Punjab National Bank (PNB) reported a steady rise in profitability for the March quarter, with net profit increasing 14 per cent year-on-year to Rs 5,226 crore, aided by lower provisions and improved asset quality. However, a decline in net interest income (NII) and continued pressure on margins led to a mixed view among brokerages. While firms like Emkay and MOSL remain constructive, Morgan Stanley maintained a cautious stance, highlighting weak core operating trends and expectations of return normalisation going ahead.
Emkay on Punjab National Bank
Punjab National Bank Q4FY26 Result
PNB reported a net profit of Rs 5,226 crore for Q4, up from Rs 4,567 crore in the year-ago period, reflecting strong operational performance. However, net interest income (NII) declined to Rs 10,380 crore from Rs 10,757 crore on a year-on-year basis, indicating some pressure on core income.
On the asset quality front, the bank showed further improvement, with gross non-performing assets (NPA) declining to 2.95 per cent from 3.19 per cent on a sequential basis, while net NPA eased to 0.29 per cent from 0.32 per cent. Provisions also reduced significantly to Rs 906 crore from Rs 1,341 crore quarter-on-quarter, supporting the bottom line.
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