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

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.

Punjab National Bank (PNB), one of India's leading public sector banks, has announced an upward revision in its credit growth forecast, signaling a positive outlook for the bank's lending activities.

Key Highlights

• PNB has increased its credit growth forecast to 11-12%
• Previous projection was 10.3%
• The revision indicates improved growth expectations for the bank

Analysis

The upward revision in PNB's credit growth forecast is a significant development in the banking sector. This adjustment suggests that the bank is experiencing stronger demand for loans and is confident in its ability to expand its lending portfolio.

The increase from the previous projection of 10.3% to the new range of 11-12% represents a notable improvement in the bank's growth expectations. This positive outlook could be attributed to various factors, such as:

• Improved economic conditions
• Increased business activities in key sectors
• Enhanced credit policies and risk assessment measures
• Growing consumer confidence

While the specific reasons for this upward revision have not been disclosed, the higher forecast typically indicates a more optimistic view of the bank's business environment and its capacity to extend credit to various segments of the economy.

Implications

For investors and market observers, this revision in credit growth forecast may be seen as a positive indicator of PNB's performance and the overall banking sector's health. Higher credit growth often translates to increased interest income for banks, potentially leading to improved profitability if managed effectively.

However, it's important to note that credit growth should be balanced with prudent risk management practices to ensure the quality of the loan portfolio is maintained.

As the situation evolves, stakeholders will likely keep a close eye on Punjab National Bank's actual credit growth in the coming quarters to see if it aligns with this revised forecast.