Punjab National Bank Posts Strong Q3 FY26 With ₹5,100 Crore Profit, Income & Asset Quality Trend Up

Mumbai: Punjab National Bank reported a sharp improvement in performance in the third quarter of FY26, with standalone net profit rising to Rs 5,100.15 crore, compared with Rs 4,903.73 crore in Q2 FY26 and a loss of Rs 285.40 crore in the year-ago quarter. Total income increased sequentially to Rs 37,253 crore, reflecting sustained improvement in asset quality and operating efficiency.

The country’s second-largest public sector lender by assets continued its recovery momentum in Q3 FY26, supported by steady interest income, controlled expenses and lower credit costs. Total income rose to Rs 37,253.08 crore in the December quarter from Rs 36,213.62 crore in the September quarter and Rs 34,751.70 crore in Q3 FY25. Interest earned remained stable on a sequential basis and registered year-on-year growth, aided by improved yield on advances.

Operating expenses remained under control, while provisions declined sequentially, reflecting improved asset quality. Gross non-performing assets declined to Rs 3.93 lakh crore at the end of December 2025 from Rs 4.03 lakh crore in the preceding quarter and Rs 4.54 lakh crore a year earlier. The net NPA ratio remained stable at 0.77 percent, underscoring balance sheet resilience.

Sequential growth builds

On a quarter-on-quarter basis, profit rose by Rs 196 crore, driven by lower provisioning requirements and stable operating income. The bank also made a floating provision of Rs 955 crore during the quarter, taking total floating provisions to Rs 1,775 crore. Provision Coverage Ratio, including technical write-offs, improved to 96.99 percent as of December 31, 2025, compared with 96.77 percent a year earlier.

Key drivers and balance sheet strength

Capital adequacy remained comfortable, with the CET-1 ratio above regulatory requirements. The bank continued to maintain additional buffers for stressed and restructured accounts, including MSME and project finance exposures, in line with RBI guidelines. Management indicated that the focus remains on sustaining profitability while further strengthening asset quality.

Nine-month performance

For the nine months ended December 31, 2025, Punjab National Bank reported cumulative standalone profit of Rs 12,063.20 crore, compared with Rs 4,908.21 crore in the corresponding period last year. Total income for the nine-month period rose steadily, reflecting consistent quarterly improvement and reinforcing the bank’s turnaround trajectory.

Disclaimer: This news report is based on unaudited standalone financial results released by the company. Figures are subject to limited review and regulatory filings, and may change upon audit or subsequent disclosures.