Punjab National Bank Q4 profit rises 12.54 pc; eyes 12-13 pc loan growth in FY27

Mumbai, May 5 (PTI) State-owned Punjab National Bank on Tuesday reported a 12.54 per cent year-on-year rise in its consolidated net profit at Rs 5,225.12 crore in the fourth quarter of the financial year 2025-26, citing a recovery in written-off accounts and a high fee base.

The bank had posted a net profit of Rs 4,642.87 crore in the corresponding quarter of FY25.

On a standalone basis, the net profit grew 14.4 per cent year-on-year to Rs 5,225.11 crore.

“There are two things which has driven to this quarter’s profit, one is that the recovery in the technical write-off that has added in the operating profit, and secondly, fee-based income. Both these have given boost to profit in this quarter,” said Ashok Chandra, managing director and chief executive

officer of Punjab National Bank, told PTI in an interview.

Core net interest income of the bank fell by 3.5 per cent year-on-year to Rs 10,380 crore, from Rs 10,757 crore.

The bank expects that the net interest income will grow by 7 per cent in FY27.

Domestic net interest margins declined to 2.61 per cent in Q4FY26, from 2.65 per cent in the quarter ago period and 2.96 per cent in the year ago period.

Interest income grew to Rs 32,157 crore from Rs 31,989 crore recorded in the fourth quarter of the previous financial year.

Global advances increased by 12.7 per cent year-on-year to Rs 12.59 lakh crore as on March 31, 2026, from Rs 11.17 lakh crore a year ago.

RAM (retail, agriculture, and MSME) advances grew by 12.1 per cent year-on-year to Rs 6.76 lakh crore in Q4FY26, from Rs 6.03 lakh crore in the same quarter last year.

In the reporting quarter, total retail credit increased by 8.3 per cent year-on-year to Rs 2.81 lakh crore.

Core retail advances increased by 18.2 per cent year-on-year. Within the core retail credit segment, housing loan grew by 11.6 per cent year-on-year to Rs 1.29 lakh crore, and vehicle loans posted a growth of 35.1 per cent to reach Rs 35,199 crore.

Agriculture advances grew by 10.7 per cent to Rs 1,99,919 crore, and MSME advances increased by 19.9 per cent to Rs 1.95 lakh crore, the bank said in a release.

Chandra said that the bank expects the RAM segment should contribute 60 per cent to the credit and 40 per cent is expected from corporate loan. “As of today, it (RAM) is 54 per cent, and we are planning that by the end of this financial year, at least 57-58 per cent contribution should come from RAM of credit.” On the corporate pipeline front, Chandra said that in FY26, the bank had sanctioned Rs 4 lakh crore of corporate loans. Of this, Rs 1.80 lakh crore disbursement is still pending. “This year, already around Rs 30,000-35,000 crore we have sanctioned in the month of April. So we have a very good pipeline for the corporate credit.” On the asset quality front, the bank’s gross Non-Performing Assets (NPAs) improved to 2.95 per cent of gross advances as compared to 3.95 per cent by the end of March 2025. Similarly, net NPAs came down to 0.29 per cent from 0.4 per cent.

Chandra added that the bank do have the exposure of Rs 3,800 crore to the West Asia, but do not find any stress on the books. The bank has done two rounds of webinar with all these exporters and importers who are doing business in the entire Middle East.

“As of now, there is no challenge in any of my book now. Even there is no stress also. So, people are able to manage as of now,” he added.

CRAR of the bank increased to 17.74 per cent as on March 31, 2026, from 17.01 per cent a year ago, showing an improvement of 0.73 per cent.

The board also recommended a dividend of Rs 3 per equity share for FY 2025-26, subject to approval of shareholders at the ensuing Annual General Meeting of the bank.

Shares of Punjab National Bank closed 0.83 per cent down at Rs 107.90 apiece on the BSE, while the broader Sensex ended 0.3 per cent down at 77,017.79. PTI MSU HVA