State-owned lender Punjab National Bank (NSE: PNB) posted a 14.4% year-on-year increase in net profit for the fourth quarter of FY26, even as its core interest income came under pressure, Moneycontrol reported.
The bank recorded a net profit of INR52.25bn ($550mn) for the January–March quarter, while net interest income (NII) declined 3.5% year-on-year to INR103.8bn from INR107.57bn in the corresponding quarter of the previous fiscal, according to Moneycontrol.
Punjab National Bank (NSE: PNB), India’s third-largest public sector lender, reported a domestic net interest margin (NIM) of 2.61% in Q4 FY26, compared with 2.96% a year earlier, reflecting a contraction of nearly 30 basis points.
The bank’s asset quality continued to improve on a sequential basis. Gross non-performing assets (GNPA) fell to 2.95% in the March quarter from 3.19% in the preceding quarter, while the net non-performing assets (NNPA) ratio narrowed to 0.29% from 0.32%.
Provisions during the quarter dropped sharply to INR4.24bn from INR11.5bn in the October–December period, although they were slightly above the INR3.6bn recorded in the same quarter last year.
PNB also reported growth in deposits and retail lending. Total term deposits increased 10.9% year-on-year to INR11.01 trillion as of March 31, 2026, while total retail credit rose 8.3% to INR2.81 trillion.
The lender’s return on assets improved marginally to 1.06% in Q4 FY26 from 1.02% a year earlier. Its tier-1 capital adequacy ratio strengthened to 13.62% from 12.33% in the corresponding quarter of the previous fiscal.
The bank’s board has recommended a dividend of INR3 per share with a face value of INR2 each for FY26.
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