Punjab National Bank reported strong growth across key business parameters in Q3FY26, with provisional figures showing robust momentum in both lending and deposit mobilization. The public sector lender's performance demonstrates continued expansion amid competitive market conditions.

Global Business Performance

The bank's global business reached ₹28.92 lakh crore in Q3FY26, marking a solid 9.60% year-on-year growth from ₹26.39 lakh crore in the corresponding quarter of the previous year. Sequential growth remained healthy at 3.80% compared to ₹27.86 lakh crore in Q2FY26:

Advances Portfolio Expansion

Loan growth remained the key driver of business expansion, with global advances rising 11.00% year-on-year to ₹12.32 lakh crore. The sequential growth of 5.40% indicates sustained credit demand across segments. Domestic advances also showed impressive momentum with 10.00% year-on-year growth:

Deposit Growth Trends

Deposit mobilization showed steady growth with global deposits reaching ₹16.60 lakh crore, up 8.50% year-on-year and 2.70% sequentially. Domestic deposits grew 8.30% year-on-year to ₹15.97 lakh crore with over 2.00% quarter-on-quarter growth:

Market Performance and Previous Results

Shares of Punjab National Bank closed at ₹125.68, gaining 1.40% amid strong investor interest in PSU banking stocks. The stock is currently trading above its 50-day and 200-day simple moving averages of ₹121.20 and ₹109.00 respectively. In the previous quarter, the bank had reported a 14.00% year-on-year increase in profit after tax at ₹4,904.00 crore, though net interest income dipped 0.45% to ₹10,469.00 crore. The global Net Interest Margin stood at 2.65% for the first half of the financial year and 2.60% in Q2FY26.

The bank noted that all figures are provisional and subject to review by statutory central auditors, with actual numbers to be announced during the formal earnings release.

Punjab National Bank has reported a significant borrowal fraud case totaling ₹2,434.00 crore to the Reserve Bank of India against the erstwhile promoters of SREI Equipment Finance and SREI Infrastructure Finance. The state-owned bank announced this development through its official filing to the exchanges on Friday, demonstrating its commitment to regulatory compliance and transparency.

Complete Fraud Breakdown and Provisions

The fraud case involves two key entities within the SREI Group, with specific amounts now confirmed for both entities. The bank has taken comprehensive action to address the fraudulent activities perpetrated by the former promoters of these infrastructure and equipment financing companies.

Regulatory Compliance and Resolution Process

Punjab National Bank has made 100% provision for the outstanding amounts related to both SREI entities, ensuring complete coverage for the fraudulent exposure. The comprehensive provisioning approach reflects the bank's conservative risk management strategy and provides adequate protection against potential losses. The bank's prompt reporting to the Reserve Bank of India aligns with regulatory guidelines under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Corporate Insolvency Resolution Outcome

Both SREI Equipment Finance and SREI Infrastructure Finance have been successfully resolved under the Corporate Insolvency Resolution Process by the National Company Law Tribunal. This resolution provides closure to the complex case involving the erstwhile promoters and marks a significant step in addressing the fraudulent activities within the SREI Group.

Market Impact and Financial Position

Shares of Punjab National Bank ended lower by 0.56% at ₹120.25 on Friday following the disclosure. The substantial fraud amount represents a significant exposure for the public sector bank, but the complete provisioning demonstrates proactive risk management. By making full provisions for both entities and successfully navigating the resolution process, Punjab National Bank has taken comprehensive steps to manage the financial impact while maintaining stakeholder confidence.