Punjab National Bank Q2 FY27 result: Net profit jumps 13%; NII grows to ₹11,601 crore YoY

The public sector lender’s net interest income (NII) for Q2 FY27 rose 11% year-on-year (YoY) to ₹11,601 crore as against ₹10,469 crore in Q2 FY26. Its operating profit for the quarter under review stood at ₹7,532 crore, marking a jump of 4.2% YoY from ₹7,227 crore seen in the same quarter of the previous fiscal year.

PNB reported a net interest margin (NIM) of 2.58% for Q2 FY27, compared to 2.5% in the previous quarter of the current year.

As of September 30, 2026, the lender’s gross non-performing assets (NPA) ratio stood at 2.55%, improving from 2.78% on a sequential basis.

The net NPA ratio also improved marginally to 0.25% on a quarter-on-quarter (QoQ) basis, compared to 0.28% at the end of the previous quarter.

Punjab National Bank’s provision coverage ratio, including technical write-offs (TWO), improved by 41 basis points YoY to 97.32% as of the September quarter, compared with 96.91% in Q2 FY26. The slippage ratio stood at 0.77% in Q2 FY27, compared with 0.71% YoY.

Q2 deposit updates

The lender’s savings deposits increased 6.7% annually to ₹5,42,893 crore, while current deposits rose 12% to ₹83,053 crore as of September 2026.

Its current account savings account (CASA) deposits grew 7.3% yearly to ₹6,25,945 crore. CASA deposits accounted for 36.6% of the bank’s total deposits as of September 2026, PNB said.

Q2 FY27 advances updates

PNB’s retail advances, excluding IBPC, recorded an annual growth of 16.3%. Housing loans increased 14.3% year-on-year to ₹1,41,836 crore, while vehicle loans grew 29.6% to ₹38,234 crore.

Agriculture, a priority sector, advanced 18.1% YoY to ₹1,71,156 crore. Advances to the micro, small and medium enterprises (MSME) sector increased 19.8% to ₹2,14,619 crore annually.

PNB’s global updates

For Q2 FY27, the PSU’s global NIM improved to 2.58% from 2.50% quarter-on-quarter (QoQ). The bank’s global business grew 11.9% YoY to ₹31,18,434 crore as of September 2026, compared with ₹27,86,673 crore a year earlier.

Global deposits increased 9.9% YoY to ₹17,77,240 crore as of September 2026, compared with ₹16,17,080 crore in Q2 FY26. Global advances surged 14.7% year-on-year to ₹13,41,194 crore from ₹11,69,592 crore in the year-ago period.

On Friday, Punjab National Bank’s shares settled at ₹116.30 apiece on the National Stock Exchange, rising 1.09%. The earnings, however, came after the market hours. As of October 16, the lender has a total market capitalisation of ₹1.34 lakh crore.