Punjab National Bank (PNB) Q2 25/26 earnings summary

Executive summary

• Global gross business reached INR 27.8 trillion as of September 2025, up 10.6% year-over-year, with deposits at INR 16.17 trillion and advances at INR 11.7 trillion, both up over 10% YoY.

• Net profit for Q2 FY26 rose 14% YoY to ₹4,904 crore, with operating profit up 5.5% YoY at ₹7,227 crore.

• CASA ratio improved to 37.29% sequentially, with 2.76 million new CASA accounts opened in H1 FY26.

• RAM advances now 56.8% of domestic advances, up from 55.8% YoY, with a strategic focus on further increasing this share.

• Digital transactions comprise 95% of total, with significant growth in UPI and WhatsApp banking users and new digital banking units operational.

Financial highlights

• Operating profit for Q2 FY26 was INR 7,227 crore, up 5.46% YoY; net profit stood at INR 4,904 crore, a 14% YoY increase.

• EPS (not annualized) for Q2 FY26 was 4.27, up from 3.90 YoY; tangible book value per share rose to INR 95.92 from INR 79.18 YoY.

• Cost-to-income ratio improved to 51.20% from 54.58% YoY.

• Treasury income remained strong at INR 1,800 crore for both Q1 and Q2 FY26.

• Interest income for Q2 FY26 was ₹31,872 crore, up 6.7% YoY; other income at ₹4,342 crore.

Outlook and guidance

• Credit growth guidance maintained at 11%-12% for FY26, with a strong sanction pipeline of INR 1.78 trillion.

• NIM expected to improve by 5 bps in Q3 and 10+ bps in Q4 as deposit repricing completes; FY26 NIM guidance at 2.8–2.9%.

• ROA target for FY26 is around 1.10%, with further improvement expected in FY27.

• Gross NPA and net NPA guidance for FY26 is below 3% and 0.35%, respectively.

• Recovery guidance for FY26 is INR 16,000 crore, with Q3 expected at INR 4,500 crore.