PNB Q4 Results: Stock falls as slippages rise; FY27 credit growth seen between 12-13%

State-run lender Punjab National Bank Ltd. (PNB) reported results for the March quarter on Tuesday, May 5, which resulted in the stock selling off after slippages increased on a sequential basis.

At the end of the March quarter, fresh slippages for PNB increased to ₹2,758 crore from ₹1,901 crore in the December quarter.

Net Interest Income (NII) or core income for the quarter declined by 3.5% to ₹10,380 crore compared to ₹10,757 crore during the same quarter last year.

Net profit for the quarter stood at ₹5,225 crore, which is an increase of 14% compared to the year-ago quarter's figure of ₹4,567 crore.

PNB's asset quality remained largely stable from the December quarter. Gross NPA stood at 2.95% from 3.19% in December, while net NPAs stood at 0.29% from 0.32% in the previous quarter.

Provisions for the quarter saw a significant decline to ₹424 crore from ₹1,150 crore during the previous quarter. The significant decline in provisions contributed to the growth in PNB's profitability, despite the fall in core income.

Domestic Net Interest Margins (NIMs) at the end of the quarter narrowed to 2.61% from 2.86% last year.

Here's what PNB has guided for financial year 2027 across parameters:

• Credit growth likely to be between 12% to 13% compared to the FY26 guidance of 11% to 12%.


• Deposit growth guidance for the new year unchanged at 9% to 10%


• Net Interest Income likely to grow at 7%, same as FY26, guidance for which was missed last year.


• Net Interest Margins likely to range between 2.6% to 2.7%, narrower than the FY26 band of 2.8% to 2.9%.


• While Gross NPAs are seen lower than 2.5%, Net NPAs are seen lower than 0.3%.

Last month, the lender in its business update, reported steady growth with expansion across deposits, loans and overall business.

PNB's total global business increased 10.79% from the previous year and 2.81% sequentially to 29.72 lakh crore. Its total global deposits were up 9.25% from the previous year to 17.1 lakh crore while its gross advances increased 12.97% to 12.61 lakh crore.

On the domestic front, PNB's total business increased 10.39% to 28.45 lakh crore. Domestic deposits were up 9.14% at 16.49 lakh crore while gross advances jumped 12.17% to 11.95 lakh crore.

The lender's CASA ratio improved to 73.7% in the fourth quarter from 71.28% in the year-ago period.

Shares of PNB fell as much as 2.5% after the earnings announcement but are now looking to recover from the lows of the day. The stock now trades 1% lower at ₹107.58.

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