets (NNPA) declined by ₹648 Crore to ₹4,026 Crore as on September’25 from ₹4,674 Crore as on September’24.
In terms of Profitability, Net Profit for Q2 FY’26 was at ₹4,904 Crore recording growth of 14.0% on YoY basis. Operating Profit for Q2 FY’26 was at ₹7,227 Crore and ₹14,308 Crore for HY1FY’26 recording growth of 5.46% and 6.51%, respectively on YoY basis. Net Interest Income for HY1FY’26 was at ₹21,047 Crore recording growth of 0.26% on YoY basis. Total Income for Q2 FY’26 was at ₹36,214 Crore and ₹73,445 Crore for HY1FY’26 recording a growth of 5.1% and 10.3%, respectively on YoY basis. Total Interest Income for Q2 FY’26 was at ₹31,872 Crore and ₹63,835 Crore for HY1FY’26 recording growth of 6.7% and 9.2%, respectively on YoY basis. Total Interest Expenses for Q2 FY’26 was at ₹21,403 Crore and ₹42,789 Crore for HY1FY’26, increased by 10.6% and 14.3%, respectively on YoY basis. Operating Expenses declined YoY by 7.9% to ₹7,584 Crore for Q2 FY’26 as compared to ₹8,235 Crore for Q2 FY’25.
As for Capital Adequacy, the CRAR increased to 17.19% on September’25 from 16.36% as on September’24 registering an improvement of 83 bps. Tier-I Capital improved to 14.41% as on September’25 from 13.63% as on September’24 (with CET-1 at 12.75% as on September’25 and AT-1 at 1.66% as on September’25) and Tier-II at 2.78% as on September’25.
In terms of Efficiency/Productivity Ratio, the Global Yield on Advances was at 7.90% in Q2 FY’26 and 8.02% in HY1 FY’26. Global Cost of Deposits increased YoY by 11 bps to 5.25% for HY1FY’26. Yield on Investment stood at 6.93% in Q2 FY’26 and 6.89% for HY1FY’26. Return on Assets (RoA) improved to 1.05% in Q2 FY’26 from 1.02% in Q2 FY’25. Return on Equity (RoE) stood at 17.95% in Q2 FY’26 and 12.63% in HY1FY’26. Business per employee improved to ₹27.62 Crore as on September’25 from ₹25.26 Crore as on September’24. Business per branch improved to ₹263.06 Crore as on September’25 from ₹240.72 Crore as on September’24. Net profit per employee improved to ₹19.97 lakh in Q2 FY’26 from ₹17.63 lakh in Q2 FY’25. Net profit per branch improved to ₹190.18 lakh in Q2 FY’26 from ₹168.03 lakh in Q2 FY’25.
In terms of Priority Sector Achievement, Priority Sector Advances exceeded the National Goal of 40% and stands at 42.29% of ANBC. Agriculture advances exceeded the National Goal of 18% and stands at 18.04% of ANBC. Credit to Small & Marginal Farmers exceeded the National Goal of 10% and stands at 10.56% of ANBC. Credit to Weaker Sections surpassed the National Goal of 12% and stands at 13.82% of ANBC. Credit to Micro Enterprises surpassed the National Goal of 7.50% and stands at 10.01% of ANBC.
In terms of Financial Inclusion, PMJDY accounts increased to 551 Lakhs as on September’25 from 526 Lakh as on September’24. Enrollments under PMJJBY, PMSBY & APY as on September’25 are as under:
(No. In Lacs)
As for the Bank’s Digital Progress and Initiatives, Number of Digital Transactions increased to 313 Crores in Q2 FY’26 from 239 Crores in Q2 FY’25 registering a growth of 31% on Y-o-Y basis. Number of WhatsApp Banking users increased to 83.4 Lakh as on 30.09.2025 from 43.5 Lakh as on 30.09.2024 registering a growth of 92% on Y-o-Y basis. Number of UPI Transactions through PNB One increased to 110 Lakhs in Q2 FY’26 from 72 lakhs in Q2 FY’25 registering a growth of 53% on YoY basis. Number of PNB One Biz (Corporate M-Banking App with 200+ features) users as on 30.09.2025 is 1.94 Lakh. Digital transactions accounted for approximately 95% of the Bank’s total transactions in Q2 FY’26. Total amount sanctioned and disbursed through Digital Lending Journeys crossed ₹7648 Crore in Q2 FY’26. Recognized by RBI & Government for innovative implementation, leading from the front on adoption and innovative use cases. New initiatives undertaken: ‘RAHEE’- Gen AI Powered Chatbot made live for Bank Employee, UIDAI face authentication for UPI PIN setup or reset, Five non-financial services now on Gen AI Chatbot, ‘PIHU’, and Spend Analyser functionality live on PNB One Mobile App & Retail IBS.
As on 30th September 2025, the Bank has 10,228 domestic branches and 2 International Branches. Out of total no. of branches, Bank has 63.3% branches in Rural & Semi-Urban areas. The bank also has 11,187 ATMs and 32,278 BCs as part of its distribution network making the total number of 53,693 touch points as on 30.09.2025.
During the quarter, the Bank garnered several prestigious awards and recognitions. The Bank won Silver at the 103rd SKOCH Awards 2025 under the BFSI category for the innovative PNB ONE Biz Corporate Banking App, and was recognized as a Happy Employer Brand at the Asia Pacific HRM Congress & Awards. At the 3rd ICC Emerging Asia Banking Awards 2025, the Bank was adjudged Winner for Best Bank in AI/ML Implementation and Runner-up for Best Bank. Additionally, on Aadhaar Day, UIDAI honoured the Bank with an award for its Outstanding Contribution to Aadhaar Authentication.
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