Gross NPA Ratio
2.95%
-100bps YoY
Improved from 3.95% in March 2025, reflecting sustained asset quality focus.
PUNJABNATIONALBANK
Financial Services
30 Apr 2026
Punjab National Bank — Q4 FY26
Punjab National Bank delivered a strong Q4 FY26 with net profit of ₹5,225 crore (+14.4% YoY) and operating profit of ₹7,500 crore (+10.7% YoY).
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Punjab National Bank delivered a strong Q4 FY26 with net profit of ₹5,225 crore (+14.4% YoY) and operating profit of ₹7,500 crore (+10.7% YoY). Credit growth was robust at 12.7% YoY (15% ex-IBPC), driven by RAM segments (retail +18.2%, MSME +19.9%, agri +16.2%). Asset quality improved sharply with GNPA at 2.95% (vs 3.95% a year ago) and PCR at 97.14%. NIM compressed to 2.47% due to sticky deposit costs and full-quarter impact of the December rate cut, but management guided NIM recovery to 2.6-2.7% for FY27, supported by repricing of high-cost deposits and a shift toward higher-yielding RAM loans. Key risks include elevated deposit rates persisting and potential stress from West Asia exposure, though management downplayed near-term impact.
Key Numbers
RAM Loan Growth (ex-IBPC)
18.2%
+18.2% YoY
Retail advances grew strongly, driving overall credit momentum.
SMA 0-2 Ratio
3.30%
N/A
Lowest ever SMA book at ₹41,534 crore, indicating minimal near-term stress.
Digital Loan Sanctions (Q4)
₹20,873 crore
N/A
Sanctioned to 4.8 lakh customers; every third loan now digitally originated.
Management Guidance
NIM guidance of 2.6-2.7% for FY27
Global NIM expected to improve from Q4 FY26 level of 2.47% to 2.6-2.7% in FY27, driven by deposit repricing and RAM mix shift.
Management guidance marginsCredit growth of 12-13% for FY27
Loan growth to remain in double digits, supported by strong pipeline of ₹1.18 lakh crore undisbursed corporate sanctions.
Management guidance growthNet interest income growth of ~7% for FY27
NI growth expected to trail credit growth due to conservative assumptions on NIM recovery and deposit costs.
Management guidance revenuePlan to open 250 new branches in FY27
Network expansion focused on southern and western regions to deepen RAM presence.
Management guidance expansionKey Risks
Sticky deposit costs may delay NIM recovery
Despite repricing of high-cost deposits, incremental deposit rates remain elevated, potentially capping NIM improvement.
medium · management_commentaryECL provisioning impact on profitability
Analyst raised concern about ECL implementation from April 2027; management downplayed but did not quantify run-rate impact.
medium · analyst_questionWest Asia geopolitical stress on MSME/export accounts
Analyst asked about impact of Iran-USA-Israel conflict; management said no stress seen yet but remains vigilant.
low · analyst_questionMTM losses on AFS book due to bond yield volatility
AFS reserves declined due to market fall on March 26; management noted recovery post-quarter but risk remains.
low · data_observationNotable Quotes
We met or exceeded our stated guidance for 2025-26 financial year across most key parameters. The only areas of variance were the CASA ratios and margins which were largely influenced by liquidity and interest rate dynamics.
Our recovery is 2.4x of the slippages in FY 2026 reflecting our commitment towards improving asset quality.
We have enough cushion to take care of any requirement which will come on account of implementation of ECL from 1st April 2027.
Frequently Asked Questions
What was Punjab National Bank's revenue in Q4 FY26?
Punjab National Bank reported revenue of — in Q4 FY26, representing a — change compared to the same quarter last year.
What guidance did Punjab National Bank management give for FY27?
NIM guidance of 2.6-2.7% for FY27: Global NIM expected to improve from Q4 FY26 level of 2.47% to 2.6-2.7% in FY27, driven by deposit repricing and RAM mix shift. Credit growth of 12-13% for FY27: Loan growth to remain in double digits, supported by strong pipeline of ₹1.18 lakh crore undisbursed corporate sanctions. Net interest income growth of ~7% for FY27: NI growth expected to trail credit growth due to conservative assumptions on NIM recovery and deposit costs. Plan to open 250 new branches in FY27: Network expansion focused on southern and western regions to deepen RAM presence.
What are the key risks for Punjab National Bank in FY27?
Key risks include Sticky deposit costs may delay NIM recovery — Despite repricing of high-cost deposits, incremental deposit rates remain elevated, potentially capping NIM improvement.; ECL provisioning impact on profitability — Analyst raised concern about ECL implementation from April 2027; management downplayed but did not quantify run-rate impact.; West Asia geopolitical stress on MSME/export accounts — Analyst asked about impact of Iran-USA-Israel conflict; management said no stress seen yet but remains vigilant.; MTM losses on AFS book due to bond yield volatility — AFS reserves declined due to market fall on March 26; management noted recovery post-quarter but risk remains..
Did Punjab National Bank meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Punjab National Bank Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.