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, with faster credit growth driving improved asset utilization metrics.

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 10.98% year-on-year to ₹12.32 lakh crore from ₹11.10 lakh crore in the previous year. The sequential growth of 5.40% indicates sustained credit demand across segments. Domestic advances showed impressive momentum with 10.15% year-on-year growth to ₹11.67 lakh crore from ₹10.60 lakh crore:

Deposit Growth and Credit-Deposit Ratio

Deposit mobilization showed steady growth with global deposits reaching ₹16.60 lakh crore, up 8.54% year-on-year from ₹15.30 lakh crore and 2.70% sequentially. Domestic deposits grew 8.32% year-on-year to ₹15.97 lakh crore from ₹14.70 lakh crore. The faster pace of credit growth relative to deposits led to an improvement in the bank's global credit-deposit ratio:

Market Performance and Outlook

Shares of Punjab National Bank closed 1.17% higher at ₹125.40, outperforming the benchmark Sensex which rose 0.70%. The stock has gained 19.00% over the last 12 months, reflecting investor confidence in the PSU banking sector. The bank is yet to announce the date for its board meeting to consider Q3FY26 financial results. As India's largest state-owned bank by assets and market capitalization, Punjab National Bank continues to demonstrate strong operational performance with all figures remaining provisional and subject to statutory auditor review.

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.

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.