Key Highlights:
- PNB’s Q1 profit fell 48 percent to Rs 1,675 crore due to a sharp rise in tax expenses.
- Total income rose to Rs 37,232 crore, and interest income increased to Rs 31,964 crore year-on-year.
- Asset quality improved, with gross NPAs down to 3.78 percent and net NPAs reduced to 0.38 percent.
Mumbai: Punjab National Bank (PNB), a government-owned bank, reported a big fall in its profit for the April-June quarter of 2025. The bank's net profit came down by 48 percent, dropping to Rs 1,675 crore. This fall happened mainly because of a sharp rise in tax expenses.
Last year during the same quarter, PNB had earned Rs 3,252 crore as profit. Though the bank earned more income this time, its tax payment more than doubled. In the June 2025 quarter, tax expenses jumped to Rs 5,083 crore, compared to Rs 2,017 crore a year ago.
Still, the bank’s total income increased to Rs 37,232 crore, up from Rs 32,166 crore in the same period last year. This includes a rise in interest income, which went up to Rs 31,964 crore from Rs 28,556 crore.
The bank also earned more from its core business. Its operating profit rose to Rs 7,081 crore from Rs 6,581 crore in the same quarter last year.
PNB's financial health improved too. Its gross non-performing assets (NPAs), which show bad loans, dropped to 3.78 percent of total loans. This is better than 4.98 percent reported a year ago. Net NPAs, another measure of bad loans, also came down to 0.38 percent from 0.6 percent.
The bank also kept aside less money for bad loans and other risks. Provisions and contingencies dropped sharply to Rs 323 crore in the June 2025 quarter, compared to Rs 1,312 crore a year ago.
In short, PNB did well in terms of business and loan quality, but higher tax costs reduced its profit.
