MUMBAI: Punjab National Bank reported a standalone net profit of Rs 5,253 crore for the quarter ended June 30, 2026, up 213.6% from Rs 1,675 crore a year earlier, supported by a sharp decline in tax expenses despite a decline in non-interest income.
The bank reported a consolidated net profit of Rs 5,921 crore, up 228.4% from Rs 1,803 crore in the corresponding quarter last year.Net interest income, calculated as interest earned less interest expended, rose 2.1% to Rs 10,798 crore from Rs 10,578 crore in the previous year. Interest earned rose 2.9% to Rs 32,897 crore from Rs 31,964 crore, supported by growth in advances, while interest expended rose 3.3% to Rs 22,099 crore from Rs 21,386 crore, reflecting higher financing costs and growth in deposits.
Interest expenses have grown marginally faster than interest income, limiting the expansion of National Insurance.Non-interest income fell by 17.7% to Rs 4,333 crore from Rs 5,268 crore, impacting operating income. The decline was driven by lower treasury income and lower recoveries from written-off accounts, although fee-based income rose 4%.Global deposits stood at Rs 17.25 lakh crore at the end of June 2026, up 0.8% sequentially from Rs 17.11 lakh crore at the end of March 2026.
Global advances increased 1.2% QoQ to Rs 12.73 lakh crore from Rs 12.59 lakh crore.Total income remained broadly flat at Rs 37,231 crore as against Rs 37,232 crore last year. The increase in National Insurance offset part of the decrease in non-interest income.Operating profit rose 6.2% to Rs 7,519 crore from Rs 7,081 crore. Operating expenses fell by 13.1% to Rs 7,613 crore from Rs 8,765 crore, supporting profitability despite lower operating income.Non-tax provisions rose 67.6% to Rs 541 crore from Rs 323 crore, capping earnings growth. However, the bank’s income tax provision fell by 66.1% to Rs 1,725 crore from Rs 5,083 crore, providing major support to the bottom line.Asset quality improved further, with gross non-performing assets falling to 2.78% from 3.78% a year earlier and net non-performing assets falling to 0.28% from 0.38%. The bank’s capital adequacy ratio (CRAR) improved to 18.13% from 17.50% in the previous year, while the common equity ratio-1 increased to 14.52% from 12.95%.
