Punjab National Bank Reports 14% Rise in Q2 Net Profit, NIM Under Pressure

1 min read     Updated on 18 Oct 2025, 05:23 PM
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Overview

Punjab National Bank (PNB) reported a 14% year-on-year increase in net profit to ₹4,904.00 crore for Q2. Operating profit rose by 5.5% to ₹7,227.00 crore. Net Interest Income slightly declined by 0.5% to ₹10,469.00 crore, with Net Interest Margin contracting to 2.60%. Asset quality improved with GNPA ratio at 3.45% and NNPA ratio at 0.36%. Global business grew by 10.6% to ₹27,86,673.00 crore. Capital Adequacy Ratio strengthened to 17.19%. The bank aims to maintain growth momentum while focusing on asset quality and expanding retail and MSME loan portfolios.

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*this image is generated using AI for illustrative purposes only.

Punjab National Bank (PNB), one of India's leading public sector banks, has reported a 14% year-on-year increase in net profit for the second quarter, despite facing pressure on its net interest margin.

Key Financial Highlights

  • Net profit rose to ₹4,904.00 crore in Q2, up from ₹4,303.00 crore in the same period last year.
  • Operating profit increased by 5.5% year-on-year to ₹7,227.00 crore.
  • Net Interest Income (NII) declined marginally by 0.5% to ₹10,469.00 crore compared to Q2 of the previous year.
  • Net Interest Margin (NIM) contracted to 2.60% from 2.92% in the same quarter of the previous year.

Asset Quality Improvement

PNB continued to make progress in improving its asset quality:

  • Gross Non-Performing Assets (GNPA) ratio improved to 3.45% as of September 30, down from 4.48% a year ago.
  • Net Non-Performing Assets (NNPA) ratio decreased to 0.36% from 0.46% in the same period last year.
  • Provision Coverage Ratio (PCR) improved to 96.91% from 96.67% year-on-year.

Business Growth

The bank reported solid growth in its business volumes:

  • Global business grew by 10.6% year-on-year to ₹27,86,673.00 crore.
  • Global deposits increased by 10.9% to ₹16,17,080.00 crore.
  • Global advances rose by 10.1% to ₹11,69,592.00 crore.

Capital Adequacy

PNB's capital position remained strong:

  • Capital Adequacy Ratio (CAR) stood at 17.19% as of September 30, up from 16.36% a year ago.
  • CET-1 ratio improved to 12.75% from 11.59% in the same period last year.

Management Commentary

Atul Kumar Goel, MD & CEO of Punjab National Bank, stated, "Our Q2 results demonstrate the bank's resilience and ability to grow profitably despite a challenging interest rate environment. While we've seen some pressure on our net interest margin, we've managed to offset this through improved operational efficiency and robust growth in our loan book. Our focus on asset quality continues to yield positive results, as evidenced by the significant reduction in our GNPA and NNPA ratios."

Outlook

Looking ahead, PNB aims to maintain its growth momentum while keeping a close watch on asset quality. The bank expects to benefit from the ongoing economic recovery and plans to focus on expanding its retail and MSME loan portfolios.

The bank's ability to navigate the current interest rate scenario and maintain its growth trajectory will be crucial for its performance in the coming quarters.

Historical Stock Returns for Punjab National Bank

1 Day5 Days1 Month6 Months1 Year5 Years
-2.08%-3.02%+1.55%+14.27%+10.97%+306.80%
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Punjab National Bank Reports Robust Growth in Q2 2025 Financial Results

1 min read     Updated on 18 Oct 2025, 02:00 PM
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Reviewed by
Naman SharmaScanX News Team
Overview

Punjab National Bank (PNB) announced its Q2 2025 results, showing significant improvements. Net profit increased by 50.8% year-on-year to ₹4,904.00 crore. Interest earned rose by 7.0% to ₹31,964.00 crore. Asset quality improved with gross NPA ratio decreasing to 3.78% from 4.48%. Total deposits grew by 3.3% to ₹16,29,131.00 crore. The bank maintained a strong Capital Adequacy Ratio of 17.19%. PNB also redeemed Basel III compliant Tier II Bonds worth ₹994.00 crore during the quarter.

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*this image is generated using AI for illustrative purposes only.

Punjab National Bank (PNB), one of India's leading public sector banks, has announced its financial results for the quarter ended September 30, 2025, showcasing significant improvements in key financial metrics.

Financial Highlights

Particulars Q2 2025 Q2 2024 YoY Change
Interest Earned ₹31,964.00 crore ₹29,875.00 crore +7.0%
Net Profit ₹4,904.00 crore ₹3,252.00 crore +50.8%
Gross NPA Ratio 3.78% 4.48% -70 bps
Net NPA Ratio 0.97% 1.02% -5 bps
Total Deposits ₹16,29,131.00 crore ₹15,77,020.00 crore +3.3%
Capital Adequacy Ratio 17.19% - -

PNB has demonstrated a strong financial performance in the second quarter of 2025, with notable improvements across various parameters.

Profitability and Income

The bank reported a substantial increase in net profit, which rose to ₹4,904.00 crore for the quarter, marking a significant 50.8% year-on-year growth. This impressive growth in profitability was supported by a 7.0% increase in interest earned, which reached ₹31,964.00 crore compared to ₹29,875.00 crore in the same period last year.

Asset Quality Improvement

PNB has made considerable progress in improving its asset quality. The gross Non-Performing Assets (NPA) ratio decreased to 3.78% from 4.48% year-over-year, indicating a 70 basis points improvement. Similarly, the net NPA ratio improved to 0.97% from 1.02%, reflecting the bank's effective strategies in managing its loan portfolio and recovery efforts.

Deposit Growth and Capital Position

The bank's total deposits grew by 3.3% year-on-year, reaching ₹16,29,131.00 crore. This growth in deposits demonstrates the continued trust of customers in PNB's financial stability and services.

PNB maintained a strong capital position with a Capital Adequacy Ratio of 17.19%, well above the regulatory requirements, ensuring the bank's resilience and capacity for future growth.

Other Developments

During the quarter, PNB redeemed Basel III compliant Tier II Bonds worth ₹994.00 crore, further optimizing its capital structure.

The bank's Board of Directors approved these unaudited financial results in a meeting held on October 18, 2025. The results have been subjected to limited review by the Statutory Central Auditors as per SEBI regulations.

PNB's robust performance in Q2 2025 reflects its strategic initiatives in enhancing profitability, improving asset quality, and maintaining a strong capital position. As the bank continues to navigate the evolving financial landscape, these results position PNB well for sustained growth and stability in the coming quarters.

Historical Stock Returns for Punjab National Bank

1 Day5 Days1 Month6 Months1 Year5 Years
-2.08%-3.02%+1.55%+14.27%+10.97%+306.80%
Punjab National Bank
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