Punjab National Bank (PNB) has announced its financial performance for the quarter ending September 2025. The bank’s net profit saw a 14% increase, reaching Rs 4,904 crore in Q2 FY’26, compared to Rs 4,303 crore in the same period the previous year. Operating profit for Q2 FY’26 stood at Rs 7,227 crore, while for the first half of FY’26, it was Rs 14,308 crore, marking growth rates of 5.46% and 6.51%, respectively.

PNB’s net interest income for the first half of FY’26 was reported at Rs 21,047 crore, reflecting a modest year-on-year growth of 0.26%. The bank’s total income for Q2 FY’26 amounted to Rs 36,214 crore and Rs 73,445 crore for HY1FY’26, showing increases of 5.1% and 10.3%, respectively. Meanwhile, total interest income reached Rs 31,872 crore in Q2 FY’26 and Rs 63,835 crore for HY1FY’26, with growth rates of 6.7% and 9.2%, respectively.

The bank’s interest expenses for Q2 FY’26 were Rs 21,403 crore, while they were Rs 42,789 crore for the first half of FY’26. These figures represented year-on-year growth of 10.6% and 14.3%, respectively. Operating expenses decreased by 7.9% year-on-year to Rs 7,584 crore in Q2 FY’26 from Rs 8,235 crore in Q2 FY’25.

PNB reported an improvement in its Return on Equity (RoE), which rose to 17.95% in Q2 FY’26 from 12.63% in HY1FY’26. The Return on Assets (RoA) also increased slightly to 1.05% from the previous year’s figure of 1.02%. The bank’s Net Non-Performing Assets (NNPA) reduced by Rs 648 crore to Rs 4,026 crore as of September 2025 from Rs 4,674 crore a year earlier.

Gross Non-Performing Assets (GNPA) also saw a decline by Rs 7,239 crore to reach Rs 40,343 crore as of September 2025 from Rs 47,582 crore as of September the previous year.

Deposit Growth and Advances

Current deposits grew to Rs 74,215 crore in Q2 FY’26, marking a year-on-year increase of 9%. Savings deposits rose to Rs 5,08,964 crore with a growth rate of 4.2%. CASA deposits increased by 4.7% year-on-year to reach Rs 5,83,178 crore. The CASA share improved by 30 basis points to stand at 37.29% as of September.

Total term deposits saw a significant rise of 14.7% year-on-year to reach Rs 10,33,902 crore during the reviewed quarter.

Branch Network and Distribution

As of September end, PNB operated two international branches alongside its extensive domestic network comprising of 10,228 branches. Of these domestic branches, approximately 63.3% are located in rural and semi-urban areas.

The bank’s distribution network included a total of 53,693 touchpoints by the end of September. This network consists of Business Correspondents (BCs) numbering at 32,278 and ATMs totaling at 11,187.

The bank’s retail credit portfolio expanded by an impressive rate of 8.8% year-on-year to reach Rs 2,72,210 crore as on September end.