Punjab National Bank (PNB) investor relations material

Executive summary

• Q2 FY27 net profit rose 12.8% YoY to INR 5,532 crore; core operating profit excluding written-off recoveries and treasury gains increased 29.4% to INR 5,971 crore.

• Global business grew 11.9% YoY to INR 31.18 lakh crore, while GNPA declined to 2.55% from 3.45% a year earlier.

Financial highlights

• Q2 NII was INR 11,601 crore, up 10.8% YoY; operating profit rose 4.2% to INR 7,532 crore and PBT increased 12.9% to INR 7,435 crore.

• Total income rose 5.4% YoY to INR 38,185 crore; operating income increased 2.6% to INR 15,202 crore.

• H1 FY27 net profit increased 63.9% YoY to INR 10,786 crore; NII rose 6.4% to INR 22,400 crore and operating profit increased 5.2% to INR 15,051 crore.

• Q2 other income fell 17.1% YoY to INR 3,601 crore, including treasury income down 57.4% to INR 753 crore.

Outlook and guidance

• FY27 guidance includes credit growth of 9%–10%, deposit growth of 12%–13%, NII growth of 7%, NIM of 2.60%–2.70%, and operating profit growth of 9%–10%.

• FY27 asset-quality targets include GNPA below 2.50%, NNPA below 0.3%, PCR above 96%, credit cost below 0.4%, and annualized slippage below 0.9%.

• FY27 recovery target is above INR 13,000 crore; H1 recoveries were INR 5,594 crore. Management separately expects FY27 recovery of INR 12,000–13,000 crore.

• Management expects positive NIM momentum from repricing; the recent 25 bps repo hike is expected to add at least 7 bps to NIM. H2 performance is expected to improve on H1.