Punjab National Bank Reports Strong Q2 FY26 Results with Healthy Profit and Robust Asset Quality
PNB reported strong Q2 FY26 standalone net profit of ₹490.37 Crore and consolidated net profit of ₹512.52 Crore. Asset quality remained robust with low net NPAs and high provisioning coverage, demonstrating prudent risk management.
This announcement provides a comprehensive update on the bank's financial performance, including key metrics like net profit, asset quality, capital adequacy, and provisioning, which are critical for investor evaluation and reflect the bank's overall health.
The bank reported a healthy net profit for the quarter, maintained strong asset quality with low net NPA ratios, and demonstrated robust provisioning coverage. Significant provisions against stressed assets and IBC accounts indicate prudent risk management.
* Punjab National Bank (PNB) filed its Integrated Financial Results (Standalone and Consolidated) for the quarter/half-year ended September 30, 2025. * The financial results were reviewed by the Audit Committee and approved by the Board of Directors on October 18, 2025. * Standalone Financial Highlights (Quarter ended September 30, 2025): * Net Profit: ₹490.37 Crore. * Gross Non-Performing Assets (NPAs): ₹40343.33 Crore, representing 3.45% of gross advances. * Net NPAs: ₹4025.75 Crore, representing 0.36% of net advances. * Common Equity Tier 1 (CET 1) Ratio: 17.75%. * Capital Adequacy Ratio (Basel-III): 19.96%. * Basic and Diluted Earnings Per Share (EPS) after extraordinary items: ₹1.66. * Consolidated Financial Highlights (Quarter ended September 30, 2025): * Net Profit: ₹512.52 Crore. * Gross Non-Performing Assets (NPAs): ₹44081.60 Crore, representing 3.95% of gross advances. * Net NPAs: ₹4290.55 Crore, representing 0.40% of net advances. * Common Equity Tier 1 (CET 1) Ratio: 17.01%. * Capital Adequacy Ratio (Basel-III): 19.43%. * Basic and Diluted Earnings Per Share (EPS) after extraordinary items: ₹1.72. * Key Provisions & Asset Quality: * Total provision for accounts under Insolvency & Bankruptcy Code (IBC) (RBI List 1 and List 2) stood at ₹6789.55 Crore (100% aggregate provision) as of September 30, 2025. * An additional provision of ₹2,080.36 Crore was held for stressed assets (13 accounts) as per RBI's Prudential Framework for Resolution of Stressed Assets as of September 30, 2025. * MSME restructured accounts totaled 2094 with an amount involved of ₹397.06 Crore as of September 30, 2025. * Under Resolution Framework 2.0 for COVID-19 related stress (MSMEs), 10971 accounts were restructured, involving ₹1240.68 Crore as of September 30, 2025. * The total exposure to standard accounts classified post-resolution plan for COVID-19 related stress (OTR 1.0 and 2.0) was ₹5385.15 Crore as of September 30, 2025. * The Bank held an additional provision of ₹117.24 Crore on standard accounts restructured under COVID-19 Resolution Frameworks 1.0 and 2.0. * A floating provision of ₹70 Crore was made during the quarter, bringing the total floating provision to ₹820 Crore as of September 30, 2025. * Provision for Unhedged Foreign Currency Exposure (UFCE) was ₹280.72 Crore as of September 30, 2025. * The Provisioning Coverage Ratio (including Technical Written off accounts) improved to 96.91% as of September 30, 2025. * Other Notable Items: * The Bank acquired ₹3106.19 Crore worth of non-defaulting loans through assignment during the quarter. * Five non-performing asset (NPA) accounts with an aggregate principal outstanding of ₹379.34 Crore were transferred to Asset Reconstruction Companies (ARCs). * A net unrealized amount of ₹30.37 Crore was credited to the Profit and Loss Account from Government-guaranteed Security Receipts (SRs). * During the quarter, the Bank redeemed / exercised call option for Basel III compliant Tier II Bonds amounting to ₹994.00 Crore. * Canara HSBC Life Insurance Company Limited ceased to be an Associate of the Bank effective October 17, 2025, following a reduction in the Bank's shareholding from 23% to 13% through an Offer For Sale-Initial Public Offering (OFS-IPO). * The Bank's decision in the quarter ended June 30, 2025, to opt for a lower tax regime under Section 115BAA of the Income Tax Act, 1961, resulted in a one-time charge of ₹3,324.24 Crore in the profit and loss account for that period. * The Bank operates 8 Digital Banking Units (DBUs) which are reported as a sub-segment under Retail Banking. * For the quarter ended September 30, 2025, all 14 investor complaints received were disposed of, with no complaints pending.
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