PNB Q1 FY27 net profit jumps 3x to ₹5,339 crore on asset quality gains
Synopsis
Punjab National Bank has turned in one of its strongest quarterly performances in years — a nearly three-fold jump in net profit to ₹5,339 crore, a GNPA ratio at a multi-year low of 2.78%, and vehicle and MSME loan growth well above the industry average. The numbers signal that the long NPA clean-up at India's second-largest public sector bank may finally be bearing fruit.
Key Takeaways
Punjab National Bank (PNB) posted a consolidated net profit of ₹5,339 crore in Q1 FY27 , up nearly 3x year-on-year from ₹1,832 crore .
Global advances grew 12.7 per cent YoY to ₹12.73 lakh crore ; total deposits rose 8.5 per cent to ₹17.24 lakh crore .
The GNPA ratio fell 100 basis points YoY to 2.78 per cent ; net NPA ratio improved to 0.28 per cent .
Vehicle loans surged 34.4 per cent and MSME advances grew 19.8 per cent year-on-year.
Digital transactions rose 24 per cent YoY to 365 crore ; PNB One app crossed 270 lakh active users.
PNB shares closed at ₹106.01 on the NSE , up 0.75 per cent on Friday.
Punjab National Bank (PNB) on 18 July 2026 reported a nearly three-fold year-on-year surge in consolidated net profit to ₹5,339 crore for the first quarter of FY27 (April–June 2026), driven by broad-based credit growth and a sharp improvement in asset quality. The state-owned lender had posted a consolidated net profit of ₹1,832 crore in the same quarter a year ago.
Sequential and Annual Performance
On a quarter-on-quarter basis, net profit rose over 2 per cent from ₹5,225.12 crore recorded in the March 2026 quarter, according to the bank's exchange filing. Consolidated total income for the quarter stood at ₹37,953.75 crore, up 2.9 per cent sequentially from ₹36,878.02 crore, though marginally lower than the ₹37,998.84 crore reported in the year-ago period.
Business Expansion and Credit Growth
PNB's global business expanded to ₹29.98 lakh crore as of 30 June 2026. Total deposits grew 8.5 per cent year-on-year to ₹17.24 lakh crore, while global advances climbed 12.7 per cent to ₹12.73 lakh crore. Among key lending segments, vehicle loans registered 34.4 per cent annual growth, and advances to the MSME sector rose 19.8 per cent, reflecting credit demand across retail and small-business borrowers.
Asset Quality Improves Sharply
The bank's asset quality saw a notable turnaround. The gross non-performing asset (GNPA) ratio declined by 100 basis points year-on-year to 2.78 per cent. In absolute terms, gross NPAs fell by ₹7,292 crore to ₹35,381 crore. The net NPA ratio improved to 0.28 per cent, signalling a sustained clean-up of the loan book that had weighed on the bank for much of the previous decade.
Digital Push Gains Momentum
Digital transactions at PNB increased 24 per cent year-on-year to 365 crore during the quarter. The bank's mobile banking application, PNB One, crossed 270 lakh active users, underscoring the lender's accelerating push into digital banking channels.
Stock Performance
Shares of Punjab National Bank settled 0.75 per cent higher at ₹106.01 on the National Stock Exchange (NSE) on Friday. The stock has touched a 52-week high of ₹135.15 and a 52-week low of ₹98.50. With the Q1 FY27 results now out, investor focus will shift to whether the bank can sustain its NPA improvement trajectory and defend net interest margins in a softening rate environment.
Point of View
But the more consequential number is the GNPA ratio at 2.78 per cent — a level PNB has not seen in years after being among the hardest-hit public sector banks in the NPA crisis of the 2010s. The real question is durability: vehicle and MSME loan books are growing fast, and those segments can turn sour quickly in a slowing economy. If the Reserve Bank of India moves toward rate cuts in the second half of FY27, net interest margin compression will test whether this profit trajectory holds. The digital metrics — 365 crore transactions and 270 lakh PNB One users — suggest the bank is building a stickier retail franchise, but monetising that base remains work in progress.
NationPress
18 Jul 2026
Frequently Asked Questions
What is PNB's net profit for Q1 FY27?
Punjab National Bank reported a consolidated net profit of ₹5,339 crore for Q1 FY27 (April–June 2026), a nearly three-fold jump from ₹1,832 crore in the same quarter a year earlier. On a sequential basis, profit rose over 2 per cent from ₹5,225.12 crore in the March 2026 quarter.
How has PNB's asset quality changed in Q1 FY27?
PNB's gross NPA ratio improved by 100 basis points year-on-year to 2.78 per cent as of June 2026. Gross NPAs in absolute terms fell by ₹7,292 crore to ₹35,381 crore, and the net NPA ratio stood at 0.28 per cent.
Which loan segments drove PNB's credit growth in Q1 FY27?
Vehicle loans led growth at 34.4 per cent year-on-year, followed by MSME advances at 19.8 per cent. Overall global advances grew 12.7 per cent to ₹12.73 lakh crore, reflecting broad-based credit expansion.
What is the status of PNB's digital banking operations?
PNB's digital transactions rose 24 per cent year-on-year to 365 crore in Q1 FY27. The bank's PNB One mobile banking app crossed 270 lakh active users during the quarter.
How did PNB shares perform around the Q1 FY27 results?
PNB shares settled 0.75 per cent higher at ₹106.01 on the NSE on Friday, ahead of the results announcement. The stock's 52-week range is ₹98.50 to ₹135.15.
