Punjab National Bank 's Board of Directors convened on May 5, 2026, and approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The bank reported a strong quarterly performance, with net profit rising to ₹52B against ₹45.7B in the same period last year, surpassing analyst estimates of ₹46B. However, fresh slippages for Q4 rose to ₹26.7B compared to ₹18.2B in the previous quarter, signalling a sequential uptick in new non-performing asset formation. The board also recommended a dividend and scheduled the bank's upcoming Annual General Meeting.

Q4 Financial Highlights

Punjab National Bank delivered a robust set of quarterly results, with interest earned at ₹321B compared to ₹320B in the same period last year. Provisions for non-performing assets declined sharply to ₹9B from ₹13B on a sequential basis, reflecting improved credit quality. The key Q4 performance metrics are summarised below:

Analyst Ratings and Views

Following the Q4 results, major brokerages have shared divergent views on Punjab National Bank, with two maintaining bullish stances and one remaining cautious. The key analyst positions are summarised below:

CLSA maintained its Outperform rating with a target price of ₹135, noting that a 16% PAT beat driven by lower operating expenses and credit costs offset a 5% income miss and weak net interest income, which declined 3% on a sequential basis. The brokerage flagged slightly lower loan growth of 13.7% year-on-year, slowing deposit growth of 9% year-on-year, but acknowledged stable CASA at 36% and improving asset quality. Consequently, CLSA trimmed its FY27–28 PAT estimates by 3%.

Jefferies retained its Buy rating with a target price of ₹130, highlighting that Q4 profit beat estimates with a 14% year-on-year rise, driven by provision write-backs that offset weak net interest income amid net interest margin compression. The brokerage pointed to improved loan growth of 14% year-on-year, manageable deposit growth of 9% supported by loan-to-deposit ratio headroom, and better asset quality with controlled credit costs. Jefferies also noted that sustainability of return on assets under the Expected Credit Loss transition and attractive valuations at approximately 0.8x price-to-book remain key factors to watch.

Morgan Stanley maintained its Underweight rating with a target price of ₹88, expressing concern over earnings quality. The brokerage noted that core revenues came in 5% below estimates and core pre-provision operating profit also missed expectations. It flagged that the headline PAT was boosted by one-off items, including reversal of retirement provisions, lower credit costs, and bad loan recoveries, raising questions about the sustainability of the bank's earnings trajectory.

Key Board Decisions

The board meeting, which commenced at 11:10 a.m. and concluded at 12:35 p.m., resolved three significant matters for stakeholders. The following decisions were taken:

Full-Year Financial Results Overview

The audited financial results were reviewed and recommended by the Audit Committee of the Board prior to approval. The statutory central auditors issued their audit report with an unmodified opinion on both the standalone and consolidated financial statements for the year ended March 31, 2026. Key full-year financial metrics from the results are presented below:

Asset Quality and Provisioning

As on March 31, 2026, Punjab National Bank held a floating provision of ₹2045 Crore, compared to ₹750 Crore as at March 31, 2025. The bank maintained an additional provision of ₹107.24 Crore on standard accounts restructured under COVID-19 Resolution Frameworks 1.0 and 2.0, against ₹109.73 Crore at the end of the previous quarter. For accounts under the Insolvency & Bankruptcy Code (IBC), the bank held total provisions of ₹6774.86 Crore, with aggregate provision for RBI List 1 and List 2 accounts at 100% as on March 31, 2026.

The bank held an additional provision of ₹2429.77 Crore as on March 31, 2026 in 15 accounts under RBI's stressed assets resolution directions, covering total banking exposure of ₹1,500.00 Crore and above. Provision for Unhedged Foreign Currency Exposure stood at ₹228.08 Crore as on March 31, 2026, compared to ₹237.12 Crore as on March 31, 2025.

Summarised Assets and Liabilities

The following table presents key balance sheet figures as on March 31, 2026:

Key Regulatory and Operational Disclosures

During the quarter ended March 31, 2026, the bank exercised a call option on Basel III compliant Additional Tier 1 (AT1) Bonds of ₹495.00 Crore and redeemed Basel III compliant Tier II Bonds of ₹1500.00 Crore due to maturity. For the full year ended March 31, 2026, the bank exercised call options on AT1 Bonds of ₹495.00 Crore and redeemed or exercised call options on Tier II Bonds of ₹4994.00 Crore.

During the quarter ended June 30, 2025, the bank opted for the lower tax regime under Section 115BAA of the Income Tax Act, 1961 with effect from FY 2025-26, resulting in a one-time charge of ₹3,324.24 Crore in the profit and loss account due to remeasurement of deferred tax assets and release of certain income tax provisions. Tax expenses for the year ended March 31, 2026 have been measured at applicable rates under Section 115BAA.

As on March 31, 2026, 8 Digital Banking Units (DBUs) of the bank are operational. The bank's Co-Lending Arrangements (CLA) had total loans disbursed of ₹838.54 Crore and total loans outstanding of ₹811.88 Crore as on March 31, 2026, with standard loans at ₹1304.19 Crore and NPA loans at ₹26.66 Crore.

Loan Transfers and Security Receipts

During the year ended March 31, 2026, the bank acquired loans not in default through assignment with an aggregate amount of Rs. 9615.07 Crore, a weighted average maturity of 138.51 months, and a weighted average holding period of 21.62 months. The bank transferred non-performing assets to Asset Reconstruction Companies (ARCs), with 20 accounts having aggregate principal outstanding of Rs. 2517.92 Crore transferred, at a net book value of Rs. 29.49 Crore and aggregate consideration of Rs. 1447.58 Crore. During the quarter and year ended March 31, 2026, the bank credited a net unrealised amount of Rs. 70.65 Crore and Rs. 655.60 Crore respectively to the Profit and Loss Account in respect of Security Receipts (SRs) guaranteed by the Government of India.

The distribution of SRs held across recovery rating categories as on March 31, 2026 is presented below:

Note: Provision of Rs. 388.39 Crore is held against carrying value of NPI SRs.

Trading Window and Regulatory Compliance

In compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, the trading window for dealing in Punjab National Bank shares was closed from April 1, 2026. The window is scheduled to reopen on May 7, 2026. The board meeting outcome was communicated to both the National Stock Exchange of India Limited and BSE Limited under Regulations 30 and 51 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory auditors confirmed an unmodified audit opinion on both standalone and consolidated financial results. The communication was digitally signed by Company Secretary Bikramjit Shom on May 5, 2026.

Source: None/Company/INE160A01022/151ef13ab4f6449d.pdf

punjab national bank has informed the exchanges that its Marginal Cost of Funds Based Lending Rates (MCLR) will remain unchanged across all tenors effective from May 1, 2026. The decision maintains the status quo on lending rates that were previously effective from April 1, 2026, providing stability for borrowers across various loan categories.

MCLR Rate Structure

The bank's MCLR rates across different tenors have been maintained at their existing levels. The overnight MCLR remains at 7.95%, while short-term tenors including one month and three months are held steady at 8.20% and 8.40% respectively. The six-month MCLR continues at 8.60%, with the one-year MCLR—the benchmark for most consumer loans—maintained at 8.75%. For longer-term loans, the three-year MCLR remains unchanged at 9.05%.

Other Benchmark Rates

In addition to MCLR, Punjab National Bank has confirmed that its other benchmark lending rates remain unchanged. The Repo Linked Lending Rate (RLLR) stands at 8.10%, which includes a Basic Spread Premium (BSP) of 0.10%. The Base Rate, another key lending benchmark, continues at 9.50%. These rates will continue to apply until further revisions are announced by the bank.

The communication, dated April 30, 2026, was signed by Bikramjit Shom, Company Secretary, and has been submitted to both the National Stock Exchange of India Limited and BSE Limited for record purposes.