Punjab National Bank (PNB) investor relations material

Executive summary

• Q1 FY27 saw strong, balanced growth across business expansion, asset quality, profitability, and operational efficiency, with a focus on retail, agriculture, and MSME segments.

• Net profit surged 213.6% year-over-year to ₹5,253 crore in Q1 FY27, with operating profit up 6.2% YoY to ₹7,519 crore and ROA at 1.04%.

• Digital transformation and technology investments, including rapid adoption of AI and quantum-safe banking, are central to growth.

• The bank is expanding its branch network, especially in southern and western regions, and plans to open 250 new branches this year.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, were approved by the Board on July 18, 2026.

Financial highlights

• Gross global business reached INR 29.98 lakh crore, up 10.2% YoY; advances grew 12.7% YoY to INR 12.73 lakh crore; global deposits rose to INR 17.25 lakh crore, up 8.5% YoY.

• Net Interest Income (NII) rose 2.1% YoY to ₹10,798 crore; global NIM improved to 2.64%; total income was ₹37,231 crore, flat YoY.

• Operating profit for Q1 was INR 7,519 crore, up 6.2% YoY; core operating profit (excluding recoveries/treasury gains) grew 35.7% YoY.

• Net profit for Q1 stood at INR 5,253 crore (standalone), with consolidated net profit at ₹5,33,915 lakh.

• Cost-to-income ratio improved to 50.31% from 55.31% YoY, with a target of 47-48% by year-end.

Outlook and guidance

• Management expects continued improvement in margins and profitability, with a focus on shedding low-yielding assets and maintaining disciplined deposit growth.

• Guidance for gross NPA is below 2.5% and net NPA at 0.3% for FY27; both metrics are already on track.

• FY27 guidance: credit growth 12–13%, deposit growth 9–10%, NIM 2.60–2.70%, GNPA below 5%, NNPA below 0.3%, PCR above 96%, RoA above 1%.

• Credit growth momentum is expected to remain strong, especially in retail, MSME, and agri segments.

• Bank targets $2.5 billion FCNR deposit mobilization, with $425 million already raised.