Punjab National Bank Posts Record Q2 Net Profit Above ₹5,500 Crore

Punjab National Bank (NSE:PNB) reported a record quarterly net profit exceeding ₹5,500 crore for the second quarter of FY27, reflecting an increase of nearly 13% year-over-year. The state-owned lender achieved profit growth alongside improvements in asset quality, even as lower treasury income limited operating profit growth to under 5%. Treasury gains fell to ₹753 crore during the quarter, down from ₹1,769 crore in the same period last year.

To capitalize on ongoing stock market volatility, the bank is launching a campaign for a special recurring deposit scheme to provide depositors with assured returns. Additionally, asset quality strengthened as gross non-performing assets declined to 2.55% of gross advances at the end of September 2026, compared to 3.45% a year earlier. Net non-performing assets dropped to 0.25% from 0.36%. The bank also set aside a floating provision of ₹125 crore in the quarter, bringing total floating provisions to ₹2,560 crore ahead of expected credit loss guidelines taking effect on April 1.

Looking ahead, Punjab National Bank expects full-year credit growth of 13% to 14%, above its previous target range of 12% to 13%. Recent interest rate increases are expected to expand net interest margin by 6 to 7 basis points in the current quarter, with full-year global net interest margin targeted around 2.7%. The bank is also preparing to raise $1 billion through a Medium-Term Note program from overseas investors when market conditions permit.