Punjab National Bank (PNB) Q1 results: Net profit falls 48% to ₹1,675 crore on one-time tax expense, NII rises 1%

Punjab National Bank's net interest income or the difference between interest earned on loans and expended on deposits rose 1% to ₹10,578 crore in Q1 from ₹10,476 crore in the year-ago period. Punjab National Bank, the country's leading state-run lender, on Wednesday, July 30, reported that its net profit, in the first quarter of current financial (Q1FY26), dropped 48% to ₹1,675 crore from ₹3,252 crore in the same period last year. The sharp decline in profit came on the back of one time tax expense of ₹5,083 crore. The Delhi-based lender's net interest income or the difference between interest earned on loans and expended on deposits rose 1% to ₹10,578 crore in Q1 from ₹10,476 crore in the year-ago period. The bank's asset quality showed a slight improvement in April-June period as its gross non-performing assets (NPA), as a percentage of total advances, came in at 3.78% from 3.95% in the previous quarter. Its net NPA came in at 0.38% as against 0.4% in the previous quarter. In absolute terms, gross NPA came in at ₹42,673 crore compared with ₹44,082 crore in the previous quarter. PNB's provisions for bad loans declined 33% sequentially and 50% annually to ₹396 crore. The bank’s global business expanded by 11.6% year-on-year (Y-o-Y) to ₹27.19 lakh crore as of June 2025, led by global deposits, which rose 12.9% Y-o-Y to ₹15.89 lakh crore, and global advances, which grew 9.8% Y-o-Y to ₹11.30 lakh crore. On the lending front, retail advances saw a healthy uptick of 11.8% Y-o-Y, with core retail credit growing even faster at 17.7%. Within core retail: housing loans surged 16.6% Y-o-Y to ₹1.19 lakh crore and vehicle loans rose sharply by 25.3% to ₹27,229 crore. In addition, MSME advances rose 18.6% to ₹1.69 lakh crore. Savings deposits grew modestly by 2.8% to ₹4.98 lakh crore, while current deposits rose 9.2% to ₹70,656 crore. CASA deposits stood at ₹5.69 lakh crore, up 3.6% Y-o-Y, with the CASA ratio at 36.99% as of June 2025, PNB said in a press release. PNB shares traded 0.25% higher at ₹109.56 after its earnings announcement.