Punjab National Bank Q2 Results: A Detailed Analysis

Punjab National Bank (PNB) on Friday posted a consolidated Q2 FY26 net profit of Rs 4,903 crore, a 14% rise year-on-year, and a sharp 193% jump sequentially, even as provisions rose and net interest income (NII) was flat.

Key Highlights of Punjab National Bank Q2 Results

The bank announced its results for the quarter ended Sept. 30, 2025, today. Net interest income was nearly unchanged at Rs. 10,469 crore versus Rs. 10,517 crore a year earlier, down 1% sequentially, while provisions surged 123% year-on-year to Rs. 643 crore. Other income declined 5% to Rs. 4,342 crore.

Asset Quality Improvement

The state-run lender’s gross non-performing asset ratio improved to 3.45% from 3.78% in the prior quarter, and net NPA eased to 0.36% from 0.38%. Domestic net interest margin contracted 12 basis points sequentially to 2.72%.

Business Growth

Domestic advances rose 10.5% year-on-year to Rs. 10.11 lakh crore and deposits increased 10.4% to Rs. 14.16 lakh crore. The slippages fell to 0.71%, down 18 basis points year-on-year.

Key Takeaways from Q2 Results

• The net Profit increased Y-o-Y by 14.0% to Rs. 4,904 Crore in Q2 FY’26 as against Rs. 4,303 Crore in Q2 FY’25.
• The operating Profit for Q2 FY’26 increased to Rs. 7,227 crore and to Rs. 14,308 crore for HY1 FY’26, recording growth of 5.5% and 6.5%, respectively on a YoY basis.
• The Return on Assets (RoA) improved to 1.05% in Q2 FY’26 from 1.02% in Q2 FY’25.

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Impact on Investors

The Q2 results of Punjab National Bank are likely to have a positive impact on investors, given the improvement in asset quality and the surge in provisions. However, the flat net interest income and the decline in other income may be a cause for concern.

What to Expect in the Future

Looking ahead, investors can expect the bank to continue its focus on improving asset quality and increasing provisions. The bank’s plans to grow its advances and deposits are also likely to have a positive impact on its future performance.

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Conclusion

In conclusion, the Q2 results of Punjab National Bank are a positive sign for investors, given the improvement in asset quality and the surge in provisions. However, the bank needs to focus on increasing its net interest income and other income to drive future growth.