PNB ends FY'26 with a record net profit of Rs 16,904 Crore as asset quality and capital strengthen

New Delhi [India], May 5 : Punjab National Bank (PNB) on Tuesday reported its highest-ever annual net profit of Rs 16,904 crore for FY'26, marking a 1.6 per cent year-on-year growth, while Q4 FY'26 net profit jumped 14.4 per cent YoY to Rs 5,225 crore from Rs 4,567 crore a year ago. The performance was driven by improved asset quality, higher operating profit and steady business expansion.

According to a press release by the bank, its operating profit for FY'26 rose 9.2 per cent YoY to Rs 29,290 crore, with Q4 FY'26 operating profit increasing 10.7 per cent YoY to Rs 7,500 crore from Rs 6,776 crore in Q4 FY'25. Return on Assets improved 4 basis points to 1.06 per cent in Q4 FY'26, reflecting better earnings efficiency.

The bank made significant headway on asset quality. Gross Non-Performing Assets (GNPA) declined by Rs 6,958 crore to Rs 37,124 crore as on March 31, 2026, lowering the GNPA ratio by 100 bps YoY to 2.95 per cent. Net NPA (NNPA) fell by Rs 681 crore to Rs 3,610 crore, with the NNPA ratio improving 11 bps YoY to 0.29 per cent. The Provision Coverage Ratio (including TWO) strengthened 32 bps YoY to 97.14 per cent, indicating stronger buffers against potential losses.

On the business front, global business grew 10.7 per cent YoY to Rs 29.70 lakh crore, supported by a 9.2 per cent rise in global deposits to Rs 17.11 lakh crore and a 12.7 per cent increase in global advances to Rs 12.59 lakh crore. RAM advances Retail, Agriculture and MSME grew 12.1 per cent YoY to Rs 6.76 lakh crore, reflecting the bank's focus on diversified lending. Within retail, core retail advances rose 18.2 per cent YoY, with vehicle loans surging 35.1 per cent to Rs 35,199 crore and housing loans growing 11.6 per cent to Rs 1,29,832 crore. MSME advances expanded 19.9 per cent YoY to Rs 1,95,027 crore, while agriculture advances grew 10.7 per cent to Rs 1,99,919 crore.

Deposits also showed healthy traction. Savings deposits rose 6.4 per cent YoY to Rs 5.30 lakh crore, and CASA deposits increased 6.3 per cent YoY to Rs 6.09 lakh crore, taking the CASA share to 37.0 per cent. Total term deposits grew 10.9 per cent YoY to Rs 11.01 lakh crore.

Profitability metrics remained solid. Total income for FY'26 was Rs 1.47 lakh crore, up 6.5 per cent YoY, while non-interest income grew 15.2 per cent YoY to Rs 18,794 crore. Global Net Interest Margin stood at 2.57 per cent for FY'26. Operating expenses declined 2.5 per cent YoY for the full year and 19 per cent YoY in Q4, helping boost earnings. Earnings per share rose 14.6 per cent YoY to Rs 4.55 in Q4 FY'26, and book value per share increased 11 per cent YoY to Rs 114.77.

Capital adequacy improved, with CRAR rising 73 bps YoY to 17.74 per cent as on March 31, 2026, while Tier-I capital strengthened to 15.15 per cent. The Credit-Deposit ratio stood at 73.6 per cent, up from 71.3 per cent a year earlier, indicating efficient deployment of resources.

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