India’s state-run Punjab National Bank(PNB) posted a 14% rise in standalone net profit for the July–September quarter of FY2025-26, reaching INR490.4bn ($588mn), compared with INR430.3bn a year earlier, as asset quality improved and operating income strengthened.
According to a filing with India’s stock exchanges as cited by Punjab Kesari, total income during the second quarter increased 5.1% y/y to INR3.62 trillion. For the first half of the fiscal year ending March 2026, income climbed 10.3% y/y to INR7.34 trillion.
Operating profit stood at INR722.7bn for the quarter and INR1.43 trillion for the April–September period. The bank’s net interest income for the first half of FY2025-26 was INR2.10 trillion, slightly higher than the INR2.09 trillion reported in the same period a year earlier, marking a marginal 0.26% y/y increase.
The bank’s gross non-performing asset (NPA) ratio improved to 3.45% during the second quarter, compared with 4.48% in the same quarter of the previous fiscal year, reflecting stronger loan recoveries and tighter credit controls.
Analysts say PNB continues to benefit from steady loan demand and declining bad loans across the banking sector, though pressure on margins remains due to high deposit costs.
The results suggest that the bank’s balance sheet is gradually strengthening as it shifts focus towards retail and small-business lending, part of India’s broader public-sector banking reform push.
© 2025 bne IntelliNews, source Magazine