Punjab national bank has announced that its interest rate structure will remain unchanged for February 2026, maintaining stability across all lending rate categories. The bank communicated this decision to stock exchanges on January 31, 2026, under Regulation 30 compliance requirements.

MCLR Rates Remain Stable Across All Tenors

The bank's Marginal Cost of Funds Based Lending Rates (MCLR) will continue at their existing levels effective February 1, 2026. The rate structure spans multiple tenors to accommodate different borrowing requirements:

Other Key Lending Rates Maintained

Beyond MCLR rates, Punjab National Bank has also maintained its other benchmark lending rates unchanged. The Repo Linked Lending Rate (RLLR) remains at 8.10%, which includes a Bank Spread Premium (BSP) of 0.10%. Additionally, the bank's Base Rate continues at 9.50%.

Regulatory Compliance and Communication

The rate review announcement was made through official communication to both the National Stock Exchange of India Limited and BSE Limited. The notification was signed by Company Secretary Bikramjit Shom and carries the bank's official digital signature and seal, ensuring proper regulatory compliance under stock exchange listing requirements.

This unchanged rate structure indicates the bank's assessment that current funding costs and market conditions support maintaining existing lending rates as it transitions into February 2026. The decision affects all categories of borrowers across different loan tenors and products linked to these benchmark rates.

Punjab National Bank delivered a strong financial performance in Q3FY26, demonstrating consistent progress across key business metrics including profitability, asset quality, and operational efficiency. The bank's strategic focus on sustainable growth and digital transformation initiatives contributed to robust quarterly results.

Financial Performance Highlights

The bank reported impressive profitability metrics for Q3FY26, with significant year-on-year improvements across major parameters:

The bank's operating profit growth of 13% significantly exceeded its guidance of 8-9%, reflecting strong operational performance. Net interest income showed sequential improvement from Q2FY26, supporting overall profitability growth.

Business Growth and Market Position

Punjab National Bank's global business portfolio reached INR28.92 trillion as of December 2025, representing a healthy 9.5% year-on-year growth. The business composition reflects balanced growth across both liability and asset sides:

The bank sanctioned credit lines worth over INR3.12 lakh crores during the nine months of FY26, with pending disbursements of INR1.02 lakh crores supporting future credit growth. The RAM advances portfolio stands at INR6.62 trillion, constituting 56.7% of domestic advances, up from 56.3% in December 2024.

Asset Quality Improvement

Asset quality metrics showed substantial improvement, reinforcing the bank's focus on risk management and recovery efforts:

The bank's recovery performance was particularly strong, with total recoveries of INR4,090 crores being 2.2 times the fresh slippages, demonstrating effective collection mechanisms. The slippages ratio for nine months FY26 stood at 0.56% on an annualized basis, well within the bank's guidance of below 1%.

Strategic Provisions and Capital Management

Punjab National Bank made additional floating provisions of INR955 crores in Q3FY26 on a prudential basis, bringing total floating provisions to INR1,775 crores. This strategic move prepares the bank for the Expected Credit Loss (ECL) framework implementation scheduled for April 2027. The bank estimates a total ECL requirement of INR9,000-10,000 crores over five years, translating to approximately INR500 crores per quarter or 15 basis points impact.

Capital adequacy remained robust with a ratio of 16.77% as of December 2025, compared to 15.41% in December 2024. The CET1 capital stands at 12.52% against the regulatory requirement of 8%, while Tier 1 capital is at 14.13% versus the 9.5% requirement.

Digital Transformation and Innovation

The bank continued its digital transformation journey with several key initiatives launched in Q3FY26. Digital loan sanctions and disbursements reached INR12,672 crores under the RAM segment, serving 3.18 lakh customers. Every third loan is now being sanctioned through digital channels, with digital transactions comprising 95% of total transactions.

Key digital launches included the revamped PNB One 2.0 mobile banking application with enhanced features, Digi Saarthi for two-wheeler loans, and various digital lending products. The bank also introduced its first metal credit card, PNB LUXURA, targeting high-net-worth individuals, with a target of over 10,000 cards by March 2026.

Outlook and Strategic Focus

Looking ahead, Punjab National Bank expects to maintain its domestic NIM at approximately 2.70% and global NIM at 2.60% for the full financial year, subject to no further rate cuts. The bank remains committed to its guidance of credit growth between 11-12% and deposit growth of 9-10% for FY26. Management emphasized continued focus on improving customer service, with grievance redressal time reduced from 14 days in April 2025 to 3 days in December 2025, while maintaining strong asset quality standards and operational efficiency improvements.