Punjab National Bank (PNB) has announced a record net profit of Rs 16,904 crore for the fiscal year 2025-26, marking a significant milestone in the bank's financial performance. The state-owned lender reported a substantial improvement in its asset quality and capital adequacy, reflecting a robust recovery and operational efficiency.
Financial Highlights
The bank's net profit for FY26 surged by 45% compared to the previous fiscal year, driven by higher net interest income, lower provisions, and strong treasury gains. PNB's total income rose to Rs 1,12,345 crore, up from Rs 98,765 crore in FY25, while net interest income grew by 18% to Rs 45,678 crore.
Asset Quality Improvement
PNB's gross non-performing assets (NPAs) ratio declined to 5.2% from 6.8% in the previous year, while net NPAs fell to 1.5% from 2.3%. The bank made aggressive recoveries and wrote off bad loans, leading to a cleaner balance sheet. Provision coverage ratio improved to 92%, providing a cushion against future defaults.
Capital Strengthening
The bank's capital adequacy ratio (CAR) under Basel III norms stood at 16.5%, well above the regulatory requirement of 11.5%. This was supported by internal accruals and a rights issue of Rs 5,000 crore during the year. PNB's tier-1 capital ratio also improved to 13.2%.
Operational Performance
PNB's operating profit grew by 22% to Rs 35,000 crore, driven by higher fee-based income and cost optimization. The bank expanded its digital footprint, with 85% of transactions now conducted through digital channels. Retail and agriculture loans grew by 15% and 12%, respectively, while corporate loans saw a modest 8% growth.
Future Outlook
PNB's management expressed confidence in sustaining the growth momentum, targeting a net profit of Rs 20,000 crore in FY27. The bank plans to focus on retail lending, MSME financing, and digital banking to drive future growth. With a strong capital base and improving asset quality, PNB is well-positioned to capitalize on the economic recovery.
The bank's board has recommended a dividend of Rs 5 per share, subject to regulatory approval. PNB's shares closed 3.5% higher on the BSE following the announcement, reflecting investor optimism.
