# Punjab National Bank Q2 Net Profit Rises 13% to Rs 5,532 Crore as Bad Loans Fall

- URL: https://stocks.freetheai.org/news/punjab-national-bank-q2-net-profit-rises-13-to-rs-5-532-crore-as-bad-loans-fall-f9e0c7
- Published: 2026-10-17T02:01:31Z
- Category: earnings; sentiment: bullish; impact: medium
- Symbols: [NSE:PNB](https://stocks.freetheai.org/symbols/NSE-PNB)
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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.

## Questions and answers

### 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.