Punjab National Bank Q2 Net Profit Rises 13% to Rs 5,532 Crore as Bad Loans Fall
Punjab National Bank (NSE:PNB) reported a 13 percent year-on-year increase in net profit to Rs 5,532 crore for the second quarter of FY27. The state-owned lender benefited from a 10 percent rise in net interest income, which reached Rs 11,601 crore, up from Rs 10,517 crore in the same period last year. On a sequential basis, net profit also surpassed the Rs 5,253 crore logged in the previous quarter.
The bank saw significant asset quality gains, with its gross non-performing asset ratio falling 90 basis points to 2.55 percent from 3.45 percent a year earlier. Total gross bad loans declined by Rs 6,153 crore to Rs 34,190 crore. Net interest margin expanded to 2.58 percent, while overall business volume grew 12 percent year-on-year to Rs 31.18 lakh crore, backed by a 9.9 percent expansion in global deposits.
Investors will keep an eye on how the bank manages loan defaults, as its slippage ratio rose slightly to 0.77 percent from 0.71 percent. However, a high provision coverage ratio of 97.32 percent offers a strong cushion against potential bad loans. PNB shares ended 1.09 percent higher at Rs 116.30 following the results.
Key points
- Punjab National Bank recorded a 13 percent year-on-year rise in Q2 FY27 net profit to Rs 5,532 crore.
- Net interest income grew 10 percent year-on-year to Rs 11,601 crore.
- The gross non-performing asset ratio improved to 2.55 percent from 3.45 percent a year ago.
- Global business volume rose 12 percent year-on-year to Rs 31.18 lakh crore.
- The bank's slippage ratio increased slightly to 0.77 percent from 0.71 percent.
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What was Punjab National Bank's net profit in Q2 FY27?
Punjab National Bank reported a net profit of Rs 5,532 crore for the second quarter of FY27, representing a 13 percent growth compared to the same period a year earlier.
How much did PNB's bad loans drop in the September quarter?
PNB's gross non-performing asset ratio fell by 90 basis points year-on-year to 2.55 percent, with total gross bad loans declining by Rs 6,153 crore to Rs 34,190 crore.
What was PNB's net interest income in Q2 FY27?
Net interest income increased 10 percent year-on-year to Rs 11,601 crore, up from Rs 10,517 crore in the July-September quarter of the previous financial year.